Formal Client Acceptance
The closure of any project can be ripe for mistakes and miscommunication. Of primary importance in closing the project is obtaining the acceptance of the project deliverables from the client. Often, the client has little incentive to formally accept deliverables early. This is for several reasons. To begin with, since no project deliverable is likely to meet the totality of client requirements, the longer that the client delays acceptance, the greater the likelihood that additional scope in the form of features or enhanced quality of deliverables may be secured. In addition, the typical project will tie client payments to accepted project deliverables. It is common to hold out a final percentage of the total payment to formal acceptance of project deliverables. Any project will require significant negotiation and give-and-take with the client. However, in a global project the final acceptance process will be carried out at a distant geographical location. Final acceptance will likely require intense travel, last-minute “fixes” in software and documentation, and extended work hours on the part of the project team. Complicating final acceptance negotiation is the parallel effort to transition the project deliverables to manufacturing, or in the case of software, production and distribution. Finally, the communication between all parties in this phase of the project is hampered by language and culture barriers in addition to the lack of trust present in geographically distributed global teams. The complexity of the acceptance process in project closure suggests the need for a global project acceptance subproject that is chartered and managed closely complete with targeted milestones (Figure 12.1).
Figure 12.1 Project closure step by step
Release of Resources
The intensity of final acceptance negotiation suggests the need for a “final push” with a maximum number of resources. When acceptance is granted, suddenly many of the resources working on the final deliverables are no longer required. Planning and executing the release of such resources is necessary in any project, but global projects require additional planning and forethought. Some geographically distributed resources may need to continue for a period after acceptance to address any new issues brought forward by the client. Also, some of these resources could be transitioned to a Maintenance of Line (MOL) team. In most projects, the acceptance negotiations include a commitment to add features, fix bugs, or provide follow-up software versions. It is the MOL team that must be chartered to do this, and this team may be a destination for many redundant project team resources. Finally, it is likely that the majority of project team resources around the globe will be released. Team members will be aware of this, and those team members who are the most distant from the head office will tend to be the most concerned. Part of the global project resource plan will include a completion bonus that aids in keeping key team members in place through the formal acceptance of the project and aid in smoothening the transition of the team member out of the project.
Closure of Contracts and Financial Obligations
The release of resources may involve contractors and suppliers of subsystems, software, and documentation. The closure plan outlines how such contracts will be terminated and includes measures for extending supplier support—perhaps in a more limited role—as needed. Contracts may also be associated with equipment rental or leasing, as well as ongoing costs for temporary facilities. In a project planned and executed within a single country, these aspects of project closure are straightforward so long as each contract is monitored, tracked, and closed in a timely manner. However, it pays to keep a close eye on the closing out of global financial obligations due to global regulatory, currency, duties, or taxation concerns (Figure 12.2).
Figure 12.2 Global project and contract closure