PROJECT

MODULE 1
COMPLETION AND
CLOSE-OUT

ARC 1702 CLUSTER

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What is a CLOSE-OUT?
▪ A work process to finalize all activities at the end of the project
including handover the facilities and documents to the Client
according to the contract terms and conditions.

▪ Process of completing all construction tasks and all

documentation to close out contract and consider job complete

The PROJECT MANAGER plays an important role in the process, they

need to make sure that all activities are appropriately delivered
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SUBSTANTIAL COMPLETION
This term substantial completion, if
used on the project, should be defined
in the
contract specifications.

Generally, it represents the recognition

by the Authority that the project is
“substantially completed” except for
certain minor punch list items which do
not hamper the use of the facility.
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PUNCH LIST

A punch list also called a snag list is

is a document created in the final
stages of a construction project to
provide a list of items that must be
addressed before construction is
considered complete and payment is
issued. It is part of the project
closeout portion of the construction
process in which a contractor
prepares a document that lists any
work that has not been completed, or
not been completed correctly.
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A construction punch list will often include the following

items:

o Interior or exterior issues

o Incorrect installations, like flooring or cabinetry
o Mechanical issues related to thermostats, ductwork,
and appliances
o Anything additional that was damaged during the
course of the project, like a cracked driveway or
flawed drywall
o Any unaddressed items outlined in the original
contract
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When the Contractor reaches “substantial completion”, the Contractor will

request
A semi-final inspection of the work. The PM will inspect the work and
inform the
Contractor:

If the Project is “substantially complete”, the PM shall IMMEDIATELY

prepare a written
declaration to that effect and transmit this to the Contractor, along with a
PUNCH LIST

Ultimately, the goal of all construction projects is to achieve zero items on

their punch list
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If the Project is not “substantially

complete”, the PM shall inform the
Contractor that the project is not
“substantially complete”. The written
notification shall list outstanding or
incomplete work items remaining that
demonstrates the project is not
“substantially complete”.

The list shall be transmitted to the

Contractor, in writing, within 21 days after
receipt of the Contractor’s certification of
“substantial completion
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Checklist or Activities needed for Close-out:

1. Ensure Project Deliverable Meet Project

Specifications
You’ll need to:
▪ Have a document that all work has been done as outlined in the
original contract or CHANGEORDER. If something is missing or not
done correctly, take steps to correct.
▪ Review all legal requirements and ensure that all items have been
met.
▪ Meet with any code or inspection authorities and obtain TOC and
other documentation
▪ Review any owner’s notes to ensure that any requests have been
attended to and that the site is truly ready for handing over
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2. Receive Client Approval
▪ This is to ensure that the Client is
satisfied with the deliverable but
also to verify their acceptance and
even solidify your relationship.
▪ Client satisfactory survey or
feedback to improve your
performance.
3. Perform Final Lessons Learned
▪ This document summarizes the
findings of the lessons learned phase
and provides action items to improve
future project performance.
▪ The document should be places in
an accessible location in your
company where it can easily be
retrieved for future reference.
▪ It should be circulated throughout the
company in an effort to educate other
PM and team members fort hem to
learn the successes and failures.
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4. As-Built Drawings
a) IN PROCESS - During the construction, the PM
shall ensure that the Contractor maintains one set of
black or red line drawings at the site, which clearly and
completely show the actual installations in accordance
with the Contract requirements. This shall also include
all Subcontractors’ changes. This set of drawings shall
be kept current at all
times and will serve as the record set of drawings
during the project
b) SUBMITTAL - Upon completion of the work, the PM
shall ensure that the Contractor submits a complete set
of marked-up record drawings. These drawings should
be
reviewed and concurred to by the Consultant for the
project
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5. Archive Project Plan

The PM should obtain from the Contractor the following data (with the
number of copies of each), in accordance with the Contract Terms:

o Operating Manuals and Operating Instructions for the various

systems.
o Catalog data sheets for each item of equipment installed including
performance curves, rating data sheets, parts lists, etc.
o Catalog sheets, maintenance manuals, and approved Shop Drawings
of all equipment controls and fixtures with all details clearly indicated,
including sizes.
o Names, addresses and telephone numbers of repair and service
companies for each major system installed.
o All Warranty statements, guarantees, etc.
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6. Final Acceptance

Final acceptance of the work generally allows the Owner to issue a

“Certificate of Final Acceptance" to the Contractor for the work.
This states that the contract is competed with no outstanding
items remaining. This is also the milestone by which the Contractor
will notify its bonding and insurance companies that no further
obligations remain on the contract.
This is performed after all “Punch List” items have been completed
or corrected to meet Contract requirements. The Certificate of
Final Acceptance formally establishes the date of final completion
for the contract and begins the warranty period. A Certificate of
Final Acceptance is also a required attachment to process the
Contractor’s request for final payment.
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7. Demobilizing
▪ 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
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8. Contract
Administration Post-
Audit
When the Professional Services
contract is being prepared to be
closed, Contract Administration
will perform an evaluation of all
associated costs and decide
whether to perform a Close out
Post Audit of the contract.
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SPLZTN 352: CONSTRUCTION MANAGEMENT

Potential Issues During Project Closeout

Punchlist Delays
Without comprehensive oversight of the project closeout process, you may run into
problems getting items on your punchlist completed. Remember that a project punchlist
is a list of things that need to be changed or completed before a project can be
considered complete.
Incomplete Document Production
A comprehensive collection of project documentation is necessary for accurate record-
keeping. Youmay need documentation for equipment maintenance and warranty
services. You may also need documentation in the future if a portion of the construction
doesn’t match up to the requirements outlined in the contract.
Communication Breakdown
The slowing and eventual breakdown of communication between stakeholders
in the project can introduce significant delays to each aspect of project
closeout. Change orders on the punchlist may be delayed, and documents may
not be produced.
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Reference:

https://gillilandcm.com/2019/03/26/what-is-construction-project-
closeout-management/