Are the close procurement process and the close project process just two ways of saying the same thing? Many professionals, including PMP aspirants, ask that. They appear similar, but they differ in meaningful ways. The close procurement process focuses on ending vendor contracts, while the close project process ensures all project work is completed and accepted by the client.
Both processes are important for proper project closure. Understanding the difference helps you manage contracts, track performance, and avoid disputes. It also ensures that every project ends in an organized and professional way.
In today’s blog post, I will explain the close procurement and close project process and their differences. After reading it, you will clearly see how the two differ, and why that matters.
Let’s get started.
Key Takeaway
Close Procurement Process
- Involves completing each procurement, finalizing payments, resolving disputes, and archiving records.
- Occurs once per contract and may happen multiple times during a project.
- Under PMBOK 7th Edition, it’s now part of the Procurement Performance Domain, emphasizing practical contract finalization.
Close Project (or Phase) Process
- Finalizes all project activities across process groups to formally complete the project or phase.
- Includes deliverable verification, team release, lessons learned, and documentation archiving.
- Happens only once per project or phase and falls under the Integration Management knowledge area.
PMBOK 7th Edition Updates
- The Close Procurements process merged with Control Procurements in PMBOK 6th Edition.
- PMBOK 7th replaces process groups with performance domains, but closure remains vital to successful delivery.
- Understanding closure concepts remains important for the PMP exam and real-world project management.
Why Closure Matters
- 52% of projects meet original goals when closure steps are defined (PMI, 2024).
- 28% higher success rates for firms with mature closure processes (Monday.com, 2025).
- Poor closure increases costs by 10–20% due to unresolved claims.
- 37% of project failures stem from incomplete handovers.
What Do We Mean by Procurement, Project, and Phase?
Procurement is the process of obtaining goods, services, or work from an external source. You may hire a contractor or vendor when your team lacks the skills, resources, or time to do the job internally. It helps reduce costs, improve quality, and accelerate project completion.
A project is a temporary effort to create something unique—like a product, service, or result. It has a clear beginning and end, and it closes once the set objectives are achieved or no longer valid.
A project phase is a group of related activities that lead to one or more deliverables. Dividing a project into phases makes it easier to manage and track progress step by step.
What is the Close Procurement Process?
Close Procurements is the process of completing each procurement. It is also called contract closure. You finish a contract, make final payments, settle disputes, update records, and archive the procurement file.
For example:
- The contract end date is reached or terminated.
- Final deliverables are accepted.
- All invoices paid.
- Lessons learned captured and contract formally closed.
If you have multiple procurement contracts in a project, you may perform this process many times (once per contract). If you have no external contracts, you might skip this step.
In the PMBOK 7th Edition, this isn’t a rigid “process” anymore. Instead, it’s an activity within the Procurement Performance Domain. You finalize payments, resolve disputes, and release vendors once their deliverables are accepted.
What is the Close Project (or Phase) Process?
Close Project or Phase is the process of finalizing all activities across all project management process groups to complete the project or phase formally.
This means wrap up every process group (Initiating, Planning, Executing, Monitoring & Controlling, Closing). Confirm all deliverables accepted, release the team, update project records, archive documentation, and formally hand over to operations.
Even if the project ends early (terminated), you still perform this process. The project owner (client/stakeholder) closes you out. You deliver your final result, and you are done.
Why the “Or Phase”?
Projects often run in phases, such as planning and execution. Closing a phase lets you review early and pivot if needed, keeping things agile.
Without this step, you risk scope creep or unpaid invoices. It’s the client’s “sign-off” moment.
Under PMBOK 7th, this falls into the Measurement and Delivery Performance Domains. You confirm all work is complete, get formal acceptance, and archive lessons learned. It’s mandatory and happens just once per project (or phase).
Close Procurement Vs Close Project: A Side-by-Side Comparison
| Parameter | Close Procurement | Close Project/Phase |
| Which knowledge area | Procurement Management | Project Integration Management |
| When it happens | After each contract finishes | At the end of the project or phase |
| Count of times | Many times (per contract) or none | Exactly once per phase or project |
| Output | Closed procurement (contract closed) | Final product/service/result; formal sign-off |
| Who closes whom | You (buyer) close with the vendor/contractor | Client/stakeholder closes you |
Even though the two look similar, do not treat them as synonyms. For example, you might see a question: “Which process ensures all contracts are formally closed?” That points to Close Procurement. Another might ask: “Which process ensures all deliverables are accepted and project archives are completed?” That is the Close Project or Phase.
Why the Difference Matters in PMBOK 7th Edition
The PMBOK 6th Edition merged Close Procurements into Control Procurements.
The 7th Edition takes a broader view, focusing on performance domains instead of fixed processes.
Why it matters:
- The concept of closure still exists—you must complete procurements before closing the project.
- PMP exam questions still test your understanding of both.
- Employers expect you to know how to formally close contracts and projects.
