Wa0008.

PROJECT TERMINATION /
CLOSURE
NORMAL
PREMATURE
PERPETUAL
FAILED
CHANGED PRIORITY
Project Closure
 Project Closure is a process that occurs whether a

project is successful or not
 The Aim of the Closure process is
 To cease the project at All levels with
 Minimum Administrative Dislocation
Project Closure – Reasons
 Normal – A project that ends normally is the one

that is completed as planned.
 Premature – A project may be pushed to complete
early even though the system may not include all of
the envisioned features.
 Perpetual – some projects seem to take on a “life of
their own” and are known as runaway or perpetual
projects
 Failed – Unsuccessful projects
 Changed priority – Because of financial/political/
economic reasons the organisation decides that
resources will no longer be allocated to the project.
Project Termination/ Closure
 A Project can be said to be terminated when work on

the substance of the project has ceased or slowed to
the point that further progress is no longer possible
 There are four fundamentally different ways to close

out a project: extinction, addition, integration,
and starvation.
Ways to Terminate a Project
EXTINCTION,
ADDITION,
INTEGRATION
BY STARVATION
1 - By Extinction (by decision)
 It has successfully completed its Scope that has

been accepted by the Clients
 It has failed
 It has been Superseded by extreme developments
 It no longer has sufficient Support of Senior

management.
By Extinction (by decision)
 Although the technical processes of the project are

immediately terminated there is still management
processes to be planned and executed by the PM
 Project Team members reassigned or released
 Project materials and equipment disbursed
 Preparation of final reports and reviews
2 - By Addition
 Ifthe project is a major success, it may be

terminated by making it an formal part of the
parent organization
 Project personnel, property and equipment are
often simply transferred to newly created
organizational unit within parent organization.
3 - By Integration
 Project product is integrated into operations of

client or parent company
 Project personnel, property and equipment are
reassigned /released and distributed.
 PM must plan/execute smooth integration and
termination process
 Most common mode and most complex for PM
4 - By Starvation
 A slow starvation by reducing its budget

 There could be reasons due to which senior
management does not wish to terminate an
unsuccessful or obsolete project.
 Politically dangerous to admit that one has been
supporting a failure
 Terminating a project that has not accomplished its
goals is an admission of failure
Termination Activities
Project Termination Activities
 Ensure completion of work

 Close out all work authorities and contract
 The Client
 Notify client of product completion
 Ensure delivery and installation is accomplished
 Obtained formal client acceptance
 Financial close out

 Settle outstanding accounts receivable and payable
 Termination Documentation
 Post implementation audit
 Final report
Project Termination Activities (cont.)
 Release Resources
 Release/reassign personnel as their planned activity ceases
 Distribute their resources appropriately
 Project Records
 Collate (Collect )
 Ensure delivery and installation is accomplished
 Oversee final disposition

The Final Report
Documentation
 Post Implementation Audit

 Establish the true status of the project with respect to its
planned status
 Final Report
 Should be a record of lessons learnt
 It is a commentary not an evaluation

 Recommend and justify changes to current practices
 Draw attention to practices that worked unusually well
Final Report: Some Headings
 Project Summary
 Project description, Scope, schedule, budget and quality
objectives
 Project Performance
 Compare proposal to post implementation audit
 Comment on deviations
 Administrative Performances
 Organizational Structure
 How did the structure impede and/or speed

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PROJECT TERMINATION /

 Project Closure is a process that occurs whether a

 Normal – A project that ends normally is the one

 A Project can be said to be terminated when work on

 There are four fundamentally different ways to close

 It has successfully completed its Scope that has

 It has been Superseded by extreme developments

 It no longer has sufficient Support of Senior

 Although the technical processes of the project are

 Ifthe project is a major success, it may be

 Project product is integrated into operations of

 A slow starvation by reducing its budget

 Ensure completion of work

 Financial close out

 Distribute their resources appropriately

 Ensure delivery and installation is accomplished

 Oversee final disposition

 Post Implementation Audit

 It is a commentary not an evaluation

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