Contract Closeout, Reporting and Documentation System

CONTRACT CLOSEOUT/
REPORTING/DOCUMENTATION
SYSTEM
Construction Method and Management
...Construction Phase CM tasks

Prepare an
Agenda
and Meeting
Transfer of
Owner-purchased
material
Monitor
Contrator's
progress
Project
Documentation
System
Daily reporting
system#4. Slide
4
Administer QA
Issue *CO report
Monitor Cost
record
Establish Cash
Flow report
Prepare
Summary
To the Owner
Receive and
Evaluate notices
Communication
and
Exchange of
information
Review safety
plan
Establish a system
To control Contractor's
payment
Review drawings
Before approving
Final payment
Reporting System
Project
documentation
Requirements
Resolve Changes
Establish report
...Post Construction Phase CM tasks

Contract closeout
the acquisition of
compilation,
organization and
turnover of these
materials
requirements for
spare parts and
warranties.
Final Inspections
with the owner
and designer
expedite
completion of the
Contractors
submittals
and compliance
of all permit
requirements
should provide
the owner with a
list of contacts for
remaining work
at the owners
request, the CM
should assist in
move-in/start up.
, summarizing the
project history
...reporting system
Daily Construction Report
PM
Area superintendent
Project engineers
inspectors
Report number
Date and day report
Project name and number
Weather conditions
Name of contractor whose work
was specifically involved
Workforce
Describe all works in progress
Problems and difficulties
encountered
Completed form should be signed
and dated.
Identify the number and classification of all

craft labor at the site for each contractor
Items requiring supervisory attention

should be attended to promptly and
so noted on the original inspection
report
Modifications to original report
should be noted and initiated by
supervisor at a time of review
One copy of each report should be
sent off site for safe storage.
Information contained in the daily
reports should be summarized as
appropriate to form the basis of any
weekly or monthly reporting that is
required.
Identify the number and type of major construction

equipment on the job. Specifically note if equipment
was idle or active.
Monthly Change Order report

Date of discovery, notification of the problem
Brief description of the issue
Potential changes should be assigned a
reference number
Construction managers evaluation of the
issue
Construction manager estimate of time, cost,
or both requires for equitable compensation.
Any time cost adjustments requested or
proposed by the contractor.
Agreed upon compensation

Date of resolution
Change order reference number.
. Monitor and maintain cost records
establishing a system for segregating and documenting

forced account work resources.
establish cash flow reporting system

develop a cash flow monitoring system and integrate
it into the progress payments tracking system.
The ff. methods are commonly utilized:

Unit price schedule
Schedule of values
Cost- loaded CPM schedule
Cost reimbursible
Based upon the actual amount of work performed

through the period of payment request.
establish report formats for submissions to the owner on
a weekly, monthly or quarterly basis, depending upon the

individual project requirements.
Typical report includes:

construction schedule
summary project cost
cash flow
change order (pending and approved)
Prepare narrative to the owner

pointing out impacts, exceptions and revisions to the management plan.
including:
monthly report incl. problem
impact
changes
delays
plan approach in solving the effect of ff. mentioned above.
...Documentation System
Capable of:
Recording
Storing
Retrieving information
Technical
Financial
administrative
Required Project Documentation

- is imperative for the following
reasons:
Project- subject of LENGTHY claims and LITIGATION.

Actual record- can be invaluable when negotiating and Evaluating
Contractors request for compensation.
Written record can be valuable.
- integral part of all construction management

activities. Project records should be:
made CONTEMPORANEOUSLY with the event
Based upon direct knowledge of the event.
Keep as a regular practice of the firm.
Contain adequate detail to allow reconstruction of the situation from the

records at a later date.
Recording Construction Activities

Use still photographic images and narrated video camera recording to enhance all written documentation
from preexisting site conditions to final inspections.
The Construction Field Inspection Log (see Figure 4.21) or other line management approved
form should provide a documented factual record of the work performed each day, as well as
All changes that might affect cost and schedule.
Major project status changes.
All directions or clarifications.
Personnel accidents or injuries, safety infractions, and corrections.
Safety meetings held on site.
Names of visitors to the site.
Conditions and actions in response to Subcontractor violations.
Potentially reportable occurrences in accordance with the occurrence reporting process.
Significant events, such as unexpected power outages, severe weather occurrences, or spills of
hazardous materials (residual radioactive material, hazardous waste, hazardous substance).
Construction inspections and quality control tests performed. Include time of tests and inspections
and results.
Implementation of the applicable emergency plan.
Security incidents.
Applicable equipment parameters, including out-of-tolerance readings.
Non-conformance reports.
Signatures that acknowledge notifications or changes in construction activities.
Positive actions that resulted in significant savings, quality improvements, lessons learned, etc.
Hours worked.
Equipment on-site and used.
Weather.
Typical information that must be handled by a project documentation system:
Pre- Contract Documents

Contract Documents
Technical
Contemporaneous
Correspondence
Scheduling
Cost
1. original contract
2. bonds and assurance certificates
3. pre-contract negotiation
4. plans and specifications issued for contruction
5. notice to proceed.
6. any notices or changed conditions, request for *CO,
or *CO proposals
7.directives
8. log of all requested, proposed and executed *CO.
9. formal contract.
10. request for final inspection.
11. punch lists.
12. certificate of final inspection.
*change order
1. Bid package drawings and specifications

