A project cannot be closed without closing all the contracts within. If there is a long running litigation due to Contract Claim, then the project will remain open till that claim is settled.
Trivia:
Some people might be tempted to think that procurement closure is not part of the project manager’s responsibility. But, let me repeat, it is our job to close-off all procurements that were started as part of our projects lifecycle. No matter what.
All the procurement contracts are closed at the end of a project or a phase by using the contract closure procedure. Procurement closure accomplishes the following two major goals:
• Close all the contracts applicable to the project.
• Receive verification (if you are a seller) or issue verification (if you are a buyer) that all the procured deliverables were received and accepted. In this respect, the contract closure process supports the administrative closure of the project.
Early Termination:
If the project terminates without completion, you still need to go through the contract closure procedure, if there is a contract. Usually, a contract contains the contract termination clause, which contains the terms of the project termination, including the rights and responsibilities of the parties in case of the project’s early termination.
Trivia:
Some people might be tempted to think that procurement closure is not part of the project manager’s responsibility. But, let me repeat, it is our job to close-off all procurements that were started as part of our projects lifecycle. No matter what.
All the procurement contracts are closed at the end of a project or a phase by using the contract closure procedure. Procurement closure accomplishes the following two major goals:
• Close all the contracts applicable to the project.
• Receive verification (if you are a seller) or issue verification (if you are a buyer) that all the procured deliverables were received and accepted. In this respect, the contract closure process supports the administrative closure of the project.
Early Termination:
If the project terminates without completion, you still need to go through the contract closure procedure, if there is a contract. Usually, a contract contains the contract termination clause, which contains the terms of the project termination, including the rights and responsibilities of the parties in case of the project’s early termination.
