Project Turnover
and Closeout
A Guide for Project Administration
Contents
Introduction to Project Turnover and Closeout ....................................................3
Who’s Involved in Project Turnover? ..............................................................3
Who’s Involved in Project Closeout? ...............................................................3
Project Turnover.......................................................................................................4
Planning for Turnover ......................................................................................4
Identifying Stakeholders ..............................................................................6
Planning Pre-Turnover Activities ................................................................7
Processing Punch Lists and Conducting Inspections .......................................7
The Contractor’s Punch List and Request for Final Inspection ...................8
The Final Inspection ....................................................................................9
The Final Inspection Record (Associate’s Punch List)...............................9
Resolution of Punch-List Items .................................................................12
Approving Project Record Deliverables .........................................................12
“Wages and Hours” Affidavit ....................................................................13
Guarantees and Warranties ........................................................................13
Ensuring Site Cleanup ....................................................................................14
Accepting the Finished Project .......................................................................14
Issuing the Certificate of Warranty Commencement.................................14
Issuing the Certificate of Completion ........................................................14
Notifying Stakeholders ..............................................................................17
Conducting Walk-Throughs.......................................................................17
Providing Training and Documentation.....................................................17
Project Closeout ......................................................................................................19
Closing Construction Contracts ......................................................................21
Processing a Reconciliation Change Order Form ......................................21
Approving Final Pay Applications, Affidavits,
and Releases of Retainage .........................................................................21
Closing Design Contracts ...............................................................................23
Checking Associate Deliverables ..............................................................23
Reconciling Fees and Expenses .................................................................23
Approving the Associate’s Final Pay Application .....................................25
Forwarding Project Records ...........................................................................25
Figures
Project Turnover and Closeout
February 2003
Page 1
1
Record of Final Inspection (Associate’s Punch List)
2
Certificate of Warranty Commencement
3
Certificate of Contract Completion
4
Change Order Form for Reconciliation
5
Amendment for Contract Closeout
Chart
1
Process Flow for Project Turnover
2
Process Flow for Project Closeout
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February 2003
Project Turnover and Closeout
Introduction to Project
Turnover and Closeout
Project turnover and project closeout are distinct but closely related phases
of project administration.
Turnover encompasses all the activities involved in a project’s transition
from construction or renovation to occupancy and use. At project turnover,
the University accepts the completed project from the Contractor and
formally assumes the responsibilities of ownership.
Closeout refers to the activities involved in terminating the project’s
construction and design contracts, transferring information to the project
Accountant for financial closeout, and archiving all project records.
This chapter describes project administration activities during project
turnover and closeout.
Who’s Involved in Project Turnover?

University’s Construction Management and the Project Administrator

Associate Architect/Engineer (A/E), if the project has one

Construction Contractors

End users/occupants

Commissioning Agent from UC Facilities Management, and other
Facilities representatives as required

UC Information Technology (UCit)

UC Public Safety
Who’s Involved in Project Closeout?

