--- title: "Contract procurement performance review" subject: "ICT Project Management" chapter: 13 key: "semester_7/ict_project_management:procurement-performance-review" source: https://www.bctengineer.com/q/semester_7/ict_project_management/procurement-performance-review site: BCT Engineering --- # Contract procurement performance review ICT Project Management · Chapter 13: Project Procurement Management - Asked in: year not given - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/ict_project_management/procurement-performance-review - Whole chapter: https://www.bctengineer.com/md/semester_7/ict_project_management/chapter-13 ## Question What do you mean by contract procurement performance review? ## Short answer A procurement performance review is a structured review of seller's progress against contract scope, quality, cost, and schedule. It is a Control Procurements tool that identifies performance successes/failures, detects non-compliance early, and informs payments, corrective actions, or contract termination. ## Answer A **procurement performance review** is a structured review of the seller's progress to deliver project scope and quality, within cost and on schedule, as compared to the contract. It is a tool and technique of **Control Procurements**. It includes a review of seller-prepared documentation, buyer inspections, and quality audits conducted during seller's execution of the work. #### Objectives - Identify performance successes or failures and progress relative to the SOW. - Detect contract non-compliance early and take action. - Decide on payments, corrective action or termination. - Provide information for future source selection and lessons learned. #### What is reviewed | Area | Check | |---|---| | Scope | Are deliverables as per SOW? | | Schedule | Milestones met? | | Cost | Invoices vs progress, change orders | | Quality | Test results, audit findings | | Documents | Seller's reports, plans, records | | Compliance | Terms, safety, legal | | Relationship | Responsiveness, communication | #### Process ```text Collect seller reports + inspections -> Compare with contract requirements -> Identify variances -> Discuss with seller -> Corrective action / change request -> Record in performance file ``` 1. Schedule reviews (monthly or at milestones). 2. Gather seller documents and verify through inspection. 3. Compare actual performance with contract (use earned value where possible). 4. Hold a review meeting; agree actions and deadlines. 5. Document results; request changes or issue notice of default if necessary. 6. Use results for payment decisions and seller evaluation. #### Outputs Work performance information, procurement change requests, corrective actions, updates to OPA (seller performance records). #### Benefits Better control of contract, reduces risk of delay or poor quality, and helps in building a supplier history. **Example:** At the end of month 3, the buyer reviews a vendor's progress on a hospital software contract, finds the testing module two weeks late, and requires a recovery plan before the next payment. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. What is a procurement performance review? A. A review of the buyer's budget B. A structured review of the seller's progress on scope, quality, cost and schedule against the contract C. A review of bidder conferences D. A review of advertising Answer: B. It compares the seller's progress with the contract on scope, quality, cost and schedule. (Key point: Definition) 2. Which process uses it as a tool? A. Plan Procurement Management B. Conduct Procurements C. Control Procurements D. Close Procurements Answer: C. It is a tool and technique of Control Procurements. (Key point: Process) 3. What can results of the review be used for? A. Only to archive B. Decide on payments, corrective action or termination and for future source selection C. Advertise the next tender D. Select contract type Answer: B. Findings guide payments, corrective actions, notices of default and seller evaluation. (Key point: Use of results) 4. A vendor's testing module is two weeks late. What is the suitable action? A. Pay in full B. Require a recovery plan before the next payment C. Close the contract D. Ignore the delay Answer: B. The variance is discussed and corrective action, such as a recovery plan, is required. (Key point: Example action) ## Related in ICT Project Management - [Project procurement management](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aproject-procurement-management) — ICT Project Management, chapter 13 - [Procurement audits](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aprocurement-audits) — ICT Project Management, chapter 13 - [Contract closure process](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Acontract-closure-process) — ICT Project Management, chapter 13 - [Contract and contract negotiation](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Acontract-negotiation) — ICT Project Management, chapter 13 - [Contract administration process](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Acontract-administration) — ICT Project Management, chapter 13 ## Related in other subjects - [Formal technical review; Garvin’s quality dimensions](https://www.bctengineer.com/question.md?key=semester_5%2Fsoftware_engineering%3Aftr-garvin) — Software Engineering, chapter 9 - [Bidding preparation, ambiguity, percentage contract](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Abidding-notice-percentage-contract) — Engineering Professional Practice, chapter 4 - [Value engineering in material procurement](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Avalue-engineering-procurement) — Construction Management, chapter 3, asked 3× - [Meaning of purchasing and procurement](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apurchasing-procurement) — Organization and Management, chapter 6