7/28/2019 Administrative Closure and Contract Closure

1/2

Administrative and Contract Closure Differences:-------------- --- -------- ------- -----------Updated for the Changes to the PMP Exam from 31-August-2011. There are now 8% questions from Closing Process Group.While conducting PMP Exam Preparation workshops, I have noticed that many participants are confused about the Contract Closure (Close Procurements) and Administrative Closure (Close Project or Phase) processes.Which comes first? What are the differences in these 2 processes?The confusion stems from them working in different organization some come from abuyer 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 thePMP 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 allthe 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 contractis terminated before the work is completed (usually by the buyer if the work isno 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.Key Difference:

Procurement Closure or Contract Closure is done before the project can be closedcompletely.Procurement Closure may be done multiple times ( once for each contract) duringthe lifecycle of a project.Administrative Closure is only done once per phase, or for the entire project. Project closure is not complete without procurement closure.Product acceptance is carried out using the Close Project or Phase process.The contracts are closed using teh Close Procurement process.

7/28/2019 Administrative Closure and Contract Closure

2/2

Mock PMP Exam Questions:1. You are the project manager of the Quick WeightLoss Mix Project. The projectis 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 isnot an input to the Close Project or Phase process?A. Project management PlanB. Project deliverables validated through the quality control processesC. Final project auditsD. Acceptance CriteriaCorrect Answer: B. Validated deliverables are first sent to Verify Scope to become Accepted Deliverables.2. You have reached the end of the project. To end a project, which process mustbe performed last:A. Verify ScopeB. Close Project or PhaseC. Close ProcurementsD. Complete Project

Correct Answer: B.3. What is the correct order of performing the processes?A. Perform Quality Control, Close Project or Phase, Close ProcurementsB. Verify Scope, Perform Quality Control, Close Project or Phase, Close ProcurementsC. Perform Quality Control, Verify Scope, Close Project or PhaseD. Verify Scope, Perform Quality Control, Close ProcurementsCorrect Answer: C.4. Who can authorize the closure of a project?

A. SponsorB. Project ManagerC. Functional ManagerD. CustomerCorrect Answer: A. The Sponsor was the one who sactioned the project, so he/shemust be the one to formally accept and close the project.Thats it for now. Hope this helps you in preparing for the PMP exam. Let me knowyour comments and feedback on this.