Project closure: An essential guide for teams

Project closure goes beyond checking off the last task on the list–it’s a thorough wrap-up that paves the way for success in future projects. By the time you reach project closure, you’ve already completed all tasks and deliverables and obtained final approvals, with team members ready to move forward.

There is a proper process for project closures, though, especially since it also requires documentation. In this guide, you’ll learn how to conduct a smooth project closure, including the step-by-step process and which documents you’ll need.

What is a project closure?

Project closure is the last phase of the project lifecycle, when you’re ready to mark the project as complete. The conditions for this depend on the project charter and plan. Usually, during project closure, you’ve finished all tasks and deliverables based on the outlined requirements and addressed all outstanding issues, with approval from stakeholders. Everyone involved should be clear on what has been achieved.

To formalize the project closure, the project manager will hold a final meeting and prepare a comprehensive report so everyone is clear on the outcomes. Aside from finishing off tasks, proper project closure also involves looking back on what you’ve learned and reallocating resources. This creates a strong foundation for the next project.

Steps of a project closure

There’s a lot of flexibility depending on the type of project you have, but here’s how the general project closure process works:

Let’s break this down per step:

1. Confirm deliverables – First, check that all deliverables have been finished and they match up with your project’s original goals. The project team often has to work closely with the client or end user to confirm that they’re satisfied.
2. Complete documentation – Every project should leave behind a trail of documentation–plans, progress reports, feedback, and results. Since projects are dynamic, it’s also important to note any changes or obstacles that you encountered.
3. Release resources – Once the project’s work is done, it’s time to release the resources dedicated to it. For one, you’ll notify team members that their roles in the project are complete. This involves returning any specialized equipment used as well.
4. Conduct a final review – Next, hold a review session with key stakeholders to reflect on what happened in the project. This gives the team a chance to talk about what went well, where challenges came up, and any lessons learned along the way.
5. Archive project materials – Organize and store project materials securely, like documentation and files, so you can retrieve them easily in the future. After all, you might need them again for similar projects, audits, or even training.
6. Close officially – Aside from stating it in documentation, you’ll also need psychological closure for the project. Celebrate the completion of the project, even if it’s as simple as saying thank you to team members and acknowledging their hard work!

Best practices for smooth project closures

To close projects effectively, you can incorporate these best practices.

Involve everyone who played a major role in the project, from team members to clients. Get feedback from them to see what the project’s strong points are and where improvement is needed. This gives you a fuller picture of how the project actually went–and also peace of mind since you can confirm that there are no loose ends in terms of requirements.

Prepare quality documentation. This isn’t just a formality–good documentation is a valuable resource for future project teams, giving them a clear record to look back on. Go beyond the basics: capture key decisions, unexpected challenges, and adjustments you made along the way as well.

Use a consistent project closure checklist. By working with a checklist, you can confirm that you’ve covered all critical steps, from verifying deliverables to getting client sign-offs. Ideally, apply the checklist across different projects, standardizing the process so that every project can finish in an organized way. You can download any of these free project closure checklists that we curated and edit based on your workflow.

Essential documents for project closures

During your project closure, you’ll likely need to prepare these documents for thoroughness:

• Project completion report – This is the most significant document because it serves as a progress report for future projects. It summarizes the project’s overall performance, including whether it met its goals.
• Final project budget report – This breaks down all of the expenses during the project, as compared with the starting budget. It should point out areas where spending stayed on track and where it went beyond expectations.
• Handover documentation – In case another team will need to continue the project in the future, the handover document will fill them in on the project, including the completed tasks and detailed instructions for managing it.
• Archived project files – Store all of the files involved in your project properly. For example, give files easy-to-understand naming, and save them in a centralized system, complete with version control.
• Client or stakeholder sign-off – Finally, get an official sign-off from clients or primary stakeholders as formal confirmation that they’re satisfied with the project’s outcomes.

Components of a project closure report

Let’s now look at how to prepare a project closure report, in more detail.

Traditionally, the project manager prepares the project closeout report, often with the help of the project team, the client, and the controlling department. In this report, you’ll check whether your team has implemented the plans from the project order.

The following information should be present in the project closeout checklist and report:

Project description

First of all, present the motivation for carrying out the project. This includes the aspects of project justification, project description, and project goals.

Cost management 

The allocation of budget costs is an essential part of the project conclusion. It is, therefore, necessary to calculate the current financial performance and compare it with the planned business budget. Check whether your team has met all procurement requirements and tracked deviations.

Project implementation

The next step is the project implementation. This is where you’ll describe changes, problems, and disturbances in the course of the project. The points must be addressed in particular if there are discrepancies between the order and the result. Finally, for a successful project process, mention the target and actual description, with deadlines. 

Project results

Which goals should you have achieved and when? Did your team achieve the goals, or were there any deviations? Enter remarks and explanations in this part of the project closeout report. The project results also include lessons learned by the leader and the team from the project. This information is especially important for future projects so that you can avoid mistakes.

Evaluation

Finally, describe the further procedure. Are there any points in the project that remained open, or are there any follow-up projects? Not to forget the regular contact with the client. Regular meetings keep all project participants up to date on the project status. Examine the business benefits–whether the project goals are being met, whether expectations of clients are being fulfilled, and you’ve offered solutions for the problems mentioned in the business case.

A digital solution for creating project closure reports

The evaluation and implementation of the objectives of the project closure report the basis for the project conclusion. A project closeout checklist is helpful in that it documents all details of activities and interruptions of the project. Lumiform, the powerful inspection app, allows project managers to avoid the hassle of unorganized documents, manual tracking of project deliverables and the cumbersome delivery of project completion reports.

Benefit from the advantages of a digital project closeout tool:

• Complete assessments on the spot with the use of the Lumiform app via smartphone or tablet.
• Easy communication with all team members and third parties enables you to improve procedures and resolve issues up to four times faster.
• Monitor your team’s project performance and identify opportunities to improve the process and efficiency of your operations.
• View and share project closeout reports in real-time and generate them automatically.
• The data you collect from your project closeout checklist is collected under the analysis tab. Here you can access all data and view your performance reports broken down by time, location and department. This helps you quickly identify causes and problems so you can fix them as quickly as possible.
• Connect Lumiform’s software to enterprise software systems.
• Save and secure project closure reports in the cloud.