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

Procurement Audits

Formal, structured review of whole procurement process
Was it sufficient? Was it followed?
What were the successes or failures?

Negotiated Settlements

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)

On completion

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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12.4 Close Procurements

Tools and Techniques

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