Q. What is Project Termination?

Discuss the process of

ProjectTermination in detail.
Ans:
Project Termination: Types
of Termination
Project termination (or close-out) is the last stage of managing the project, and occurs after the
implementation phase has ended. Acceptance testing has been carried out, and the project
deliverables have been handed over to the client. The project team has been disbanded and unused
resources have been disposed of as appropriate. All outstanding bills have been passed for
payment, and the final invoices for work carried out have been issued. The main purpose of the
close-out stage is to evaluate how well you performed, and to learn lessons for the future. A final
project status report is prepared that should contain a summary of changes to the project scope (if
any), and show how actual completion dates for project milestones and costs accrued compare
with the final version of the project schedule and budget. All significant variances from the project
baseline should be explained here. A review is then undertaken with the client and other project
stakeholders, during which the project outcomes are evaluated against the project’s stated aims
and objectives. The results of the review are recorded in a close-out report.

Types of Termination

Termination types are a commonly used tool for HR administrators to track the nature of historical
terminations, e.g., in the event that a previously terminated employee reapplies to the same
company.

There are two main termination types: Voluntary (Regretted or Non-Regretted) and Involuntary:

• Involuntary: the company elects to end the employment relationship; fired or laid off
• Voluntary (Regretted or Non-Regretted): employee elects to end employment; resignation

If Voluntary is selected you will be asked, Would you hire this employee again?
There is no legal requirement for reporting termination types, but some states have specific
requirements for furnishing an employee’s final paycheck according to the type of termination.

Project Termination Process

A project is a temporary endeavor, so it has a beginning and also an end. We have seen the phases
of the project life cycle, called the ‘project management process groups’. Every process group has
a particular objective. But what is the aim of the project closure? Doesn’t the project end after
finishing the work and handing out the outcome? Of course no. During the last phase of the project
life cycle, meaning the project closure, everything should be detailed in order to measure if the
project went as planned and if the outcome is done as required by the customer.

Project closure activities ensure the recording project documents, archiving in organizational
process assets, making final payments, releasing resources and completing the project. Every
project teaches lessons to the organization whether it’s a success or is a failure. So even after a
project finishes, the documentation of this project is going to be helpful for completing the coming
projects successfully.

8 steps of the project termination phase

1: Confirm work is done as per the requirements

Once the project is closing, all deliverables of the project must have been completed and delivered
to the customer. You should also take formal acceptance of the customer for the completed work.

2: Complete procurement closure

Since the project is closing, you should complete any remaining payments that need to be made to
the suppliers or partners. The procurement steps are also completed.

3: Gain formal acceptance

Formal acceptance of the project and project deliverables are taken from the customer. Usually,
the customer presents a written document, it can be an email or a signed off document, which states
that the project has been completed and they accept the outputs of the project.

4: Complete final performance reporting

The final performance of the project is calculated and recorded. These include cost performance,
schedule performance, quality performance etc. For instance, whether the project has been
completed under budget or if it could not be completed, how much did the project exceeded the
planned budget?
5: Index and archive records

Collected documents are finalized. Final versions of the project management plans and all
necessary documents about the project are archived in the company records.

6: Update lessons learned

Lessons learned is collected and gathered from all stakeholders. Lessons learned documentation is
stored in the organizational process assets of the company.

7: Hand-off completed product

Once the project is completed, the product of the project is handed over for the use of the end
customer. The handover may need a predetermined period of assistance or some documents
describing how to use or how to operate with the product.

8: Release the resources

After the project is completed successfully, all assignments of the project resources are closed,
lessons learned inputs from the project resources are collected and then these resources are released
respectively.

As you see, the project closure is also as important as the other phases, so you must take these
activities into consideration for better outcomes in your next projects.