Contract addresses each contact applicable to the project or a project phase. It supports the close project process as it involves verification that all work and deliverables were acceptable. The contract closure process also involves administrative activities such as updating records to reflect final results and archiving such information for future use. In multi-phase projects the team of a contract may only be applicable to that phase of the project. Unresolved claims may be subject to litigation after contract closure.

Early termination of a contract can result from a mutual agreement of the parties or from the default of one of the parties. The rights and responsibilities of the parties in the event of an early termination are contained in a terminations clause of the contract based upon those contracts or a portion of the project for clause or convenience at any time.

The buyer may have to compensate the seller for seller’s preparations and for any completed and accepted work related to the terminated part of the contract as per those contract terms and conditions.