Regent School of Business

Project Management Training

Unit 6 - Operation By UserI Handover Stage

Synopsis

By the end of Unit 6 you will be able to:

1. Gain Project Closure and Handover:

• Identify the components of project Handover
• Complete project implementation reports
• Produce audit checklists
• Produce project evaluation checklists
• Produce Handover report

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UNIT 6 - Operation by User I Handover Stage

UNIT 6 • AREA OF COMPETENCE 28

Project Closure or Handover

All projects come to a close. As the project moves towards closure, we have
seen the exciting times and rapid progress through to completion of main
outcomes. This has happened from small beginnings to the project's final form.
The plans of this project were new at the time, but now have to give way to new
exciting ideas. At this stage much of the work has been completed, therefore it is
only the final detail that needs completing.

The members of the project team will be looking forward to the new challenges
of the next project or in some cases returning to their old jobs. This stage may
seem relatively easy, but can cause more difficulties than at the start.

This stage still requires the skills and experience of the Project Manager, as the
project success could still be affected.

Many of the problems at this stage are concerned with final detail. There is also
the change process. To deal with change it is important that clear information is
communicated to all stakeholders involved in the project.

It is very important to co-ordinate the team effectively at this stage.

Note: Team members will be concerned about their future, showing less interest,
commitment and motivation to complete the remaining tasks.

The client will be showing less interest at a senior level and probably will not
attend all the meetings but become more interested at an operational level.

The project will need to have excellent outcomes identified and completed,
contracts and work orders closed, physical assets removed, all data collated and
analysed, with all warranties and guarantees implemented.

During project closure, as the Project Manager you need to be aware that your
own role of authority is shrinking, the client is less interested in you, and the
project team is shrinking rapidly

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Managing the Team during Project Closure

At this stage the team will have worked together for various time periods. As the
project reaches its end there needs to be focus on the team member's long term
designations. The team will slowly be disbanded; staff will need to know where
they will be deployed, either back to their old job, onto a new project or made
redundant.

It is the Project Manager's role to make sure that both team and client are
encouraged to maintain their commitment to the project and complete the
remaining tasks, and ensure that enough information and resources are available
to complete these tasks. For example, the Project Manager may create a project
team to rectify any defects on the project or a team that will transfer the project
to the client. Both will need careful planning to ensure the project is complete

When the project team is to be relocated, this will cause various problems,
because personnel will only perform well if they have certainty about their future
employment. The Project Manager needs to be aware of this situation, taking
into account the individual needs and the project needs. Mass reassignments
need to be kept to a minimum to keep the project as stable as possible and
unrest to a minimum.

If the Project Manager spends time to plan how the project winds down, it will
help in the long term to keep the project as stable as possible.

The Need for Communication

Effective communication must continue at this stage in the project life cycle. In
some cases it is more important, because of the problems that can arise as
discussed in the above sections. If clear communication is not continued there
may be a lot of misunderstandings and problems that could prolong the project
and incur additional costs. This stage should be clear, crisp and efficient. Clear
communication will be needed when staff are reassigned, when the project is
closed and when all the project information is gathered and evaluated for
lessons learned.

To make sure that the communication channels continue to be clear the project
manager will need to:

• Hold more frequent meetings.

• Extend the attendance of the meetings now the team is smaller
• Invite the snagging teams along and new clients.
• Allow the meetings to consider items in more detail, as this could not
happen during the implementation stage.
• Discuss the redeployment of staff or team changes.

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Dealing with the Information

At this point in the project life cycle almost of the money will have been spent or
allocated, most of the project outcomes will have happened and most of the
resources will have been consumed.

The information required at this stage is:

• Identify all outstanding work and activities

• Make sure all records of outcomes are up to date
• Make sure all the project records are up to date
• Check that all that was planned for is actually completed

The activities above need to be completed so the project can be completed and
the client will accept the handover of the project, and to conduct the post-
project audits and appraisals.

Project Handover Checklist

ACTIVITY 28A

File in Assignment 3 (part 2)

MANAGEMENT CHECKLISTS FOR THE COMPLETED PROJECT

ACTIVITY 28B

File in assignment 3 (part 2)

Completed Project Reports

All the final project reports required by senior managers, the client and
stakeholders would be generated for the completed project.

The type of reports would depend on the information required; these reports may
be against Time, Cost or Quality. For example:

• Financial
• Schedule Client

ACTIVITY 28C
File in assignment 3 (part 2)

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Project Audits

The project audit will take place when the project is completed and handed over
to the client. The main points that need to be covered by the post project audit
are those relevant to the client and those to the Project Manager.

The focus for the client will be on whether the project outcomes have been
completed, identifying any areas that need to be finished and justifying any
additional costs.

The focus for the Project Manager will be whether the original budget costs were
achieved, whether the project management of the project was successful in
using the various skills / techniques, and identifying what will be done with any
plant I equipment that was purchased for the project.

If the above can be answered by one common audit it will save on cost but this
will depend upon the relationship the Project Manager has with the client and
the size of the project. When all parties involved are employed by the same
organisation, one audit would be undertaken. If the contractor employs the
project team then an audit by the contractor would be undertaken separately
from the client's audit.

The audit will take the form of a formal report, of which the size, content and
cost will vary depending on the size of the project. On large projects there may
be a team of auditors who work for the client, or have the technical expertise of
a particular process I system, to complete the reports.

The audit is not just for bookkeeping and accountancy reasons - it will also
reveal defects that could be used at a later stage against the contractor in court. It
is important that these audits are conducted with accuracy and honesty.

The audit cannot tell us whether the project has fulfilled its purpose. For
example:

• will it perform as expected

• will it generate additional income
• will it save on costs

The post project appraisal is without exception generated by the client, which
could be conducted by a third party so as to be impartial or for technical
specialisation. A stand-alone department within an organisation, who would
report directly to senior management, may conduct it.

This audit report is mainly concerned with how the organisation can improve its
performance when delivering projects. For example:

• better cost estimation

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 • better risk assessment I evaluation
• better evaluation of contractors
• better project management

ACTIVITY 28D

File in assignment 3 (part 2)

Summary

The effective and efficient closure of a project can make sure the project is a
success.

Change will continue through the project closure stage.

Problems that arise at this stage are different to those experienced at other
stages in the project

To achieve a successful handover, the management of people,

communication, information and the power structure needs to be effective.

Project audits can be conducted by the client and project team to clearly
conclude that the project achieved the original set TOR's and specification,
within the budget and time scale, (Time, Cost and Quality) and that the project
management techniques used were effective or successful.

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