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Closeout & Reporting · Part 1 of 3
Contract Closeout: From Final Inspection to Final Payment
Physical completion is not the finish line. Final payment comes after acceptance, closeout submittals and a release of claims. AAAT3 runs the closeout so nothing holds up your money.
Key numbers
What the rules say
Target to close a firm-fixed-price contract file after the contracting officer gets evidence of physical completion
FAR 4.804-1Target for most other contract types; 36 months when indirect cost rates must be settled
FAR 4.804-1Final payment requires completion, acceptance and a release of all claims against the government
FAR 52.232-5How we do it
Step by step
Substantial completion
Confirm the work is complete enough to use and log what remains.
Final inspection
Walk the job with the owner or government and record every deficiency.
Punch list closed
Track each item to completion and get sign-off.
Acceptance
Get written final acceptance of the work.
Closeout submittals
Deliver as-builts, O&M data, warranties and certificates.
Final pay & release
Submit the final pay application, retainage request and release of claims.
Checklist
What we track and deliver
- Final inspection report and sign-off
- Written acceptance
- Final pay application
- Release of claims
- Retainage release request
- Subcontractor lien waivers and releases
- Final change order reconciliation
- Closeout submittal transmittal log
- Contract file closeout checklist
Common problems
Where this usually goes wrong
Open change orders
We reconcile every change and claim before the final pay application.
Missing submittals
We track every required submittal from day one, not at the end.
Unpaid subcontractors
We collect lien waivers and releases before final payment is requested.
No written acceptance
We get acceptance in writing so the warranty clock and final payment can start.
Standards
Codes and standards behind this work
5 standardsFederal government requirementIndustry recognized practice
Federal contract closeout
3- FAR 4.804
Closeout of contract files and time standardsFederal
- FAR 52.232-5
Payments under fixed-price construction contracts, including final paymentFederal
- FAR 52.246-12
Inspection of construction and acceptanceFederal
Closeout submittals
2- UFGS 01 78 00
USACE closeout submittalsFederal
- AIA A201 §9.10
Final completion and final payment on commercial jobsIndustry
FAQ
Common questions
What does physical completion mean?
The contractor has finished the work and the government has accepted it, or the contract period has ended. It starts the clock on contract closeout.
Why is my final payment late?
The most common reasons are open change orders, missing closeout submittals and no signed release of claims.
Do you handle commercial closeouts too?
Yes. Commercial jobs follow the contract, often AIA A201, with the same steps: inspection, punch list, acceptance, documents and final payment.
Closeout & reporting in detail
Explore each part of closeout
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