1. Introduction
There are four procurement-related project management processes, one in each of the following process groups: planning, executing, monitoring & controlling, and closing. The fourth process is therefore in the Closing Group, and is the process which manages the formal closing of the procurement as per the contract between the buyer and seller.
This post is devoted to the Inputs, Tools & Techniques, and the Outputs of this third of the four procurement processes, 12.4 Close Procurements.
2. Inputs
The Procurement Management Plan contains the guidelines for closing out procurements. The procurement documents contain project and financial information that should tell whether the requirements set forth in the procurement contract have been followed.
| 12.4 Close Procurements | ||
| INPUTS | ||
| 1. | Project Management Plan | In particular, the Procurement Management Plan, one of the subsidiary plans of the overall Project Management Plan, provides details and guidelines for closing out procurements. |
| 2. | Procurement Documents | The following types of project information is collected, indexed, and filed
Along with the following financial information
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| TOOLS & TECHNIQUES | ||
| 1. | Procurement Audits | Structured review of procurement process. |
| 2. | Procurement Negotiations | If there are any outstanding issues, claims, and disputes, the goal is to settle these primarily through negotiation. Failing that, they can be settled through alternative dispute resolution (ADR) methods including arbitration and mediation. Litigation is absolutely the last resort if negotiation and/or ADR methods fail. |
| 3. | Records Management System | Used to manage contract and procurement documentation and records. |
| OUTPUTS | ||
| 1. | Closed Procurements | Buyer provides seller with formal written notice that the contract has been completed, based on completion of the requirements set forth in the Procurement Management Plan. |
| 2. | OPAs Updates |
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2. Tools & Techniques
Just like the Quality Assurance which review the processes of the project as a whole, there can be procurement audits for the review of just the procurement process.
If there are any outstanding issues at the end of the procurement process, the negotiation process is the first way of settling them, followed by alternative dispute resolution (ADR) methods such as arbitration and mediation involving third parties. Only in the last resort do the buyer and seller resort to the courts (litigation) to settle the matter.
3. Outputs
Once the requirements of the procurement contract have been recognized by the buyer to have been achieved by the seller, the buyer then sends formal written notice to the seller that the contract has been completed, and the OPAs are then updated for reference on future projects.
This process is the only other project management process besides Close Phase or Project that is in the Closing Process Group.
This concludes the review of the four processes of Chapter 12 Procurement Management. The next chapter is the last chapter of the PMBOK® Guide, Chapter 13 Stakeholder Management, and the next post will give an overview of the processes belonging to that knowledge area.
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