Close Procurements Tools and Techniques

The Close Procurements process has three tools and techniques: procurement audits, negotiated settlements, and records management system. The records management system here serves the same function as the records management system I talked about in the discussion of the Contract Administration process in Chapter 9. Procurement audits are reviews of procurement processes to determine whether they are meeting the right needs and are being performed correctly and according to standards. The PMBOK® Guide says procurement audits are concerned with reviewing the procurement process, starting with the Plan Procurements process through Administer Procurements

The primary purpose of the procurement audit is to identify lessons learned during the procurement process. Procurement audits examine the procurement process to determine areas of improvement and to identify flawed processes or procedures. This allows you to reuse the successful processes on other procurement items for this project, on future projects, or elsewhere in the organization. It also alerts you to problems in the process so that you don't repeat them.

Procurement audits might be used by either the buyer or the vendor, or by both, as an opportunity for improvement. Documenting the lessons learned—including the successes and failures that occurred—allows you to improve other procurement processes currently underway on this project or other projects. It also gives you the opportunity to improve the process for future projects.

Negotiated settlements occur when using an alternative dispute resolution (ADR) technique due to disagreements about deliverables, payments, performance, and so on. Reaching a negotiated settlement through the aid of ADR techniques is the most favorable way to resolve the dispute.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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