Concept 14 of 15

Project closure

1 question test this

Closure is the set of actions that end a project properly, and it is the phase most likely to be half done. By the time it arrives the interesting work is finished, the people who would do it have been assigned elsewhere, and nobody is watching a project that has already delivered.

What closure consists of

Final acceptance comes first. Deliverables are checked against the acceptance criteria that were agreed, and somebody with the authority to accept them says so in writing. Acceptance obtained informally is the commonest route to defending work six months later against criteria that have drifted since.

Contract closure is a separate act. Every procurement is settled, final payments made, claims resolved, retained obligations and warranties recorded, and the seller's performance written down for whoever procures next. An open contract carries liability and occasionally a recurring charge nobody is watching.

Releasing resources returns people, equipment, licences and facilities. Doing it late costs real money, because a project that has finished carries on consuming budget and holding people other work is waiting for.

Archiving puts the plans, the baselines, the change decisions, the registers and the final performance data somewhere retrievable. The audience is a future project, an auditor, and whoever has to answer a question about this work in three years.

The closure checklist

The list below is the whole of it, grouped by the kind of obligation each item settles. Naming an owner beside every line is what stops closure stalling, since the usual failure is a set of tasks that belong to everybody and are booked by nobody.

GroupWhat has to happenWho owns it
ContractualCheck every deliverable against the acceptance criteria and obtain acceptance in writingThe customer or sponsor accepts, and the project manager obtains it
ContractualSettle final payments, retentions and outstanding invoicesProcurement, with the project manager confirming delivery
ContractualResolve outstanding claims and disputesProcurement, escalated to legal where a settlement is needed
ContractualRecord warranties, retained obligations and support periodsThe project manager, into the archive and the handover pack
ContractualWrite down how each seller actually performedThe project manager, for whoever procures next
AdministrativeClose the budget and stop the cost codesFinance, on the project manager's instruction
AdministrativeRelease people, and give each line manager the performance input they needThe project manager, with the resource managers
AdministrativeReturn equipment, licences, facilities and building accessThe project manager
AdministrativeClose or transfer every open risk, issue, assumption and dependencyThe project manager, to a named receiver in each case
AdministrativeArchive plans, baselines, change decisions, registers and final performance dataThe project manager, into the organisation's repository
AdministrativeMove the lessons learned register into the organisational repositoryThe project manager
AdministrativeWrite the final reportThe project manager, approved by the sponsor
Handover to operationsHand over documentation, runbooks, configuration and the known defect listThe project manager to the service owner
Handover to operationsAgree the support arrangement and who gets called when it breaksThe service owner, funded by whoever now carries the running cost
Handover to operationsComplete training and confirm the operational team can run it unaidedThe service owner
Handover to operationsTransfer accounts, credentials and administrative accessThe project manager to the service owner
Handover to operationsRecord the benefit claimed, the baseline measure, who owns the benefit now and when it will be checkedThe project manager, handing to the benefit owner
Handover to operationsName and date the day the project stops owning itThe sponsor, in writing

A cancelled project is closed the same way

Termination is one of the ways a project ends and the activities are identical. Acceptance is still sought for whatever was completed, contracts are still closed, people are still released and records are still archived. The pressure runs the other way, because a cancelled project feels like an embarrassment and closing it properly keeps it visible for another month.

There is usually more to harvest than anyone expects. Work finished to a usable standard can often be transferred, procured assets can be redeployed, and the reasoning behind the decision to stop is the most useful thing the organisation will learn that year. A cancellation closed properly is a decision. A cancellation abandoned is a set of live contracts, orphaned work and an explanation nobody can reconstruct.

Handover, and the moment the project stops owning it

A deliverable that works is a different thing from a deliverable somebody can run. Handover transfers the thing together with what keeps it alive, meaning documentation, support arrangements, training, access, the known defects and an agreement about who gets called when it breaks.

The transfer should be explicit and dated. The ambiguous version is a project team that has notionally finished and is still answering calls, alongside an operations team that never quite accepted anything, and it can persist for a year because nobody ever named the day.

Accepted is not the same as realised

Acceptance says a deliverable meets what was specified. It says nothing about whether the benefit that justified the funding has appeared, and the two are separated by time. A system accepted in March produces the savings that paid for it across the following two years, if it produces them at all.

That gap is why realisation is normally somebody else's accountability once the project has closed. The project's job at closure is to make the measurement possible, by recording what the business case claimed, what the baseline measure was, who owns the benefit now and when it will be checked. Skip that and the organisation can say what it built and cannot say whether building it was worth doing.

The final report

The final report outlives everybody involved. It sets out what was delivered against what was agreed, final cost against the baseline, the schedule outcome, the significant changes and why they were approved, the risks that materialised and the lessons worth carrying forward.

Written as a summary of achievements it is worthless inside a month. Written as a description of what happened, including the parts that went badly, it becomes the one document a future project manager estimating similar work actually wants. That is the argument for writing it while the detail is still available rather than after the team has dispersed.

Common misconceptions

A cancelled project has nothing to close.

It has contracts still open, people still assigned, assets still held and records somebody will ask about. It also holds the most valuable single lesson the organisation is likely to get that year, which is why the work was stopped. Walking away leaves liabilities running and a story nobody can reconstruct.

The project is finished when the last deliverable is accepted.

Acceptance is one of four things closure does, alongside closing contracts, releasing resources and archiving records. A project abandoned at acceptance leaves procurement liabilities live, people held against work that has ended and a budget still being consumed.

Once operations have the system, the benefit has been delivered.

Acceptance and realisation are separated by time, often by years. The project cannot wait for the benefit, so its contribution is to record what was claimed, what the baseline measure was, who owns the benefit now and when it will be checked. Nobody else will have that to hand afterwards.

1 question test this concept

A programme is cancelled in month fourteen after the market it was built for moved. The sponsor tells the project manager to stand the team down this week and to put the effort into the replacement initiative instead. What should the project manager do?

  • AClose the contracts and release the team, since a cancelled programme has no deliverables to accept and nothing worth archiving.
  • BWrite a final report explaining the cancellation and treat that report as the closure activity.
  • CRun closure in full, seeking acceptance for what was completed, closing contracts, releasing resources, archiving records and capturing why the work was stopped.
  • DHand the programme to the project management office to close, since the team is needed on the replacement.
Check whether it stuck.

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Related material
Book
A Guide to the Project Management Body of Knowledge (PMBOK Guide), Seventh Edition, On closing as a set of activities rather than a final milestone.
Book
Managing Successful Projects with PRINCE2, On the closing process and the end project report it produces.
Book
Program Management for Improved Business Results, On benefits that outlive the project that created them.
Book
Project to Product, On what happens to knowledge when funding stops at the project boundary.