Project Closure /

Termination
 Project Closure / Termination

The closure or termination of a project is the final logical phase in project

management and marks the end of the project’s life-cycle.

There are 2 types of project closure / termination:

Natural Closure / Termination – The project ends after its goal has been
met and it has been performed (ideally) within schedule, within budget
and according to the prescribed technical performance standards (project
success)

Unnatural Closure / Termination – The project ends prematurely due to

one or more adverse reasons resulting it in not having accomplishing its
goal (project failure)
 Formalities to Consider in Project Closure /
Termination

 Project deliverable end products must be provided to the project

customer or owner and all project functional work must be finished,
along with closeout of records

 All contracts must be reviewed with a view to ensuring that all

requirements have been met or provisions made in the event that
certain requirements have not been met

 Development and distribution of a project closeout plan that

provides guidance for the orderly termination of all elements
relating to the project

 Maintaining a continuous surveillance of the project closeout

activities, including the closeout of all records and the disposition
of materials
 Formalities to Consider in Project Closure /
Termination

 Notification of all relevant project stakeholders

 Satisfactory termination of all project-related financial matters

 Assisting members of the project team in finding other work in the

organization

 Preparation of the project history (“lessons learned”) report.

 Undertaking of an post-completion project audit to identify observed

strengths and weaknesses in the management of the project, the
repercussions of mistakes made and how such mistakes can be avoided in
the future, and the consequences which the project had on the
organization
 Common Major Issues Relating to Project
Termination

Staff Client

Fear of no future work Change in attitude

Loss of interest in remaining
Loss of interest in project
tasks
Change of personnel dealing with
Loss of project-delivered
motivation
project
Loss of team identity Unavailability of key personnel
Selection of personnel to be
reassigned
 Common Major Issues Relating to Project Termination – (2)
Internal
Identification of remaining deliverables
Certification needs
Identification of outstanding
commitments
Screening of uncompleted tasks not
needed
Closure of work orders and packages
Identification of physical facilities
assigned to the project
Identification of project personnel
Disposing of material of project
External
Agreement with client on remaining
deliverables
Obtaining needed certifications
Agreement with suppliers on outstanding
Commitments
Communicating closures
Closing down physical facilities
Determining external requirements (client/
Organizational) for audit trail data
 Some Common Reasons for Project Closure /
Termination

 The project results have been delivered to the customer

 The project is experiencing overruns in its cost and
schedule objectives and is failing to make satisfactory
progress towards attainment of its technical
performance objectives.
 The organization’s strategy has changed with the result
that the project no longer has a ‘strategic fit’
 A project advocate no longer exists
 Environmental changes (e.g. competition) have
surfaced, putting the project’s future in doubt
 Some Issues to be Addressed before Terminating a Project in
Difficulty

Overruns in terms of a project’s cost and schedule should be considered as important

grounds for termination. However, several critical issues should be addressed before a
formal termination decision is taken, for instance:

 Does the project continue to fit in with the organization’s strategic plans?
 Does the project continue to complement a strength of the organization (or avoid one of
its weaknesses)?
 Will the project continue to help the organization achieve its objectives and goals?
 Will the project result in a competitive advantage for the organization?
 Are the financial and other risks associated with the project acceptable?
 Post-Project Audits

After a project has been completed or terminated, a post-project audit should

be undertaken so that lessons can be learned for future management of
projects in the organization

The audit, to be conducted by an independent team, should include an

evaluation of the performance of the project team as a collective entity, and
an evaluation of the performance of individual team members

Performance criteria should not focus only on achievement of the basic

project goals viz. cost, schedule and technical performance specifications,
but, in addition to these, should address issues such as, for instance, the
quality of decision-making, problem-solving and teamwork, the trust
between members, quality of information exchanged