Work break down structure, negotiating and administering contracts - Essay Example

WORK BREAKDOWN STRUCTURE, NEGOTIATING AND ADMINISTERING CONTRACTS Introduction A work breakdown structure (WBS) refers to a deliverable oriented, hierarchical break down of the work to be executed by a project team in order to accomplish the project’s objectives, and create the required deliverables. As the definition suggests, it has numerous roles. To begin with, it enables individuals to determine the purpose and size of a project. The tree structure enables managers to be able to view the project in terms of tasks and the amount of effort required to achieve them (Edward, 2001).

It also defines objectives, clearly separating the essential from the redundant ones; thus, scrapping those deemed useless. Finally, work breakdown structures help in assigning responsibilities, allocating resources, monitoring and controlling the project. The objectives are better defined on a work business structure; thus, better estimates of cost, time and risk can be made. Discussion Work business structures can make contracting a whole lot easier because of the qualities enumerated above.

First, the work business structure gives a precise picture of the amount of resources required in an organization. Consequently, these can be taken into consideration during procurement. The resources in their right amounts and quality determine the success of a project. Their timely delivery is also important for the objectives of the project to be achieved (Thai, 2008). The work breakdown structure also ensures that no necessary resources are left out during contracting. In an organization where responsibilities are not clearly distinct, it is easy to find redundant positions or even less productive positions.

These can be identified and resources redirected to more demanding positions. As far as drafting and negotiations of contracts is concerned, a work business structure is also very relevant. The amount of responsibility accumulated in a specific position is easily measurable. This simplifies the mode of determining how to pay for it. It also breaks down responsibilities to their simplest form (Edward, 2001). This helps determine positions that are least productive. Consequently, decisions can be made on whether to scrap them or merge them with other less demanding positions.

The work breakdown structure will also give good estimates on cost, risk and time. This enables the organization to invest adequately in the most sensitive areas of the business. It also highlights all areas of the organization and enables attention to be paid to each. Generally, the work business structure is extremely essential in measuring what is achieved in an organization (Thai, 2008). In terms of contract administration, it is the guide to what is required, and how much value is realized by various investments.

The procurement management process involves criteria by which goods are purchased from suppliers. The procuring party can be a person, a company or even a government. The procurement process especially for large organizations and even government is usually a very sensitive process (Haugan, 2003). The problem that commonly arises is that procurement officers like to manipulate the process to serve their own selfish interests. To curb this problem, as a chief contracting officer in my organization, my first act is to identify the need.

In identifying the need, it is advisable to liaise with the officers in various departments who seek to make purchases. They should provide detailed inventories of the products they need. It is also advisable to make huge procurement at a go so as to save the organization money. Frequent procurement exposes the company to hazards such as delayed deliveries. After identifying the need in question, the next process in the procurement process is considering the law or other governing statutes that relate to procurement.

Haugan (2003) claim that, it is advisable to seek the guidance of the law since the smallest mistakes can usually attract huge consequences. In fact, it is better safe than sorry. The next step entails placing a procurement advertisement. This notifies interested suppliers about the customers’ need. It also exposes the process too many suppliers, thus ensuring the competition for the tender drives the prices down considerably when the time for negotiations comes. It also proves that the company is transparent in its dealings; hence, building a favorable image.

Incase the product had been purchased previously from the same supplier; the same purchasing requisition should be sent to the company. On the other hand, when dealing with a new supplier, send them a purchase order to find out about the product they are willing to deliver (Edward, 2001). In the order, a request for quotation should be included. This usually entails determining price, the time for delivery and the quantity required. The next imperative stage involves selecting a supplier. Thai (2008) states that, when selecting a supplier, several things should be taken into consideration.

It is vital to keep in mind that it is essential for the organization to obtain the highest quality products at a favorable price, and in the shortest time possible. These are the three variables that any procurement officer should always look out for. The contract is then issued to the best bidder. Depending on the product on order, the organization might decide to seek the assistance of a specialist. If buying drugs, for example, drug enforcement agencies should be contacted. Their job is to ensure that these products of a sensitive nature are of the right concentration, quality, and are accepted by law.

This should be done since some drugs are banned in some countries because of various reasons such as protecting their citizens from counterfeit drugs. Other organizations that can be contacted include tax authorities to ensure that tax requirements are fully met (Haugan, 2003). At the time of delivery of goods or services, the contract demands must be followed strictly. Are the goods or services delivered of the required quality? Were they delivered within the agreed timelines? All these should be adhered to before any payments are made.

If not, the right legal course should take place. Conclusion In conclusion, the procurement process varies from organization to organization. However, its central aspects remain the same. These include the three variables of price, delivery date and quality of goods or services ordered. These have to be adhered closely to ensure the company gets most value. The need to keep the process open to competitive bidding should also be overemphasized. References Edward, J. (2001). Guide to Contract Pricing: Cost and Price Analysis for Contractors, Subcontractors, and Government Agencies.

Washington: Management Concepts Inc. Haugan, G. (2003). Project Management Fundamentals: Key Concepts and Methodology. Washington: Management Concepts Inc. Thai, K.V. (2008). International Handbook of Public Procurement Series. Washington: Auerbach Productions. Project Management Professional (2010). In Project Management Knowledge. Accessed 23 April 2012 from http://project-management-knowledge.com/definitions/p/project-management-professional/