Project Close Out CTC470 Close out process Process

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Project Close Out CTC-470

Project Close Out CTC-470

Close out process • Process of completing all construction tasks and all documentation to

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

Construction Closeout – Ensure all construction tasks completed as per contract • Punch List

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

Construction Closeout – Punch list prepared after all major work activities complete • GC

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

Construction Closeout – Obtain certificate of substantial completion and CO • Certificate of substantial

Construction Closeout – Obtain certificate of substantial completion and CO • Certificate of substantial completion F 21 -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

Construction Closeout – Certificate of occupancy F 21 -3 • Issued by the city,

Construction Closeout – Certificate of occupancy F 21 -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

 • Occupancy – Owner occupies as soon as permitted – Can have joint

• 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

Construction Closeout – Demobilizing • • Expensive Need to clean up project site Close

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

Financial Closeout • Application for Final Payment – Submitted at final completion • Submitted

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

Financial Closeout • Change Orders – All change orders and construction change directives must

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

Contract Closeout • Close out requirements in contract specs – Section 1700, App F

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

Contract Closeout • Warranties – Written, original, signed warranties and guarantees from all subs

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

Contract Closeout • Close out log – F 21 -4 – Allows PM to

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

PM Closeout • Prepare as built estimate • Analysis of final forecast project cost

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

Warranty Management – Owner wants assurance that project completed in accordance with contract •

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

Warranty Service Requests • Need to be responsive • • Satisfy customer Ensure warranty

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

Warranty Service Requests – Warranty Log • PM keeps log of all warranty service

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