Question

what do these definitions mean in terms of project management

A customer issued solicitation for contractor to supply specific products or services.

It should contain technical, management and cost sections describing in detail the contractor’s proposed solution for addressing the customer’s needs.

A formal document outlining specific requirements for the project or service so contractor can propose appropriate solution.

A contractor produced response to an RFP. Tends to have higher risk in a cost-reimbursement type contract.

Should be included in contracts to take into account issues unique to the project.

A mutually binding agreement that obligates the contractor to provide the special products or services and obligates the customer to pay for them.

A customer issued solicitation to attract interested contractors to develop and submit proposed solutions.

Tends to have higher risk in a fixed-price type contract.

A decision process conducted by contractors.

Answer 1

In the terms of project procurement management, the following definitions have the meaning stated as under :-

1.A customer issued solicitation for contractor to supply specific products or services- It involves the solicitation which involves the process of requesting a price and takes place in the form of either request for quote or request for proposal.

2.It should contain technical, management and cost sections describing in detail the contractor’s proposed solution for addressing the customer’s needs.- A contractor must be familiar with the customer's needs because a contractor who is more familiar with their needs can make a better proposal in response to the customer RFP( request for proposal)

3.A formal document outlining specific requirements for the project or service so contractor can propose appropriate solution.- The contractor proposal must address the customer's requirements and must highlight the unique factors that distinguish from its competitors.

4.A contractor produced response to an RFP. Tends to have higher risk in a cost-reimbursement type contract.- RFP(request for proposal) focuses more on meeting the project quality along with accounts for price. There is higher risk in cost reimbursement type contract because here customer agrees to pay the contractor all the actual costs plus profit and contract costs can overrun the proposed price.

5.Tends to have higher risk in a fixed-price type contract.- Fixed type contract is the contract in which price remains fixed unless contractor or customer changes the price. This involves higher risk when the cost of completing project is more than originally planned and contract loses money or make lower profit.