During project closing, the project manager discovered the client did not use a particular service. The client asks to informally extend the service beyond the contract end date, but the contract clearly states the service expires. How should the project manager handle this to close the project?

The correct approach is to issue a change request and activate the formal change control process. The contract is a legally binding document, and any deviation from its terms, even an informal request, requires formal approval. A change request ensures that the impact on scope, schedule, cost, and quality is assessed, and all stakeholders, including legal and management, are involved in the decision. This maintains project governance and protects both the project and the organization. Escalating to a functional manager without a formal process bypasses necessary controls. Accepting an informal proposal violates contractual terms and creates risk. Denying the request without exploring formal options may damage client relations and miss an opportunity for a mutually beneficial agreement.