When activated the project terms status allows to state about the project terms validation.
The project terms status can be activated from the "Company settings".
1. Go to "Company Settings".
2. Open Customization > Fields
3. Go to "Project" section
4. Set the "Term status" to visible (that can be visible only for "purchase order" project type if needed)
Once activated the status will be displayed at the project level as follow.
Check the detailed article to see "How to validate project terms?"