Project All Close: Exit Criteria in the Close Project or Phase Process
PMBOK v8 Definition
The Close Project or Phase process involves finalizing all activities related to both successful and unsuccessful projects, phases, releases, iterations, or contracts. The exit criteria require ensuring all documents and deliverables are updated, all issues are resolved, measurable project value was delivered, and a plan exists to maintain this value as the project is closed and transitioned to operations.
Process Group: Closing Process Group
Knowledge Area: Project Integration Management
Why It Matters for the Exam
The Close Project or Phase process appears frequently in PMI exam questions testing your knowledge of proper project closure activities, particularly the distinction between administrative closure and contract closure. Questions often present scenarios where project managers must identify which closure activities are mandatory, what constitutes valid exit criteria, and how to verify that value delivery has been completed before transitioning to operations.
Key Points to Remember (for the exam)
- Exit Criteria (Critical): Ensure measurable project value was delivered AND there is a plan to maintain this value during transition to operations
- Deliverable Acceptance: Confirm deliverables have been delivered and formally accepted by the customer
- Financial Closure: Verify all costs charged to the project, close project accounts
- Resource Release: Reassign or release project personnel; reallocate or release facilities, equipment, and other resources
- Documentation: Prepare final project reports as required by organizational policies; update all documents and deliverables
- Contractual Closure: Confirm formal acceptance of external source's work, finalize claims/guarantees/warranties, ensure all invoices paid, resolve disputes
- Material Disposition: Address excess project materials
Typical PMI Exam Example
A project manager is closing a construction project. The customer has formally accepted all deliverables, all costs have been charged to the project account, and personnel have been reassigned. However, the benefits management plan indicates that operational value measurements will begin only after the 6-month transition period. The project manager must ensure a plan exists to maintain value during this transition before finalizing closure.
PMI Exam Traps
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Trap: Thinking project closure only happens for successful projects
- Reality: Close Project or Phase applies to BOTH successful AND unsuccessful projects, phases, releases, iterations, or contracts
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Trap: Confusing "deliverable acceptance" with "project value delivery"
- Reality: Acceptance confirms deliverables are handed over; value delivery requires measurable benefits AND a maintenance plan for transition to operations
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Trap: Assuming resource release happens automatically at project end
- Reality: Resources (personnel, facilities, equipment) must be formally reassigned or released as part of the closure process
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Trap: Believing contract closure and project closure are identical
- Reality: Contract closure is a subset of project closure with specific activities: confirm acceptance, finalize claims/guarantees/warranties, pay invoices, resolve disputes, archive information
Important PMI Connections
| Related Concept | Relationship Type | Exam Attention Point |
|---|---|---|
| Business Case | Input to Close Project or Phase | Verify business case expectations were met before closure |
| Benefits Management Plan | Input to Close Project or Phase | Ensure value delivery plan exists for transition to operations |
| Accepted Deliverables | Input to Close Project or Phase | Formal customer acceptance is required before closure |
| Lessons Learned Register | Output/Update during Closure | Archive knowledge for future projects during Close Project or Phase |
| Organizational Process Assets | Update during Closure | Final reports, archived information become OPA updates |
| Phase Gate Reviews | Decision Point | Phase gates determine: continue, modify, end, repeat, or park the project |
Quick Review Questions
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What are the two main exit criteria that must be satisfied in the Close Project or Phase process regarding project value?
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A project has been cancelled due to budget constraints. Should the Close Project or Phase process still be performed? Why or why not?
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During contract closure, what specific activities must be verified regarding external suppliers?
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What must happen to project personnel, facilities, equipment, and excess materials during the Close Project or Phase process?
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A project manager has received formal acceptance of all deliverables but has not verified that all costs have been charged to the project. Can the project be officially closed?
PMBOK v8 Reference
Section 2.1.6.9 – Close Project or Phase (Closing Process Group, Project Integration Management Knowledge Area)