2. Pre-bid Meeting minutes
3. Pre-bid schedules
4. cost estimate and takeoffs (design
Phase)
5. contractor's bid proposal
6. bidder prequalification information
7. technical proposal
8. bid analysis

Contract Documents
Technical
Contemporaneous
Correspondence
Scheduling
Cost
1. log and file of all design and field

revisions
2. log and file of all request for information.
3. log and file of all shop drawings
4. inspection/ testing/ QC report.
5. record drawings.
6. operation and maintenance manuals
7.warranties and guarantees.
1. daily reports
2. daily diaries
3. daily labour reports
4. accident reports
5. progress photos
6.material delivery
reports
1. directives
2. meeting minutes
3. general
correspondence

Contract Documents
Technical
Contemporaneous
Correspondence
Scheduling
Cost
1. Project/ program master schedule

2. preliminary contractor schedule
3. approved contractor baseline schedule
4. periodic updates
5. scheduling meeting minutes.
1. approved schedule of values

2. applicable labour rates
3. work order time sheets
4. bid analysis
5. periodic labour distribution
6. control budget.
7. payment request and actual disbursement
With explanation of discrepancies.
Contract Closeout
By definition, projects have an end point. Closing out is a very important

phase in the project life cycle, which should follow particular disciplines and
procedures with the objective of:
Effectively bringing the project to closure according to agreed-on contractual
requirements
Preparing for the transition of the project into the next operational phase,
such as from production to field installation, field operation, or training
Analysing overall project performance with regard to financial data,
schedules, and technical efforts.
Although most project managers are completely cognizant of the

necessity for proper planning for project start-up, many project managers
neglect planning for project termination. Planning for project termination
includes:
Transferring responsibility
Completion of project records
Historic reports
Post project analysis
Documenting results to reflect "as built" product or

installation
Acceptance by sponsor/user
Satisfying contractual requirements
Disposition of materials
Closing out work orders (financial closeout)
Preparing for financial payments
Closeout Document:
warranties/guarantees
Certifications
maintenance manuals
contractors' statements (tax forms)
Targeted Small Business Reporting forms (if applicable), etc.
the completion of the project identifying the sales tax

and/or use tax paid on all supplies and materials
incorporated into the Work.
Post Construction Phase CM tasks
coordinate the compilation, organization and

turnover of these materials
coordinate the requirements for spare

parts and warranties.
coordinate the acquisition of all

requirements permits and compliance of all
permit requirements
at the owners request, the CM should

assist in move-in/start up.
conduct Final Inspections with the owner

and designer when the final punch list is
complete. When the parties are satisfied that all
work is complete, the CM should recommend
that the final payment be made.
should expedite completion of the

Contractors submittals including certificate of
substantial completion, punch list completion,
final lien viewers, guarantees/warranties and
final payment application.
the CM may stay on to complete warranty

work, but it is usually not cost effective.
Therefore, the CM should provide the owner
with a list of contacts for remaining work.
all reports that have been issued during the

design and construction phase should be
prepared in final form, summarizing the project
history including costs reports. The report
should note the date of substantial completion
and commencement of warranties.
Closeout
Process
It is important to note that the closeout of the construction contract or contracts on

the project is only one step in the closeout of the project.

Contract Closeout, Reporting and Documentation System

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What are the main tasks of the construction manager during the construction phase?

What are the main tasks of the construction manager during the construction phase?

What information should be included in the daily construction report?

What information should be included in the daily construction report?

CONTRACT CLOSEOUT/

...Construction Phase CM tasks

Issue *CO report

...Post Construction Phase CM tasks

Identify the number and classification of all

Items requiring supervisory attention

Identify the number and type of major construction

Monthly Change Order report

Agreed upon compensation

Change order reference number.

. Monitor and maintain cost records

establishing a system for segregating and documenting

establish cash flow reporting system

The ff. methods are commonly utilized:

Based upon the actual amount of work performed

establish report formats for submissions to the owner on

a weekly, monthly or quarterly basis, depending upon the

Typical report includes:

Prepare narrative to the owner

Required Project Documentation

Project- subject of LENGTHY claims and LITIGATION.

- integral part of all construction management

made CONTEMPORANEOUSLY with the event

Based upon direct knowledge of the event.

Keep as a regular practice of the firm.

Contain adequate detail to allow reconstruction of the situation from the

Recording Construction Activities

Typical information that must be handled by a project documentation system:

Pre- Contract Documents

1. Bid package drawings and specifications

Typical information that must be handled by a project documentation system:

Pre- Contract Documents

1. log and file of all design and field

Typical information that must be handled by a project documentation system:

Pre- Contract Documents

1. Project/ program master schedule

1. approved schedule of values

By definition, projects have an end point. Closing out is a very important

Although most project managers are completely cognizant of the

Documenting results to reflect "as built" product or

the completion of the project identifying the sales tax

Post Construction Phase CM tasks

coordinate the compilation, organization and

Post Construction Phase CM tasks

coordinate the requirements for spare

Post Construction Phase CM tasks

coordinate the acquisition of all

Post Construction Phase CM tasks

at the owners request, the CM should

Post Construction Phase CM tasks

conduct Final Inspections with the owner

Post Construction Phase CM tasks

should expedite completion of the

Post Construction Phase CM tasks

the CM may stay on to complete warranty