200 word response to peers post/comments. must be APA format, in-text citation and references.
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Martinez 6.1-Procurement closure
In questing four that I choose I will discuss the difference between contract closure and
administrate closer. Some of the tools one can use to ensure everything in the contract is
completed. Explain why you may terminate a contract early. Some methods and approaches to
handle open claims or contracts disputers. Lastly how all parties know that the contract is
officially completed and after everyone has agreed that the contract is completed, what are some
things a buyer or seller should do.
A contract closure is a contract that is closed upon reaching the end of the contract, or
when a contract is terminated before the work is completed. It is terminated usually by the buyer
when the work is no longer required, or the work performed is not acceptable due to quality or
other reasons. You may need to compensate the seller for the work completed if the contract
clauses state it. If the project would happen to have multiple phases the Close Procurement will
closes the appropriate contracts for the phase of the project. This process may be repeated as
many times in a project (Prakash, N.D).
In an administrative closure is the final completion and closer of the project. This is when
all the work has been verified, delivered, and accepted by the customer. All the open issues have
been addressed and come a conclusion and closed. This is part of the Integration Management
knowledge are, the Close Project or Phase process (Prakash, N.D).
The key differences of contract closure and administrative closure are; contract closure is
done before the project can be closed completely, be done multiple times during the life of the
project. Administrate is done once per phase, or for the entire project (Prakash, N.D). You can
use these closures to know when a contract is officially completed and the responsibly of both
parties to insure the project is completed. also, both parties should go over a check list of as a
final activity to insure the job has been done.
Contract management is overseeing agreements made with suppliers, customer, partners
and employees (Gray, N.D). Having a contract management can help to ensure things in the
contract are completed. According to Gray (N.D) a contract management process will insure that
everyone in the company follows the contract in the same way. Establish metrics to measure and
asses the effectiveness of the contract and have an audit checklist for reference. Having this in
place one can use it to insure contract completion.
Some reasons you may have to terminate a contact early could be performance, breach of
contract, prior agreements, rescissions of the contract, or completion of the contract (Johnson,
2018). When one can’t perform what they were hired to do the company has the right to
terminate the contract in the case of impossibility of performance. a breach of contract is when a
contract is not honored by one party, this will lead to contract termination. Having a prior
agreement may terminate a contract as you or the other party having prior written agreement
(Johnson, 2018). “rescission of a contract is when a contract is terminated because an individual
misrepresented themselves, acted illegally or made a mistake” (Johnson, 2018). Completion of
the contract, essentially terminated once the obligations outlined in the contract are completed
(Johnson, 2018).
Some methods or ways to handle any open claims or contract disputes is to first review
the contact. Carefully re-read the contract by paying attentions to the specific clauses. You can
also try to negotiate the disputes with your contractor. If that does not work, mediation can be the
next step as this is more structured negotiation process. Arbitrations can also be used as it is
commonly used in circumstances where the parties’ ability to negotiate has broken down
completely. Lastly, you can also use litigation as a last resort resolve a dispute with your
contractor. As this starts court proceedings against another party for enforcing or defending their
legal rights (Swain, 2016).
References
Prakash, V. (N.D) Difference between contract closure & administrative closure for pmp exam.
Retrieved from https://www.pmchamp.com/contract-closure-administrative-closure-pmpexam/
Gray, C. (N.D) Eight steps to effective contract management. Retrieved from
https://smallbusiness.chron.com/eight-steps-effective-contract-management-24948.html
Johnson, R. (2018, June 29) 5 ways to terminate a contract. Retrieved from
https://smallbusiness.chron.com/5-ways-terminate-contract-16020.html
Swain, V. (2016, Mar. 10) 5 ways to resolve a dispute with your contractor. Retrieved from

5 Ways to Resolve a Dispute With Your Contractor


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