A three-year program using vendor contracts, incorporating related projects, and each with specific stakeholders is coming to an end. What should be…

The first and most critical step in the contract closure process is to perform a final assessment to verify that all terms, conditions, and obligations of the contract have been satisfied by all parties. This involves confirming the completion and acceptance of all deliverables and ensuring that all administrative, technical, and financial requirements stipulated in the contract have been met. This verification is the foundation for all subsequent closure activities, such as formal certification, final payments, and process audits. Without this initial assessment, it is impossible to formally or legally close the contract.

A. Certify contract completion: This is a formal, administrative step that can only occur after the assessment confirms that all conditions have been met.

B. Conduct a procurement audit to review the procurement process: A procurement audit is a structured review of the entire procurement process for lessons learned and is typically performed after the contract work is verified and closed.

D. Review contract management plan for completeness: The contract management plan outlines the process for closure; reviewing the plan is not the first action taken to close the specific, active contracts.

1. Project Management Institute. (2017). The Standard for Program Management (Fourth Edition).

Section 5.6.2

Program Closure Activities

states that this phase includes "finalizing all open claims and closing all program-related procurements and contracts." The logical prerequisite to closing a contract is ensuring its terms have been fulfilled.

2. Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (Sixth Edition).

Section 12.3

Control Procurements

describes the activities for managing and closing contracts. The process outputs include "closed procurements

" which requires verification that "all work and deliverables were acceptable." This verification (assessment) must happen before formal closure.

Section 4.7

Close Project or Phase

explicitly lists "Confirming that all project work is completed to the specified requirements" as a key activity

which directly aligns with assessing contract conditions before closure.