Project Closeout - The Last Mile Issues

Ready to Seal the Deal? Does it always feel like you think, "Phew, that was rough!" whenever you wrap up a project? If so, you're not alone. Closing out a construction project often seems like it should be the easy part—a straightforward finale to months or years of hard work. But in reality, project closeouts are frequently more complex and problematic than one would imagine, especially in the current world of megaprojects worth billions of dollars.

The Psychological Impact

Feeling fatigued closing a job? Well, that’s not uncommon. Most project staff will directly avoid being part of closing a project. For those who do, the end of a project can lead to complacency, where the focus shifts to future ventures, leaving unresolved minor issues that can balloon into larger disputes. Moreover, the emotional and physical fatigue from managing a long-term project can reduce your team's efficiency and attentiveness during the closeout phase. So, how do you keep morale high and attention sharp during this critical period? Well, that’s the whole point of this article. We talk about how to win the Final Hurdle!

What Exactly Does Project Closeout Entail?

As the name suggests, it’s the final race to finalize a project, complete punch list items, and submit all the relevant documents. This phase ensures the project meets all contractual obligations and client expectations. Think of it like this: it includes activities like final inspections, resolving any outstanding issues, and obtaining those all-important certifications. All this is done to meet contractual obligations and regulatory requirements and transfer ownership to the client.

The Big Misses - What Makes It Challenging?

Sadly, most professionals fail to see the value of a preplanned and well-executed closeout process, often calling it “paperwork” as a way to demean its real worth. Two of the biggest issues are that closeout is often not considered during planning and design, and contractors often fail to allocate the right resources, hoping to wing their way through the process. This often results in cries for forgiveness for missed items— usually unintentionally but sometimes deliberately to cut effort, time, and/or costs.

Meanwhile, we all know that a contractor’s ability to close out a job directly reflects the quality of their work as it shows their level – or lack – of preparedness. Think about it: If a project is well planned, deliverables are conclusively handled promptly, and changes are managed as the project progresses, then most of the closeout takes care of itself. But does it? Well…

Let's talk about some realities and big hurdles you have to work through:

1. Pending Inspections and Approvals: Ooh, The Punchlist! Do you plan efficiently to get final approvals from inspectors and regulatory bodies? Also important, are your subcontractors and vendors on the same page? Ensuring all subcontractors have completed their tasks and fixed any deficiencies is a major challenge, especially if coordination has been less than optimal throughout the project. Securing these approvals later in the process is time-consuming, especially if corrections or additional work are required. What strategies do you use to keep everyone aligned?
2. Complex Documentation Requirements: Ever feel buried under paperwork? Unfortunately, unplanned closeout is often synonymous with this feeling. The amount of documentation required to close out a project can be overwhelming. We're talking as-built drawings, warranties, operation and maintenance manuals, and other essential documents that must be compiled and approved.
3. Unresolved Commercial Disputes: Brace yourself for financial disputes over final payments, including retention release and penalties for delays. Let’s also not forget those last-minute negotiations that turn more into soap operas that lack solid and credible foundations because facts were not properly recorded and agreed upon at the time. How often do you have changes mid-project that do not get a formal resolution? Unsettled commercial matters delay closeouts as everyone negotiates the final costs and details. How do you plan to address these potentially explosive issues?
4. Client Satisfaction: How could you handle the client's critical eye during the final walk-through? You are in for a fight if you think you can escape the need to satisfy a client. They can uncover deficiencies that need to be addressed before acceptance, adding layers of complexity to the closeout phase. How do you ensure your client is satisfied and confident in the project's completion?

Strategies for Effective Project Closeout

So, how could you get ahead of the game to make job closeout less daunting? Here are some strategies to make this phase smoother:

1. Early Planning and Fast Execution: How early do you start planning for closeout? You often hear that closeout starts on day 1, and this is true. If you want to succeed, you must start planning for closeout at the project's start. Equally, the best contractors will immediately schedule punch list work and resolve any open items as they come up so that they do not get overwhelmed when the handover time comes.
2. Dedicated Closeout Team: Who is in charge of the closeout process, and how specialized are they? Is it the newest guy in the office or the guy or gal that no one wants to work with, and the only punishment is giving them all that to handle? Well, unfortunately, that’s how most handle closeouts. Instead, we recommend assigning a specialized team specifically focused on closeout activities to ensure dedicated resources are working to resolve the final tasks efficiently. Working with a team with a dedicated closeout plan makes all the difference. The process is smooth, and the project faces minimal hiccups, leading to a satisfied client and getting the value out of meticulous planning and client involvement.
3. Technology Integration: What tools are you using to stay organized? A robust document management system can easily compile closeout documents. Leveraging technology, such as project management software and cloud-based document sharing, can streamline the closeout process. Tools like #Procore, Autodesk Construction Cloud, and PlanGrid have efficiently managed project closeouts.
4. Effective Communication: Your communication strategy with the stakeholders, including clients, subcontractors, and suppliers, and, most importantly, addressing any issues promptly, will often be your saving grace. Establish clear guidelines and checklists for closeout procedures to ensure nothing is overlooked, and everyone remains informed.
5. Client Involvement: Everyone wins by including the client in the closeout process early to align expectations and address any concerns as soon as possible. It may buy you some brownie points when you are challenged or need to ask for forgiveness later. So, keeping them in your corner is probably the best investment. So, how proactive is your approach to client relations?

Finish Strong

The myth of a simple project closeout is just that—a myth. The numerous, intricate tasks involved in properly finishing a construction project can be daunting. But by understanding these challenges and implementing strategic measures, you can navigate this final phase more smoothly, ensuring every project's successful and thorough completion. This solidifies client relationships and sets a precedent for operational excellence, proving that effective closeout is integral to the overall success of construction endeavors.

It gets you your money sooner, too! So, there is that!

Call @PrimECS to help you successfully Seal the Deal!

Let’s win, Together!

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