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Lesson 3: Developing Project Proposals

PM Process: 12.3 Control Procurements

Having placed the contracts, your next step is to track and control these procurements. The Control Procurements process is one of the 49 project management processes where you, the buyer, are ensuring that the contracted supplier is performing their contracted obligations, and that you, the buyer, are meeting your contracted obligations. Control Procurements is in the Monitoring and Controlling Process Group. The Control Procurements process also includes any necessary changes or corrections to the contracts. Table 3.5 includes the inputs, tools and techniques, and outputs for the Control Procurements process. Because of the legal consequences related to any actions and decisions related to the contract, the contract administrator (for both the buyer and the seller) usually reports to a part of the organization that is outside of the project. As the buyer, you are responsible for making sure that the seller receives payment on time, usually tied to work accomplished. As the buyer, you are also responsible for making sure that the seller is performing, and if not, you need to document any performance problems and take corrective action.

Table 3.5. Control Procurements Process (PMBOK® Guide Process 12.3, Part of the Planning Process Group): Inputs, Tools and Techniques, and Outputs

Inputs → Tools & Techniques → Outputs

.1 Inputs.2 Tools and Techniques.3 Outputs

  • .1.1 Project management plan

    • Requirements management plan
    • Risk management plan
    • Procurement management plan
    • Change management plan
    • Schedule baseline

  • .1.2 Procurement documents

    • Assumption log
    • Lessons learned register
    • Milestone list
    • Quality reports
    • Requirements documentation
    • Requirements traceability matrix
    • Risk register
    • Stakeholder register

  • .1.3 Agreements

  • .1.4 Procurement documentation

  • .1.5 Approved change requests

  • .1.6 Work performance data

  • .1.7 Enterprise environmental factors

  • .1.8 Organizational process assets

  • .2.1 Expert judgment

  • .2.2 Claims administration

  • .2.3 Data analysis

    • Performance reviews
    • Earned value analysis
    • Trend analysis

  • .2.4 Inspection

  • .2.5 Audits

  • .3.1 Closed procurements

  • .3.2 Work performance information

  • .3.3 Procurement documentation updates

  • .3.4 Change requests

  • .3.5 Project management plan updates

    • Risk management plan
    • Procurement management plan
    • Schedule baseline
    • Cost baseline

  • .3.6 Project documents updates

    • Lessons learned register
    • Resource requirements
    • Requirements traceability matrix
    • Risk register
    • Stakeholder register

  • .3.7 Organizational process assets updates
Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) — Sixth Edition, Project Management Institute Inc., 2017, page 460.

12.3 Control Procurements Process Inputs, Tools and Techniques, Outputs Glossary Definitions, and Additional Details

The PMBOK® glossary definition is provided for each of the inputs, tools and techniques, and outputs for this process, shown in italics, for any terms that have not previously been defined. Otherwise, the term is hyperlinked, and you can hover over the link to view the definition. When relevant, the instructors may provide additional information following each definition. See PMBOK® Guide (6th ed.), pp. 492–501.

.1 Inputs to the Control Procurements Process
.1.1 Project management plan

The primary subcomponent of the project management plan utilized in this process is the procurement management plan that describes how the procurement processes will be managed. However, this process uses each of the following subcomponents:

  • Requirements management plan
  • Risk management plan
  • Procurement management plan
  • Change management plan: A component of the project management plan that establishes the change control board, documents the extent of its authority, and describes how the change control system will be implemented.
  • Schedule baseline
.1.2 Procurement documentation
  • Assumption log
  • Lessons learned register
  • Milestone list
  • Quality report: A project document that includes quality management issues, recommendations for corrective actions, and a summary of findings from quality control activities and may include recommendations for process, project, and product improvements.
  • Requirements documentation
  • Requirements traceability matrix
  • Risk register
  • Stakeholder register
.1.3 Agreements

These are documents that describe the responsibilities (terms and conditions) of the buyer and the seller.

.1.4 Procurement documents
.1.5 Approved change requests

A change request that has been processed through the integrated change control process and approved.

PMBOK® Guide Highlights

Remember, when an inspection is used versus an audit:

  • Deliverables are inspected.
  • Processes are audited.
.1.6 Work performance data

The raw observations and measurements identified during activities being performed to carry out the project work.

This is the raw data that will become work performance information, which will be used in the work performance reports.

.1.7 Enterprise environmental factors
.1.8 Organizational process assets (OPA)
.2 Tools and Techniques for the Control Procurements Process
.2.1 Expert judgment
.2.2 Claims administration

The process of processing, adjudicating, and communicating contract claims.

A process should be in place to deal with instances when the buyer and seller cannot agree on compensation for a change (or they cannot agree that a change has happened). Contested changes are also called claims, disputes, or appeals. If the buyer and seller cannot come to an agreement, they may need to use the alternative dispute resolution (ADR) outlined in the contract. The following includes potential methods of dealing with claims, in order of the preferred method:

  • Negotiations: Both parties negotiate a resolution.
  • Mediation: A third-party mediator helps to work out the disagreement.
  • Arbitration: A third party is brought in to make the decision.
  • Litigation: A court makes the decision.
.2.3 Data analysis techniques
  • Performance reviews: (procurement) A structured review of the seller’s progress to deliver project scope and quality, within cost and on schedule, as compared to the contract.
  • Earned value analysis (EVA): An analysis method that uses a set of measures associated with scope, schedule, and cost to determine the cost and schedule performance of a project.
  • Trend analysis: An analytical method that uses mathematical models to forecast future outcomes based on historical results.
.2.4 Inspection

Examination of a work product to determine whether it conforms to documented standards.

.2.5 Audits

A process to observe performance of contracted work or a promised product against agreed-upon requirements.

.3 Outputs From the Control Procurements Process
.3.1 Closed procurements
.3.2 Work performance information

The performance data collected from controlling processes, analyzed in comparison with project management plan components, project documents, and other work performance information.

This information is tied to the seller’s work performance data (the data is processed into information). You use the information as support in case there are claims or disputes that arise later in the project. You can also use it as an input in future procurements or to help in future planning.

.3.3 Procurement documentation updates
.3.4 Change requests
.3.5 Project management plan updates
  • Risk management plan
  • Procurement management plan
  • Schedule baseline
  • Cost baseline
.3.6 Project documents updates
  • Lessons learned register
  • Resource requirements
  • Requirements traceability matrix
  • Risk register
  • Stakeholder register
.3.7 Organizational process asset (OPA) updates

PMBOK® Guide Highlights

Change requests are an output in all of the processes in the Monitoring and Controlling Process Group. The one caveat is 4.5 Perform Integrated Change Control. Change requests are an input to it, and the output is "approved change requests." All change requests are processed through the Perform Integrated Change Control process.

Figure 3.3 shows the relationships between the various predecessor and successor processes, as well as the data flow for the Control Procurement process.

Note: Image removed. You will have access to the image in the actual course.

PMBOK® and PMBOK® Guide are registered marks of the Project Management Institute, Inc.


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