PROJECT CLOSEOUT

AND TERMINATION
Chapter 14

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 CHAPTER 14
LEARNING OBJECTIVES
After completing this chapter, you should be able to:
1. Distinguish among the four main forms of project
management.
2. Recognize the seven steps in formal project closeout.
3. Understand key reasons for early termination of
projects.
4. Know the challenges and components of a final project
report.

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 PMBOK CORE CONCEPTS

Project Management Body of Knowledge (PMBOK) covered

in this chapter includes:
1. Close Project (PMBoK 4.6)
2. Close Procurements (PMBoK 12.4)

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 PROJECT TERMINATION

The four main reasons for project termination are:

Extinction

Addition

Integration

Starvation

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 NATURAL TERMINATION-
CLOSEOUT PROCESS
 Finishing the Work
 Handing Over the Project
 Private Finance Initiatives (PFIs)
 Build, Operate, and Transfer (BOT)
 Build, Own, Operate, and Transfer (BOOT)
 Gaining Acceptance for the Project
 Harvesting the Benefits
 Reviewing How It All Went

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 POST PROJECT REVIEWS

1. Objectivity and Issues

a. Outside reviewers are unfamiliar.
b. Project team may be suspicious.
c. Outside evaluators may be compelled to find
problems.
d. Outside reviewers are not competent.
2. Internal Consistency
3. Replicability
4. Fairness
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 LESSONS LEARNED MEETINGS

Common Errors
Misidentifying systematic errors
Misapplying or misinterpreting lessons based on events
Failure to pass along conclusions
Meeting Guidelines
Establish clear rules of behavior
Describe objectively what occurred
Fix the problem, not the blame

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 CLOSEOUT PAPERWORK

 Documentation
 Legal
 Cost
 Personnel

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 REQUIRED REVIEWS

 General program and project management confidence

 Commercial confidence
 Market and sales confidence
 Product quality confidence
 Manufacturing confidence
 Supply chain logistics confidence
 Aftermarket confidence
 Health, safety, and environment confidence

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 WHAT PREVENTS EFFECTIVE
PROJECT CLOSEOUTS?

Project sign off discourages other closeout activities.

Urgency of all project pressures cause shortcuts on back-

end.

Low priority given to closeout activities.

Lessons learned analysis seen as bookkeeping.

Unique view of projects.

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 DYNAMIC FACTORS TO MONITOR

1. Static
2. Task-team
3. Sponsorship
4. Economics
5. Environment
6. User

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 EARLY TERMINATION DECISION
RULES

1. Costs exceed business benefits.

2. Failure to meet strategic fit criteria.

3. Deadlines continue to be missed.

4. Technology evolves beyond the project’s scope.

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 PROJECT TERMINATION ISSUES

Emotional Intellectual

Staff Client Internal External

Figure 14.3

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 CONCERNS WHEN SHUTTING
DOWN A PROJECT

 Emotional Issues of the Project Team

 Emotional Issues of the Clients

 Intellectual Issues-Internal

 Intellectual Issues-External

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 PROJECT TERMINATION ISSUES –
EMOTIONAL
(TABLE 14.2)

Emotional
Project Team Client
Fear of no future work Change in attitude
Loss of interest in remaining tasks Loss of interest in project
Loss of project-derived motivation Change in personnel dealing
with project
Loss of team identity Unavailability of key personnel
Selection of personnel to be
reassigned
Diversion of effort

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 PROJECT TERMINATION ISSUES –
INTELLECTUAL
(TABLE 14.2)

Intellectual
Internal External
Identification of remaining Agreement with client on remaining
deliverables deliverables
Certification needs Agreement with suppliers on outstanding
commitments
Identification of outstanding Communicating closure
commitments
Control of changes to project Closing down facilities
Screening of partially completed tasks Determination of requirements for audit
trail data
Closure of work orders and work
packages
Disposal of unused material
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 TOP 10 SIGNS OF IT PROJECT FAILURE

1. Best practices and lessons learned are ignored.

2. Project lacks people with appropriate skills.
3. Sponsorship is lost.
4. Users are resistant.
5. Deadlines are unrealistic.
6. Business needs change.
7. Chosen technology changes.
8. Project changes are poorly managed.
9. Scope is ill-defined.
10. Project managers don’t understand users’ needs.

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 CLAIMS & DISPUTES

Two types of claims:

 Ex-gratia claims
 Default by the project company
Resolved by:
 Arbitration
 Binding
 Non-binding
 Standard litigation
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 PROTECTING AGAINST CLAIMS

Consider claims as part of the project plan.

Verify stakeholders know their risks.

Keep good records throughout the life cycle.

Keep clear details of change orders.

Archive all correspondence.

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 FINAL REPORT ELEMENTS

1. Project performance

2. Administrative performance

3. Organizational structure

4. Team performance

5. Project management techniques

6. Benefits to the organization and customer

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 SUMMARY

1. Distinguish among the four main forms of project

management.
2. Recognize the seven steps in formal project closeout.
3. Understand key reasons for early termination of
projects.
4. Know the challenges and components of a final project
report.

Copyright ©2016 Pearson Education, Inc. 14-21

Copyright ©2016 Pearson Education, Inc. 14-22