Project Close Out

1
Project Close Out

• CTC-470

2
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

3
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

4
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

5
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

6
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

7

• 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

8
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

9
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

10
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

11
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

12
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

13
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

14
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

15
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

16
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

17
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