What are the two types of closing out a contract?

The concept of closing out a contract generally involves ensuring that all obligations and terms have been fulfilled, and there are two predominant methods to achieve this. The correct approach to categorize these methods is through "standard" and "expedited" closing processes.

Standard closing typically involves a thorough review of all contract terms and documentation to ensure compliance and completion. This can include settling all accounts, confirming deliverables were met, and obtaining final approvals or sign-offs from relevant parties. It provides a complete and formal conclusion to the contract, ensuring that all aspects are formally settled.

On the other hand, an expedited closing process is designed for situations where a quicker resolution is needed. This might occur when the parties agree to streamline the closing process, often bypassing some of the more detailed review steps taken during a standard closure. Even though the expedited method accelerates the timeline, it still must satisfy the core requirements of contract completion.

Focusing on the overall goal of contract management, understanding these two types helps in managing expectations around how a contract may be closed based on organizational needs or specific circumstances surrounding the contract's execution.