Section T
Contract Completion ‐ Close Out
Now this is not the end. It is not even the beginning of the end. But is, perhaps, the end of the beginning.
Speech at the Lord Mayor's Day Luncheon, London. November 10, 1942. Sir Winston Spencer Churchill.
Project completion is often poorly defined. There is also client reluctance at taking over responsibility for the facility. Consequently, the client will try and make sure that the project is 101 per cent complete.
In the end there will, in all probability, be some minor items that it seems impossible to do. This is where the project manager will need to be involved in negotiating with the client. Do favours for the client and do a deal, swapping favours for incomplete items.
Check that all of the equipment data sheets, drawings, and so on have been reviewed and revised where necessary to incorporate all of the changes, which have been made during the commissioning phase.
Clients in building services have stated that: “The delivery of operation and maintenance manuals is the worst aspect of service because contractors leave it too late.”10
Make sure that you leave a client who has warm feelings about you and will be receptive to future visits. This will enable you to learn about any design or project changes that have been made to improve performance
After this stage the client, having spent the maximum amount of money, hopes to start receiving a return on their investment.
1 Handover of Documentation
1.1
Original drawings and as‐built drawings and any revisions.
1.2
Maintenance/mechanical catalogues and operating instructions.
1.3
Material certification, x‐rays and other non‐destructive testing records.
1.4
CDM health and safety file.
2 Handover of Equipment
2.1
Special maintenance and commissioning tools.
2.2
Commissioning and maintenance spares.
3 Clean Up
3.1
Finish painting and insulation.
3.2
Remove all temporary facilities and buildings. Ask the client if they wish to take over and use any of them. Offer some cheap modifications/painting if that will persuade the client to accept them. After all, it will be cheaper than having to remove them.
- Office buildings
- Stores areas
- Training facilities
- Lay‐down areas
- Car parks
- Temporary fencing
- Utilities
- Telecommunications
- Plant and equipment
- Tools
3.3
Finish landscaping.
3.4
Perform a final tidy up of the site.
4 Disposal of Surplus Material
4.1
Return surpluses to suppliers under pre‐negotiated buy‐back agreements.
4.2
Ask the client if they wish to purchase any surpluses.
4.3
Sell surpluses on the open market.
4.4
Transfer surpluses to other projects.
4.5
Dispose of, or sell, any remaining surplus as scrap.
5 Closing Contracts
5.1
Obtain confirmation that all claims/changes/variations are completed and agreed.
5.2
Double‐check that all contractual obligations have been met and that there are no unresolved matters outstanding.
5.3
Check that provisional and final acceptance certificates or a certificate of practical completion has been received from the client.
5.4
Check that all purchase orders are closed out, and the final invoices have been approved with agreement from the suppliers.
5.5
Check that all documentation required by the purchase orders has been received.
5.6
Ascertain that the supplier performance critique has been completed.
5.7
Make sure all subcontracts are closed out and the final invoices approved.
5.8
Ensure there are no outstanding matters or claims from the subcontractors.
5.9
Ascertain that the subcontract performance critique has been completed.
6 Financial Matters
6.1
Invoice for retention monies to be released: on mechanical completion, completion of performance tests, or at end of maintenance period.
6.2
Offer a retention bond in lieu of retention monies (see Part V, Section P Surety Bonds, paragraph 1.6). Don't forget to get it back!
6.3
Get agreement to the recovery of the performance bonds (see Part V, Section P Surety Bonds, subsection 2).
6.4
Close out the project bank account and any local site bank accounts.
6.5
Submit the final local tax return and obtain a tax clearance certificate.
6.6
Clear all value‐added tax matters.
7 Close Out
7.1
Cancel the project insurance policies, special customs procedures, or medical arrangements.
7.2
Cancel any operating permits.
7.3
Cancel any responsible representatives.
7.4
Close out or cancel any consultancy agreements for the project.
7.5
Close out or cancel any services being provided for housing and transport.
7.6
Stop all bookings to the project, and close‐out all accounts.
7.6.1
However, when closing the bookings to the project and closing out the accounts, make sure that you leave some money in the project manager's account for follow‐up activities; see the next Section U paragraph 5.1.