University’s Construction Management and the Project Administrator

The assigned Project Accountant

Associate Architect/Engineer (A/E), if the project has one

Construction Contractors

Document Control

Commissioning Agent from UC Facilities Management, and other
Facilities representatives as required
Project Turnover and Closeout
February 2003
Page 3
Project Turnover
Outcome
The University has accepted the finished project from the construction
contractors. A Certificate of Completion has been issued. The University
has assumed the responsibilities of maintenance, security, and insurance for
the new or renovated facility, which is ready to be occupied.
In the Project Turnover phase, the Contractor presents the finished project
to the University. When the Contractor has fulfilled all requirements of the
contract documents, the University accepts the work.
The University’s and Associate Architect’s (if applicable) activities in this
phase include the following:
1. Planning for project turnover,
2. Processing punch lists and conducting inspections,
3. Approving project record deliverables,
4. Ensuring site cleanup by the contractor, and
5. Accepting the finished project.
The following sections present details of each of the above activities. Chart
1 shows the process flow for project turnover.
Planning for Turnover
Not all project turnover activities take place at or near the end of the
project. Certain aspects of turnover can be planned even when the project
is just getting started. The Project Administrator and team should identify
and involve all major stakeholders within the University as early in the
project as possible. This approach enhances the stakeholders’ opportunity
to contribute to a smooth turnover.
The size, complexity, and purpose of a new or renovated facility will
determine who the stakeholders are and what the specific turnover
procedures will be. In particular, the turnover process for a capital project
is likely to differ from that of a renovation project.
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February 2003
Project Turnover and Closeout
Design
1. Plan for
turnover
Identify
stakeholders and
contact people
Facilities contacts
review
95% complete
construction
documents
as appropriate
Associate/Project
Administrator,
contacts establish
project-specific
turnover
procedures
Construction
Facilities contacts,
maintenance
personnel observe
construction at
various stages
2. Process punch
lists and conduct
inspections
Contractor submits
punch list, request
for final inspection,
and project record
deliverables
Is project
ready for
final
inspection?
Yes
Associate or
Project
Administrator
conducts final
inspection
Associate or
Project
Administrator
prepares punch list
No
Contractor
completes work
and resubmits
punch list,
request for
final inspection
Turnover and
Acceptance
3. Approve project
record deliverables
5. Accept the
finished project
Contractor submits
any outstanding
project record
deliverables
Associate or
Project
Administrator
issues Certificate
of Completion;
University accepts
project
Associate and/or
Project
Administrator and
Facilities
Management
approve project
record deliverables
Project
Administrator
issues copies of
completion notice
to Facilities,
Risk Management,
Public Safety
Contractor
arranges training
on systems,
equipment for
Facilities
Management,
end users
Contractor
terminates liability
insurance;
University
assumes liability
coverage
4. Ensure site
cleanup
Facilities
Management
views completed
project and
receives project
record deliverables
Contractor
corrects
punch-list
deficiencies
(within 30 days)
Contractor cleans
work site to
University's
standards
Facilities assumes
maintenance;
Public Safety
assumes security
responsibilities
Associate and/or
Project
Administrator and
Facilites
Management
evaluate, approve
site cleanup
Project
Administrator
notifies occupants
of completion
Occupancy/use
can begin
Chart 1: Process Flow for Project Turnover
Project Turnover and Closeout
February 2003
Page 5
Identifying Stakeholders
Other than Construction Management and the future occupants, University
stakeholders in a construction project usually include Facilities
Management, Public Safety, UCit, and other University departments as
appropriate. For each project, the Project Administrator and team must
determine which functions need to become involved. The table below
shows some possible participants in project turnover (the list is not
all-inclusive).
Facilities
Management
Public Safety
UCit
www.uc.edu/pubsafety/
www.ucit.uc.edu
Others
Parking Services
Network and
Housing and Food
Telecommunications Services
(www2.uc.edu/housing)
Services †
Environmental Health
Electronic
Classroom Planning and Safety
(http://ehs2.uc.edu/)
and
†
Support Services
• Lab exhaust controls
www.uc.edu/facmgmt
Maintenance and
Operations
•Carpentry
•Painting
•Electrical
•Plumbing
•HVAC
•Elevators
•Grounds
•Maintenance
Security
Fire Protection
• Indoor air quality
• Hazardous materials
management
(chemicals control;
tracking, storage,
and containment)
Housekeeping
Utilities *
Radiation Safety Office
(http://www.uc.edu/radsafety/)
See the supplemental topic “Underground and Concealed Utilities” for additional information about Construction
Management’s interactions with this department.
*
†
See the supplemental topic “UCit and Construction Management Project Procedures” for additional information about
Construction Management’s interactions with this department.
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Project Turnover and Closeout
Planning Pre-Turnover Activities
Listed below are some examples of turnover-related activities that can be
planned early in the project:

During Program Statement: Gain agreement on project
communication procedures, particularly formal notifications from
Construction Management to stakeholders

During Design: Have discipline contacts in Facilities Management
and other departments review 95% complete construction documents

Before Construction: Make provisions to ensure that building
equipment used by contractors during construction is maintained

Before Construction: Stipulate that startup and commissioning be in
accordance with the University’s Design Guidance: Commissioning
document

During Construction: Seek consultation and input as needed from
stakeholders; arrange for discipline contacts in Facilities Management
to observe construction in progress; conduct commissioning tests and
activities as required by a project’s Commissioning Plan

