Nearly all kinds of projects require some sort of procurement and inventories, no matter whether it is about IT projects, construction projects, engineering projects, and any other projects. Procurement contracts play a pivotal role in providing a project with all necessary inventories required for producing project deliverables, as well as in establishing mutually beneficial vendor procurement relationships between a performing organization and suppliers. Procurement items, such as hardware, software and services, should be chosen, acquired and delivered according to technical requirements as to project product, budgeting policies and procurement schedules. Therefore, a clear understanding of procurement contracting activities is a critical qualification for project managers
Procurement and purchasing activities refer to the aspects of project management regarding acquiring goods and services from outside companies to provide a project team with all necessary inventories to produce the product of a project. Procurement process management refers not only to internal units of an organization involved in project management activities but also to external suppliers and vendors.