ABSTRACT
This chapter discusses exactly the phase of the procurement process in which the project manager needs to be the most active. Managers in an organization are often given de jure authority to enter into smaller monetary projects, based on a formula that says that it is less expensive to allow the managers to enter into smaller contracts than to utilize more expensive organizational resources to negotiate. Most organizations are organized centrally for their contract activities. Their contracting efforts are managed by one organization. The personnel in a centralized contracting organization are highly specialized and knowledgeable in the contracting process. The final aspects and responsibilities of the contracting/procurement process are administering and closing out the contract. This may or may not be the total responsibility of the project manager, depending on whether the project is organized centralized or decentralized.