Before turnover: Distribute project documentation (for example,
O&M manuals and as-built drawings) for stakeholder review as
appropriate

Before turnover: Schedule Facilities Management’s inspection of
project components and systems as required (particularly any elements
that will undergo commissioning)

Before turnover: Arrange for the Contractor to return all keys as part
of project closeout

Before turnover: Work with contractors, the Associate, and
stakeholders to develop procedures for addressing deficiencies and/or
warranty issues
The next section presents turnover activities that take place late in the
Construction phase.
Processing Punch Lists
and Conducting Inspections
As construction nears its end, the Contractor initiates the activities that will
lead to the University’s acceptance of the project. Prime contractors and
Associate Architects (or the Project Administrator acting as the Architect)
have specific responsibilities in the Contract Documents for preparing and
responding to punch lists.
Project Turnover and Closeout
February 2003
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The Contractor’s Punch List and
Request for Final Inspection
Late in construction, each prime Contractor develops a punch list of items
known to be incomplete or to need correction. When work on the punch
list is at least 90 percent complete, the Contractor can submit the punch list
and request a final inspection. The punch list should provide expected
completion dates for any unfinished items.
If the project has a lead Contractor, its representative collects all punch lists
and submits them to the Associate (or Project Administrator, depending on
the project). If there is no lead Contractor, each prime Contractor must
deliver its punch list to the Associate or Project Administrator.
Along with the punch list(s), the lead Contractor or prime Contractor
submits the following items to the Associate:

