What is physical completion?
This is the day when the last professional activity undertaken in the project has actually taken place. For a construction investment, it is the day the occupancy permit is issued; for equipment purchase, the commissioning of the final machine; and in the case of product, service, or technology development, the date when the related information material is published. Generally, only costs incurred up to this date are eligible. That’s why, if something slips past the deadline, it may no longer be accepted for support.
And what about financial completion?
Here it is no longer about the completion of works, but about the point when all project costs have actually been paid. It is the date of the final payment, when every invoice has been fully settled. The difference may seem minor, but it is crucial: physical completion relates to performance, while financial completion is tied to payment.
Where does the Managing Authority come in?
The third date is when the final report and the final payment request are approved. This is often the moment of “relief,” but it is still not the ultimate closure.
When can you say for sure that the project is closed?
When every commitment – including maintenance obligations and indicators – has been fulfilled and formally approved. Until then, even if the factory is up and running or the software is live, your project remains officially open. We have already written about maintenance obligations earlier here.
Why is it important to distinguish these?
Because there are four dates, and four different logics. If you align contracts or supplier deadlines with the wrong one, the funding may be put at risk. A single minor mistake can result in a loss of millions, whereas a clearly structured project calendar can protect you.
Project completion is not a single moment but a process. If you understand the differences between physical, financial, authority, and maintenance closure, nothing will catch you off guard – and your funding will stand on firmer ground.
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