Project Termination is a situation when a given project is supposed to be closed or finalized because there’s no more need or sense for further continuation. During this phase the people involved are acknowledged for their achieved goals and the work is considered complete. Projects usually are terminated for two basic reasons: project success or project failure. It is the last stage of managing the project and occurs after the implementation phase has ended. The main purpose of the close-out stage is to evaluate how well you performed and to learn lessons for the future. It is a fact that most project management professionals are not aware that project termination procedures are critically important for success as well as failed or prematurely abandoned projects.
Project termination is managed under a respective procedure that requires the management team to examine the current state of the project work, review prowess of goals and objectives, evaluate the project against success criteria, and check status or deliverables.
Reasons for Project Termination
- Technical reasons,
- Requirements of the project result are not clear,
- Lack of project planning,
- Sufficient human resources or material are not accessible,
- Profit becomes extensively lower than expected,
- The parent organization changes its strategy, and the project does not support the new strategy,
- Natural disaster (e.g. earthquake, flooding, etc.)
- Lack of management support etc.