What Is A Financial Close Agreement

It is recommended that procurement and contract management staff overlap to some extent before and after financial closes to allow sufficient time for training and knowledge sharing. It is also important that the project company and contractor (and possibly major subcontractors) be required to maintain overlapping personnel from procurement to construction. BlackLine started when a customer asked for help managing the account reconciliation process. Since then, we have expanded our range of solutions by listening to the needs of our clients, and the result has been unprecedented transaction transparency, maximum efficiency and reduced regulatory risks. If local authorities have some separation from other relevant government agencies, it is important that they are involved as soon as possible. In some jurisdictions, local authorities may levy taxes on certain projects or delay projects purchased by the national or state government by not issuing, withholding or revoking permits required for construction work. It is important that these stakeholders of the pre-financial proximity are involved to ensure that the additional requirements are properly taken into account. It`s not as out of reach as you might think, and it starts with defining the full financial statement. If financial close is reached before all necessary land purchases have taken place, the contracting authority should keep the project company informed of the progress of the acquisition so that delays can be managed very early by both parties, including consent to changes to the construction schedule and, if applicable, compensation.