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ProPM Logo Control Procurements    
   
   
   
   
   
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The Control Procurements process consists of;

  • Managing procurement relationships
  • Monitoring contract performance
  • Making changes & corrections to contracts as appropriate

The key benefit of controlling procurements is that it ensures;

  • Both seller and buyer performance meets procurement requirements;
  • According to the terms of the legal agreement

Both buyer and seller will administer the procurement contact for similar purposes

  • Each required to ensure that;
    • Bother parties meet their contractual obligations
    • Their own legal rights are protected

It is imperative that the PM team is aware of any/all legal implications;

  • Of any actions taken when controlling any procurement

On large projects with multiple providers

  • A key aspect of contract administration is managing interfaces among the various providers
  • Many orgs treat contract administration as a function separate from the project organization
  • Administration on the project team often reports to someone from a different department
    • Often the case where performing organization is the seller of the project to external client

Controlling procurement includes applying PM processes to the contractual relationships;

  • Integrating the outputs of these processes into the overall management of the project
    • Direct  & Manage Project Work  -> authorize seller work at appropriate time
    • Control Quality  -> Inspect & verify adequacy of seller product
    • Perform Integrated Change Control  > changes properly approved and visible
    • Control Risks ->  ensure risks are mitigated

Controlling procurement has a financial component; monitoring payments to the seller.

  • Payment terms are defined in contract, payment linked to progress as defined in contract
  • Always a concern; when paying suppliers;  relationship between work accomplished

Controlling procurement process reviews and documents ( based on contract )

  • How well a seller is performing or has performed;
    • Establishes corrective action when needed
    • As a measure of seller competency for future projects.
    • Captures necessary details for managing any early termination
      • Such details are used in Close Procurements process to terminate agreement.

Agreements can be amended at any time by mutual consent

  • In accordance with change control in agreement - typically in writing is required
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
           
   
   
   
   
   
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Procurement Managment          
Monitor and Control          
Control Procurements          
           
           
Process Inputs          
Procurement Mgmt. Plan          
Procurement Docs.          
agreements          
Approved CRs          
Work performance reports          
work performance data S          
           
           
Tools and Techniques          
Contract Change Control Sys.          
Procurement Per. Reviews          
Inspections and audits          
Performance reporting          
Payment systems          
Claims administration          
Records Mgmt. System          
           
           
Process Outputs          
Work Performance Info.          
Change Requests          
Proj. Mgmt. Plan Updates          
Proj. doc. updates          
Org. Proc. Assets updates          
           
           
Process Benefits          
Procurement control ensures both seller and buyer performance meets procurement requirements;
*  According to the terms of the legal agreement
         
         
         
         
         
         
         
   
   
   
   
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