A letter requesting final inspection of the work

Project record documents, including but not limited to:
 Operation and maintenance (O&M) manuals (four sets) for
major systems. The manuals must be organized in binders with
identifying covers for easy use.
 As-built drawings accurately representing the finished construction
and showing the locations of any concealed utilities, systems, or
components. The Associate or Project Administrator will use the
as-built drawings to revise the original contract drawings. The
revisions then become the project’s Drawings of Record.
 Required certificates and approvals, as available at the time of
the final inspection request. These include but are not limited to the
Certificate of Occupancy issued by the Ohio Department of
Commerce, Division of Industrial Compliance; inspection
certificates for any systems that require them (e.g., pressure piping,
plumbing, elevators, electrical systems); and the State Fire
Marshal’s approval of the fire suppression system. Once all these
inspections have been completed, the State performs a general
inspection.
 Guarantees and warranties issued in the University’s name as
required by the Contract Documents. (See the section “Guarantees
and Warranties” in this chapter for specific requirements.)
 Commissioning documentation as required by a project’s
Commissioning Plan for commissioned projects and systems.
 A current list of names, addresses, and telephone numbers for all
contractors, subcontractors, and suppliers, including information for
after-hours contact.
 Affidavits attesting that the Contractor has paid all subcontractors
and material suppliers, and has complied with Ohio’s “Wages and
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February 2003
Project Turnover and Closeout
Hours on Public Works” law (ORC 4115). (See the section
“Approving Project Record Deliverables” in this chapter for
specific requirements.)
 Certified final payroll reports demonstrating that the Contractor’s
employees have been paid for their work.
Note:
Project record deliverables that are required by the General Conditions
(Contract for Construction) must be provided in electronic format on a CDROM.
The project’s specific Contract Documents may require the submission of
additional project record deliverables.
Note:
Some project record deliverables may not be available at the time of the
final inspection request. However, all deliverables must be approved
before the University will issue the Contractor’s final payment, retainage,
or Certificate of Completion. See the section “Approving Project Record
Deliverables” for more information.
The Contractor will continue working on incomplete items while awaiting
the final inspection.
The Final Inspection
Within 7 days of receiving the Contractor’s punch list and request, the
Associate or Project Administrator determines whether the project is ready
for final inspection. The Associate/Project Administrator’s assessment of
progress (from ongoing field observation) and the level of completeness
reflected on the punch list will factor into this determination.
If the Associate or Project Administrator judges the work to be
insufficiently complete for inspection (for example, if a major system is not
finished), he or she notifies the Contractor by letter. The Contractor will
resubmit the request, punch list, and documentation after bringing work to
the required completion level.
Before conducting a final inspection, the Associate or Project
Administrator informs the Contractor of the inspection date and time. The
University also must be notified.
The Final Inspection Record
(Associate’s Punch List)
During the final inspection, the Associate or Project Administrator
determines whether the Contractor’s work meets the requirements
established in the Contract Documents.
After inspecting the work, the Associate or Project Administrator prepares
the Record of Final Inspection of the Contractor’s Work
(Figure 1). This form, also called the Associate’s punch list, documents the
Project Turnover and Closeout
February 2003
Page 9
Associate or Project Administrator’s observations on the completeness and
quality of the work as well as the status of other deliverables. The final
inspection record must be provided to the Contractor not later than 3 days
after the final inspection date.
Note: The Associate’s final punch list also serves to document the eventual
turnover from Construction Management to Facilities Management. See
the section “Providing Training and Documentation” in this chapter.
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February 2003
Project Turnover and Closeout
Division of the University Architect
Department of Construction Management
