PROJECTS

Process Document

Project Management & Control

Manage Contractors
Contract Closure (Sub-Contractor) Process

Document No: XXXXXX

Issue date: 26th May 2017
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Contract Closure (Sub-contractor)
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Change Authorization History

Document No:
Overall Process Owner: SVP (SCM – Projects)
Process Change Authorization: SVP (SCM – Projects)
To be Reviewed By: ………………………
………………………
Periodicity of Review of this Document: Annual

Version Control

Version Version Version Date for version

Location
number prepared by reviewed by preparation

Version Control History

Version number Reasons for change

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INDEX

Content Page

Abbreviations 4

Process Document Structure 5

Operating Framework 7

Process Best Practices 8

Contract Closure (Sub-contractor) - Process Maps 9

Contract Closure (Sub-contractor) - Process notes 10

Contract Closure (Sub-contractor) – SIPOC 11

Contract Closure (Sub-contractor) – RASCI 12

Contract Closure (Sub-contractor) – KPI 13

Contract Closure (Sub-contractor) - Templates 13

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Abbreviations

Standard Abbreviations:
KPI Key Performance Indicator
SIPOC Supplier, Input, Process, Output, Customer
RASCI Responsible, Accountable, Support, Consult, Inform

Process Specific Abbreviations:

BOQ Bill of Quantities
DPR Detailed Project Report
UoM Unit of Measurement
Organizational Roles Abbreviations:
Project/Function
Function Roles Abbreviations
Resources
Corporate Chief Financial Officer CFO Top management
Project
Project Director PD Project
Management
Project
Project Manager PM Project
Management
Project
Document Controller DC Project
Management
Project
Project Risk Manager PRM Project
Management
Project Control Project Control Manager PCM Project
Project Control Planning Engineer PE Project
Project Control Cost Controller CC Project
Project Engineering
Engineering PEM Project
Manager
SCM Senior VP (SCM) SVM (SCM) Functional Head
General Manager
SCM GM (P&C) SCM - Projects
(Procurement & Contracts)
SCM Project Procurement
PPM Project
Manager
SCM Head – SCM HSCM Functional head
SCM Warehouse Supervisor WS Project
SCM Warehouse Executive WE Project
Finance Billing Engineer BE Project
I&C and
I&C Manager ICM Project
Construction
HSE HSE Manager HSM Project
Quality Quality Manager QM Project
Finance Finance Manager FM Project
HSE HSE Manager HSM Project
Quality Quality Manager QM Project
Finance Finance Manager FM Project

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Process Document Structure

This Level 2 process document comprises of Level 3 sub-processes as separate

chapters. Each chapter consists of the following sections:

1. Process Map
The process map details the sub
processes highlighting functions/roles
involved. It also demonstrates the flow of
activities in the process.
The phases of the process are also
defined in the process map as separators
(vertical line).

2. Process Notes
Process notes detail out the activities
carried out in each of the process
elements. They also cover additional
details required to complete the process
that do not get covered as part of the
process map and SIPOC.

3.SIPOC (Supplier, Input, Process, Output, Customer)

SIPOC tabulates the following:
• Supplier of inputs
• Inputs to the process
• Process* (and steps involved)
• Output of the process
• Customer of the output
* Process gets covered in the process map

4. RASCI (Responsible, Accountable, Support, Consult, Inform)

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RASCI table maps all activities defined in

the process to all roles which participate
in the respective activities in various
capacity (Responsible, Accountable,
Support, Consult, Inform)

5. KPI
The KPI of the process is defined in this
table; process efficiency is measured
based on KPI

6. Templates / Checklists
This table lists the templates / checklists
that will be used to execute the process.

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Project Management Framework

Develop Contract Synopsis (Customer) (Customer)

Change/Variation Order Management (Customer)

Communications & Claims Management (Customer)

Contract Administration (Sub-contractor)

Change/Variation Order Management (Sub-contractor)

Communications & Claims Management (Sub-contractor)

Contract Closure (Sub-contractor)

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Contract Closure (Sub-contractor) - Best Practices

