A Project Management Process Area at Maturity Level 2

The purpose of Agreement Management (AM) is to ensure that the supplier and the acquirer perform according to the terms of the supplier agreement.

The Agreement Management process area involves the following activities:

·         Executing the supplier agreement

·         Monitoring supplier processes

·         Accepting the delivery of acquired products

·         Managing supplier invoices

The legal nature of many acquirer-supplier agreements makes it imperative that the project management team is acutely aware of the legal implications of actions taken when managing the acquisition of products or services.

The supplier agreement is the basis for managing the relationship with the supplier, including resolving issues. It defines the mechanisms that allow the acquirer to oversee the supplier’s activities and evolving products and to verify compliance with supplier agreement requirements. It is also the vehicle for a mutual understanding between the acquirer and supplier. When the supplier’s performance, processes, or products fail to satisfy established criteria as outlined in the supplier agreement, the acquirer may take corrective action.

Refer to the Acquisition Technical Management process area for more information about evaluating technical solutions.

Refer to the Acquisition Validation process area for more information about validating selected products and product components.

Refer to the Measurement and Analysis process area for more information about specifying measures and communicating results.

Refer to the Project Monitoring and Control process area for more information about monitoring the project against the plan and taking corrective action.

Refer to the Solicitation and Supplier Agreement Development process area for more information about establishing supplier agreements.

Specific Goal and Practice Summary

SG 1 Satisfy Supplier Agreements

SP 1.1       Execute the Supplier Agreement

SP 1.2       Monitor Selected Supplier Processes

SP 1.3       Accept the Acquired Product

SP 1.4       Manage Supplier Invoices