Real-world Case Study: School Building Example
Imagine you are the project manager building a school. Several external contractors are involved: earth excavation, electrical work, carpentry, and painting.
- You subcontract the excavation work. Contract finishes, you pay the vendor, you archive documents -> you perform the close procurement process.
- You subcontract electrical, then carpentry, then painting. Each contract ends; you close each one separately.
- Eventually, the building is ready. The client inspects, signs the acceptance letter, and you hand over the deliverable and collect the final payment. You update lessons learned, release team, and archive documents -> you perform the close project process.
- Thus, multiple procurement closes, then one project close. Simple.
Quick Checklist: Closing Contracts Vs Closing Projects
When closing a procurement contract:
- Has the buyer accepted all deliverables?
- Are there any outstanding claims or invoices?
- Has the formal written notice of contract completion been issued?
- Are contract documents archived (final scope, schedule, cost, quality records)?
- Are lessons learned captured, and corporate process assets updated?
When closing a project or phase:
- Are all project deliverables accepted by the client/stakeholder?
- Are all procurements closed (or documented)?
- Are the project team and resources formally released?
- Is the final project report compiled and approved?
- Are project archive records indexed, and lessons learned updated?
- Has the transitional handoff to operations been completed (if applicable)?
Why Closing Matters: Stats and Insights
Poor wrap-ups are one reason only 52% of projects meet their original goals, according to PMI’s 2024 Pulse of the Profession report.
Here’s why nailing closing processes pays off:
- Success Boost: Organizations with mature closing practices see 28% higher project success rates (monday.com, 2025 Project Management Stats).
- Cost Savings: Unresolved contract closure issues add 10-20% to total expenses—think lingering vendor claims.
- Risk Reduction: 37% of failures stem from unclear goals or incomplete handovers (Iseo Blue, 2025 PM Stats). Strong closings clarify everything.
- Market Growth: The project portfolio management market hit $6.13 billion in 2024, driven by better lifecycle tools—including closings (Grand View Research).
Bottom line: Invest time here, and you’ll dodge the 65% failure rate for under-closed projects (Ravetree, 2025).
FAQ
Q1. Can you close the project without closing all procurement contracts?
No. Ideally, you should complete and settle all contract obligations to ensure a clean project handoff. If a contract remains open, it creates risk.
Q2. What if a contract is terminated early?
Even if terminated, you still perform the close procurement tasks: accept deliverables, settle claims, and archive documents.
Q3. In agile projects, do we still need “close project”?
Yes. Even in agile setups, you have a formal phase or sprint end and a project end. You still want to transfer deliverables, release team, and update lessons learned.
Q4. Will the PMP exam ask “Close Procurements” now?
Yes, as a concept. Even though PMBOK 7th changed terminology, the exam may still test your understanding.
Q5. What is the main point to remember?
Close procurement = contract done. Close project = project done. One deals with the vendor, the other deals with the deliverable handoff and the client.
Summary
The close procurement process and the close project (or phase) process sound alike, but they serve different purposes, occur at different times, and involve different parties. Understanding those differences helps both your exam prep and your real-world project practice. In your next project, build contract close-out planning early; don’t leave it for the last day, so your project finishes smoothly and professionally.
Further Reading:
- Project Procurement – What a Project Manager Should Know About it
- 24 Essential Procurement KPIs You Can Use in Your Organization
- Procurement Process in Business: Key Steps, Benefits & Best Practices
- Procurement Vs Contract: Key Differences Explained
- EPC Contracts Explained: A Guide to Turnkey Project Delivery
- Procurement Vs Purchasing: Key Differences Explained
References
- Project closing – Project Management Institute
- PMI’s 2024 Pulse of the Profession Report
- monday.com, 2025 Project Management Stats
- Iseo Blue, 2025 PM Stats
- Grand View Research
This topic is important from a PMP exam point of view.
I am Mohammad Fahad Usmani, B.E. PMP, PMI-RMP. I have been blogging on project management topics since 2011. To date, thousands of professionals have passed the PMP exam using my resources.
I would like get some clarification on the following:
1) Do we negotiate or process payment/claim dispute under CONTROL Procurement (Claim administration) or CLOSE Procurement (Procurement Negotiation)?
2) In Project we have validate scope for acceptance of deliverables. What about in Procurement, do we validate seller work/deliverables under CONTROL Procurement or CLOSE Procurement?
Thanks.
1) As per the PMBOK Guide, fifth edition, “The Close Procurements process also involves administrative activities such as finalizing open claims”.
2) This is inspection and audit. As per the PMBOK Guide fifth edition, “Inspections and audits required by the buyer and supported by the seller, as specified in the procurement contract, can be conducted during execution of the project to verify compliance in the seller’s work processes or deliverables.” You do it in control procurements process.
