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How do you manage changes and disputes during the closeout process?

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The closeout process is the final stage of a construction project, where you wrap up all the administrative tasks, finalize the contract, and hand over the completed work to the owner. However, this process can also involve changes and disputes that can affect your schedule, budget, and quality. How do you manage these challenges and ensure a smooth and successful closeout? Here are some tips to help you.

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Derek Dauphinee

Project Manager at Blackstone Valley Vocational Regional School District

1 Review the contract

Before you start the closeout process, you should review the contract and identify the scope, deliverables, requirements, and responsibilities of each party. This will help you avoid any misunderstandings or conflicts about what is expected and what is completed. You should also check the contract for any clauses or provisions that address changes and disputes, such as change orders, claims, arbitration, or mediation. These will guide you on how to handle any issues that may arise during the closeout process.

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2 Communicate with stakeholders

Communication is key to managing changes and disputes during the closeout process. You should keep all the stakeholders informed and updated about the progress, status, and issues of the project. You should also document and share any changes or disputes that occur, along with the reasons, impacts, and resolutions. This will help you maintain transparency, accountability, and trust among the parties involved. You should also use clear and respectful language and tone when communicating with stakeholders, especially when dealing with sensitive or contentious matters.

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Derek Dauphinee

Project Manager at Blackstone Valley Vocational Regional School District
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Communication with stakeholders is pivotal in managing changes and disputes during the closeout process of a construction project. Transparent channels ensure stakeholders are promptly informed of updates, changes, and potential disputes, providing opportunities to address concerns and seek consensus. This collaborative approach not only fosters a smoother closeout process but also minimizes the risk of conflicts by managing expectations regarding project completion, final documentation, and outstanding issues.

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3 Use closeout documents

Closeout documents are essential tools to manage changes and disputes during the closeout process. These are documents that verify and confirm the completion, quality, and compliance of the project. Some examples of closeout documents are punch lists, warranties, certificates, as-builts, lien releases, and final payments. You should use these documents to track and record any changes or disputes that occur, as well as to demonstrate and document the fulfillment of the contract terms and conditions. You should also ensure that these documents are accurate, complete, and signed by the appropriate parties.

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4 Resolve issues promptly

Changes and disputes can cause delays, costs, and risks to the project, so you should try to resolve them as soon as possible. You should follow the contract procedures and guidelines for resolving issues, and use negotiation, mediation, or arbitration as appropriate. You should also be flexible, fair, and cooperative when dealing with changes and disputes, and try to find mutually beneficial solutions that satisfy the interests of all parties. You should also avoid escalating or prolonging issues that can damage the relationship or reputation of the parties involved.

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Derek Dauphinee

Project Manager at Blackstone Valley Vocational Regional School District
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In my experience, promptly resolving issues is crucial for effective change and dispute management during the closeout process in construction projects. Establishing a responsive communication protocol, like regular project review meetings, ensures swift problem identification and resolution. Implementing a clearly defined change order process helps manage modifications efficiently, preventing delays. Maintaining open and transparent dialogue with stakeholders fosters a proactive problem-solving environment, contributing to a smoother closeout process and overall project success.

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5 Learn from feedback

One of the benefits of the closeout process is that it provides an opportunity to learn from feedback and improve your performance and processes for future projects. You should solicit and collect feedback from the owner, the contractor, the subcontractors, and any other stakeholders involved in the project. You should also evaluate your own performance and identify your strengths and weaknesses. You should use this feedback to identify and address any issues or gaps that caused or contributed to changes or disputes during the closeout process. You should also use this feedback to recognize and celebrate your achievements and successes.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Derek Dauphinee

Project Manager at Blackstone Valley Vocational Regional School District
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In my role managing changes and disputes during the closeout process, it's essential to consider several factors beyond prompt issue resolution. Ensuring meticulous documentation of changes and dispute resolutions is crucial for clarity and future reference. For instance, in a recent project, maintaining a detailed record of change orders and resolutions helped mitigate potential disagreements during the closeout phase. Additionally, being proactive in identifying potential issues early in the project lifecycle allows for more effective mitigation strategies, ultimately streamlining the closeout process and ensuring project success.

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How do you manage changes and disputes during the closeout process?

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1 Review the contract

2 Communicate with stakeholders

3 Use closeout documents

4 Resolve issues promptly

5 Learn from feedback

6 Here’s what else to consider

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