The project closeout is something you often think of when a new construction project is running smoothly on its tracks. Everything is going alright: your vendors are coordinating with you, all equipment is working and placed accordingly, and your workers and subcontractors are doing their tasks.

As the project deadline is near, you are ready to consider this enterprise's success and tackle the next one. However, do not be too complacent because schedule overrun is common in many construction projects. Something might go wrong at the end of the project and turn it into a disaster.

So, it is crucial to put importance on your project closeout. After all, you will not get paid or receive final retainage if your closeout fails. Plan your project closeout even before it actually happens for a smooth client handover. Follow this article to learn how to make your construction closeout a success. 

Construction Closeout: Defined

At the end of a construction project, the site must be ready to be occupied by the end client. Hence, you must address the work completed by your subcontractors, ensure the facility systems are working, and give proof that the rented equipment is returned. 

Keeping track of systems and processes, detailed documentation, and coordination is vital to the project closeout. You must leverage new technology that gathers data from the office and field, links various processes, and records the lifecycle of the project. Using technology helps simplify and streamline the closeout process. 

Common Issues in a Project Closeout

Some problems typically occur in a construction closeout that you can address if you are aware of them beforehand. 

• Lost Paperwork. Critical information created or collected during the early stages of a project can be lost if you do not have a centralized data management system. Lien releases, facility training documents, cut sheets, and warranties are key documents you must have at closeout. 

• Failure to Resolve a Change Order. Be sure to complete a change order because not doing so can delay your closeout. Ignoring or misplacing change requests can lead to claims, conflicts, and disputes. This issue will affect your profits in the end. 

• Communication Breakdown. The teams working at the office and field should collaborate closely to avoid confusion and delays at closeout. Use a connected communication system to facilitate the distribution and access of information. 

• Lack of Effort During Closeout. Some construction teams slow down near the end of the project. The quality of work they put in during the start may not be the same at closeout, leading to delays. So, it is crucial to notify workers of outstanding tasks to avoid such problems. 

Facets of a Project Closeout

There are various components of a project closeout that need to be completed before the project is considered done. 

Phase 1: Project Closeout

This phase requires the project manager to give proof that all work has been completed, review the initial paperwork, and go over any change orders. Getting COE and other critical documents from inspection and code authorities also occurs during this stage. 

Phase 2: Client Closeout

This phase is where you hand over data to the project owner. The goal here is to approve the deliverables. The data handover should be organized and clarifies all the initial work and changes made throughout the various stages of the project. 

Phase 3: Organizational Closeout

Demobilization of your company, workers, and equipment from the job site happens at this stage. Notify any subcontractors and other stakeholders of your last day of work on the site. Start returning any rented or borrowed equipment, and make sure to take notes or make an inventory with pictures. 

Phase 4: Subcontractor Closeout

Confirm that your subcontractors completed all their work and it satisfies your standards. It is also vital to verify that your subcontractors have accomplished any change requests before releasing them. Then, check the invoices and present them to your finance officer. 

Phase 5: Risks Assessment

Uncover any risk or threat at the closeout stage by doing a review. Develop a strategy to resolve or mitigate any issues you find. Assess cash flow, transfer of deliverables, worker training, and political and legal risks to make the final handover fast and smooth. 

Phase 6: Create a Final Report

Write a document outlining each of the steps mentioned. The final report should show that all components of the project are completed. Also, write down the issues you found and provide your solutions to them as a reference for future projects. 

Takeaway

The closeout process must be taken into account well in advance of the project's final date to make sure everything goes as planned and you conclude things without problems. Take the time to do it right because the closeout stage will affect your client, your company, and your future projects.