Book review: Project procurement management; contracting, subcontracting and teaming

This book provides a clear understanding of procurement management within projects. Recalling from the chapters, each meticulously crafted to explore various facets of procurement, from the foundational concepts to the complexities of contract administration. It is such a valuable resource for both seasoned project managers and those new to the field, as it offers insights into best practices and strategies for effective procurement. One question one might probably ask is: why review this book, especially now! Considering how crucial procurement practices are becoming to effective project management, reviewing the book is essential for different stakeholders involved in the project life cycle and those interested to learn more in the field, from researchers, higher learning students, academicians, and practitioners in the field of project management. For readers and researchers, this book review synthesizes key concepts and insights from the book, providing a comprehensive overview of critical procurement management issues in relation to the obvious project complexities. From knowledge to a practical base, this highlights the evolving nature of project management, like dealing with external resources like suppliers, and the significance of strategic decision-making in procurement processes. On the other hand, higher learning students may benefit from this review as it acts as a guide to understanding fundamental procurement principles. It prepares learning students for real-world applications by elucidating critical themes such as the distinction between “Make” and “Buy” decisions, risk management, and legal considerations. This knowledge is crucial for students aspiring to enter the field of project management. From the exploration of theoretical frameworks, academicians will also find the review valuable to them. It encourages further research into procurement management, fostering academic discourse and innovation within the discipline. The review also serves as a practical resource for practitioners, as it summarizes best practices and strategies that can be directly applied to enhance procurement processes in their projects.

Starting with chapter one. This chapter starts by answering this question, “What is Project Procurement Management?” The chapter provided a comprehensive overview of the importance and processes involved in acquiring goods, works and services for project success. The emphasis is given on the increasing need for external resources, like suppliers, contractors and subcontractors, in modern projects. The chapter exemplified the advantages of sourcing technical expertise from other firms instead of building in-house capabilities, which is one of the critical aspects to be considered in project procurement management. The chapter highlights that outsourcing specific project scope allows companies to expand their intellectual base and mitigate risks, thus enhancing the project's chances of success. Building on this understanding, the narration provided in the chapter also aligns with those by Ford and Farmer (1986), especially in drawing the line between “make” and “buy”. This very chapter underscores that while the internal work can be adjusted by senior management, external procurements are bound by legal contracts that make adjustments more costly and complex. This distinction is critical as it dictates the way project managers must approach internal versus external tasks and the constraints they face in managing the relationships. The chapter, on the other hand, also discusses the role of the project manager in managing both internal and external relationships, as narrated by Patrucco et al. (2018). This role is challenging as it involves coordinating with customers and suppliers, ensuring that the scope of work is delivered as per prior established agreements, and managing the legal and contractual aspects effectively. Finally, the chapter touches on the delegation of procurement authority, explaining that most project managers do not have the authority to make purchases directly. Instead, they work with specialized procurement professionals who adhere to the company's policies to ensure the long-term viability of supplier relationships. In a nutshell, the chapter provides a clear understanding of the complexities involved in project procurement management, emphasizing the importance of proper legal documentation, clear delegation of authority, and the project manager's dual role in managing both internal and external project work.

In chapter two, this chapter, based on their complexity, risk, and importance to a project, it discusses the different categories and types of procurements. The rationale behind this categorization of procurements is to ensure that each type is well managed according to its specific characteristics, like as complexity, risk, and the need for specialized oversight. As the chapter introduces several categories and types of procurements, it provides narrations on major (high-risk) complexity procurements, minor (low-risk) complexity procurements, routine buys of commercial-off-the-shelf (COTS) Items or purchased services, special procurements: performed under strategic company teaming agreements and special procurements. The key takeaway here is that categorizing procurements as such allows for tailored management strategies, focusing attention on the most critical and complex items, to ensure continuous improvement and while ensures that simpler, routine procurements are handled efficiently. This is also well discussed and narrated by Flumerfelt (2020) and Adebayo et al. (2024).

As for chapter three, this chapter describes the process of planning for the procurement of the project scope, emphasizing its critical importance in project management. The chapter portrays that proper procurement planning can lead to the creation of a procurement management plan, narrating why this is also crucial for effective project management, this is also well discussed by Buzzetto et al. (2020). The author also linked this with the illustrated aspects involving make-or-buy decisions. The chapter also narrated on defining project scope and how to avoid scope creep in project management, provided a clear understanding on work breakdown structure (WBS) with reference to project scope, and makes or buys analysis. The chapter also provides understanding on late identification risks, and market availability and matching requirements.

