Module 7 – How to Closeout

Projects
UNIVERSITY OF NEW MEXICO
UNM CE455 Engineering Project Management
Tom Madigan, PE
MODULE 7 LEARNING OBJECTIVES

• Identify Components of a Closeout Checklist

• Formulate a Post-Implementation Evaluation
• Synthesize Importance of Lessons Learned
MODULE 7 LESSON PLAN OVERVIEW a

•
Every organization has a process for oversight on projects in some
form or another. Some do it better than others. The companies that
put an emphasis on project management and make it part of their
culture do a better job than others. As you move out into the
construction related business fields or advance within your current
organization, you will find that there are processes in place in most
organizations to manage projects. This Module will provide you with
some understanding of what should be part of any good oversight
process and the steps that should be followed to create an
environment that assures upper management participates in and is
actively involved in the projects within that organization.
• When we used to consider a project we always had a go/no go
meeting at the beginning of the proposal preparation process with a
standard form that asked basic questions related to whether the
project fit with company goals and objectives, could we win it, could
we make money doing it, do we have the technical expertise to
accomplish it, and do we have the personnel to work on it. One will
find that the marketing and sales people within your organization
almost always want to pursue the project. Part of your job as the
assigned Project Manager is to consider the potential success or
failure of pursuing the project.
MODULE 7 LESSON PLAN OVERVIEW b

• The Lesson Slides outline a process of stages or gates throughout the project,
not just the proposal consideration phase. I have seen projects move into
proposal stage and early preliminary design that clearly indicated that it was
going to be a failure yet no one stopped it including me. In hindsight, if we
would have followed the phase gate methodology in the text we would have
made the decision to kill the project at that time and take our lumps then
instead of having a failed project where we lost a bunch of money and the
client we were working for. Bad news travels fast and our reputation was
hurt which effected our chances with other similar clients. Clearly not worth
it in the end. Sometimes the best scenario is to cut your losses.
• Chapter 14 of the text provides an overview of what should be included in
closing out a project. As was discussed in Module 4, I have found that this
area is the most ignored by contractors and engineers and often create the
most issues in the relationship with your client and leads to many
organizations losing that client and future projects.
• I cannot emphasize enough how important it is to “finish” the project.
• Although the latest edition of the text does not cover oversight (the 6th
Edition Chapter 16 covers Oversight), I have added a few slides here because
of how important it is to successful Project Management.
CHAPTER 14: PROJECT CLOSEOUT a

• PROJECT CLOSURE IS THE MOST IGNORED AND OFTEN

THE GREATEST SOURCE OF CONFLICT ON A PROJECT
• THERE ARE THREE MAJOR AREAS OF FOCUS FOR
PROJECT CLOSEOUT:
 Wrapping up the Project
 Evaluation of the Performance and Management
 Retrospectives (Lessons Learned)
CHAPTER 14: PROJECT CLOSEOUT b

• REGARDLESS IF THE PROJECT WAS COMPLETED OR NOT, PROJECT

CLOSEOUT STILL NEEDS TO BE COMPLETED

• THERE ARE A NUMBER OF ACTIVITIES THAT NEED TO BE COMPLETED FOR

CLOSEOUT:
o Delivery and Acceptance by the Customer

o Shutting Down Resources and Releasing Documents to the new Users

o Reassigning Project Team Members

CHAPTER 14: PROJECT CLOSEOUT c

o Closing Accounts and Seeing that all Bills are Paid

o Deliver the Project to the Client Including all Documents
including:
 Warranties

 Operating and Maintenance Manuals

 Service Parts

 Keys
CHAPTER 14: PROJECT CLOSEOUT d

 Record Drawings
 Test Results
 Certifications
 Permits
CHAPTER 14: PROJECT CLOSEOUT e

• FINAL REPORTS ARE OFTEN OVERLOOKED BUT PROVIDE KEY DATA TO THE
USERS

• ELECTRONIC VERSIONS OF THE DOCUMENTS ARE AS IMPORTANT AS THE

WRITTEN FORMS

• FINAL REPORTS SHOULD INCLUDE:

Executive Summary

Design Calculations and Analysis

CHAPTER 14: PROJECT CLOSEOUT f

Recommendations
Lessons Learned
Appendices i.e. Manuals, Warranties
CHAPTER 14: PROJECT CLOSEOUT g

• LESSONS LEARNED OR “POST MORTEMS” OF THE PROJECT HAVE

BEEN DISCUSSED PREVIOUSLY BUT THEIR IMPORTANCE CANNOT
BE OVERSTATED
• INVOLVING THE CLIENT IS CRITICAL TO A LESSONS LEARNED
PROCESS PARTICULARLY IF THE CLIENT RELATIONSHIP IS VALUED
AND THERE IS A DESIRE TO CONTINUE IT
• CLIENT FEEDBACK CAN BE ANONYMOUS OR DIRECTLY RECEIVED
• HAVING SOMEONE ELSE NOT DIRECTLY INVOLVED IN THE
PROJECT IS A GOOD METHOD FOR GETTING FEEDBACK GOOD
AND BAD
CHAPTER 14: PROJECT CLOSEOUT h

