Construction Project Closeout Process

During any construction project closeout process, the document revision, addition and editing needs to be clearly documented.  The construction project must come to a halt after all, and the results need to be summarized in order to be evaluated.  The applicable activities related to the construction project and all its phases need to be included in a report called the construction closeout report.  This is part of the O&M closeout of the administration of the construction process.

The entire agenda of the construction closeout includes the following: Administrative Closure, Contractual Closure, Verification and Acceptance of Deliverable, Post Assessment, Evaluation and Review, Recognition etc.

Construction Project Closeout Documents

Nearly all the steps mentioned above carry an obligation to provide the complete and accurate record of what transpired during the entire project. This seeks to paint a complete picture that the systems at work served the project well, or if the reverse happened and it failed. The large projects that are carried out with multiple contractors that work under private or governmental and environmental guidelines have to make sure that the paperwork is carried out so that the O&M closeout is smooth.

However, this entire process can overwhelm a neatly organized office if one isn’t careful.

Workflow Closeout Activities

Through accurate document scanning and archival of workflow, and the storage and retrieval services within the system, even if there are hundreds or thousands of documents, there will be a meticulous record kept during the entire process. The compilation of construction project closeouts should be relatively easy if the systems in place have done their job. 

Impact of not Completing the Project on Time

Failure to complete the construction closeout process on time including the completion of the paperwork and documentation can result in increased costs and this can be due to a variety of reasons.  These could be the project extending well beyond the actual date of completion decided beforehand and the resulting penalties and liquidated damages. It could also be the construction resources remaining on the project long after they were budgeted for and they demanded their payment due to not being released to other construction projects where they are required.

Other reasons for this include retention money and sureties being retained longer by the client and insurances being in place for a longer time and draining the money reserves.  All of this can be compounded by the contraction demanding additional overheads like the costs of facilities and accommodation and various other amenities that were promised during the workflow.

What Needs to be Considered

A few items that should be considered at the end of construction closeout process should include obtaining the certificate of substantial completion, because without it, there is no surety that the project has been deemed complete by either authority.  There should also be the obtainment or occupation permits from authorities involved in the fire and local council.  Quality documentation should be handed over like the operating manuals, as-built drawings, any commission data that is required, any spare part lists that were made and the warranties to the client.

As for the accounts that need to be settled, any and all accounts with the subcontractors and supplies and the accounts with the clients need to be closed in order for closure to be complete. The final project invoice should be submitted to the client and any sureties and bonds should be released and returned to the institution that issued them.

The Completion Schedule

The facilitation of the completion of the project requires that a completion schedule should be made. It should include a proper workflow and should involve multiple systems working together to allow a smooth transition. This would include finishing any outstanding items and commissioning.  There should also be a severance of connections to existing services and structures so that no services or insurance or sureties and bonds lay hanging in the air. There should also be a completion of the contractor’s punch list items so that nothing of essence and of true importance is left undone. The latter should be a major point of note because there are a lot of times when a single thing that is crucial in a construction project is left unheeded and that leads to horrendous results during the O&M closeout.

There should be a preparation to hand over documentation such as quality records and commissioning results and operating manuals, etc. so that whatever document is required by whatever party is handed over before others go their separate ways. In addition, there should be a clearing of temporary site facilities and services so that funds don’t keep being pulled and accounts are not overcharged for no work being done.

Conclusion

The construction closeout is often a complicated and time consuming process that is not deemed necessary and is overlooked by many including the staff and the project managers that are already anticipating the move to the next project.  In this case it can be very easy to disregard all of the things that are left to do. However, if proper planning and preparation is carried out at an early stage, the close out process is much simpler than without it.  It will save costs and frustration to both the client and the contractor and the staff can be minimized.

Construction closeout is a very technical job and there should be no room for not following the rules.  It’s something that needs to be heeded and followed every single time a project is to be closed out.

For more information on the Construction Closeout Process, click here to contact us.