What are the different types of contract closeout processes in government contracts?

A contract closeout is the process in which all contract activities are completed at the conclusion of a contract. In New York, there are several different types of contract closeout processes in government contracts. One type of closeout process is a bilateral closeout. This is when both the government and the contractor agree that all required contract activities have been completed and the contract can be closed. All outstanding payments are cleared and the contract is formally ended. Another type of process is a unilateral closeout. This is when the government believes all contract activities are completed and the contract can be closed, but the contractor disagrees. The government will follow its own procedures, such as conducting a final audit of the project, and then closeout the contract unilaterally. A third type of process is a mutual closeout. This is when both the government and the contractor agree to closeout the contract, but there is a dispute about the final payment amount due. The government and the contractor will work together in good faith to resolve the payment issue and closeout the contract. Finally, a fourth type of closeout process is a termination for convenience. This is when, due to circumstances beyond the control of either the government or the contractor, the contract must be closed, even if all contract activities are not yet completed. This type of process requires that both the government and contractor agree to the termination and details on how to proceed. Overall, these four types of contract closeout processes—bilateral, unilateral, mutual, and termination for convenience—provide a variety of options for a government and contractor to closeout a contract in New York.

What are the different types of contract closeout processes in government contracts?

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