Select Sellers: Inputs Select Sellers

.8 Information Technology The use of information and communication technologies can enhance the efficiency and effectiveness of contract administration by automating portions of the records management system, payment system, claims administration, or performance reporting and providing electronic data interchange between the buyer and seller.

12.5.3 Contract Administration: Outputs

.1 Contract Documentation Contract documentation includes, but is not limited to, the contract Section 12.4.3.2, along with all supporting schedules, requested unapproved contract changes, and approved change requests. Contract documentation also includes any seller-developed technical documentation and other work performance information, such as deliverables, seller performance reports, warranties, financial documents including invoices and payment records, and the results of contract-related inspections. .2 Requested Changes Requested changes to the project management plan and its subsidiary plans and other components, such as the project schedule Section 6.5.3.1 and procurement management plan Section 12.1.3.1, may result from the Contract Administration process. Requested changes are processed for review and approval through the Integrated Change Control process Section 4.6. Requested changes can include direction provided by the buyer, or actions taken by the seller, that the other party considers a constructive change to the contract. Since any of these constructive changes may be disputed by one party and can lead to a claim against the other party, such changes are uniquely identified and documented by project correspondence. .3 Recommended Corrective Actions A recommended corrective action is anything that needs to be done to bring the seller in compliance with the terms of the contract. .4 Organizational Process Assets Updates • Correspondence. Contract terms and conditions often require written documentation of certain aspects of buyerseller communications, such as warnings of unsatisfactory performance and requests for contract changes or clarifications. This can include the reported results of buyer audits and inspections that indicate weaknesses the seller needs to correct. In addition to specific contract requirements for documentation, a complete and accurate written record of all written and oral contract communications, as well as actions taken and decisions made, are maintained by both parties. • Payment schedules and requests. This assumes that the project is using an external payment system. If the project has its own internal system, the output here would simply be payments. A Guide to the Project Management Body of Knowledge PMBOK ® Guide Third Edition 294 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA • Seller performance evaluation documentation. Seller performance evaluation documentation is prepared by the buyer. Such performance evaluations document the seller’s ability to continue to perform work on the current contract, indicate if the seller can be allowed to perform work on future projects, or rate how well the seller is performing the project work. These documents can form the basis for early termination of the seller’s contract, or determining how contract penalties, fees, or incentives are administered. The results of these performance evaluations can also be included in the appropriate qualified seller lists Section 12.3.3.1. .5 Project Management Plan Updates • Procurement management plan. The procurement management plan Section 12.1.3.1 is updated to reflect any approved change requests that affect procurement management. • Contract management plan. Each contract management plan Section 12.4.3.3 is updated to reflect any approved change requests that affect contract administration.

12.6 Contract Closure

The Contract Closure process supports the Close Project process Section 4.7, since it involves verification that all work and deliverables were acceptable. The Contract Closure process also involves administrative activities, such as updating records to reflect final results and archiving such information for future use. Contract closure addresses each contract applicable to the project or a project phase. In multi-phase projects, the term of a contract may only be applicable to a given phase of the project. In these cases, the Contract Closure process closes the contracts applicable to that phase of the project. Unresolved claims may be subject to litigation after contract closure. The contract terms and conditions can prescribe specific procedures for contract closure. 12 Early termination of a contract is a special case of contract closure, and can result from a mutual agreement of the parties or from the default of one of the parties. The rights and responsibilities of the parties in the event of an early termination are contained in a terminations clause of the contract. Based upon those contract terms and conditions, the buyer may have the right to terminate the whole contract or a portion of the project, for cause or convenience, at any time. However, based upon those contract terms and conditions, the buyer may have to compensate the seller for sellers preparations and for any completed and accepted work related to the terminated part of the contract. A Guide to the Project Management Body of Knowledge PMBOK ® Guide Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 295