PO Box 210181
Cincinnati, Ohio 45221-0181
02999
Project No.:
Project Name:
Contractor:
VBC, Inc.
Smart Residence Hall Addition
RECORD OF FINAL INSPECTION OF THE CONTRACTOR'S WORK
For use by the Associate according to Article 10 of the General Conditions.
Final Inspection Attendees:
James Knox, VBC Inc.
Brian King, C.P. Jones & Associates
Annmarie Thurnquist, University of Cincinnati
Contractor's list of incomplete or deficient items associated with the work
Date to be Completed
Install correct tile in east restroom
Install splashguards behind counters in kitchen
Complete all sodding and landscaping
10 August 2002
10 August 2002
19 August 2002
Note of any deficiency in Contractor's Project Record Document Submittals:
O&M Manuals for the heating and cooling systems are incomplete
Need final, certified payroll reports
Need contact information for all subcontractors, manufacturers and suppliers
Note of any deficiency in Contractor's As Built Drawing Submittal:
As-built drawing package needs Contractor’s signature and date
Note of any deficiency in Warranties required by the Contract Documents:
None
Note of the quality of final cleaning performed by Contractor:
Final cleaning to be performed by 19 August 2002
Associate notes:
Contractor to correct all above-noted deficiencies by 19 August 2002
Submitted by:
Brian L. King
15 July 2002
Associate
Date
Figure 1: Record of Final Inspection (Associate’s Punch List)
Project Turnover and Closeout
February 2003
Page 11
Resolution of Punch-List Items
Within 30 days of receiving the final inspection record, the Contractor must
resolve all outstanding punch-list items or request additional time to
complete punch-list work. Any request for a time extension must be
adequately justified to the Associate and the University.
Sometimes weather conditions prevent the completion of work. In such a
case, the University may allow the Contractor to delay completion until site
conditions improve. Under the General Conditions, if completion were
deferred, the University would be authorized to deduct two times the cost
of any deferred work from the Contractor’s payment until the Contractor
completed the work.
The General Conditions specify remedies the University may take if a
Contractor does not fulfill all contract obligations. They include:

Hiring other contractors or consultants to finish or correct the work, and
deducting the cost from the delinquent Contractor’s pay; and/or

Demanding payment from the delinquent Contractor’s surety if the
amount owed the Contractor is less than the cost of the work.
Approving Project Record Deliverables
Between the final inspection and the agreed-upon contract completion date,
the Contractor works to complete any unfinished items of work. During
this time the Contractor must also finish any incomplete project record
deliverables, as cited in the final inspection/punch list, and submit them to
the Associate or Project Administrator for approval. The University’s
Facilities Management department should also be involved in reviewing
and approving these documents.
The University will not issue a Certificate of Completion, issue the
Contractor’s final payment, or release retainage until all project record
deliverables have been approved.
Note:
The complete list of project record deliverables required from the
Contractor appears under “Processing Punch Lists and Conducting
Inspections” in this chapter.
The following subsections present specific information the Associate or
Project Administrator needs to know about approving certain project record
deliverables.
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February 2003
Project Turnover and Closeout
“Wages and Hours” Affidavit
Each Contractor must include a signed and notarized “Affidavit of
Contractor” with its final pay application. In signing the affidavit, the
Contractor attests that its subcontractors and material suppliers have been
paid in full, and that the Contractor, subcontractors, and suppliers all have
complied with ORC 4115 (“Wages and Hours on Public Works”).
The University’s Office of Contract Compliance reviews the Contractor’s
affidavit and final pay application before final payment is made.
Note:
Any Contractor known to have violated prevailing wage law must not
receive payment until any payments or penalties associated with the
violation have been paid in full. If a Project Administrator receives notice
that a Contractor has violated this law, the Project Administrator should not
approve the pay application and should notify the Project Accountant and
the UC Office of Contract Compliance.
Guarantees and Warranties
The guarantee that the University requires of all Contractors contains two
major stipulations:

