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 Test Reports Extra Materials Permits
Written, original, signed warranties and guarantees from all subs and suppliers
Placed in O & M manual
Test Reports
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 Why do you need a 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
Don’t use subs who are slow
Do inspection of project before warranties expire with owner to make sure all problems under warranty are corrected