The procurement and contract administration process are prone to risks. There are risks in determining need and planning procurements, developing specifications, selecting the appropriate procurement methods, preparing solicitation documents and calling for offers, evaluation and selection of firms and individuals, negotiating the contract , and contract administration .
Procurement management is about solving problems and managing risks. Customers need supplies and services to solve immediate and future needs. They usually have little understanding of procurement and unrealistic expectations about the procurement process. Procurement planning and strategy development are important to reduce risk in the procurement process. A comprehensive understanding of the procurement process, principles and guidelines is also important to finding appropriate solutions and minimizing risks.
The following is a link to a comprehensive checklist of potential risks in the procurement process:
You can download the checklist in Word and pdf formats.