The Close Procurements process signifies the formal completion of the procurement phase of a project. It ensures that all aspects of the procurement activities, from initiation to execution, have been satisfactorily completed. This process is essential to ensure that both the buyer and the seller have met their obligations outlined in the contract and that any discrepancies or issues have been addressed and resolved.
Outputs of Close Procurements Process:
- Procurement Closure:
- This is formal documentation that indicates the completion of the contract. It confirms that all deliverables have been accepted, all terms and conditions have been met, and all outstanding issues or disputes have been resolved.
- Organizational Process Assets Updates:
- Lessons Learned: Documentation of experiences, challenges faced, and solutions implemented during the procurement process. This can be invaluable for future projects.
- Procurement File: A complete documentation related to the procurement, including the contract, any changes, payment records, and performance evaluations.
- Supplier Performance Evaluation: A record of the seller’s performance can be used for future reference when considering vendors for new projects.
Tools & Techniques used in Close Procurements Process:
- Procurement Audits:
- A structured review of the procurement process, from planning to closure. It identifies successes and failures that warrant recognition in preparing or administering other procurement agreements.
- Procurement Negotiations:
- These discussions ensure that the contract’s closure is mutually agreed upon. It can involve finalizing outstanding items, resolving disputes, and ensuring that all deliverables have been received and accepted.
- Records Management System:
- This tool ensures that all procurement documentation is collected, indexed, and archived. It provides a structured way to access and retrieve procurement documents for future reference or audits.
- Performance Reviews:
- An assessment of the performance of the seller against the contract requirements. It ensures that all deliverables have been provided as per the agreed quality, time, and cost.
- Contract Closure:
- A formal process that ensures all contract terms are met and that the contract is completed satisfactorily. It involves verifying that all deliverables have been accepted, making final payments, and resolving any open items.
In conclusion, the Close Procurements process is vital to ensure that all procurement activities are finalized, all deliverables are accepted, and the contract is formally closed. It provides a structured way to review the procurement process, document lessons learned, and ensure that both the buyer and the seller have met their contractual obligations.
