Construction Project Closeout: Essential Capital Project Tasks
5/12/2022
Construction
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A construction project closeout process, or a construction completion process, is documented, recorded, and archived communication between key project stakeholders that determines the successful completion of a capital project, with a final turnover deliverable as the end result of the process. Owing to the complexity of performing regulatory, contractual, archival, and owner-required activities to close the project in an orderly manner, the construction project closeout process is often one of the longest and most delayed phases of a project’s timeline. However, thorough construction completion is compulsory to substantiate that the capital project has been done according to the EPC contract scope of work while complying with safety, regulatory, and environmental standards. 

Below, we discuss some of the key components of the capital project closeout report, the primary steps in the construction project completion, and how partnering with the right EPC contractor can ensure the validity of the process.    

What is Included in the Construction Project Closeout Report?

The information in the handover document of construction completion or construction project closeout is specific to the type of capital project and varies based on contract and/or client requirements. However, there are a few standard components that are integral to every construction project closeout report.    

Concept Documents 

This includes general project requirements, concept designs, the project scope, and the intent of the capital project that is prepared by the contractor and reviewed and approved by the project owner. 

Design Approvals

All approvals and input on design and engineering specifications with detailed piping and instrumentation diagrams (P&IDs) are included in the construction completion report to avoid any potential disagreement later between the engineering and construction teams.      

Construction Plans

All documents on the construction of various components of the project by the contractor, including designing heavy-lift plans, the care and custody of construction equipment, and the long-term preservation of critical rotating pieces, are included in the report.   

Requests for Information

Documenting the requests for information (RFIs) between the construction and engineering teams and including them in the construction completion report, is critical to keep track of all the resulting change orders.      

Certificates for Inspection

Documents and certificates for any required inspection done on the job site are included in the construction project closeout report.   

Safety Documentation

Construction risk management is an integral part of capital projects. Safety documentation, including safety manuals, job safety analysis (JSA) forms, and project safety plans, form a critical component of the construction completion report.

In addition to these key components of a construction project closeout report, Inspection Test Plans (ITPs), checksheets, walk-downs, inspections, and punch list management are some of the tools that aid the construction completion process.     

5 Steps of Construction Project Closeout Process

Construction completion is a process that is carried out throughout the project as components of the work are completed. Technically, construction completion begins at the start of the project when the Work Breakdown Structure (WBS) is set up to segregate the project components and ITPs are created to identify the required turnover deliverables. The following are some of the key steps of the construction project closeout process:

Compile Necessary Documents

Documents such as the construction completion check sheets, inspection reports, and punch lists help project owners track the status of ongoing tasks during construction. For a construction completion report, the punch list, along with other documents, such as design approvals, MC certificates, and requests for information, need to be compiled and signed by all parties as agreed to eliminate ambiguity in completion.   

Review Change Orders

Documented change orders keep track of all modifications requested during construction. Such change orders should be reviewed throughout the project as they arise and at closeout to confirm their completion or their current status.  

Meet Order Specifications 

Confirming the inclusion of design specifications or fabrication specifications with a quality assurance check should be done before closing out the construction project.   

Close All Open Contracts

To prepare the construction project closeout report, contracts with vendors, subcontractors, and other third parties need to be closed and payments disbursed.  

Address Client Feedback and Concern, If Any

The EPC contract provides a scope of feedback to be provided by the project owner on the contractor’s role and responsibilities during the project’s life cycle. Before construction completion sign-off, all client feedback and concerns should be addressed to be included in the final report. 

Construction completion is a managed process to ensure a controlled completion throughout the project, as opposed to a mountain of closeout to perform at the end if not planned and executed in parallel with the work. Partnering with an experienced EPC contractor can help streamline the construction project closeout process along with the ongoing construction work.  

Ensuring the Validity of the Construction Project Closeout Process with the Right EPC Contractor  

At H+M Industrial EPC, our in-house engineering, procurement, and construction capabilities are instrumental in enabling robust capital project construction management. With a comprehensive oversight of the construction completion process right at the beginning of the construction work, we avoid incomplete document production and punch list delays. Being a single entity accountable for project completion, we ensure effective and ongoing communication between key project stakeholders to accomplish a seamless construction project closeout.

About the Author

Want to Learn More About Project Management?

To find out more about how we can help you with the construction project closeout report, contact us through our website today. 

To find out more about the advantages and disadvantages of turnkey projects and how H+M Industrial EPC can meet your capital project needs, contact us through our website today.

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The H+M Industrial Team

For over three decades, we have provided best-in-class capital project management services to Energy and Chemical industries through our proven EPC approach. We are dedicated to providing trust, experience, and efficiency through all stages of engineering, procurement, and construction--on budget and on time.

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