Projects termination

Projects termination

1. Projects terminated due to cause is the situation where an ongoing project is halted due to the presence of a strong reason. The reason should be strong enough to convince the management and higher authorities to terminate the project. For example: if a project does not support its strategy, then the project can be terminated as it does not meet the requirement of the company. Another example can be if the projected outcomes of the projects are found not to be satisfactory, then the project can be terminated.

Projects can also be terminated for convenience if the company finds out that the results of the projects are not profitable. For example, a project can be terminated if it exceeds its pre-determined budget, to avoid overspending on the project and to ensure minimum investment of funds. Also, a project can be discontinued if the expected profit margin of the project is too low.

2. Example of projects terminated early due to cause can be due to reasons which are stated by the project head along with the team members to the management, which may include failure of the project to meet it desired result. Other examples may consist of board members committing towards the project management team so that they are equipped with proper project closure procedures as per company norms.

Example of projects which are terminated for convenience is when the projected revenue is lower than expected, and the project prices are too high. In this case, if the outcomes of the projects are not sufficient, then the project might be terminated. In another example, a project might get suspended due to the project requirements or specifications getting changed with time. Since the terms of project contract are fixed and cannot be changed, it is more convenient for the company to terminate the project instead.