Closing out the Job
Substantial completion and punch list
Closeout starts before the last tile is set. Substantial completion is the point at which the work is sufficiently complete for its intended use; it usually triggers warranties, retainage release, and owner responsibility for the area. The punch list should be specific: location, defect, responsible party, and deadline. Separate incomplete work from damage caused by other trades and from owner-caused damage. Do not treat punch list corrections as new change order work unless the owner changes the scope. Schedule punch work with the same crew discipline as production work.
Closeout documents and final payment
The closeout package commonly includes warranties, operation and maintenance information, as-built drawings, test reports, cleaning verification, attic stock, and lien waivers. Final payment follows final inspection, submission of closeout documents, and resolution of punch items. Retainage is released according to the contract, often partly at substantial completion and the balance at final completion. Confirm the warranty start date; it normally runs from substantial completion, not final payment. Demobilize, reconcile final costs, and record lessons learned while the job is fresh.
Worked example
A contract is $180,000 with 10 percent retainage, or $18,000. At substantial completion, the contract allows half the retainage to be released: $9,000. The punch list has 30 items. Twenty cosmetic items take three days; ten functional items require a 10-day material lead time. The owner may release the remaining $9,000 only after final inspection, closeout documents, and lien waivers. The warranty still starts at substantial completion. If the job is 10,000 sf and the specification requires 2 percent attic stock, deliver 200 sf, labeled and stored as required. Final cost reconciliation should compare budget, actual, and committed cost, including punch labor and attic stock.
Traps that cost marks
- Treating all punch items as chargeable changes.
- Releasing retainage before lien waivers and final documents.
- Starting the warranty at final payment instead of substantial completion.
- Forgetting attic stock, as-builts, or O&M manuals.
- Demobilizing before final inspection and meter/utility clearance.
- Skipping the post-job cost review.