The Importance of Project Closeout

Topics: Project management, Contract, Contractual term Pages: 3 (932 words) Published: August 23, 2012
DQ 5
PMI’s PMBOK (2004, p. 102) explains that “…actions and activities are necessary to confirm that the project has met all the sponsor, customer and other stakeholders’ requirements”. The well known English phrase that best describes this phase and how important the project closeout is, is “last but not least” It is often said that projects progress quickly until they become 90% complete: then they remain 90% complete forever. Due to pressure from the buyer/client and lack of interest of other parties, this is often the most difficult one for the project manager. Within the engineering and construction industry this phase is as important to all concerned as what the beginning is. All contracts within this industry are controlled by a legal contract between the client/buyer and the contractor. Within these contracts the close out phase is clearly spelled out and controlled by the project manager for it is a legal document and can have serious legal consequences if it is not done correctly. The contracts that are normally used in the industry are JBCC suite of Contracts (compiled by The Joint Building Contracts Committee), FIDIC (International Association of Consulting Engineers), NEC (New Engineering Contract Series), GCC (General Conditions of Contract for Construction Works) and the Unique Conditions of Contract by Governments. Within these contracts the consequences are financially severe and it for this reason why it is not to difficult for the project manager to achieve the project closeout phase. The contractual closeout phase has the following sections of completion: Technical closeout

The objective is assurance to the buyer/client that all technical items have been completed and is fit for use. The buyer/client should be confident that systems could be operated smoothly and with the minimum of breakdowns or failures. Short-term maintenance, repairs or replacement should not be required. All systems and other items should be carefully inspected and...
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