Work must conform to the standards established in the Contract
Documents, and

Work must be free of any defects in workmanship, materials, or
equipment.
The University requires the guarantee to be in effect for at least 1 year.
However, the Certificate of Contract Completion issue date is not
necessarily the start of the warranty period. Warranties must begin as soon
as there is any University occupancy of the facility or use of equipment,
including any occupancy or use that begins before contract completion.
Some projects have longer guarantee periods specified in the Contract
Documents.
The Contractor must maintain a bond for the duration of the guarantee
period.
Article 11.3 of the General Conditions describes the rights the University
will exercise should any defects become apparent during the warranty
period.
See “Issuing the Certificate of Warranty Commencement” in this chapter
for further information.
Project Turnover and Closeout
February 2003
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Ensuring Site Cleanup
The project cannot be accepted until the work site has been cleaned to the
University’s satisfaction. In general, contractors are required to remove all
work-related waste and debris from the site and to return all unaffected
property to its original condition. The Associate or Project Administrator
must not issue a Certificate of Contract Completion without verifying that
the site cleanup meets the University’s standards. Facilities Management
should also be involved in assessing the cleanup.
Article 11.4 of the General Conditions presents the University’s site
cleanup requirements in detail.
If two or more contractors disagree as to which contractor bears
responsibility for any part of site cleanup, the University can hire a
different contractor or a professional cleaning service to perform the work.
This additional cost would then be deducted from the final payments due
any contractors who did not fulfill their contractual obligation to clean the
site.
Accepting the Finished Project
Issuing the Certificate of
Warranty Commencement
A Certificate of Warranty Commencement (Figure 2) is required for all
materials and equipment that are subject to warranty. The Associate
initiates a Certificate of Warranty Commencement to establish the date
warranty coverage begins for a system or piece of equipment. The
Contractor and the Associate sign the certificate, and the Associate presents
it to the University for approval.
Issuing the Certificate of Completion
When all work items noted on the Associate’s punch list have been
completed and all project record deliverables have been approved, the
Associate initiates the Certificate of Contract Completion (Figure 3). The
Contractor and the Associate sign the certificate, and the Associate presents
it to the University for approval. By signing this document, the Project
Administrator certifies the University’s acceptance of the project.
Page 14
February 2003
Project Turnover and Closeout
Division of the University Architect
Department of Construction Management
PO Box 210181
Cincinnati, Ohio 45221-0181
Project No.:
02999
Project Name:
Contractor:
Smart Residence Hall Addition
VBC, Inc.
CERTIFICATION OF WARRANTY COMMENCEMENT
Describe the Equipment or Materials to be accepted:
HVAC system
List of incomplete/deficient items associated with Equipment or Materials
Date to be Completed
O&M Manual
Contact information for manufacturer
19 August 2002
Statement of the terms associated with acceptance, i.e., testing, maintenance, cleaning, etc.:
Limited occupancy begins 9 August 2002.
Warranty begins 9 August 2002.
Seasonal testing to be performed over next 12 months.
Record of Inspection (Associate and/or University notes):
Functional tests OK, 8 August 2002.
The undersigned certifies that the warranty complies with
the requirements of the Contract Documents.
James D. Knox
Contractor
Approval
9 Aug 2002
Date
Brian L. King
Associate
9 Aug 2002
Date
Owner acknowledgement of receipt of warranty, operating manual, etc., associated with acceptance of Equipment or
Material.
Annmarie P. Thurnquist
9 Aug 2002
University
Date
Certification of Warranty Commencement.doc
Rev. 2/02
Figure 2: Certificate of Warranty Commencement
Project Turnover and Closeout
February 2003
Page 15
Division of the University Architect
Department of Construction Management
PO Box 210181
Cincinnati, Ohio 45221-0181
Project No.:
02999
Project Name:
Contractor:
Smart Residence Hall Addition
VBC, Inc.
CERTIFICATION OF CONTRACT COMPLETION
The undersigned certifies that all the Contractor's Work is 100 percent complete, with
exception of the below noted deficiencies, and the Contractor has complied with all
conditions precedent to final payment and release of retainage. When upon Final
Inspection, items of Work cannot be completed because of seasonal conditions approved
by the Associate and the University, such as bituminous paving, landscaping, etc., and if
the University agrees that a particular item need not be completed until a subsequent date,
the University may release payment to the Contractor less two (2) times the cost of
completing the remaining Work.
Date to be Completed
No deficiencies remain; work is 100% complete.
James D. Knox
21 August 2002
Contractor
Date
We, the undersigned, together with a representative of the Contractor employed for the execution of the work, have
inspected the work included in the captioned contract, prior to the date of this certificate, and hereby certify that all work
on the contract has been completed in accordance with the requirements of the Drawings, Specifications, and other
Contract Documents, and accordingly recommend that the work included on said contract be accepted.
Brian L. King
21 August 2002
Associate
Date
Final Acceptance of Project
Annmarie P. Thurnquist
21 August 2002
University
Date
Figure 3: Certificate of Contract Completion
Page 16
February 2003
Project Turnover and Closeout
Notifying Stakeholders
In accepting the project, the University assumes the responsibilities of
ownership, including maintenance, security, and liability protection. The
UC departments responsible for these functions must be notified of the
acceptance. A copy of the Certificate of Contract Completion should be
sent to the building’s future occupants and to the University’s Facilities
Management, Public Safety, and Risk Management departments, at a
minimum. Notification of other UC departments should proceed according
to the turnover plan that was established at the beginning of the project.
Conducting Walk-Throughs
The Project Administrator should schedule an informational walk-through
of the completed project with Facilities Management personnel. In
addition, the occupants should have an opportunity to walk through the
new facility before moving in. Walk-throughs may also be scheduled for
other UC departments as warranted.
Providing Training and Documentation
The Contract Documents may call for Contractors to provide orientation
and training on specific systems (e.g., electrical, mechanical, and
plumbing) for the responsible Facilities Management personnel and end
users. Training by Contractors is often negotiated into contracts on
projects that will undergo commissioning. The Project Administrator
should work with Contractors and Facilities Management as required to
schedule this training before occupancy begins, if possible.
Facilities Management also requires copies of much of the project record
documentation. The Project Administrator should ensure that Facilities
Management receives, at a minimum, copies of the following documents:

