Agreement Management (AM) (CMMI-ACQ)

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.