Complete

Project close-out generally happens in three stages:

1. Practical Completion (PC) is issued once physical works are substantially complete and handover documentation has been received. Some minor completion items or defects may remain, recorded on a defects/punch list.
2. Final Account is processed: often during the defects liability period this cover all outstanding financial matters.
3. Final Completion Certificate is issued once all recorded defects and completion items have been addressed, formally concluding the contract and releasing any remaining retentions and bonds.

A Code Compliance Certificate (CCC) or Certificate of Public Use may also be required before Practical Completion can be issued.

A Certificate of Practical Completion is issued by the Engineer to the Contract (or Independent Certifier) when your physical works are substantially complete. Minor defects or incomplete items may still remain, and these are recorded on a defects/punch list. At this point, typically 50% of retentions are released, along with any performance bond.

A Final Completion Certificate is issued once all defects from the punch list, and any new defects arising during the defects liability period, have been addressed. Before issuing, the designated person will carry out a final inspection with the client (and any supporting consultants) to confirm all matters have been resolved. Once issued, the contractor is typically entitled to the return of all remaining retentions and any defects liability period bonds.

The Defects Liability Period (DLP) is a specified period after practical completion during which the contractor remains responsible for rectifying any defects. It is designed to allow enough time for the building to be in actual use and long enough to identify any systemic or workmanship issues that may not be immediately apparent.

During this period, retentions are withheld as an incentive for the contractor to address defects promptly. If the contractor fails to do so, the client has the right to use those retentions to have the work rectified by others. A defects liability period bond can provide similar protection. The DLP also means the obligation to find and fund remediation resources remains with the contractor, not the client.

Often the final account is prepared and completed during the defects liability period, with the outstanding release of retentions held until after final completion. If nothing has changed since practical completion, the final account will remain unchanged and is formally closed once the final retentions are released.

Retentions are usually released in two stages: approximately 50% at practical completion and the balance at final completion, following the issue of the Final Completion Certificate.

The documentation required at close-out varies depending on the project and the conditions set out in consents, drawings, and project specifications. It typically includes:

• As-built documentation
• Producer statements
• Warranties and guarantees
• Operation and maintenance manuals
• Training manuals (and in some cases, training sessions)

Scope will often facilitate a lessons learned workshop with the client, contractors, and consultants, this allows us to share insights from the project that can be captured and carried forward by everyone involved.