Close out of a project is the final operation in construction and administration that occurs on a project.
There are very specific items that are required on each project and they are defined in the specification.
While all project have different requirements many of the basic items remain the same. He following is a
list of items that should be performed during the close-out phase of a project
- Closeout Manuals consist of warranties, operation, and maintenance information for materials
and equipment used in the project. The owner uses the manuals for repairs and maintenance on
the materials and equipment after the warranty period ends. The following lists procedures for
procurement and creation of the manuals. - Punchlist - There are two phases to the punchlist process. As called for in most contract
specifications, Harris Construction must perform a preliminary punchlist prior to the architect
performing the final punchlist. The preliminary punchlist must include all items to be repaired or
completed. The following are procedures for performing preliminary and final punchlists. - Final Billings
- Record Documents
- Extra Materials
- Occupancy
- Notice of Completion (N.O.C.)
- Substantial Completion
- Final Budget / Cost Reconciliation – Prior to the final billing, budget and costs must be verified
with the contractors and the home office accounting department. If there are any discrepancies it
is better to find out prior to the final change order so any issues can be resolved. - Certified Payroll Affidavit
- Archiving
The following defines procedures for each of these items:
Closeout Manuals
Review the specifications for the closeout requirements. The specifications have one section, usually
01700 that describes the overall requirements for the closeout documents. Each individual specification
section may also have requirements listed.
Enter the information in the closeout log. The log will be your guide to what needs to be submitted.
Subcontractors will not always submit complete closeout documents. The log will tell you quickly if
everything has been submitted. Specification number / requirements / contractors name / due date.
Issue a letter requesting the closeout information. The letter should be sent out 3 months prior to the
end of the project. The letter should note each item required. Request that the information be submitted
45 days prior to the end of the project. That will leave enough time to assemble the information.
Make files to store the information. As the subcontractors transmit information it should be stored in
files. There should be a file for each of the 16 divisions. Separating the information into individual
specification sections is not necessary.
Assemble the information and separate to determine the number of binders required. Once the
majority of the information has been received, it can be determined how many binders will be required.
Separate information by what will be included in each Binder (usually 3" binders).
- Indexes
- Certificates
- Beneficial Occupancy
- Subcontractor Listing
- Warranties (in order by specification section)
- Operation and Maintenance Manuals (in order by specification section)
Make index tabs. The tabs should be inserted last, after determining exactly what information will be
included in the binders. The tabs will list the specification number, not the description. The manuals
should follow the same format as the specifications.
Make covers and bindings for the binders. The binders must be uniform and professional. This will
represent Harris Construction for years to come.
Transmit the Binders to the Architect for Review. The binders should be transmitted to the architect
two to three weeks prior to the end of the project. This will give the architect enough time to review the
binders and give a response. The goal is to fulfill the contract requirements so the notice of completion
can be filed and retention released.
Revise Information if necessary. Forward any comments made by the architect to the appropriate
subcontractors. Give them a time limit of 7 days to return the revisions. Also, note that the release of
retention could be affect if there is a delayed response.
Transmit final copies to owner. Use a transmittal form as a record of the submittal.
Punchlist
Preliminary Punchlist
- a punchlist for each contractor
- Fax Make a copy of each floor plan in a reduced format
- Print blank punchlist forms
- Walk thru each room reviewing the walls, ceiling, and floor as well as the exterior site finishes,
roof, and walls of the building. - Input all punchlist items, locations and company names into the Excel punchlist file.
- Print a Master Punchlist
- Print the punchlist to each contractor, notify them to sign off at the room when complete and have
the items verified by the superintendent prior to leaving the site. - Post the punchlist at the entry to each room
- Verify the items that have been completed.
- Inter the completed items in the computer’s punchlist file.
- Notify the architect when the items have been completed.
Final Punchlist
- Walk the buildings with the architect and owner
- Request that the architect to type the punchlist in an excel format or type the list yourself
- Input all punchlist items, locations and company names into the Excel punchlist file.
