In the field of project management, we rarely hear of the words ‘slowing down’. In fact, those words often echo in infamy. Clients want their project completed as quickly as it can be. In fact, they’re most likely to request additional resources, more hours and accelerated timelines – slowing down or stopping isn’t something clients want to hear. Unfortunately, slowing down or hitting pause is the right thing to do for the Project Manager, despite what the client and even our own management may say. In this article, we’re discussing putting a project on hold and when P.M.s should hit that pause button!
The Benefits Of Putting A Project On Hold
The dynamic of a project can change completely when unknowns are discovered, the scope of work changes or one of the parties breaches the contract terms.
When things like this happen, it doesn’t always make sense for the project to continue. Time and resources may be wasted in pursuit of something that’s not clearly defined. Money may be lost that’s unrecoverable. A completely different approach may be required when changes occur, which needs to be planned for and vetted.
Putting a project on hold doesn’t mean the project isn’t going to get done, although that is the result in some cases. It means that a major corrective action is needed before the parties involved can feel comfortable with moving ahead.
Taking a step back allows all parties, including the Project Manager, to get some clarity on what needs to happen next. It also stops the ‘bleed’ in the event that time or money was being thrown out the window. Even Clients benefit from a pause, if the alternative (keep pushing forward) doesn’t achieve anything useful.
Your Legal Counsel Must Be Involved!
Full Disclaimer: I am not an attorney and this website does not give legal advice!
Before officially putting the project on hold, Project Managers should consult their legal counsel.
The contract may include specific terms related to pausing the project. Many AIA contracts in construction, for example, include clauses that prohibit a contractor from stopping work during a dispute.
Every contract is different and every industry has its’ own customs. Regardless of the business you’re in, it’s important to make sure you don’t breach contract when putting the project on hold.
The same attorney who reviewed the contract for you prior to your firm signing it will be a great help here, since they’ve already reviewed the terms.
You’ll most likely need to officiate your decision to place the project on hold. This must be a written, official letter that clearly dictates the reasons why you’re stopping the project and what you believe it’ll take to get moving again. It’s best practice to have a lawyer review this letter and give their input prior to it getting sent.
When To Put A Project On Hold
Now that we’ve discussed some of the ground rules, let’s talk about when a Project Manager should put the project on hold. Here are a few common situations requiring this:
- Delayed Payments
- Discovering Unknowns Or Surprises
- Major Changes Are Requested By The Client
- Contractual Disputes With Client Over Scope, Schedule, Etc.
- Objectives Are Not Being Achieved
Scroll below to read a bit more about each of these situations!
1. Putting The Project On Hold Due To Delayed Payment
Let’s be honest – people agree to work on a project because it bring in money. Money makes the world go ’round, after all.
When Clients don’t pay, it puts a tremendous strain on the contractors or consultants doing the work. Money is being spent daily to keep the project moving forward. When the payment for the work isn’t recouped over a long enough time, many companies can’t even stay in business.
If the Client isn’t paying already, it doesn’t make sense to incur any further costs until payment is received in full. In extreme cases, Clients may have cashflow issues that prevent them from paying anything, or just refuse to pay for any number of reasons.
As said earlier – consult your lawyer and review the contract first!
Read Next: Why Are Lessons Learned Important In Project Management? Here’s Why
2. Discovering Unknowns Or Surprises
They call them unknowns for a reason – they show up as total surprises on a project and change everything!
When you encounter an unknown on a project, it may drastically affect the schedule, cost and approach to the project. All three of these variables must be kept in check to reach a positive outcome.
Project Managers should hit the pause button and take a step back. It’s vital to form a new approach, consider budget/schedule and officially summarize them to your Client in writing.
Should you require a change order, additional time, etc., it doesn’t make sense to continue any work affected by this unknown. In many circles, this is rule #1 when it comes to changes in scope – no work until a change order is signed!
Read Next: Change Order Best Practices: What Contractors & Clients Need To Know
3. The Client Requests Major Changes
Similar to the unknowns discussed above, the Client may request major changes to the scope. With these changes will likely come additional time, costs and resources. These requested changes may also impact a fair bit of the other work already taking place – potentially all of it.
When Client changes arise, it’s important to take stock of the total impact the project will feel. As said, the entire project budget, schedule and methodology may need to change to accommodate the request.
In these moments, it’s obvious that proceeding without taking these impacts into account is a dangerous game. Your firm may suffer at the hands of the change requests that have nothing to do with you.
Of course, the right steps will need to be taken to support any claim you submit for more money or time. You’ll need to provide a revised schedule, a breakdown of cost increases and a written synopsis on the impact the project will face.
I’m a broken record at this point, but please consult your attorney as well. They should be made aware of changes taking place. Depending on what they are, the terms and conditions of the contract may need to be rewritten, too.
Read Next: What Should A Project Manager Do If The Customer Delays A Project?
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4. The Client Is Disputing Contractual Terms
Whether it be a dispute over payment, progress, changes, scope of work or any number of issues, putting the project on hold is a good idea as you navigate the situation.
Disputes go one of two ways – either the two parties reach a mutual agreement or it becomes a legal dispute i.e. laywers, lawsuits and courts.
First off, is anyone is breach of contract within this dispute? Whether it be your firm or the Client – or BOTH – it’s important to know that. The agreement may be void depending on the contract terms. Discuss this with your legal counsel!
While putting the project on hold is the right thing to do most of the time, it’s important to remember these two things:
- What does the contract say about disputes in general? Will you be breaching contract by stopping? This essentially gives the Client the right to terminate the agreement under certain terms.
- Be solution-oriented. It’s important to express to the Client that you’d like to work through the issue.
If all else fails, the dispute will become a legal matter. In these situations, putting the project on hold keeps you from sinking effort, money and resources into a project that’s not going anywhere now.
Read Next: Importance Of Negotiation In Project Management, With Examples
5. Objectives Are Not Being Achieved
This one is fairly broad, but worth mentioning. Are the project objectives being reached? Below are a few examples.
The easiest way to approach this is to refer back to any project phases or milestones that have been established already. Are these milestones significantly behind? Are they not being met? Can they be met at all?
A software program, for instance, might require certain features in the end product. One of these key features isn’t working right at all, and there isn’t a clear solution yet as to how it can be fixed. This is a reasonable point to put a project on hold, simply because nobody wins by continuing. It’s better to take a step back and solve the problem from a high level, rather than try to slug it out in the weeds.
Let’s say there’s a building under construction that will feature a certain type of custom window when it’s finished. It’ll have hundreds of these windows. Let’s say that the exterior and structure are built and it’s time to get the windows installed. No interior work will begin until these windows are in. These windows are designed to achieve a particular ‘rating’ against high wind and heavy rain, meaning they’re leak-proof in these situations.
When these windows start getting tested in a laboratory, they are leaking quickly and aren’t performing to the level expected. At that point, it’s a good idea to put the project on hold and figure out what needs to happen to get these windows functioning correctly. Fairly obvious, but it illustrates the point.
Read Next: Our Comprehensive List Of 25 Ways Contractors Lose Money
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Putting The Project On Hold: In Summary
While nobody likes to bring their project to a halt, it’s the right thing to do in many instances. Knowing the instances that require this is always helpful, and I hope we’ve illustrated some helpful points in this regard. Thanks a lot for reading!
