12.4 Close Procurements
"The process of completing each procurement."
The definition shown above in italics is taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute Inc., 2013
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute Inc., 2013 Figure 12-8 Page 386
- Ensures that both sides have met their contractual obligations
- Resolves any outstanding issues.
- Verifies all work and deliverables produced is acceptable.
- Updates records and archives information for future use/audit
- This process closes phase-end contracts as necessary
- This process supports 4.6 Close Project or Phase
- Early termination of a contract (or a part of) can arise from:
- Mutual agreement of the parties or
- Default of one of the parties.
- Buyer may have the right to terminate all or part of a contract for cause or convenience at any time, but may have to compensate seller for preparations, partial completions, and completed /accepted work.
Tools and Techniques
- Formal, structured review of whole procurement process
- Was it sufficient? Was it followed?
- What were the successes or failures?
- Dispute resolution – negotiation is a win – win for both parties
- Otherwise mediation/arbitration (Alternative Dispute Resolution (ADR))
- Or litigation in court (lose – lose for both parties)
- Buyer verifies the work (and contract) is complete
- Accepts the product or service of the contract
- All project files are updated and filed away
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