Everything must come to an end even in project management. However, in the process of finalizing a particular project, there are a lot of things to be done and the contract must be completed. The final phase of a project life cycle is the close procurements.
Close procurement is a process of completing a procurement. It also confirms to the buyer and seller that the contract has been properly executed so that the final and legal closure can take place. Many people underestimate this process but in project management, it is lauded for its many benefits such as creating documentation for future references.
One of the outputs of this phase is closed procurement wherein the buyer provides the seller with a written notice regarding the completion of the contract. This is usually authorized by a procurement administrator or any authorizing agent. The formal letter should also stipulate and define the terms and conditions of the contract. To finally do this process, it also important that the finalized document should be signed off to commence the closure of a particular project.
This project management term is defined in the 5th edition of the PMBOK.