Any way you slice it, project closeout is not a lot of fun. It doesn’t matter whether you’re an architect tediously reviewing warranty documents, a general contractor knocking on doors for paperwork, a subcontractor who has demobilized, or an owner who needs to move in or sell their project—it’s a bear of a process.

Though a bear it may be, it’s important to usher the project through the closeout process as smoothly as possible. Everyone needs something from this phase, whether it’s a certificate of occupancy, retainage, or simply return business. 

This article will walk you through the project closeout process and offer some practical advice worth implementing.

Understanding the Project Closeout Process

Project closeout is the last phase of a construction project. During this phase, all of the contract terms are verified to be complete and every aspect of the project has been delivered to the specified standards. It culminates in “handover,” during which the contractor hands the documents associated with the project (as-builts, warranties, O&M manuals, and reports) over to the client as well as trains them on the use of their building’s systems.

We know that’s a lot of information. But the truth is that a lot goes into the project closeout process. It’s long, painstaking, and requires intense attention to detail to get it right. 

And, it matters! It matters because everything is over, including the design, procurement, and construction, and no matter how all of that went, this last phase can be the last chance to make a great impression or fumble project delivery on the way to the end zone:

• Designers have the task of giving the final sign-off that all of the work is performed to spec.

• General contractors have to collect a ton of documentation from their subs and deliver it to the client. They also have to find and correct all of the project’s deficiencies and assign them to the correct subcontractors. 

• Owners have to assign the right personnel to be involved in the project handover from the GC, which includes understanding the operation and maintenance requirements.

The stakes are high. Mistakes at any level will drag out the project process and could come at the cost of customer satisfaction, further delayed payments, and more. That’s why it’s so key to truly understand this phase and get it right.  

Pre-Planning for Closeout: The Key to Success

The thing about successful project closeout is that it’s truly not rocket science and it has more to do with preparation than luck. If contractors and designers plan for project closeout ahead of time and put the proper workflows in place, they can simplify the majority of the process. 

If everyone has an eye on closeout from the start, they can use the project manual as a guide to the required documents and procedures. This includes the architects, general contractors, and subcontractors, as everyone should understand their role’s requirements as well as those of the divisions they impact. Teams can also set up workflows that allow documents to be received, reviewed, edited, and filed long before the project wraps.

If there’s an essential closeout tip here, it’s that all parties on a project should review the project manual early to avoid confusion, surprises, and miscommunications down the road when time is of the essence.

Managing Documentation

One of the biggest challenges with project closeout is collecting and managing all of the documents it requires. Knowing which documents are required, when they’re received, that they’re properly reviewed, and most importantly, stored intuitively will make the rest of the process go much smoother!

The best way to manage documentation is to use a digital solution. Construction teams can use these management systems to collect closeout documents digitally to organize submittals, change orders, and other documents that are required during the closeout process. Checklists can also be created automatically, allowing teams to stay on top of what’s been delivered and what is still outstanding. 

Not only do digital solutions make collection simpler, but they also help with organization. Teams can name files intuitively and create an easily searchable library of documents, centralized in a cloud-based solution and accessible to anyone on the project who needs to review them. When it comes time to develop the handover package, pulling documents from this solution is a breeze. 

Creating and Managing O&M Manuals

One of the most important parts of project closeout is creating clear, instructive, easily understood O&M manuals for building operators to follow. These are the documents that literally explain how to use and maintain the building and its components, and without them, they’ll struggle to maintain their investment. 

Also, without detailed O&M manuals, the property owner will feel forced to reach out to the contractor for answers on systems or components. 

General contractors should rely on digital solutions for collecting data, images, and other information for these reports. A centralized digital platform where subs, suppliers, and project teams can submit all the necessary documentation will make generating the manual easier, especially using cloud-based project management software with organized categorization options. Teams can easily capture high-resolution images from their phones and upload them into the storage file, linking them to the system at hand to create simple yet detailed manuals.

It’s important that all of the specification divisions that need to contribute to O&M manuals have access to these digital solutions. HVAC, fire suppression, fire alarm, elevator, plumbing, electrical, and communications subcontractors will all have processes to submit. 

Scheduling and Recording Training Sessions

Training sessions become an integral part of a successful project closeout, but they’re not easy to schedule. The average training session involves at least one subcontractor, the GC, the project owner and their staff, and even an inspector in some cases. With so many different parties being involved in a typical training session, getting them all in one place at the same time can be like pulling teeth.

There are a few actions contractors can take to ensure that everyone attends trainings. First, make sure to schedule trainings early and communicate often. Send reminders and ensure that all of the parties on the project are aware. Also, take polls on the key stakeholders’ availability and choose times and dates that don’t present conflict. Finally, work the training session into the contract to make it a requirement that everyone attends.

One final tip: Video-recorded trainings aren’t always necessary, but they’re incredibly valuable! Having the training recorded with high-definition video equipment and clear, high-quality audio will make utilizing and maintaining the equipment easier and is well worth the expense and hassle. 

