Project statuses also known as the project workflow is completely customizable in the system.
To view the current project statuses view the project list view and click on the status. This will reveal all the different statuses that you can move your project through.
The statuses displayed here are the system defaults.
These are customizable. To customize select Owner Settings and Project Statuses
From the Project Statuses option you will the status name, options order, edit and delete,
The order is the order in which they are displayed to the end user.
Selecting the edit icon of 
will open the edit modal.
will open the edit modal. Here you can edit the name, the order, whether you wish it to be displayed in the list, and who you would like to be notified of a project moving to this status.
If you toggle on a Notification you will be presented with a window to set up the notification email.
Add the subject and the text. Here, you may also use the prefills for standard information.
Click on updatel
This email will then be sent each time a project is moved to a status.
To create a new project status click on add 
Type in the name of the status in the Status Name field
Add the order you wish for it to be displayed
Toggle it on
And set up the appropriate notifications and the corresponding notification email
You may add as many projects that you wish using this feature.