Question

When a significant percentage of project costs are related to procurement, project closeout reviews will necessarily spend some time on procurement issues.

Select two out of the following four industries: service (public and private); manufacturing; software and IT; and construction/building/maintenance. Compare the two industries with respect to how you would conduct project closeout reviews to assess the legal and financial success of your procurement management processes.

Answer 1

Project closeout is a very important element of the entire project and as is very clear from most research studies projects tend to operate on the reverse Bell curve with the beginning and the closing requiring the maximum effort and inputs. There are certain steps which can ensure perfect close out of any project if followed broadly. firstly it is project close out where we need to ensure that every step that the project went through has been perfectly closed review all documentation legal requirements inspection authority requirements change Orders and client notes to be sure that each process has been perfectly followed and the required results obtained. Secondly it would be client close out whereby the the success of the entire project is reviewed judging level of satisfaction of the client also it is important to ensure that signatures are obtained on all the documents and also feedback obtained and reviewed to ensure the particular customer can be served better as also other clients. Organizational closeout required the company to move out of the project site to ensure that everything is done in a very streamlined manner and the site is handed over in the best possible condition. Here it is also required to ensure that all hired equipment machinery et cetera has been returned. Close out of any sub contract requires that in cases where subcontractors have been hired to perform certain task they process has been closed in a proper manner all payments have been made all bills settled and we have been moved out of the site also all paperwork should be complete. Risk assessment requires that any possible threats or concerns which may create a final hurdle in the success of the project be identified and dealt with strategically to ensure the handover is smooth and efficient. A final report officially closing out the project should be written in the form of a document that outlines every required step and provides detail and result of each process of the project this is the main document which demonstrates that each step of the project has been successfully completed team closeout is also important as a walkthrough with the team which worked on the project helps to boost the morale as also study any hurdles in the form of a group which impacts future performance. Finally at the end we should have a project closeout checklist which is a document listing out all the important matters which need to be looked into before handing over the final project to ensure that no liabilities are faced post anything over of the project this is just final wrap up.

Procurement management review for a construction project would require ensuring that the entire procurement process which would include the documentation, managing, and closure of all the contracts has been perfectly completed. A project management plan could take data from document such as risk register project schedule scope baseline and activity requirements and in turn provide data two project management plan procurement documentation and change request. it would also and train invitation for bids all the sub contract jobs ensure that a contractor meets the pre-qualification criteria, evaluate the bids, hold a clarificatory meeting, analyze the result and accept clarified bids, start the negotiation process and upon completion issue notice of award. it is essential for a construction company to have detailed quality review of all document especially of material which may be used in the construction. To avoid issues which may creep up post completion, controls should be in place to ensure that all material meets the required safety standards as laid down in the rules. All documentation which proves all the diligence applied and the bidding system utilized for procurement should be filed to avoid or help face any legal liability if it arises. Project closeout review will verify all the above has been followed perfectly and the actions supported by substantial documentation.

In a manufacturing industry the procurement is for material and the machinery which would be utilized for manufacture of the product. Here also it is very important to ensure that all required protocol is followed during the procurement process by maintaining sufficient documentation which support and prove that due diligence has been applied for procurement of the best quality inputs. In a project the stakeholder is always more concerned with the quality of the product rather than the cost as the project cost has already been fixed and the stakeholder needs to ensure he receives the best possible quality for that cost to be satisfied. therefore it is very important that all procurement be done through invitation of multiple bids from qualified suppliers. The quality of the material received should be thoroughly checked and controls be in place for quality assurance as quality of raw materials decides quality of the end product also. Project closeout reviews will focus on documentation of the procurement the managing of the procurement and the procedure that was followed and also the end result, that is, the quality of the material that is procured was as per specification and the client is satisfied with the output. Any deviations in quality could result in legal liability, therefore, it is important to ensure all relevant documents are filed and cross signed by the client where required.