Checklist requirements

• Contract Manager to prepare the contract closure checklist in coordination with the
Project Procurement Manager
• Contract Manager should ensure that all contractual documents are received before
proceeding for contract closure

Learnings Sessions

• All learnings from the employing the sub-contractor should be discussed in a cross
functional session: What has the Sub-contractor done right, What has the Sub-
contractor done wrong and how he can improve going forward

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Process Documentation

Process for Contract Closure (Sub-contractor)

SCM - Projects

Project Director

Vendor
Project 1 Payment
Manager Process

P4.Intimate Finance
Yes
Project P1.Prepare the P2.Ask Sub- to do F&F
Procurement contract closure contractor to submit
checklist all documents as per
Manager checklist P5.Intimate Sub-
P6.Conduct session End
contractor regarding
D1.Are all to Discuss &
No missing documents
documents in Document Learnings
order?

Project Contract I1. Sub-

Manager contractor WO

Start

P3.Sub-contractor
Sub-contractor submits all
documents

Project Control
Manager

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Process Notes

The objectives of the close out contracts process are:

• To ensure that all obligations are met by all vendor before final completion of
contract

S.No Process Notes

The Project contract Checklist is prepared jointly by Project Procurement
Manager, Project Contract Manager & the Project Manager. The template for
the check list is given below.
List of documents to be enclosed as per WO
Original /
Document Name Yes / NO / NA Page No. Remarks
Copy
Abstract of running bill of account generated by Vendor for every invoice of each
Milestone
Invoice in prescribed format by company

Proof of Payment of Service tax etc. (If applicable)

Copy of Work Order

P1 Completion certificate (with change details), certified by company's Area Manger,

EIC, Spread Head & Construction head
Abstract & Measurement sheets (T&D, DIT & Blowing) signed by vendor, EIC, &
spread head
Material reconciliation statement duly verified by vendor, company's Warehouse In
charge & Spread Head

IR Clearance( PF, ESI, Attendance sheet, Form V- if workers are more than 10

Copy of Insurance policy

ROW permission copy/Copy of demand note paid to authorities (wherever

applicable)

Others, if applicable

10% performance bank guarantee (PBG) in original

Exhibit: Contract Closure Checklist

The Project Procurement Manager to ask the sub-contractor to submit all
P2 the documents as per the checklist.

P3 Sub-contractor to submit all the documents as per the checklist.

The Project Procurement Manager and the Project Contract Manager jointly
D1 checks if all the documents submitted by the sub-contractor is in order.

If all the documents are in order Finance team is given an intimation to do

P4 the F&F by the Project Procurement Manager

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If there are missing documents, the sub-contractor is intimated about it by

P5
the Project Procurement Manager
The Project Team & SCM – Projects team conduct a session to discuss and to
P6
document learnings including quality of work done, key strengths etc.

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Contract Closure (Sub-contractor)– SIPOC

Trigger – Contract Close-out

Frequency – at Contract Closure

Supplier Input Output Customer

All documents as per All documents Project Procurement
Sub-contractor
the checklist Received Manager

Contract Closure (Sub-contractor) - RASCI

Activity Responsible Accountable Support Consult Inform

P1 – Prepare the
PD, SVP (SCM
contract closure PM, PPM, CM GM (P&C)
– Projects)
checklist
P2 – Ask sub-
contractor to submit
PPM GM (P&C)
all documents as per
checklist
P3 – Sub-contractor
Sub-
submits all
contractor
documents
D1 – Are all
documents in order?
P4 – Intimate finance PD, SVP (SCM
PPM GM (P&C)
to do F&F – Projects)
P5 – Intimate sub-
contractor regarding PPM GM (P&C)
missing documents
SVP (SCM –
P6 – Conduct session Projects),
to discuss and PPM PM GM (P&C), ED
document learnings PD, CM,
PCM

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Change Order, Sub-contractor – KPI

KPI Objective Formula UoM

Completion of change
management within/ as
per timeline

Change Order, Sub-contractor - Templates

Number Name Template

1 Contract Closure Checklist

Close-out
Checklist.xlsx

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