RECENTLY, I READ a newspaper story about a train wreck on a mail train project can easily be compared to the scene of a train wreck. The restart of out of New York. The story described how a broken gauging bar on the track the plant was delayed. Other project goals were not met. Claims will follow. allowed track separation, causing the train to leave the tracks at 50 miles an The only hope of profit from project performance now passes to the lawyers. hour. The neglected gauging bar, probably $30 parts with perhaps a $200 installed cost, caused millions in damage. Fortunately, no one was killed in Unlike the train engineer, who had no warning, the project management in the incident. Reflecting on the details of this accident, I thought how this case had ample warning that the project could not meet its goals without intolerant our society has become of neglect that leads to personal injury change in the process. As soon as delivery information was available it was and yet how oblivious we project professionals can be of project neglect. Far clear that changes were necessary in the management plan. Still, the too many projects become train wrecks through ineffective management changes did not occur, and the project drove straight on to its destruction. process. Let's consider, for example, how the management of project Does it have to be this way? procurement can impact the overall project. Re-visioning Project Procurement. For my company's (BMW Constructors Shady Practices and Poor Communication. In a speech to a chapter Inc.) internal training in project planning we have developed a vision of meeting of AACE International, claims consultant James Zack commented planned construction activity, which attempts to explain the impact on that his experience with owner-furnished equipment purchases was so project outcome of effective planning. This model has proven useful in negative that he doubted there was value in making any material purchases providing an overview of the expected results of our planning effort. in advance of a construction contract or of having purchases made by anyone but the contractor. His overwhelming experience was that when After reflecting on ineffective procurement management, I propose "a vision owners furnished equipment, contractors schemed to show all deliveries of of managed project procurement : that equipment were firmly astride the critical path to project completion. Goods, services, and equipment procured in pursuit of the project objectives will be This practice virtually assured that delivery slippage of some items selected following full consideration of all elements of project impact of the purchased by the owner would become support for contractor claims. procurement from specification through operation. Procurement efforts will be Does it have to be this way? guided by project objectives and provide prompt feedback to project leaders when those objectives must be modified or clarified. Any considered compromises, or Some months ago, I received information, from a neighbor over a backyard trade-offs, that potentially impact on the accomplishment of the project objectives grill, that the fabrication and delivery of goods critical to the construction will be brought to the attention of project leadership before final decisions are shutdown phase of one of my firm's projects was lagging schedule. In fact, made. Clear, open, and accurate communication will be maintained throughout the the first stage of fabrication on the goods would not begin until several project about procurement activities. weeks after their "scheduled delivery" to the project! I spoke with a project manager in my firm about one of our projects, and its upcoming shutdown In proposing this vision, I do not take issue with the PMBOK Guide and its phase of construction. The next day, I spoke with a project manager in my task-list approach to procurement. I do, however, find that section of firm about the matter. The project manager's prediction was that giving this the Guide too narrow to illuminate the purpose behind the many activities it information to those responsible for delivery of the goods would result in a lists, or to sketch the energy levels required to make procurement thank you and no further action. management a contributor to successful project outcomes. The following Monday this information was presented to the systems How might this vision be implemented? The accompanying case study looks contractor and engineer-construction manager, who jointly specified, at my specific experience with a project that I feel effectively managed the ordered, and scheduled delivery of these goods. That they had no procurement process. The following guidelines explore the implementation knowledge of, or interest in, the delivery slippage was obvious. More than of this vision procurement by an owner or nonperforming construction predictive, the words of the project manager were prophetic. services organization. In subsequent weeks the project turnaround phase played out in full fury. The goods procured must be selected with consideration of the full burden Several contractors, employing hundreds of men, suffered the cost of activity associated with the goods through to operation. consequences of the missed delivery. The conditions arising during this