In order to receive proof of CEU credits, you must watch this presentation in its entirety and complete the survey.
Level: Intermediate
TCM Section(s):
2.4. Project Control Process Map
7.7. Procurement Planning
Venue: 2020 AACE International Conference & Expo
Abstract: Project controls needs real-time, accurate and complete project data to be truly effective.A significant percentage of the costs and activities of most construction projects, however, is commonly held in the purchase orders and subcontracts owned by a separate procurement department.The challenge with this is, when project procurement is not a cohesive part of the project team, it introduces a disconnect and silo-effect that causes information delays, uncertainty and a lack of complete project visibility. This disconnect can be eliminated by integrating procurement directly into the project team and its project controls systems.This not only provides real-time cost visibility, it also delivers key data on accruals, vendor performance, vendor progress, vendor trends and forecasts.It additionally reduces legal risks that can arise due to knowledge gaps within a corporate procurement department that is not deeply familiar with the nuance of construction project procurement and contract management.This paper will explore the importance of tightly connecting project procurement with project controls to reduce risk and gain a complete, holistic picture of the project in real-time.The concepts are drawn from many years working with organizations delivering major projects and the tangible results of rethinking the project-procurement relationship.
TCM Section(s):
2.4. Project Control Process Map
7.7. Procurement Planning
Venue: 2020 AACE International Conference & Expo
Abstract: Project controls needs real-time, accurate and complete project data to be truly effective.A significant percentage of the costs and activities of most construction projects, however, is commonly held in the purchase orders and subcontracts owned by a separate procurement department.The challenge with this is, when project procurement is not a cohesive part of the project team, it introduces a disconnect and silo-effect that causes information delays, uncertainty and a lack of complete project visibility. This disconnect can be eliminated by integrating procurement directly into the project team and its project controls systems.This not only provides real-time cost visibility, it also delivers key data on accruals, vendor performance, vendor progress, vendor trends and forecasts.It additionally reduces legal risks that can arise due to knowledge gaps within a corporate procurement department that is not deeply familiar with the nuance of construction project procurement and contract management.This paper will explore the importance of tightly connecting project procurement with project controls to reduce risk and gain a complete, holistic picture of the project in real-time.The concepts are drawn from many years working with organizations delivering major projects and the tangible results of rethinking the project-procurement relationship.