In chapter four, this chapter hints on corporate teaming agreements, it provide an in-depth exploration of strategic alliances between firms, especially with reference to large projects where there is a possibility for multiple companies to collaborate. The analogy here to arranged marriages effectively highlights the often top-down nature of the agreements, where decisions are made by executives, leaving the operational teams with little influence over the partnership. The chapter illustrates how these arrangements, despite appearing rigid, definitely have a history of success, especially in large-scale industries like information technology outsourcing. The chapter also emphasizing on the importance of legal contracts that define responsibilities, roles, and risk-sharing between the partners. Additionally, the chapter delves into the different models of teaming agreements, clearly noted on the “superior-subordinate” relationship, where clear lines of authority and accountability are established, this is also narrated by Elmuti and Kathawala (2001) and Baker et al. (2002).

As for chapter five, this chapter is basically about Management of project procurement risks. It outlines the importance of risk management in project procurement, emphasized on the need for a comprehensive approach that addresses all potential project procurement risks – whether associated with “make” (internal work) or “buy” (procured work) activities. The chapter stipulates that risks should not be viewed in isolation but as interconnected across technical, schedule, and cost constraints. As illustrated by Levene and Lewis (2015) and Sassaoui et al. (2023), who provided clear narrations revolving around three headings: cost, quality and schedule constraints in project management. The text also highlights various methods for risks identification, including using a work breakdown structure (WBS), which is useful to dissect the project into manageable components, brainstorming sessions for gathering a wide range of potential risks, and the use of the Delphi technique to gather consensus from a panel of experts. The chapter also discusses the practical challenges of risk management, like the need for early identification and funding to mitigate risks, the potential for redundancy strategies (i.e duplicating critical tasks), and the role of procurement in managing project risks. The chapter is concluded by reinforcing the idea that managing project risks, particularly in procurement, requires a proactive, structured approach to avoid unnecessary project failure and to ensure attainment of project objectives despite uncertainties.

Chapter six provides discussion on managing project procurements. The chapter highlights the importance of procurement in project management, stating that the success of a project depends on securing the right goods and services in a timely manner. This chapter divides procurements into three specific categories based on complexity and risk: major (high-risk) procurements, minor (low-risk) procurements, and routine buys. It provides a ten-step framework for managing procurements effectively. The understanding presented in this chapter is in line with that of Garvin (2009), coupled with the narration provided by Buzzetto et al. (2020). In this chapter, the discussed steps range from the initial “make or buy” analysis to the preparation of a procurement management plan. The chapter emphasizes that while routine procurements may seem less complex, they still require proper planning to ensure that they entirely support the project's objectives. By adhering to the outlined steps, project managers can ensure smooth procurement processes and avoid legal complications, and enhance project success.

In chapter seven, this chapter outlines important insights into procurement planning, focusing on the on execution of a procurement management plan in project management. The key points outlined in this chapter include the importance of planning: the opening quotes from Kipling, Eisenhower, and Archibald emphasize that while plans may not always be perfect, the process of planning is very critical. The successful procurement management, particularly in projects, requires thorough planning, safe in the knowledge to mitigate risks and ensure effectiveness of the deliverables. Also emphasized on procurement phases, also narrating that project procurement follows three stages: defining what to buy, selecting a seller, and executing the contract. A well-documented procurement plan is essential for each phase to avoid chaos and risks in project execution, defining scope (what to procure), scheduling (when to procure), and aligning this with the costing aspects of the project.

In chapter eight, this chapter outlines key considerations in planning for project procurement solicitations. It emphasizes the importance of clearly defining what is to be procured to avoid discrepancies between expectations and seller proposals. The text in this chapter also discusses the importance of understanding the influence of prime contracts and special provisions related to procurement, like the requirements for using small or disadvantaged businesses. Additionally, the buyer's approach to procurement – whether through advertising, solicitation, negotiation, or competition – is well-positioned in this chapter. The chapter concludes by stressing the challenge of defining both the “business” and “technical” aspects of the procurement, specifically when dealing with complex, custom-developed products.

In chapter nine, the chapter discusses key legal aspects of project procurement management, particularly the distinction between “make work” and “buy work” and the legal implications of each. The chapter emphasizes the importance of understanding basic legal concepts, particularly contract law, for project managers. While project managers don't need to be attorneys, they must have a foundational understanding of legal terms and concepts. Contract Law is discussed as critical in procurement management, as every procurement represents a contract. The section also covers agency law, portraying the relationship between a principal (e.g. project manager) and an agent (someone authorized to act on their behalf). The chapter explains different types of authority granted to agents, like “express” authority (clearly stated in writing or speech), “implied” authority (assumed as part of the job), and “apparent” authority (where someone may act with authority based on their role or the circumstances).