- Print a Master Punchlist
- Print a punchlist for each contractor
- Fax the punchlist to each contractor, notify them to sign off at the room when complete and have
the items verified by the superintendent prior to leaving the site. - Post the punchlist at the entry to each room
- Verify the items that have been completed.
- Input the items in the punchlist file that have been completed
- Notify the architect when the items have been completed.
- The architect must sign off all items.
- Input the items in the punchlist file that have been signed off.
- Do not remove or delete any items from the master punchlist.
- Continue to notify as needed for outstanding items.
Final Cost Reconciliation
Prior to the last month of the project, send a letter to the contractors requesting them to confirm the
change orders to date are accurate and to notify of any outstanding costs that have not been included in a
change order.
Prior to processing the final billings, reconcile all change orders and contract amounts with the
Accounting Department. All final field contract amounts must match final accounting contract amounts.
Process all general invoices with in 15 days of demobilizing from the jobsite.
Perform a final Variable cost log reconciliation with the Timberline cost detail to confirm all costs have
been accounted for.
Final Billings
- Prior to the final month of the project, send a letter to all contractors requesting the final progress
billing and a separate retention billing. - Hold the retention billing for completion of all contract and change order work.
- Confirm the contract amount and change order amounts are correct.
- Process the progress billing as noted in the Field Operations, Progress Billing section
Notice of Completion
When the punchlist items have been completed to a point where the facility can be used for its intended
purpose, the Owner should issue substantial completion. It is the responsibility of the Project Manager /
Superintendent to obtain the substantial completion.
The Notice of Completion must be issued when all punchlist items have been completed. The owner
will usually issue and file the Notice of Completion. However, it is the responsibility of the Project
Manager / Superintendent to confirm that the Notice of Completion has been filed.
In the case where punchlist items remain, coordinate the timing of the request for the Notice of
Completion with the main office No retention billings are to be processed, until NOC has been filed,
unless approved by president.
Record Documents
Throughout the projects the record documents have been posted on a weekly basis. Transmit the
documents to the architect for review at least 30 days prior to then end of the project. Once the review is
complete post any final change orders, copy and transmit the documents to the owner as required in the
contract documents.
The drawings and specification shall be run and burned to a CD. The CD will be the record copy.
Extra materials
As called for in the specification all extra materials, keys and similar items must be turned over to the
owner. Determine the authorized person responsible for receiving the materials and have them sign a
transmittal showing in detail what is being turned over. This is the record of what has been turned over to
the owner and must be detail and accurate.
Substantial Completion / Occupancy by the Owner
Substantial Completion can be defined as the point in the project when the building can be used for its
intended purpose. There may be some punchlist items to be completed. Contact the Director of Risk
Management for the substantial completion for should the owner wish to occupy the project prior to the
filing of the notice of completion. The Substantial completion for must include provisions for transfer of
insurance to the owner and provisions for the release of retention.
Archiving the files from the project
Throughout the project files should be purged and maintained to keep only the most current information
free from duplicate copies of information.
In the final 14 days of the project all files should be removed from the filing cabinets and placed in boxes
provided by the main office. The boxes shall be labeled with the contents of the box as well as the project
name and number.
The subcontractor files should be left in the filing cabinets for easy reference until the final change
orders, invoices and correspondence has been received and filed.
It is the responsibility of the Project Administrator to merge the subcontractor files with the accounting
department’s files.
The accounting department’s files will be kept as the record files. Confirm and integrate the following
items from the field’s subcontractor files to the accounting subcontractor files.
- Review the accounting files and confirm all subcontractor change orders are fully executed. If so,
throw away the field copies of the contract and change orders. - Review the accounting files and confirm all subcontractor billing are included. If so, throw away
the field copies of the billings - Review the accounting files and confirm all copies of current insurance information is included. If
so, throw away the field copies insurance certificates. - Remove the field correspondence and place it in the accounting file.
Notify the Director of Field Administration when the Closeout has been completed.
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