MONITORING AND CONTROL STAGE (PROCUREMENT) : CONTROL PROCUREMENTS

Control procurement is another process in the monitoring and control stage that manages procurement relationships between seller and buyer, monitor contract performance and make changes to the contract if one of them doesn’t meet the contractual obligations for the purpose of meeting procurement requirements according to the terms written in the legal agreement.

The inputs to refer are:

• Project management plan that explains how to manage procurement from developing the documentation to closing the contract
• Procurement documents that are used to request the sellers’ bids, tenders, quotations or proposals
• Agreements that explain the duties of seller and buyer for a better understanding of procurement
• Approved change requests if there is a need to modify some terms and conditions of the contract like procurement statement of work, pricing, mode of payment, description of the product, service or result to be provided to the buyer etc
• Work performance reports and data that explain the seller’s performance in providing the deliverable according to terms of the contract, the quality of the deliverable, costs incurred, invoices paid etc

The process can be done by

• Reviewing the seller’s progress in procurement performance in order to identify if there will be a success or failure of their performing work
• Doing inspections and audits to verify the compliance of the seller’s work or deliverable
• Evaluating the performance reports supplied by the seller and compare against the agreement requirements
• Checking payment systems to see the payments that will be made according to the terms of the contract after certification of satisfactory work provided by an authorized person in the project team
• Settling the raised claims through negotiation when the buyer and seller can not reach an agreement on compensating a change or cannot agree that a change has happened

The outputs of this process are:

• Work performance information that provides information about current problems to support new procurements
• Change requests if there is a need for reviewing the contract
• Updates in project management plan if the approved changes may affect the procurement management, procurement documents such as contract and organizational process assets such as procurement terms and conditions

References:

PMI (2013). A Guide to the Project Management Book of Knowledge (PMBOK Guide 5^th Ed.) USA, Project Management Institute

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