Close Procurements Outputs

One of the purposes of the Close Procurements process is to provide formal notice to the seller—usually in written form—that the procurement is complete. The output of Close Procurements that deals with this is called closed procurements. This is a formal acceptance and closure of the procurement. It's your responsibility as project manager to document the formal acceptance of the procurement. Many times the provisions for formalizing acceptance and closing the procurement are spelled out in the procurement documents.

If you have a procurement department that handles contract administration, they will expect you to inform them when the procurement is completed and will in turn follow the formal procedures to let the seller know it's complete. However, you'll still note the procurement completion in your copy of the project records.

The other output of Close Procurements is organizational process updates. This includes updating the procurement file, deliverables acceptance, and lessons learned. The procurement file is simply a file of all the procurement records and supporting documents. These records should be indexed for easy reference and included as part of the project files in the Close Project or Phase process.

Exam Spotlight

The PMBOK® Guide does not state in which order these processes should be performed. In practice, you will likely close out the procurement before closing the project and archiving the project documents. However, in prior editions of the PMBOK® Guide, the Close Procurements process (or its equivalent name in previous editions) was performed last.

This process is your organization's way of formally accepting the product of the project from the vendor and closing out the procurement. The deliverable acceptance portion of the organizational process updates includes the formal written notice from the buyer that the deliverables are acceptable and satisfactory or have been rejected. If the product or service does not meet expectations, the vendor will need to correct the problems before you issue a formal acceptance notice. Ideally, quality audits have been performed during the course of the project, and the vendor was given the opportunity to make corrections earlier in the process than the closing stage. It's not a good idea to wait until the very end of the project and then spring all the problems and issues on the vendor at once. It's much more efficient to discuss problems with your vendor as the project progresses because it provides the opportunity for correction when the problems occur.

Lessons learned include information and documentation about what worked well and what didn't work well regarding the procurement processes. You can use this information on future projects to improve performance and prevent inefficiencies.

Depending on the terms of the procurement, early termination (whether by agreement, via default, or for cause) might result in additional charges to the buyer. Be certain to note the reasons for early termination in your procurement documentation.

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