In project management, the procurement performance reviews refer to the structured review of the progress of the sellers when it comes to delivering the project scope and quality within schedule and stipulated cost as compared to what is written in the contract.
The procurement performance reviews involve reviewing the documents prepared by the seller and buyer inspections. It also involves doing quality audits that are conducted while the seller is executing work.
The purpose of this project management process is that it identifies the success or failure of performance of the seller. It also looks at the progress in relation to the procurement statement of work or non-compliance of the contract. With this tool, it allows the buyer to assess the ability of the seller to perform the necessary work.
The procurement performance review usually takes place as an essential element of the project status review as it includes planning with the different key suppliers of the project.
The project team needs to conduct a regular procurement performance review in order to monitor the performance of the seller in delivering the deliverables. The regular review should be conducted at least twice during the life cycle of the project.