Hello Fahad, Thank you for posting this information and discussion. Which Process Group includes Procurement Closure? It was stated that it is part of Validate Scope which is part of Process Group Monitoring and Controlling. But also noted above by Joseph is ….Close Procurement is a step under the Procurement Management process within the Execution Process Group. Please clarify which Process Group includes Procurement Closure?
Please refer to the page 61, PMBOK Guide fifth edition. It is in closing process group.
Closing the procurement can happen at any stage and in any phase. Hence it is not a trigger to close the project. Phase or project can still continue. However before closing the project there should not be any open activity/task. Hence it is mandatory to close the procurements before closing the project however closing procurement does not require to trigger the phase/project closure. I think accepted deliverables can have the deliverables which are part of the procurement outputs. Hence not mentioned as separate input to close project or phase process.
Dear Mr. Fahad
If i still have some invoices not paid to the seller , is this mean the project still not closed ???
Thanks
You have to close all procurement contracts before closing the project.
Can you explain the order of events that happen in close projects.
I see many questions in mock tests regarding the same. Some say closing the contract happens after releasing the team. Some say measure Customer satisfaction is the last step in closing. Some say it is the formal sign off.
What is the order of the below actions :
1. Sign off and final acceptance
2.final Payments and complete cost records
3. Update lessons learned
4.update project records.
5.Ensure all project management processes are complete.
6.Index and Archive project records.
7.Analyze the success of the project
8.Evaluate customer satisfaction
9.Hand off completed deliverables to operations, maintenance etc
10. Release the team.
There is a process flow chart in Rita’s book. Understand this chart, it will help you clear many doubts.
Hi Fahad,
Rita’s process chart does not talk about Release team activity in phase/project closure. I think few of the team members (project management team) are still needed who can work on collecting final lessons learned or doing trend analysis etc. So it can be a last activity in project closure. However after releasing the team certain projects documentation needs to be updated and then archived hence Index and Archive project records can be considered as last activity. and this is in line with the last activity ‘Gather final lessons learned and update knowledge base’ mentioned in Rita’s process chart.
However in one of the simulation test this answer was marked incorrect and the correct answer they mentioned was Solicit customer feedback. I am not sure if this is correct answer.
Please share your views.
I don’t have Rita’s book so can not comment on it though I recommend you understand the chart given on page 61 in the PMBOK Guide fifth edition.
Hello Fahad,
Could you please clarify what happens if a claim on the procurement cannot be settled by the parties and is finally the subject of a court procedure (which can be very long… up to several years).
Let’s take an easy example: there is a claim between the seller and the buyer about the price to be paid but the work has been performed and delivered by the seller.
Does it means that the buyer cannot close the procurement and therefore the project because of the claim? Or can he close it because the work has been delivered by the seller?
Do the project and the procurement remain “open” during several years if there is appeal procedure etc. ?
Many thanks for your clarifications
If the resolution cannot be solved through the arbitration, and it goes to court, you can not close procurement with the contractor.
Although you can close the project with your client since the project is completed, case will remain open with you and your supplier.
Also note that, since the court is involved in the dispute, it may stop whole proceeding or let you clear your deal with the client. It depends on case to case basis.
PMBOK page 387 says “Unresolved claims may be subject to litigation after closure. The contract terms and conditions can prescribe specific procedures for agreement closure”. This means the contract can be closed and the court procedure can continue.
Please correct if this understanding is wrong.
As per my understanding: Yes.
Ref:
KEY POINTS: Deliverables are accepted in Close Project.
I came across a question explanation where it was stated;
VERIFY SCOPE process accepts the deliverables. Not CLOSE PROJECT.
Please clarify correctness of above KEY POINT.
Please refer PMBOK fifth edition, page: 136, point:5.5.3.1
My question is about obtaning formal acceptance of deliverables
This is required in project or phase closing But is required in Procurement closing ? and when and how are acceptance of deliverables done in Procurement closing.
Thank You
If you have any procurement contract in the project and this contract is completed, you’ll closed this contract and accept the deliverable but you project will continue to proceed.
Dear Mr. Fahad,
The main performing organization (main contractor) , wants to close their contract with the client, in which processes it will happen? whether in Close procurement or Close project
Kindly explain this…..
regards,
Jayanth
If the main contractor has the whole project and wants to close contract, he must go through the close project process.
However, if the main contractor is having a part of the project then also he must go through the close project process but the client will go through the close procurement because the project is still on.
In any case, the contractor has to go through the close project, because for him everything is closed.
I think since it says main contractor means there are other contractors who are still engaged. This would imply that it is a case of close procurement and not close project because other contractors may still be working on the project.
Thanks for clarifying Adiministrative Closure..I’ve seen the term in several practice exams and was concerned that I missed something.
Hi
Could you please explain about Adminstrative Closure.
Thanks
Suresh
Administrative Closure and Close Project or Close Phase are the same.
(The PMBOK Guide Page-100, first paragraph, Article 4.6).