Project Closure - Contract Cancellation

09/16/2024 1:39 pm EDT

Contents

Purpose
Cancellation Requested
Cancellation Review
Cancellation Approved
Cancellation Declined

Purpose

During the lifespan of an implementation project, a customer may determine they do not want to proceed with the project and have asked for a refund. This process walks the Project Manager (PM) through the processing of that request and the project flow after that request through closure.

The Director of Professional Services will review the project with the PM to determine if it should move forward to a second review by the Leadership team. Decisions on the validity of contract cancellation and refund amounts will be made at the Senior Leadership level and only the Director of Professional Service can close a project under the status of Contract Cancellation.

The Project Closure – Contract Cancellation process flowchart linked here to assist with the required steps to close a project under Contract Cancellation.

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Cancellation Requested

Once a cancellation request has been received for a project, the PM will follow the steps below:

  1. Update the project fields:
    1. Status Reason = Escalated
    2. Dependency = Director of Professional Services
    3. Chatter = notes on request from customer or information from internal resources regarding the cancellation request (supporting or refuting)
    4. Ensure all project tasks and timecards are up to date
  2. Schedule and hold a review session with the Director of Professional Services
    1. Discuss all facets of the project relevant to supporting or declining the cancellation request and include in the Chatter notes
    2. Update any missing information requested by the Director of Professional Services to aid in the Leadership review of cancellation

If the project is approved to move to the Leadership review:

  1. Ensure all tasks are up to date including timecards entered to assist with cost analysis
  2. Ensure the Go Live date is populated if the customer has gone live
  3. Update the Project
    1. Project Status Reason = Contract Cancellation
    2. Project Owner = Director of Professional Services

If the project is not approved for cancellation:

  1. Update Project Fields:
    1. Status Reason = Active
    2. Dependency = None
  2. Inform the customer that the project will continue

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Cancellation Review

For projects the Director of Professional Services determines warrant review for cancellation, the following steps are all completed by the Director of Professional Services:

  1. Update supporting information in the Project Chatter to support the request:
    1. Cause for delays
    2. Product Issues
    3. Recommendation on refund amounts
    4. Other supporting information to assist with decision
  2. Schedule Cancellation Review Meeting – 30 min
    1. Attendees:
      1. President
      2. Sales Operations
      3. Director of Professional Services
  3. Update Project Chatter with meeting notes and decision

The Director of Professional Services will update the project based on the decision of the Leadership team.

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Cancellation Approved

If the Leadership team approves cancellation:

  1. Follow existing CCR process – log case
  2. After the credit case is approved and the Credit Memo issued:
    1. Add case number to project Chatter
    2. Add credit memo number to Chatter
    3. Send customer notice of cancellation
      1. Template: Project Contract Cancellation
    4. Update the Project in the following order:
      1. Recovery Plan: Project Cancelled
      2. Dependency: None
      3. Go Live Date: populated if the customer is live
      4. Project Owner: original PM
      5. Project Status Reason: Contract Cancellation
      6. Project Stage: Contract Cancellation

The project is now closed. The auto notification will be sent regarding closure as Contract Cancellation.

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Cancellation Declined

If the Leadership team does not approve cancellation:

  1. Update project Chatter with information on the next steps to resume the project
  2. Status Reason: Active
  3. Owner: reassign to original PM

The PM will continue to work with the customer to complete the project. For customers that refuse to move forward, follow the process below based on the customer's contract (do hours expire):

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