A procurement audit is a structural review of the procurement process through ‘Administrative Procurement’. The objective of a procurement audit is to identify successes and failures that warrant recognition in the administrative preparation or administration of other procurement contracts on the project or on other projects within the performing organization.

Inspection and audits are required by the buyer and the seller as specified in the procurement contract can be conducted during the currency of the project but is finalized at the contract closure stage. If authorized by the contract, some audit and inspection teams can include buyer and procurement personnel.

‘Close procurement’ is the process of completing each project procurement. It involves verification of all that work deliverables are acceptable.

In all procurement relationships the final equitable settlement of all outstanding issues, claims and disputes by negotiation is a primary goal. Whenever settlement cannot be achieved through direct negotiation, some sort of alternate dispute resolution (ADR) including mediation or arbitration may be explored.

When all else fails, litigation in the courts is least desirable option.