Purpose:

Documents agreements and related documentation for future reference.

Objective:

The process of completing each project procurement.

Description:

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 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.

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