Handling Warranties and Final Approvals

Tracking warranties can be one of the trickiest aspects of the closeout process. With so many key trades on a project, the number of warranty documents on parts, systems, and labour can be overwhelming. Keeping them organized and easy to access requires cloud-based document management software. Otherwise, large files sent by email can get lost or forgotten, creating a delay in the handover process. 

Plus, all of these warranties have to be verified against the original drawings and specs. That’s a tall task for an architect. They have to compare the installed systems against the project manual to ensure they’re correct, meet safety and building codes, and operate as intended, working with the other systems in the buildings. This process is difficult in itself, but adding a layer of disorganization can make it worse. 

In both cases, the simplest solution is a reliable document management software system that allows subcontractors to submit their documents digitally. Also, make sure these documents are submitted as part of the shop drawing and submittal packages. Having them early will help architects stay ahead of the process rather than waiting and scrambling at the end of the project. 

Project Closeout Challenges & How to Overcome Them

Not only is there a lot to do during the project closeout phase, but there are also a lot of challenges that pop up along the way. Knowing what these challenges are and understanding that they are actually avoidable can help streamline closeout.

1. Paperwork Delays

In most cases, paperwork delays are the bane of a closeout’s existence. The issue is that every subcontractor on the project has some documentation to submit, but many of them are long gone with no financial incentive to comply with the request of a general contractor whose project they worked on 6 to 12 months prior. They tend to get to it, you know, when they get to it. 

Delays can be common even after paperwork is submitted. In most cases, this is due to disorganization, with the contractor hunting for documents that were submitted to them months ago. They could be in the wrong file, still in their email, or who knows where. 

2. Miscommunication

Nothing happens effectively in construction without good communication, and that includes project closeout. Designers and contractors need to be on the same page about which documents are required, what the project manual dictates, and what the deadlines look like.

This issue is that miscommunication is far more common than effective communication. Miscommunication leads to incomplete project documentation, punch list disputes, missed deadlines, and other issues that drive client satisfaction into the ground.

3. The Last Minute-Scramble

Work often hits overdrive during closeout because everyone wants desperately to move on. The owner wants the right to do what they want with the building while the general contractor wants their final payment or retainage. 

Quickly throwing together document packages, scheduling training, rushing through punch lists, and other tasks will inevitably lead to a bad experience. Customers might want to rush closeout, but contractors should be prepared long before it’s time for closeout. Handled masterfully, the process can go quickly, be thorough, and meet customer expectations and standards. 

4. The Solution

There are a few solutions to these challenges. First, understanding the importance of communicating early and often will help prevent miscommunication and last-minute scrambles. Also, utilizing a document management system that allows subcontractors to send submittals electronically and for contractors to store them intuitively will go a long way toward solving closeout challenges.

With a cloud-based documentation system, subcontractors can easily submit their warranty information, drawings, O&M documents, and other important pieces of information, assigned appropriately to the individual aspects of the project. Designers can easily review these documents and check them off their lists. Then, when it comes time for handover, rather than delivering a 5-foot stack of 3-ring binders, contractors can provide digital access to the customer. 

Final Inspections and Handover

Commissioning and final inspections are vital aspects of securing a Certificate of Occupancy and bringing the project to completion. Like training, it can be difficult to schedule these events with everyone involved, dragging out the process on a building that could potentially be ready to go. For this challenge, be sure to schedule your inspections early and send reminders to ensure everyone will be there. 

It’s also a wise idea to perform a pre-inspection walkthrough with the project team to ensure that everything is in place and working properly. If there are any deficiencies, teams can get ahead of them before they’re discovered during the final inspections. 

Finally, develop a detailed handover checklist of what needs to be included in the handover package. This should include as-builts, O&M manuals, warranties, final payment requests, testing and commissioning reports, training materials, project data sheets, change orders and their approvals, and other critical documents. Check these off as they’re collected and store them in such a way that they’re easy to find and organize.

Post-Project Review and Lessons Learned

One of the best unintended aspects of closeout is it provides the team with feedback they can use to improve their process. Teams can work together to identify areas where things went well and areas with inefficiencies that should be improved next time. Architects, contractors, subcontractors, and engineers can analyze their roles and where they can streamline their processes and responsibilities. 

Each project has lessons to teach, and construction teams should identify these lessons and how their resolutions can strengthen their businesses. As the last chance for success and the final impression you leave the client, improving project closeout should be a priority. If you’re on the ball and handle closeout properly, they’ll remember the process fondly and likely choose to work with you again. 

Mastering the Project Closeout Process

Regardless of how tedious, time-consuming, and challenging the project closeout phase is, construction teams have a responsibility to do it well. It’s important to communicate often and early, track documentation from the start, and deliver the best possible handover package when the time comes.

Even though it comes at the end of the project, plan for project closeout early. Equip your team with the software and strategies necessary to navigate this challenging process. By investing the time and resources needed to master project closeout, you can ensure a smooth handover, reinforce client trust, and lay the groundwork for future opportunities.

To see how Part3 can help streamline your project closeout process with powerful document management and seamless collaboration, book a demo today and take the first step towards more efficient project closeouts.