Control Procurements is part of the “Procurement Management” Knowledge Area, and is part of the “Monitoring and Controlling” Process Group.
Control Procurements is the process of managing procurement relationships, monitoring contract performance, and making changes and corrections to contracts as appropriate. The key benefit of this process is that it ensures that both the seller?s and buyer?s performance meets procurement requirements according to the terms of the legal agreement.
Both the buyer and the seller will administer the procurement contract for similar purposes. Each are required to ensure that both parties meet their contractual obligations and that their own legal rights are protected. The legal nature of the contractual relationship makes it imperative that the project management team is aware of the legal implications of actions taken when controlling any procurement. On larger projects with multiple providers, a key aspect of contract administration is managing interfaces among the various providers.
Due to varying organizational structures, many organizations treat contract administration as an administrative function separate from the project organization. While a procurement administrator may be on the project team, this individual typically reports to a supervisor from a different department. This is usually true if the performing organization is also the seller of the project to an external customer.
Control Procurements includes application of the appropriate project management processes to the contractual relationship(s) and integration of the outputs from these processes into the overall management of the project. This integration will often occur at multiple levels when there are multiple sellers and multiple products, services, or
results involved. The project management processes that are applied may include, but are not limited to:
? Direct and Manage Project Work. To authorize the seller?s work at the appropriate time.
? Control Quality. To inspect and verify the adequacy of the seller?s product.
? Perform Integrated Change Control. To assure that changes are properly approved and that all those
with a need to know are aware of such changes.
? Control Risks. To ensure that risks are mitigated.
Control Procurements also has a financial management component that involves monitoring payments to the seller. This ensures that payment terms defined within the contract are met and that seller compensation is linked to seller progress, as defined in the contract. One of the principal concerns when making payments to suppliers is that there is a close relationship of payments made to the work accomplished.
The Control Procurements process reviews and documents how well a seller is performing or has performed based on the contract and establishes corrective actions when needed. This performance review may be used as a measure of the seller?s competency for performing similar work on future projects. Similar evaluations are also carried out when it is necessary to confirm that a seller is not meeting the seller?s contractual obligations and when the buyer contemplates corrective actions. Control Procurements includes capturing the necessary details for managing any early terminations of the contracted work (for cause, convenience, or default) in accordance with the termination clause of the agreement. These details are used in the Close Procurements process to terminate the agreement.
Agreements can be amended at any time prior to contract closure by mutual consent, in accordance with the change control terms of the agreement. Such amendments are typically captured in writing.
This definition was found in the PMBOK V5
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Control Procurements has:
Inputs:
- Agreements
- Approved change requests
- Procurement documents
- Project Management Plan
- Work performance data
- Work performance reports
Outputs:
- Change requests
- Organizational Process Assets updates
- Project documents updates
- Project Management Plan updates
- Work performance information
Tools and techniques:
- Claims administration
- Contract change control system
- Inspections and audits
- Payment Systems
- Performance reporting
- Procurement performance reviews
- Records management system
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