State Certificate of Occupancy.

All state inspection certificates.

Any records of early acceptance for parts of the facility, as applicable.

Warranties and guarantees (Facilities Management in turn will provide
this information to its Work Control Department
[http://www.uc.edu/facmgmt/maint.asp], which will assume
responsibility for managing the warranties after turnover).

Associate’s final punch list (Record of Final Inspection), which serves
to document the turnover from Construction Management to Facilities
Management.

One set each of Project Record Drawings, specifications, and shop
drawings. (These documents should be provided to Facilities
Project Turnover and Closeout
February 2003
Page 17
Management at the time the Contractor submits them to the Associate.
The Associate may require a significant amount of time to prepare the
Project Record Documents, and Facilities Management may need a
preliminary copy during that period.)
Page 18

One complete set of Operation and Maintenance Manuals.

A list of names, addresses, and telephone numbers for all contractors,
subcontractors, and suppliers, including after-hours contact
information.

Commissioning documentation and reports, as applicable.
February 2003
Project Turnover and Closeout
Project Closeout
Outcome
The project’s design and construction contracts have been closed, and
project records have been forwarded for archiving and financial closeout.
Once the University has accepted the project and a Certificate of Contract
Completion has been signed, the Associate, Project Administrator, and
Accountant work together to move the project out of “active” status.
Project closeout includes the following activities:
1. Closing construction contracts,
2. Closing design contracts, and
3. Forwarding project records for financial closeout and archiving.
Chart 2 on the following page shows the process flow for project closeout.
Note:
The information in this chapter describes Construction Management’s
activities in closing projects. A future chapter will present the steps
involved in financial closeout.
Project Turnover and Closeout
February 2003
Page 19
Associate or
Project
Administrator
processes
reconciliation
Change Order to
close contract
Contractor
requests f inal
payment, release
of retainage
2. Close
design
contracts
Associate submits
contract
deliverables
Project
Administrator,
Associate
reconcile Change
Order f ees,
reimbursable
expenses
University amends
Prof essional
Design Services
Agreement,
if necessary
3. Provide project
records to
Accountant
Project
Administrator
f orw ards f inal pay
applications to
Accountant (f or
contractors,
Associate)
Project
Administrator
notif ies
Accountant that
Purchase Orders
can be closed
Project
Administrator
provides project
f iles to Accountant
f or storage (hard
copy or electronic)
1. Close
construction
contracts
Project
Administrator
authorizes release
of contractor's
retainage,
if applicable
Project
Administrator
approves request
and authorizes
payment
Associate submits
f inal payment
request
Project
Administrator
approves request
and authorizes
payment
Project
Administrator
provides copies of
project documents
to Document
Control
Chart 2: Process Flow for Project Closeout
Page 20
February 2003
Project Turnover and Closeout
Closing Construction Contracts
All construction contracts must be closed at the end of a project. The
Associate or Project Administrator starts the closeout process by
completing a reconciliation Change Order Form.
Processing a Reconciliation Change Order
Form
An example of a completed Change Order Form for contract closeout
appears on the next page as Figure 4. The purpose of the reconciliation
Change Order is usually to deduct unused funds from the contract. (See the
Supplemental Topic “Following the Change Order Process” for additional
information on processing change orders.)
Approving Final Pay Applications, Affidavits,
and Releases of Retainage
Contracts cannot be closed until all Contractors’ final pay applications (and
Contractor affidavits attesting to ORC 4115 compliance) have been
approved. (Contractors submit their affidavits with the project record
deliverables in connection with project acceptance. See the sections
“Processing Punch Lists and Conducting Inspections” and “Approving
Project Record Deliverables” in this chapter.) Companies that had escrow
agreements will also request release of their retainage.
Project Administrators should evaluate and approve all outstanding pay
requests as quickly as possible and forward them to the Project Accountant
for payment and release. (See “Forwarding Project Records” later in this
chapter for further information.)
The chapter “Managing the Construction Phase” presents complete
instructions for evaluating and approving Contractor pay applications.
Project Turnover and Closeout
February 2003
Page 21
Division of the University Architect
Department of Construction Management
PO Box 210181
Cincinnati, Ohio 45221-0181
CHANGE ORDER
X
ADD (White paper only)
UC Purchase Order No.
Change Order No.
PC02C-00800
102
General
Type of Contract:
O2999
Project No.:
DEDUCT (Goldenrod or Yellow paper only)
Project Name:
Smart Residence Hall Addition
Check Reason for Change Order
Error/Omission
Field Condition
Field Dispute Settlement
Owner Request
Value Engineering
Other:
Close contract
Contractor's Proposal Dated: N/A
Contract Days Changed
N/A
Revised Completion Date:
N/A
Original Contract Sum
Net Change by Previous C.O.s
Contract Sum Prior to this C.O.
Total Cost of this C.O.
NEW CONTRACT SUM
Total Cost $
800,000.00
$
$
$
$
$
800,000.00
(1,450.00)
798,550.00
(1,450.00)
Description / Justification (Add more pages if necessary)
Reconciliation
The terms and conditions of this Change Order, including the cost and time contained herein, constitute a full accord and
complete satisfaction for all costs and time of performance related to the work described or referenced herein, including
but not limited to, all delay and impact costs for the entire Project resulting from this Change Order. Except as amended herein,
all provisions of the Contract remain in full force and effect.
CONTRACTOR'S ACCEPTANCE
Name & Address:
VBC, Inc
1420 Chestnut Street
Cincinnati, OH 45202
James D. Knox
Contractor Signature
ASSOCIATE'S RECOMMENDATION
Name & Address:
C.P. Jones & Associates
9999 Mason-Montgomery Rd., Suite 20A
Cincinnati, OH 45242
30-Aug-02
Date
Brian L. King
Associate Signature
30-Aug-02
Date
CHANGE ORDER APPROVED
(Vendor cannot invoice until receipt of University approved form A-600 "Cancellation or Change Order".)
Dewey Enderle
Sr. Staff Engineer Signature
30-Aug-02
Date
Annmarie P. Thurnquist
Project Manager
Figure 4: Change Order Form for Reconciliation
Page 22
February 2003
Project Turnover and Closeout
30-Aug-02
Date
Closing Design Contracts
After working with the Associate to close out construction contracts, the
Project Administrator begins the process of closing the Associate’s contract
as well as any design consultant agreements.
Before a design contract can be closed, the Project Administrator must
verify that the Associate or consultant has submitted all contract
deliverables; meet with the Associate to reconcile fees and reimbursable
expenses; and approve the final pay application.
Checking Associate Deliverables
The Associate will have presented many of its deliverables during
acceptance. At project closeout, the Project Administrator must confirm
that Associate has provided the following:
Note:

