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12 - PROJECT PROCUREMENT MANAGEMENT

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 12
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.

12.3.1 control Procurements: Inputs

12.3.1.1 Project Management Plan

Described in Section 4.2.3.1. The project management plan describes how the procurement processes will be
managed from developing procurement documentation through contract closure.

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