Project Construction, Monitoring, and Closeout

B08 Construction Management
Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling, and grammar. Sources must be cited in APA format. Your response should be four (4) double‐spaced pages; refer to the “Format Requirementsʺ page for specific format requirements.

To increase your knowledge of the field, come up with an original example of a project and write a four-page essay on project closeout. Most of what you need is in Chapter 7: Project Construction, Monitoring, and Closeout.

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Your essay should fully describe project closeout and address each of the 10 project closeout steps shown on pages 180-181 in the textbook. At a minimum, be sure your essay answers the following questions:

1. Describe one (1) reason that it is important on public projects for the contract to achieve that crucial and final step of construction contract closeout.

2. Describe one (1) way that the execution of the Certificate of Completion or Substantial Completion affects what retainage may be held.

3. Describe two (2) hot spots of dispute that can arise between the contractor and owner after the owner begins beneficial use of the project due to the parties not understanding their responsibilities.

4. Describe one (1) way that the owner’s ability to collect liquidated damages is affected by issuance of a Certificate of Substantial Completion.

5. Identify one (1) certificate that should be executed by the contractor and surety prior to the owner releasing final retainage funds.

Project closeout, like most aspects of project management, is a process. The input into the process consists of a variety of types of documentation attesting to completion of the work. The procedures that make up the project closeout process include: (1) identification of any remaining aspects of the work, any defective equipment and technology items, any defective materials, and any defective workmanship, (2) placement on a punch list—first by the contractor and then by the architect—of all items identified that still require work; (3) start up, testing, and operation of all systems (HVAC, plumbing, electrical, security, etc.) and placement of any problem items on a punch list; (4) completion of all punch list items; (5) issuance of the certificate of substantial completion by the architect; (6) rekeying of all locks for turnover to the owner; (7) review with owner of all operator’s manuals and turnover of the manuals; (8) review with owner of warranty materials; (9) remittal of all remaining payments; and (10) release of any retained funds. The output of the closeout process is a completed project turned over to its owner.


The certificate of substantial completion is acknowledgement by the architect that the project has reached a stage in the construction process where it can be occupied by the owner, even though there may still be minor items on the punch list to complete. The certificate of substantial completion will list any remaining punch list items that must be completed. The importance of receiving the certificate of substantial completion to the general contractor is that it established the official date for determining whether or not liquidated damages will be assessed. If the date of issuance of the certificate of substantial completion is on or before the final contracted date for completion of the project, no liquidated damages can be assessed. However, the certificate of substantial completion comes after the contracted completion date, damages can become an issue.

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