In case of a project that requires the procurement of some services that will create invoices that will continue (recurring costs) after the project is closed (ex: telecom services, cloud services, etc.), how do we consider the procurement is closed? In this specific case, once the project fulfills its objectives, the seller continues providing his services as per the contract until either the end of its term or an explicit termination from the buyer's side in general.
I don't see this matches with what RITA's (and I guess PMBOK) indicates on closed procurement = "the close project or phase process includes confirmation that contract closure has been done satisfactorily." Any thoughts about this?
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Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Usually you have two project close: one the close itself and the other the administrative. In the first one when you complete the deliverables the second when you complete all related to invoices and contracts. Depending on each organization you can consider the project close in the first or second item.
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1 reply by Soha Karjawally
Jun 26, 2020 12:06 AM
Soha Karjawally
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Thanks, Sergio.
From my experience, once the transition is made the part of handling the supervision on the contracts in place will be handed over as well (including documentation, training, etc.).
The PM involvement should stop here as the hand over is completed. Any managerial changes (termination of the contract for example) should be out of the PM's scope as the project is officially closed.
Usually you have two project close: one the close itself and the other the administrative. In the first one when you complete the deliverables the second when you complete all related to invoices and contracts. Depending on each organization you can consider the project close in the first or second item.
Thanks, Sergio.
From my experience, once the transition is made the part of handling the supervision on the contracts in place will be handed over as well (including documentation, training, etc.).
The PM involvement should stop here as the hand over is completed. Any managerial changes (termination of the contract for example) should be out of the PM's scope as the project is officially closed.
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1 reply by Sergio Luis Conte
Jun 26, 2020 7:37 AM
Sergio Luis Conte
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You are always welcome. I agree with you. At least is what we do in my actual workplace.
Ideally, the project formally doesn't close until the project related procurement contracts are closed and charged to the project. If the procurement continues even after the project formally closes, it could mean one of the two things : Either the procurement transitions to Operations who continues to receive necessary items after the deliverables are handed over. This should be managed from Operational budget. Or, the project has not closed.
Based on your query, it seems you have performed the hand off and deliverable have been passed on to Operations. In such a case, continued procurement would not be part of Project Scope.
Hope it helps
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1 reply by anonymous
Jun 26, 2020 10:36 AM
anonymous
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No it will not help. some people take only advice real expert. You may not qualify as expert.
Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Jun 26, 2020 12:06 AM
Replying to Soha Karjawally
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Thanks, Sergio.
From my experience, once the transition is made the part of handling the supervision on the contracts in place will be handed over as well (including documentation, training, etc.).
The PM involvement should stop here as the hand over is completed. Any managerial changes (termination of the contract for example) should be out of the PM's scope as the project is officially closed.
You are always welcome. I agree with you. At least is what we do in my actual workplace. Saving Changes...
Anonymous
First thing that the expenses which you mentioned do not generally come into project only expense. It will be taken as capex or opex. Incase some procurement is done specific to project it will be decided upfront that how to amortize the cost i.e. transfer the cost to operations or department / function will take the cost.
Project will be closed by ensuing its expenses.
So PMBOK do not need to mark it separately. Saving Changes...
Anonymous
Jun 26, 2020 2:19 AM
Replying to MD Sarfaraj Alam
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Ideally, the project formally doesn't close until the project related procurement contracts are closed and charged to the project. If the procurement continues even after the project formally closes, it could mean one of the two things : Either the procurement transitions to Operations who continues to receive necessary items after the deliverables are handed over. This should be managed from Operational budget. Or, the project has not closed.
Based on your query, it seems you have performed the hand off and deliverable have been passed on to Operations. In such a case, continued procurement would not be part of Project Scope.
Hope it helps
No it will not help. some people take only advice real expert. You may not qualify as expert. Saving Changes...
Marcus UdokangProject Manager| Aivaz ConsultingCalgary, Alberta, Canada
Soha,
My experience has been similar, in that once the transition or hand over is complete, the PMs role ends with the project, and the project officially closes. any changes after that are out of the PMs scope.
Marcus Saving Changes...
Mohan KulkarniPM Specialist| MBK ConsultantsPune, Maharashtra State. India, India
Dear Soha
These kind of situations are rampant in infrastructural projects.
Wher the works are completed the projects are handed over for fruitful use to the client ,but contaracts do not get closed for various reasons such as minimum period of payment spelt out by the client )In Indis normally 60 days after correct undisputed invoicing), Contractors inability to complete the measurements and submission in due time, some litigation issues or arbitration issues ,procurement audits etc ,in such cases it is pratice to close the project but Procurement and it's compensation issues continue with knowledge of management.
In short Project closure need not wait for contracts closure though project management books say otherwise.
In my view and experience most of the government projects get commissioned not only closed but procurement issues settlement and procurement closure continues long after the project closure. That is practicable.and is followed in practice in India. I am sure this also may be happening in software projects also to some extent.
Regards
Mohan Saving Changes...
