Contracting and Procurement in Project Management- Phase 2 DB Essay

Contracting and Procurement in Project Management- Phase 2 DB - Essay Example ACME Development Corporation (ADC) wants to buy the scheduling tool from any software company. The first step in creating a contract is to make sure that both companies are talking regarding the identical deal, in this way when they would consequently have the same opinion to enter into the contract they would mutually agree to the similar thing. When the ACME Development Corporation (ADC) and software development company had a "meeting of the minds" as to the contract, they have to trade something of value in order to turn out a contract. Frequently Software Developer Company offers its services in exchange for the cash of the ACME Development Corporation. But forethought can take a lot of other forms, as long as every company is giving up something of worth to it to convince the other company to go into the agreement. Once both ACME Development Corporation and Software Developer Company understand the deal and recognize what kind of deliberation will be substituted by each company, then they would be ready to prepare a contract. Typically the companies disclose that negotiations are ended and a contract would be attained when the companies sign the contract. In this section I will try to incorporate contracting and procurement activities into an overall project cost and schedule. The Project Management Body of Knowledge (PMBOK) established six procedures/states for the Project Procurement Management and contracting between our company and Software Developer Company will discuss in the proceeding section in relation to our buying scheduling software and other above stated equipment. This is the first process in which we will determine the software development organization’s services and purchasing process plan. We also select the type of contract through which we will deal with other company. In the next phase we will place our contract details for purchasing the equipment and services and