Reference no: EM13312004
Everything in this life has to come to end, that the closure process is the final stage in the project life cycle, it's the time to gather our efforts result, that we have to carefully dealing with that stage in order collect the maximum benefits from our paid efforts during the project deferent stages, that we have to make our project achievements visible and usable for others in order to get their full satisfaction four our product.
Project closing reasons.
There are too many reasons lead to project closure but all of these reasons can be categorized under to main topics, the first one is closing the project that achieved its deliverables and meets the project objectives, the other one is early closing the project due to too many reasons like - but not limited - the follows:
The project is under shortage of resources.The project was depending on band funding supplied as per scheduled cash flow, and the bank has stopped supplying regarding to his own reasons, that the project has stopped. (Same like many construction projects in Dubai after the economy crisis of 2009).
The project has stopped because no clear results lead to achieve its required product. The project did not prove any results as per planned in the project planning process which make indication that the project is going nowhere. (Same like research projects).
üThe project has stopped because the market conditions have changed. By 2001 I was working as section engineer in housing project in Egypt the contract signed cost was 120,000,000.00 EGP (about 40,000,000.00 USD) after performance reached approximately 20 %, the local government has decided to float the local currency which caused a big deferent in resources prices, (reinforcement steel has been raised in price from 1,200.00 EGP/Ton to 4,500.00 EGP/Ton in one day) that the project has stopped and not finished tell date.
Closing project procedure.
Closing project procedure is depending on the closing reason that closing the project which achieved its objectives is different that the project that early closing, they will follow the procedure steps but different documents, "there are number of closure activities common to most technical projects, but the specifics very a great deal with the type of project" (Kendrick, T2009, P293)
Project achieved objects closing procedure.
1-Client formal acceptance letter has been received "the client decides when the project is done" (Wysocki, 2012, P 313).
2-Scope report and confirmation that all project scope activities has been completely occurred regarding to product acceptance criteria, and stated regarding to organizations assets and forms.
3-Submitting all manuals, shop drawings, scope report, and all product submissions.
4-Client's official approval on scope report with his recommendations for retention release as per contract conditions "Closing out a construction project is now taking on importance because many loans may go through a period of forbearance prior to foreclosure or receipt of the deed-in-lieu" (De Stefanis, C 2009).
5-Close-out all contracts and documents with suppliers, vendors, and subcontractors regarding to each contract conditions.
6-Archiving all project documents and discussing the lessons learned.
7-Releasing the project resources.
Project early closing procedure.
1-Client formal stop working letter issuance.
2-Stopping all activities and perform a final status report confirming the performed percentage for all not finished project activities, that according to that required report the client will evaluate the cost has to be paid to all contractors, vendors, suppliers,.....etc.
3-Client's official approval on project's not finished activities status report up to specified closing date, that it will be debatable point in-between the project stakeholders for evaluating the work done up to closing date which in most cases lead to arbitration deferent that the objective received project that it is easily to prove that status which specified in project statement acceptance criteria.
4-Close-out all contracts and documents with suppliers, vendors, and subcontractors regarding to each contract conditions this point will not be easily also that some supplying orders has been made and its underperforming which is not delivered yet will be a conflict point with the supplier.
5-Archiving all project documents, write down and discussing the lessons learned "The lessons learned are documented and entered into project knowledge database to allow for keyword searches and easy retrieval by future project teams." (Bolles, D 2002, P139).
6-Releasing the project resources.
1.Kendrick, T 2009, 'Chapter 12: Closing Projects', Identifying & Managing Project Risk: Essential Tools for Failure-Proofing Your Project pp. 292-300 n.p.: American Management Association International Business Source Complete, EBSCOhost, viewed 10 April 2013. Persistent link to this record (Permalink):http://search.ebscohost.com.ezproxy.liv.ac.uk/login.aspx?direct=true&db=bth&AN=36588155&site=eds-live&scope=site
2.Robert K. Wysocki, 2012, 'Effective project management. Traditional, Agile, Extreme' sixth edition, Copyright 2012 by John Wiley & Sons, Inc. Indianapolis, Indiana. Published simultaneously in Canada. Wiley publishing.
3.de Stefanis, C 2009, 'Closing Out Construction Projects', Real Estate Finance & Investment, p. 16, Business Source Complete, EBSCOhost, viewed 10 April 2013. Persistent link to this record (Permalink):http://search.ebscohost.com.ezproxy.liv.ac.uk/login.aspx?direct=true&db=bth&AN=48291275&site=eds-live&scope=site
4.Bolles, D 2002, 'CHAPTER 13: Project Closing', Building Project-Management Centers of Excellence pp. 139-145 n.p.: American Management Association International Business Source Complete, EBSCOhost, viewed 10 April 2013. Persistent link to this record (Permalink):http://search.ebscohost.com.ezproxy.liv.ac.uk/login.aspx?direct=true&db=bth&AN=32683993&site=eds-live&scope=site