Contract Closure 356g48

MANAGEMENT DEVELOPMENT INSTITUTE (MDI) TAILOR – MADE TRAINING PROCUREMENT MANAGEMENT, TOPIC: CONTRACT CLOSURE

PRESENTED BY: MR. OMAR B BALDEH MOFEA

IN

Issues to deal with at contract closure  Starting systems  Testing & demonstrations  Inspection by authorities having jurisdiction  Defective work & time for correcting defective work  Certificate of use or occupancy and transfer of insurance responsibilities

Issues to deal with at contract closure  Closeout submittal:  Documents,  Operation data,  Maintenance materials  Product warranties,  Final application for payment (claims)  Contractor’s demobilization of site

Introduction to Contract closure

 The contract closure is an istrative procedure, which is aimed at:  consolidating that both parties (Contractor and Contracting Authority) have fulfilled their contractual obligations and there are no unexecuted tasks or other types of pending issues.

Check list for Contract Closure  During the contract closure procedure the Project Manager (or the Engineer in the case of public works) should:  Check that all products have been delivered and accepted (case of supply contract),  All works have been completed and accepted (case of building works or civil engineer's works),  All services have been rendered and their deliverables have been accepted (case of service contracts).

Check list for Contract Closure  Check that all issues that resulted during the execution of the contract have been dealt with and there are no open issues  Ensure that all of the rights, including copyrights, and other intellectual and industrial property rights that were ensured during the execution of the contract are devolved to the ownership of the Contracting Authority (CA)

Check list for Contract Closure  Return to the CA of its assets that were made available to the Contractor in the context of execution of the contract  Check that all of the data like charts, diagrams, drawings, specifications, plans, statistical data, operation and maintenance manuals (public works contract) and any other relevant document or material acquired, collected or drafted by the Contractor during the execution of the contract have been submitted to the CA, otherwise sees to their collection.

Check list for Contract Closure  All files are kept by the Contracting Authority for as long as provisioned in the legislation depending on the type of documents (e.g. ing files and entries must be kept pursuant to the ing and Fiscal Guidelines for a period of 5 to 10 years

Check list for Contract Closure  Release all resources (human, machinery, equipment, materials and infrastructures) of the Contracting Authority that were utilized in the execution of the contract.  Provide the Contractor with a Good Performance Certificate as long as it is requested by him  Return the performance guarantee

Check list for Contract Closure

 Check that the completion Reports (case of supply contracts) and final Progress Reports (case of service or public works contracts) have been submitted and have been accepted.  Check that all interim payments as well as the final payment have been effected and that the Performance Guarantee has been returned to the Contractor.  Check that all issues that resulted during the execution of the contract have been dealt with and there are no open issues.