• PART OF THE FUNCTION OF THE PROJECT MANAGER IS TO

PROVIDE FEEDBACK TO THE TEAM AS TO THEIR PERFORMANCE
• BONUSES AND PERFORMANCE REVIEWS ARE PART OF THE REVIEW
PROCESS WITH AN EMPHASIS ON HOW TO IMPROVE OR
REINFORCE WORK WELL DONE
• DOCUMENTING THE LESSONS LEARNED IS CRITICAL AND PUSHING
THE INFORMATION UP THE CHAIN OF COMMAND CAN HELP
ASSURE THAT THE INFORMATION LEARNED IS USED IN THE
FUTURE
OVERSIGHT a

• AT A PROJECT LEVEL, THERE ARE A NUMBER OF STEPS THAT AN

ORGANIZATION CAN US THROUGH THE OVERSIGHT PROCESS TO
ASSURE PROJECT SUCCESS
1. Review the Project Objectives to make sure they Align with the
Organization’s Goals and Objectives
2. Review of all Projects by Upper Management helps assure that they are
Engaged and Supporting them
3. Track and Assist where there are Bottlenecks in Resources
4. Review all Project Status Reports
OVERSIGHT b

5. Audit and Review Lessons Learned

6. Authorize Major Deviations from the Original Project Scope
7. Cancel the Project
OVERSIGHT c

• PROJECT OVERSIGHT OCCURS AT TWO LEVELS,

ORGANIZATIONALLY AND PROJECT
• OVERSIGHT TAKES THE FORM OF:
 How the Project is Selected
 Portfolio Management
 Improving How Projects are Managed Over Time
 Assessing and Elevating the Maturity Level of the Organization’s Project
Management System
OVERSIGHT d

 Using a Balanced Scorecard to Review Progress with Strategic Priorities

OVERSIGHT e

• PROCESS THAT CAN HELP A PROJECT MANAGER WITH A FORMAL

CHECK THROUGHOUT THE PROJECT TO CREATE SET POINTS TO
EVALUATE WHETHER A PROJECT SHOULD CONTINUE OR NOT,
THEY INCLUDE:
PHASE 1 – Request for Proposal
PHASE 2 – Screening and Selections of the Proposal as Prepared
PHASE 3 – Implementation Plan Decision
PHASE 4 – Progress Evaluation Decision
PHASE 5 – Closure of the Project
PHASE 6 – Post Project Review and Lessons Learned
OVERSIGHT f

• JUST BECAUSE THE PROJECT SOUNDS GOOD AND IS

SOMETHING THE ORGANIZATION CAN DO, DOES NOT MEAN IT
IS THE RIGHT PROJECT TO PURSUE
• A NO GO DECISION CAN OCCUR AT ANY OF THESE PHASES OF
THE PROJECT
• CUT THE LOSES AND SAVE THE FIRM’S REPUTATION
SAMPLE LESSONS LEARNED MEMO

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SAMPLE CLOSEOUT PROCEDURES - NON
BUILDING

01 00

PROCEDURES

PART I -GENERAL

I.I SUMMARY

A. for
to.

2.
3.

6. W....mcs
1. of

SUBSTANTIALCOMPLETION

A. Before die WOO:is sahstmtially provide tlle following:

1. to die systems and.system as
iniended.
2. Advise Owner-of pending insannc:e clwigcove-r
3.

4. Obtain and sabmitreleases permitting Owner of the Wak and

access to services and permits,.openting certificates.
and simibr ieleases.
5.

and
6. tools,.spm: parts. extra i1emsto location designated
by model nmnbe-rwlaerc
7. Make final locks and deti'Yefkeys to Owner. Advise
Owner's of in provisions.
&. of systems.
9. test/adjut/bala:nce
10. and remove temponry along with

11. Advise Owner ofclwigcaverin

12. to Owner's occapancy. use. and

13.

GEV
0177 IO- I
SAMPLE CLOSEOUT PROCEDURES - BUILDING

01 77 01

CLOSEOUT PROCEDURES -NON-BUILDING

PART I-GENERAL

1.1 SUMMARY

A.
limited to.
1.
2. Project D
3. 11l2DWS.

1.2 COMPLETION

A. is
l.

2.
3. Project
oonstnctioo or

4. parts. extr.amaterials. :mdsimibritcms

by Label with name and model number wKl"C apJiicable.
S. Make final of locks anddeliverkeys to Owner. Adv;..
Owner'sper.;mnel of clungeaver in secnrity
6. of systems.
7. tempaary Site.
8.
9. Proof that "Notia:
(Use form

B. Submit written notification to Owner and.Engineerthat etrtireWork is ready for its

itdended use and tile entire is sabsbntially complete.
I. If the items in p,ngnp, A. above thenwithin 14 Owner.
Contr.actor and Engineer shalt make an of the Wm.k.to
of
2. complete.
and deliver to the Ownera Certifica1e of fixing
the dak of Completion with an list of items to be
before fin.ailJJIYIDCD.l
3. Engineer-will a Certificate wi-dtlist of
items to be completed a a notify the W is not
wi1hin21 to Owner.

GEY CLOSEOUT PltoCEDURES -

0177 01-1
SAMPLE CLOSEOUT AGENDA

- Project Mee1ing

I.

2.
PM

PM
Facilitaler
-
A. Description
B. Cooditioos of acttpt,nce
C.
D. Review

E.

3. PM
A. Finalprogressreport
B. will be closed

C. Thankyoa to ;allwho were

uwolved

I. Email
2.

3. Completion of outstanding tasksm

task plan
4. of
Module 7 – How to Closeout
Projects -end

UNIVERSITY OF NEW MEXICO

UNM CE455 Engineering Project Management
Tom Madigan, PE