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Shopping in terms of Contract Management
Shopping is a term often used in our daily life. In terms of contract management, this term is adapted for procurement of certain special requirements. As a first step, various contractors or suppliers are enquired and a procurement date is obtained from them. This procurement date is based on the requirements of your project. The date collected from various suppliers by enquiring is compared, and then based on the output, procurement is made. Since procurement is critical, we follow a definite procedure for procurement. Shopping is a popular method of procurement in which the quotations are invited from pre-selected contractors or suppliers for procurement of small quantity of service, or goods. Shopping can either be national or international. In the case of national shopping, the currency of quotation and payment is in national currency. In international shopping, currency of quotation and payment can either be national or international.
Total Marks – 40 (Note: The information for this question is based on the material contained in Hopkins, Andrew (1999) Managing major hazards: the lessons of the Moura Mine Disast
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