TRADITIONAL KNOWLEDGE AREA
Procurement management
Not a standalone domain: Appendix X4 details sourcing and contracts; Governance, Resources, Finance, and Risk carry related project decisions.
The Eighth Edition groups content differently. Related topics can appear in several domains and chapters.
Understand the area
Procurement is developed in Appendix X4 and interconnects with governance, finance, resources and risk. Decide whether to make or buy, choose sourcing and selection criteria, understand what risks a contract allocates, and actively manage supplier performance and claims. The lowest quoted price need not be the best value.
Work through a project
Compare fabricating a certified terminal in-house with buying from a qualified supplier. Assess approvals, traceability, lead time, warranties, commercial terms and inspection rights. Track contractual acceptance and site acceptance as distinct events.
Check your reasoning
- What capability or risk justifies make versus buy?
- Which selection criteria should be agreed before bids arrive?
- Who carries each contract risk and what evidence supports a claim?