Period of performance

The period of performance is the window in which costs may be incurred and charged. It has a start date and an end date, and both are enforced by dates rather than by good sense: a cost incurred the day before the start or the day after the end is not eligible, however clearly it belongs to the project.

INCURRED means when the goods were delivered or the work performed, not when the invoice was raised or paid. Ordering equipment inside the period and receiving it after the end fails. Paying in month 37 for work done in month 35 is fine.

Some systems permit PRE-AWARD costs: expenditure a short period before the start, at the applicant's risk, where the award later approves it. The rules differ by funder and the risk is genuinely yours: if the award does not materialise, the cost is yours alone. Never rely on it without written approval.

The closing weeks are where money is lost. Consortia hold budget back for contingency and then discover that the remaining sum cannot legitimately be spent inside the period on anything the project needs. Plan spending to finish before the end, not at it.

Extending the period requires a formal change (an amendment in Europe, a no-cost extension in the US) and it must be requested BEFORE the end date. After it, the option no longer exists and the project simply closes with whatever it has delivered.