Project Procurement Management is part of the project management process in which products or services are aquired or purchased from outside the existing employee base (which would work on the project) in order to complete the task or project. There are essentially two different types of procurements, one in which the company is responsible for the particular product or service under a legal contract, this PPM includes contract management responsibilities that issue specific tasks to various team members. Both of these project management processes are imperative to a company’s success.
Project Procurement Management can also include responsibility of the contracts in which the buyer that is hired for this particular project is performing the task for a certain seller, this contract is placed between the one providing a service and the particular team that was responsible for completion of this project.
PPM includes a variety of tasks including the planning process where one decides what to acquire or purchase and how they will do so. Next, they plan the contract which provides a legal document of the exchange. After the legal documents are drafted, the seller can respond with variety inquiries such as a bid or proposal. After these answers are feeded back to them, they will review the various offers and choose whom will be awarded the project. The most important process of Project Procurement Management includes project management relations between both the buyer and seller via the contract. The closure of the contractor sets the project in motion.
This term is defined in the 3rd and the 4th edition of the PMBOK.