Project Procurement Management - Control Procurements

This process manages procurement relationships, monitors contract performance, and makes changes an corrections to contracts as appropriate. It ensures that both the seller's and buyer's performance meets procurement requirements according to the terms of the legal agreement.

Includes application of the appropriate project management processes to the contractual relationship and integration of the outputs from these processes into the overall management of the project and may include:

• Direct and Manage Project work - authorize the seller's work at the right time
• Control Quality - inspect and verify the adequacy of the seller's product
• Perform Integrated Change Control - assure changes are approved
• Control Risks - ensure that risks are mitigated

You also have a financial management component that involves monitoring payments to the seller. You also review and document how well a seller is performing or has performed based on the contract and establishes corrective actions when needed. You may capture details for managing an early terminations of the contracted work in accordance with the termination clause of the agreement. 

Let's take a look at the Inputs, Tools and Techniques, and Outputs of this process.

1) Project Management Plan

• Describes how the procurement processes will be managed from developing documentation through contract closure

2) Procurement Documents

• Contain complete supporting records for administration of the procurement processes (contract awards and statement of work) 

3) Agreements 

• Understandings between parties, including the duties of each party

4) Approved Change Requests

• Can include modifications to the terms and conditions of the contract (SOW, pricing, descriptions, results etc.) 

5) Work Performance Reports

• May include:
• Technical documentation
• Work performance information

6) Work Performance Data

• May include:
• the extent to which quality standards are being satisfied
• costs that have been incurred or committed
• identification for the seller invoices that have been paid

7) Contract Change Control Systems

• Defines the process by which the procurement can be modified (paperwork, tracking systems, dispute resolution procedures and approval levels) 

8) Procurement Performance Reviews

• A structured review of the seller's progress to deliver project scope and quality, within cost and on schedule, as compared to the contract.

9) Inspections and Audits

• Verifies compliance in the seller's work processes or deliverables

10) Performance Reporting

• Work performance data and reports supplied by sellers are evaluated against the agreement requirements. 

11) Payment Systems

• Payments to seller are processed by the accounts payable system of the buyer after work has be authorized by the team. Document these payments. 

12) Claims Administration

• Any changes where the buyer and seller don't agree on compensation for the change are contested changes. 
• Also known as claims, disputes or appeals
• If not resolved they are handled by alternative dispute resolutions (ADR) 

13) Records Management Systems 

• Used by the project manager to manage contract and procurement documentation and records. It contains a retrievable archive of contract documents and correspondence. 

14) Work Performance Information

• Provides a basis for identification of current or potential problems to support later claims or new procurements. 
• Includes reporting compliances of contracts. 

15) Change Requests

• May include:
• Cost baselines
• schedule baselines
• procurement management plan
• Unresolved changes can include direction provided by the buyer or actions taken by the seller which the other party considers a constructive change to the contract

16) Project Management Plan Updates

• Procurement management plan
• Schedule baseline
• Cost baseline

17) Project Documents Updates

• Procurement document changes
• procurement contract with all supporting schedules
• requested unapproved contract changes
• approved change requests

18) Organizational Process Assets Updates

• Correspondence 
• Payment schedule and requests
• Seller performance evaluation documentation

Source: PMBOK 5th ed.