Project Close Out

CTC-470

Close out process

Process of completing all construction
tasks and all documentation to close out
contract and consider job complete
Can go on for year after CO
4 main categories

Construction Closeout
Ensure all construction tasks completed as per
contract
Punch List of deficiencies made during pre final
inspection
F 21-1
May have many punch lists one from each CSI
number
PM should only get one Punch list w/ everything

Pre-inspection needs to occur early enough so that GC

can complete work before owner moves in
Hard to determine who caused damage once owner in building

Construction Closeout
Punch list prepared after all major work
activities complete
GC & subs should complete all punch list items
within 2 weeks
As completed punch list items are checked off and
verified by A/E
A/E notifies owner when all items corrected

Out of scope punch list items

GC not responsible needs to get Change order before
doing any out of scope work

Construction Closeout
Obtain certificate of substantial completion
and CO
Certificate of substantial completion F21-2
Issued by A/E
States that building is usable for its intended purpose but
may be deficiencies that need to be corrected
Copy of corrected punch list should be attached to
certificate
Ends GC liability for liquidated damages contract date
is for substantial completion

Construction Closeout
Certificate of occupancy F21-3
Issued by the city, county, municipality that issued
building permit
Indicates that all code related issues have been
accounted
Building is approved and safe to use

Fire Marshall inspection vital part of CO

If some work not completed not related to life
safety- GC posts bond to guarantee completion

 Occupancy
Owner occupies as soon as permitted
Can have joint occupancy owner occupies
part of building while GC finishes other part
Can cause problems
Need to have meeting with owner to get plan on
how work will proceed

Construction Closeout
Demobilizing

Expensive
Need to clean up project site
Close project office
Remove equipment & materials
Disconnect temp utilities
Contact vendors to close accounts
Project staff phased out
Project files taken to main office

Financial Closeout
Application for Final Payment
Submitted at final completion
Submitted after punch list completed and all
documentation handed in
Asks for release of retention as well as payment for any
work completed since last payment
Final lien waiver accompanies application

Lien Waivers
GC must submit final and unconditional lien waiver to
owner
Owner will require same from all subs

Financial Closeout
Change Orders
All change orders and construction change
directives must be negotiated before final
payment
All subs are issued a Final modification to
each sub for $0.00
Tells sub they will not have another opportunity to
collect on a change order

Contract Closeout
Close out requirements in contract specs
Section 1700, App F p 389
PM should make list of what they think needs to be
completed and give to designer for verification
As Built Drawings
Most significant close out deliverable
Best person to mark up is foreman or super

O & M manuals
Organize into binders and give to owner
Not sales info only O & M info

Contract Closeout
Warranties
Written, original, signed warranties and guarantees from all
subs and suppliers
Placed in O & M manual

Test Reports
Placed in O & M manual

Extra Materials
Contract may state that extra material (1 3 %) be
supplied to owner upon job completion
Paint, ceramic tile, ceiling tiles

Permits
All required permits from city or jurisdiction

Contract Closeout
Close out log
F 21-4
Allows PM to keep track of what is needed

Why do you need a close out log

Receive final progress payment

Receive release of retention
To begin clock on warranties and guarantees
Close out subcontracts and POs
Maintain good relation with owner, designer and subs
Minimize project overhead

PM Closeout
Prepare as built estimate
Analysis of final forecast project cost vs contract
amount and resultant fee
Post project meeting with owner and designers
They fill out report card on PM &GC

Post project meeting with field and office personnel

Warranty Management
Owner wants assurance that project
completed in accordance with contract
All materials and equipment used on project new
and met contract specs
All work free of defects and meet contract specs

Warranty period usually 1 year

Need to get warranties from subs
F 22-1

Warranty Service Requests

Need to be responsive

Satisfy customer
Ensure warranty costs are reasonable
Minimizes conflicts
Maximizes potential for repeat business
Helps reputation

Warranty claims funnel thru PM

PM reviews claim and notifies sub
Emergency situations owner can deal directly with
sub but must tell PM

Warranty Service Requests

Warranty Log
PM keeps log of all warranty service requests
Includes date of release from owner of completion of
work

Warranty = Customer Service

Timely response is good PR
Need to keep subs on top of warranty service
Dont use subs who are slow

Do inspection of project before warranties expire

with owner to make sure all problems under
warranty are corrected