Pre-requisites of Closeout a Contract
By;Ahkam Al Taee
(M.Sc.,Png. MechEngr )
The followings have to be taking care by the contract administrator or the contract administration team in coordination with the contract’s owner before closing out a contract, which has been completed or terminated;
• All supplies and/ or services have been completed or delivered in accordance with contract terms and requirements.
• The contractor has executed a release of claims.
• The contract time of completion has been formally adjusted, if necessary.
• Issues concerning liquidated damages have been resolved.
• Sufficient funds have been withheld from payment to offset liquidated damages if assessable, or any other indebtedness of the contractor for which an offset may properly be made.
• All contractual obligations during the warranty period, if any, have been completely fulfilled, and the commencement date of the warranties and guarantees or maintenance agreements have been clearly established.
• All administrative requirements have been completed and all necessary information to be included in the contract files have been obtained from the contractor.
• As-build drawings, warranties, guarantees ,spare-parts lists, training, instructions, manuals, photographs and other deliverables have been finished as required by contract provisions; and
• All adjustments have been made in the contract price except those adjustments that may result from items excepted by the contractor’s release of claims.
Practically the contract is closed by issuance “Final Acceptance Certificate” by the contract’s owner in coordination with the contract administrator or the contract administration team after ensuring that all the pre-requisites for closing out a contract have been accomplished or verified and that the performance evaluation report has been completed.
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