A Guide to Project Management

Requirements of the relevant procurement documents

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Unformatted text preview: how effectively the seller is achieving the contractual objectives. Contract performance reporting should be integrated with the integrated project performance reporting, described in Section 10.3. .3 Payment system. Payments to the seller are usually handled by the accounts payable system of the performing organization. On larger projects with many or complex procurement requirements, the project may develop its own system. In either case, the payment system must include appropriate reviews and approvals by the project management team. ment ment 12.5.2 | 12.6.3.2 geE L geE PL P 12.5.3 Outputs from Contract Administration .1 Correspondence. Contract terms and conditions often require written documentation of certain aspects of buyer/seller communications, such as warnings of unsatisfactory performance and contract changes or clarifications. .2 Contract changes. Changes (approved and unapproved) are fed back through the appropriate project planning and project procurement processes, and the project plan or other relevant documentation is updated as appropriate. .3 Payment requests. This assumes that the project is using an external payment system. If the project has its own internal system, the output here would simply be "payments." 12.6 CONTRACT CLOSEOUT Contract closeout is similar to administrative closure (described in Section 10.4) in that it involves both product verification (Was all work completed correctly and satisfactorily?) and administrative closeout (updating of records to reflect final results and archiving of such information for future use). The contract terms and conditions may prescribe specific procedures for contract closeout. Early termination of a contract is a special case of contract closeout. Inputs .1 Contract documentation Tools & Techniques .1 Procurement audits Outputs .1 Contract file .2 Formal acceptance and closure 158 NAVIGATION LINKS ACROYMNS LIST ACRONYMS LIST ACROYMNS LIST A Guide to the Project Management Body of Knowledge (PMBOK Guide) 2000 Edition 2000 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Chapter 12--Project Procurement Management 12.6.1 Inputs to Contract Closeout .1 Contract documentation. Contract documentation includes, but is not limited to, the contract itself along with all supporting schedules, requested and approved contract changes, any seller-developed technical documentation, seller performance reports, financial documents such as invoices and payment records, and the results of any contract-related inspections. 12.6.2 Tools and Techniques for Contract Closeout .1 Procurement audits. A procurement audit is a structured review of the procurement process from procurement planning through contract administration. The objective of a procurement audit is to identify successes and failures that warrant transfer to other procurement items on this project or to other projects within the performing organization. A Guide to the A Guide to the...
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