A phased project is a project divided into stages that are carried out and funded gradually, with each stage intended to be independently functional. It is used in two situations. The first is scope that exceeds the possibilities of a single call or a single budget period – in that case, part of the project is completed and the rest continues in a further stage, or possibly in a new programming period. The second is risk: where the outcome is uncertain, a smaller part is funded first and the decision on continuation is made only after it has been evaluated. The key condition is that the completed stage must have its own purpose and usability; an unfinished building or a system that cannot be used without the second stage is a problem during checks. The division must be approved in advance, not improvised during implementation.
See also: Budget reallocations in a project, Investment project, Programming period.