As in chapter ten, the chapter on the solicitation of supplier proposals outlines an essential step in the procurement process. In the chapter, solicitation as a step is explained to take place after the project's requirements are defined and invitations or requests are sent to potential suppliers, and before their responses are received. The primary goal of the solicitation process is to secure responses that satisfy the project's purchasing needs. The solicitation process involves various methods here, that include invitation for bids, requests for proposals (RFPs), requests for quotations, and other solicitation methods. The choice of method is explained to depend on the complexity of the procurement, with RFPs often being used for larger and more complex procurements, as illustrated by Chiang (2014).

In chapter eleven, the chapter is about “Source Selection Leading to a Contract Award”, which discusses the critical process of evaluating supplier proposals and awarding contracts. The chapter outlines the necessary steps, beginning with the review of the responses from potential suppliers, followed by a thorough evaluation to determine the most suitable contract award. The chapter emphasized the importance of avoiding even the perception of favoritism, as subtle actions like accepting gifts or attending social events with suppliers can create the impression of improper influence. This highlights the need for transparency in the procurement process, as critically illustrated by Curry (2010). This chapter also covers various analytical methods used in source selection, like price analysis, cost analysis, and independent cost estimates.

As on chapter twelve, this chapter provides a comprehensive overview of project procurement management, particularly focusing on contract administration and the importance of planning in procurement. The chapter emphasizes that procurement management begins long before a contract is awarded, specifically at the point when the “make or buy” decision is made, as illustrated on earlier chapter, dictating whether portions of the project will be completed in-house or outsourced. A key aspect highlighted in the chapter is the management of procurement contracts, including the critical tasks of monitoring suppliers' performance and managing changes to the contract's baseline. The author in this chapter provided an in-depth understanding on the importance of using Earned Value Management (EVM), as this is used as a tool to track procurement progress in project management.

Chapter thirteen discusses various stages of contract closure in procurement management. It highlights the complexities involved in finalizing a procurement agreement. The chapter touches upon close-out of contracts, and termination of contractual relationships (termination for cause or default, termination for convenience of the buyer. The chapter also provided a discussion on the absolute right to terminate, notice of termination and closing out a project. The key takeaway in this chapter is that the proper closure of contracts and resolution of claims in procurement management are essential for preventing future complications and ensuring all parties are compensated fairly.

Chapter fourteen provides a ten-step framework for managing procurements effectively in projects. This specific chapter in the book also illustrated that while routine procurements may seem less complex, they still require proper planning toward ensuring that they support the project's objectives. This chapter clearly illustrated that by following these steps, in the chapter, project managers can ensure smooth procurement processes and also help in avoiding legal complications and enhancing project success.

One notable strength of this book is its comprehensive approach; it covers a wide array of topics from the foundational concepts of procurement to the intricacies of legal and ethical considerations in project management and is structured logically. The book's ability to categorize different types of procurements based on complexity and risk is particularly useful for practitioners, as this allows for tailored management strategies. The book's focus on legal aspects of procurement is commendable, this also with respect to the book’s emphasis on the importance of ethical procurement practices in project.

As for the weaknesses of the book, the book could benefit from more detailed case studies or real-world examples (like specific projects) that illustrate the application of the illustrated theories. This would enhance the practical relevance of the concepts discussed in this book. On the other hand, as the book's focus on legal aspects of procurement is commendable, yet it might overwhelm readers who are not well-versed in contract law. While a foundational understanding of legal principles is essential at this point, the author could have provided simplified explanations or a glossary to aid comprehension without compromising the depth of content. Moreover, while the book emphasizes the importance of ethical procurement practices in project, it could delve deeper into the implications of unethical behavior through case studies or anecdotes, which could have enhanced the understanding and underline the real-world consequences of procurement mismanagement.

The discussion and insights in this book act as a guide to understanding procurement's pivotal role in project management. The book effectively managed to bridge theoretical frameworks with practical applications and offers valuable knowledge on procurement planning, risk management, and corporate teaming agreements. As the book also emphasized on ethical considerations and structured processes, it managed to highlight the importance of transparency and strategic decision-making. Since the book also managed to address both internal and external procurement challenges, the book also serves as an essential resource for project managers seeking to enhance project performance and achieve successful outcomes in dynamic project environments.

I recommend researchers, academicians, students, project managers and contractors to read this book. On the practical insights reflecting from the insights drawn from this book, I recommend that project managers keep on prioritizing comprehensive procurement planning as this can definitely prevent scope creep and ensure alignment with project objectives. On the other side, I recommend that organizations to adopt risk management frameworks (there are several risk management frameworks depending on the type of organization), a standard such as International Organization for Standardization (ISO) 31000 can be used or employed to systematically identify, assess, and mitigate procurement risks. Additionally, organization are also recommended to foster collaborative corporate teaming agreements with clear legal contracts, which can lead to enhanced project outcomes. As for the practitioners, I recommend that they keep on receiving continuous training on ethical procurement practices and contract law to uphold transparency and compliance.