Project Evaluation and Close-Out - Simply Put!

Introduction

In the Marstan Guide Introduction to Project Management, we said that Project Evaluation and Close-Out is the last of the seven stages of a capital project.

The evaluation should be extensive and cover all phases of the project. This means that it cannot be completed until the building has been in operation for approximately one year and the defects have been rectified and the final account has been paid, in accordance with the contractual arrangements. (See Completion, Handover and Utilisation of Capital Projects - Simply Put!.)

The main purposes of the project evaluation and close-out phase

The main purposes of the completion, handover and utilisation stage are to:

1. Assess the results and performance of the project. Does it perform as expected?
2. Assess the performance of the team responsible for delivering the project.
3. Ensure that actions pending are completed in order that the project can be formally closed.

The main components of the project evaluation and close-out stage

As we explained in the introduction, the project evaluation and close-out cannot be completed until (at best) a year after the project has been formally handed over.

However, there is a lot of work to do to prepare a Project Evaluation and Close-Out report and much of it can be started immediately after the handover of the project. (For example, the majority of the report about the performance of the Design Team).

The main components of this stage therefore include:

1. The performance of the project.
2. The performance of the team.
3. Programme performance.
4. Cost evaluation.
5. Safety evaluation.
6. Lessons learnt.
7. Final completion certificate and final account.

1. The performance of the project

One test of a project is to assess its performance against the brief and the contract documents. In addition, it is useful to assess whether the project (designed or planned as requested) performs well. The only way of evaluating this is by long discussions with key users of the facilities.

2. The performance of the team

It is essential to evaluate the performance of every member of the team (corporate or individual). This can usually be done by getting people to evaluate others in accordance with the organisation structure.

The most experienced and effective project teams ensure that they carry out a 360˚ feedback evaluation.

3. Programme performance

It is useful to carry out a programme performance evaluation. Was the project completed in accordance with the timescale set out at the outset? If not, what was the completion date established at each stage and what could have been done to do things better?

4. Cost evaluation

The cost evaluation is one of the most important parts of the overall project evaluation. It is important to establish whether the project was completed in accordance with the initial budget. If not, how did the budget figure move at each stage and why? What actions could have been taken to complete the project within budget?

It is common for people to carry out a project cost evaluation in relation to the capital costs. However, this is only one part of the picture as capital costs are a very small percentage of the overall costs of running the building over its full life cycle. Running costs can be provided by the Client’s facilities management team.

5. Safety evaluation

There are two aspects to a safety evaluation. The first is whether there were any safety problems during construction. The second is whether the facilities can be operated safely.

The first part of the safety evaluation can be provided by the Contractor and Design Team from the records during construction.

The second part can be produced by consultation with the Client’s facilities management team and key users of the building.

6. Lessons learnt

One of the most useful parts of a Project Evaluation is the distillation of all of the facts into a series of lessons learnt. These should contain both the good and the bad news. If some things went well, it is important to identify it in order that similar techniques can be used in the future.

On the other hand, if some things did not go well, it is important to understand it and identify the reasons why, in order that similar mistakes can be avoided in the future.

It is important to be honest about the lessons learnt and to distribute them to all involved parties in order that they can be fully understood and added to each firm’s or individual’s “personal experience bank”.

7. Final completion certificate and final account

When all defects have been rectified, all items related to claims have been agreed and contractual matters resolved it is possible to issue a Final Completion Certificate. This means that the Final Account can be finalised and the final payment made to the Contractor.

This signifies the formal “Close-Out” of the Project.