diff --git a/services/project_services/src/java/main/com/topcoder/project/service/impl/ProjectServicesImpl.java b/services/project_services/src/java/main/com/topcoder/project/service/impl/ProjectServicesImpl.java
index 06cb4c06e..3bb359f4b 100644
--- a/services/project_services/src/java/main/com/topcoder/project/service/impl/ProjectServicesImpl.java
+++ b/services/project_services/src/java/main/com/topcoder/project/service/impl/ProjectServicesImpl.java
@@ -426,7 +426,6 @@
  * <ul>
  *     <li>updated on {@link #createProjectWithTemplate(Project, com.topcoder.project.phases.Project, Resource[], Date, Date, String)}</li>
  *     <li>updated on {@link #updateProject(Project, String, com.topcoder.project.phases.Project, Resource[], Date, Date, String)}</li>
- *     <li>added {@link #checkPrivateProjectPhase(Project, com.topcoder.project.phases.Project)}</li>
  * </ul>
  * <p>
  *
@@ -2080,10 +2079,15 @@ public FullProjectData updateProject(Project projectHeader, String projectHeader
                         // code with auto assigned review only requires one reviewer.
                         p.setAttribute("Reviewer Number", "2");
                     }
+
+                    if (p.getPhaseType().getId() == PhaseType.REGISTRATION_PHASE.getId()) {
+                        if (projectHeader.getProperty(ProjectPropertyType.PRIVATE_PROJECT) != null && projectHeader.getProperty(ProjectPropertyType.PRIVATE_PROJECT).equals("1") && projectHeader.getProjectStatus().getId() == ProjectStatus.DRAFT.getId()) {
+                            p.setPhaseStatus(PhaseStatus.CLOSED);
+                        }
+                    }
                 }
             }
 
-            checkPrivateProjectPhase(projectHeader, projectPhases);
             setScorecards(projectHeader, projectPhases);
             // call phaseManager.updatePhases(projectPhases,operator)
             Util.log(logger, Level.DEBUG, "Starts calling PhaseManager#updatePhases method.");
@@ -2740,7 +2744,6 @@ public FullProjectData createProjectWithTemplate(Project projectHeader, com.topc
             }
 
             setNewPhasesProperties(projectHeader, newProjectPhases, (multiRoundEndDate != null), isStudio);
-            checkPrivateProjectPhase(projectHeader, newProjectPhases);
 
             return this.createProject(projectHeader, newProjectPhases, projectResources, operator);
 
@@ -5151,25 +5154,11 @@ private void setNewPhasesProperties(Project projectHeader,
                 p.setAttribute(SCORECARD_ID_PHASE_ATTRIBUTE_KEY, String.valueOf(iterativeReviewTemplateId));
                 p.setAttribute("Reviewer Number", "1");
             }
-        }
-    }
 
-    /**
-     * Helper to check project phase status. It must set to CLOSED for private project
-     *
-     * @param projectHeader Project
-     * @param projectPhases Project phases
-     * @since 2.3
-     */
-    private void checkPrivateProjectPhase(Project projectHeader, com.topcoder.project.phases.Project projectPhases) {
-        for (Phase p : projectPhases.getAllPhases()) {
             if (p.getPhaseType().getId() == PhaseType.REGISTRATION_PHASE.getId()) {
-                if (projectHeader.getProperty(ProjectPropertyType.PRIVATE_PROJECT) != null && projectHeader.getProperty(ProjectPropertyType.PRIVATE_PROJECT).equals("1")) {
+                if (projectHeader.getProperty(ProjectPropertyType.PRIVATE_PROJECT) != null && projectHeader.getProperty(ProjectPropertyType.PRIVATE_PROJECT).equals("1") && projectHeader.getProjectStatus().getId() == ProjectStatus.DRAFT.getId()) {
                     p.setPhaseStatus(PhaseStatus.CLOSED);
-                }else{
-                    p.setPhaseStatus(PhaseStatus.SCHEDULED);
                 }
-                break;
             }
         }
     }