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12 - PROJECT PROCUREMENT MANAGEMENT

Project Procurement Management
12.1
Plan
Procurement
Management

• Procurement
documents

4.2 12.4
Develop Project Close Enterprise/
Management Procurements Organization
Plan • Project • Organizational
management process assets
plan updates
• Closed
procurements

12
Figure 12-9. close Procurements data Flow diagram

The Close Procurements process also involves administrative activities such as finalizing open claims, updating
records to reflect final results, and archiving such information for future use. Close Procurements addresses each
contract applicable to the project or a project phase. In multiphase projects, the term of a contract may only be
applicable to a given phase of the project. In these cases, the Close Procurements process closes the procurement(s)
applicable to that phase of the project. Unresolved claims may be subject to litigation after closure. The contract
terms and conditions can prescribe specific procedures for agreement closure. The Close Procurements process
supports the Close Project or Phase process (Section 4.6) by ensuring contractual agreements are completed or
terminated.

Early termination of a contract is a special case of procurement closure that can result from a mutual agreement
by both parties, from the default of one party, or for convenience of the buyer if provided for in the contract. The
rights and responsibilities of the parties in the event of an early termination are contained in the terminations clause
of the contract. Based upon those procurement terms and conditions, the buyer may have the right to terminate
the whole contract or a portion of the contract, at any time, for cause or convenience. However, based upon those
contract terms and conditions, the buyer may have to compensate the seller for seller’s preparations and for any
completed and accepted work related to the terminated part of the contract.

©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide) – Fifth Edition 387
®

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