Contract closure involves accepting all work, monitoring to ensure the work lists are completed, receiving pass through guaranties, warranties and licenses, resolving all disputes, paying all bills, and obtaining releases of liens from all subcontractors and vendors. For physical assets, it marks the point where the asset is handed over to the accounting department for depreciation purposes.
Jemmy Tristan Member. One thing you should know is how administrative closure is only done one time per phase of a project or alternately once for the entire project. A project closure cannot occur or be complete without a procurement closure. You will need to know this to help you understand the difference. In addition you should also understand the close project phase during which product acceptance takes place.
Administrative closure is done at the end of the project - when all the tasks in the contract have been completed to the satisfaction of the client. Contract closure occurs when the contract has reached the end of its tenure.
In this case, the contract is terminated before all work has been completed. Contract closure occurs when the client wants to terminate the contract because the work is no longer required or because the work done was not of acceptable quality.
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The confusion stems from them working in different organization — some come from a buyer organization, whereas others have experience from the sellers organization — specially where they work on projects awarded as contracts to their organizations. Atleast 16 questions come from the Closing Process Group , and they are not so difficult to answer.
Getting the basics right on these 2 processes will help you get 16 questions correct on the PMP exam. In this post, I want to talk about the 2 closure processes, and explain the differences , so that PMP credential aspirants can benefit and better prepare for the PMP exam. Administrative Closure: This is the final completion and closure of the project. Part of the Integration Management knowledge area , the Close Project or Phase process is done when all the work has been verified, delivered, and accepted by the customer.
All open issues have been raised, and finalized come to a conclusion and closure. The contracting parties — buyer and the seller both agree that the seller has completed the work stipulated in the contract, and the buyer has accepted it. Contract Closure: A contract is closed upon reaching the end of the contract, or when a contract is terminated before he work is completed usually by the buyer — if the work is no longer required, or if the work performed is not acceptable due to quality or other reasons.
The seller may still need to be compensated for the work completed, as goverend by the clauses in the contract. In multi-phase projects, Close Procurements closes the appropriate contract s for that phase of the project. Thus, the Close Procurements process may be repeated many times in a project. Unresolved claims may be subject to litigation after Close Procurements is completed. A complete set of indexed contract documentation, including the closed contract, is prepared for inclusion in the final project files — Output of Close Procurements.
The project is to create the right mix of ingredients for the herbal pills that help to reduce the weight within 6 weeks. You have found the right formula for the weight loss pills. You are now preparing to close the project.
Which of the following is not an input to the Close Project or Phase process? Project management Plan B. Project deliverables validated through the quality control processes C. Final project audits D. Acceptance Criteria. The products and services must be attained in a specific way and delivered on time.
From here, buyers must have accepted the deliverables and settled that they were delivered as undertook in the contract. Also, the buyers are required to complete all the financial obligations on his end. For instance, final deliverable payments must be received by the seller prior to the contract is officially closed. A contract is closed when reached the concluding phase or when the contract is ended before the work is completed.
For example, the work is no longer required or the work performed is not up to the mark. For such cases, the seller is still required to compensate for the work completed as governed by the clauses in the contract.
In multi-phase projects, contract closure closes the appropriate contract s for the subsequent phases of the project. This process might repeat multiple times in a project.
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