Project Record Drawings (as updated from the Contractor’s “as-built”
drawing submittals)

Associate-approved O&M Manuals

Associate-approved guarantees and warranties

Commissioning documentation as applicable
On projects that do not use an Associate A/E, the deliverables listed above
must be approved by the project’s internal design professional or external
design consultant, as applicable.
Reconciling Fees and Expenses
Before closing out the contract, the Project Administrator meets with the
Associate (or design consultant) to reconcile the Change Order fees and
reimbursable expenses associated with the project. If outstanding fees or
expenses cause the contract total to increase, the Project Administrator
must complete and process a contract Amendment (Figure 5) to adjust the
contract before closing it.
Amendments to design contracts also require completion of both the A-600
Form (to report the change to University Purchasing) and the A-910 Form.
See the Supplemental Topic “Following the Change Order Process” for
complete instructions on processing Amendments and Change Orders.
Project Turnover and Closeout
February 2003
Page 23
Amendment Number:
02999-004
March 29, 2002
The original Architect’s Agreement executed on
C.P. Jones & Associates, Inc. ,
between the University of Cincinnati, the Owner, and
the Architect, is hereby amended as a result of additional services on the following project:
Project No.
Project Name
02999
Smart Residence Hall Addition
Article 1, Architect’s Services, shall be amended to include the following scope of work as part of
the Architect’s professional services:
N/A; amendment is for Associate’s reimbursable expenses incurred in August
Article 5, Basis of Compensation, shall be amended as follows:
$
Total add to contract amount for this Amendment
Dollars and
(Three hundred seventy-eight
378.00
zero /100 Cents)
Compensation Summary:
$ 56,000.00
$ 1,850.00
378.00
$
$ 58,228.00
Original Contract
Previous Amendments
This Amendment
Total Current Contract Amount
All other terms of the Agreement shall remain as written.
IN WITNESS WHEREOF, the parties hereto have agreed and hereunto set their hands on this date
, the University of Cincinnati signing and sealing these
30 August 2002
presents through its authorized signature:
UNIVERSITY OF CINCINNATI
ARCHITECT
Name of Firm:
C.P Jones and Associates
By:
Brian L. King
By:
Title:
Architect
Title:
Date:
30 August 2002
Date:
UC Contracting Officer
Figure 5: Amendment for Contract Closeout
Page 24
February 2003
Project Turnover and Closeout
Approving the Associate’s Final Pay
Application
The Project Administrator must check and approve the Associate’s final
pay request as soon as possible and forward it to the Project Accountant for
payment and release.
Forwarding Project Records
The Project Accountant needs the following information from the Project
Administrator to complete the project’s financial closeout:

Final, approved pay applications for all construction Contractors

Final, approved pay application for the Associate, if applicable

Notification to close out Purchase Orders from any term contractors or
vendors (the Accountant will notify Purchasing).
At closeout the Accountant also archives the project files. The Project
Administrator provides all project records to the Accountant in either hardcopy or electronic (OnBase document imaging system) format.
The University Architect Division’s goal is to have all projects archived in
the OnBase system.
The Project Administrator also provides the following documents to the
Construction Management Document Control Center:

O&M Manuals

Project Record Drawings

Specifications

Shop drawings
Project Turnover and Closeout
February 2003
Page 25