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What is Contract Closure and what does it involve?
What is Contract Closure and what does it involve?
Contract Closure is the process of verifying that a contract was completed satisfactorily and involves tasks such as product verification, updating contract records, confirming completion of exit criteria, and formally closing out subcontracts.
True or false: The Contract Closure process involves only verifying that all payments were made and updating contract records.
True or false: The Contract Closure process involves only verifying that all payments were made and updating contract records.
False
When closing out a construction contract, which of the following is NOT a required document?
When closing out a construction contract, which of the following is NOT a required document?
What is Contract Closure?
What is Contract Closure?
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True or false: The Contract Closure process includes product verification to ensure accurate and satisfactory completion of the work described in the contract.
True or false: The Contract Closure process includes product verification to ensure accurate and satisfactory completion of the work described in the contract.
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What is the purpose of the Contract Closure process?
What is the purpose of the Contract Closure process?
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What determines whether the work described in the contract was completed accurately and satisfactorily?
What determines whether the work described in the contract was completed accurately and satisfactorily?
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What are some of the required documents for Contract Closure?
What are some of the required documents for Contract Closure?
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What is the formula for calculating the final contract price for a construction project?
What is the formula for calculating the final contract price for a construction project?
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What is involved in closing out a construction contract?
What is involved in closing out a construction contract?
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True or false: Required documents for Contract Closure include employee payroll records and supplier invoices.
True or false: Required documents for Contract Closure include employee payroll records and supplier invoices.
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What are some of the required documents for Contract Closure?
What are some of the required documents for Contract Closure?
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What are the steps involved in closing out a construction contract?
What are the steps involved in closing out a construction contract?
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Which of the following is NOT an important aspect of closing out a construction contract?
Which of the following is NOT an important aspect of closing out a construction contract?
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How is the final contract price calculated for a construction contract?
How is the final contract price calculated for a construction contract?
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True or false: Closing out a construction contract involves determining and releasing final payment only.
True or false: Closing out a construction contract involves determining and releasing final payment only.
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What deductions may be made from the maximum amount of the final payment for a construction contract?
What deductions may be made from the maximum amount of the final payment for a construction contract?
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True or false: Assembling required documentation involves making sure the contractor submits only some of the required documentation.
True or false: Assembling required documentation involves making sure the contractor submits only some of the required documentation.
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What is the maximum amount of the final payment for a construction contract based on?
What is the maximum amount of the final payment for a construction contract based on?
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What is the final contract price calculated as?
What is the final contract price calculated as?
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How is the maximum amount of the final payment determined?
How is the maximum amount of the final payment determined?
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What is the purpose of assembling required documentation during Contract Closure?
What is the purpose of assembling required documentation during Contract Closure?
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True or false: The final contract price is calculated as the original contract price plus the aggregate value of all deductive change orders.
True or false: The final contract price is calculated as the original contract price plus the aggregate value of all deductive change orders.
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Study Notes
Key points:
- Contract Closure (or Procurement Closure) is the process of verifying that the terms and conditions of a contract were completed satisfactorily, making sure all payments were made, updating contract records, confirming completion of exit criteria, and formally closing out all subcontracts.
- The Contract Closure process determines whether the work described in the contract was completed accurately and satisfactorily through product verification.
- Required documents for Contract Closure include releases of liens, titles to major equipment, warranty documentation, as-built drawings, inspection and acceptance records, and operating and maintenance manuals.
- Closing out a construction contract involves administering the punch list, awarding substantial completion, determining and assembling the required documentation, and determining and releasing final payment.
- Assembling required documentation involves identifying what documentation is required to be submitted by the contractor, making sure the contractor submits the required documentation, and determining that the submitted documentation meets the relevant contractual requirements.
- Warranties, operations and maintenance manuals, training for building operators, commissioning, lien waivers, and waiver of claims forms are all important aspects of closing out a construction contract.Key fact: The final contract price is calculated as the original contract price plus the aggregate value of all positive change orders minus the aggregate value of all deductive change orders.
When determining the final payment for a construction contract, it is important to consider all change orders that were made throughout the project. The final contract price is calculated by adding the original contract price to the total value of positive change orders and subtracting the total value of deductive change orders.
Additionally, the maximum amount of the final payment is determined by subtracting the aggregate value of all payments made to the contractor to date from the total contract price, and then deducting any amounts for incomplete or defective work or incomplete or unsubmitted deliverables. These deductions may be handled through deductive change orders or through negotiation.
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Description
Test your knowledge on Contract Closure with this informative quiz! Learn about the important process of verifying that the terms and conditions of a contract were completed satisfactorily, updating contract records, confirming completion of exit criteria, and formally closing out all subcontracts. Discover required documentation and key aspects of closing out a construction contract. Take this quiz to enhance your understanding of Contract Closure and ensure your projects are completed accurately and satisfactorily!
