What is a Punchlist?
| A punchlist is most common in the construction industry. But it may be an overused term on prime contracts between Buyers and Sellers - when a simple To-Do-List might be more appropriate description for a tool construction managers (CM) use to monitor contractor progress toward achieving contract milestones. Punchlist is not normally part of the definitions in the construction contract Form. As a result, Punchlist means different things to Sellers and Buyers. Definition From various sources of expertise, punchlist is described as:
Punchlist is interdependent with the progress of work by the Seller and the milestones specified by the Buyer in the Contract. The milestones are typically contained in the General Conditions/Provisions (GCs) of a contract document. Punchlist creation is associated with substantial completion and punchlist completion is associated with construction completion. Work Flow Punchlist work flow:
Most US standard contract Forms, cite the requirements for substantial completion and construction completion in the General Conditions/Provisions regarding section related to Performance Schedule and Payments. Punchlist Content The content of a punchlist should contain only minor touch-ups and repairs to installed/constructed work that is described by specific in-scope observations and the locations to be corrected for completion. A punchlist that contains base scope items not yet installed or tested and operational is not acceptable and not suitable for meeting the completion milestone. Items observed that are not in-scope will be deleted from the punchlist and be addressed by the Buyer through other project processes for changes to work. In addition to contract milestones and payments, an acceptable punchlist that the Buyer determines meets the substantial completion requirements is often tied to incentives and liquidated damages. Meeting substantial completion is also related to other contract requirements. Punchlist Interfaces Interfaces with other contract requirements in the work flow include: Item 4-After substantial completion, Seller and Buyer can initiate reconciliation of incentives and liquidated damages. Buyer can suspend consideration of all potential changes, instruct Seller to demobilize and to perform site restoration by the final completion/contract completion milestone, request Seller to submit deliverables such as O&M Manuals, As-Built Drawings Package and Warranties, and if applicable, release performance bonds. Item 5-After construction completion, Seller and Buyer can initiate the contract closeout. Item 7-After demobilization, Seller can reduce insurance coverage. TIP: A punchlist should only be submitted once by Seller and reviewed by Buyer for completeness an accuracy. Thereafter, it is locked down. No items can be addressed. Items can only be verified as completed and closed. TIP: All items on the punchlist should be addressed and closed by the Sellers within a period that avoids the risk of further damage or new conditions that requires corrective action. TIP: For Buyer’s, including their construction managers, that require in-progress punchlists to assess the contractor’s physical work relative to the construction substantial completion milestone, a more granular definition of punchlist may be needed. Here are some proposed definitions that can provide guidance to Buyer and Seller as the punchlist changes with the progress of construction.
TIP: An observation listed on the punchlist should identify the inspecting agency/inspector name and date, cite the specific location (s) and the drawing/specification/code, and describe the needed correction to meet with the contract requirements, approved shop drawings or other industry standards for the type of work. TIP: The punchlist observations should be actionable and the description begin with words such as repair, replace, adjust, touch-up, polish, remove, rebalance and clean. Items with words such as install, test, paint, fill, energize, backfill and connect may indicate that base scope is not yet completed. |
What is a Punchlist?
| A punchlist is most common in the construction industry. But it may be an overused term on prime contracts between Buyers and Sellers - when a simple To-Do-List might be more appropriate description for a tool construction managers (CM) use to monitor contractor progress toward achieving contract milestones. Punchlist is not normally part of the definitions in the construction contract Form. As a result, Punchlist means different things to Sellers and Buyers. Definition From various sources of expertise, punchlist is described as:
Punchlist is interdependent with the progress of work by the Seller and the milestones specified by the Buyer in the Contract. The milestones are typically contained in the General Conditions/Provisions (GCs) of a contract document. Punchlist creation is associated with substantial completion and punchlist completion is associated with construction completion. Work Flow Punchlist work flow:
Most US standard contract Forms, cite the requirements for substantial completion and construction completion in the General Conditions/Provisions regarding section related to Performance Schedule and Payments. Punchlist Content The content of a punchlist should contain only minor touch-ups and repairs to installed/constructed work that is described by specific in-scope observations and the locations to be corrected for completion. A punchlist that contains base scope items not yet installed or tested and operational is not acceptable and not suitable for meeting the completion milestone. Items observed that are not in-scope will be deleted from the punchlist and be addressed by the Buyer through other project processes for changes to work. In addition to contract milestones and payments, an acceptable punchlist that the Buyer determines meets the substantial completion requirements is often tied to incentives and liquidated damages. Meeting substantial completion is also related to other contract requirements. Punchlist Interfaces Interfaces with other contract requirements in the work flow include: Item 4-After substantial completion, Seller and Buyer can initiate reconciliation of incentives and liquidated damages. Buyer can suspend consideration of all potential changes, instruct Seller to demobilize and to perform site restoration by the final completion/contract completion milestone, request Seller to submit deliverables such as O&M Manuals, As-Built Drawings Package and Warranties, and if applicable, release performance bonds. Item 5-After construction completion, Seller and Buyer can initiate the contract closeout. Item 7-After demobilization, Seller can reduce insurance coverage. TIP: A punchlist should only be submitted once by Seller and reviewed by Buyer for completeness an accuracy. Thereafter, it is locked down. No items can be addressed. Items can only be verified as completed and closed. TIP: All items on the punchlist should be addressed and closed by the Sellers within a period that avoids the risk of further damage or new conditions that requires corrective action. TIP: For Buyer’s, including their construction managers, that require in-progress punchlists to assess the contractor’s physical work relative to the construction substantial completion milestone, a more granular definition of punchlist may be needed. Here are some proposed definitions that can provide guidance to Buyer and Seller as the punchlist changes with the progress of construction.
TIP: An observation listed on the punchlist should identify the inspecting agency/inspector name and date, cite the specific location (s) and the drawing/specification/code, and describe the needed correction to meet with the contract requirements, approved shop drawings or other industry standards for the type of work. TIP: The punchlist observations should be actionable and the description begin with words such as repair, replace, adjust, touch-up, polish, remove, rebalance and clean. Items with words such as install, test, paint, fill, energize, backfill and connect may indicate that base scope is not yet completed. |
What is a Punchlist?
| A punchlist is most common in the construction industry. But it may be an overused term on prime contracts between Buyers and Sellers - when a simple To-Do-List might be more appropriate description for a tool construction managers (CM) use to monitor contractor progress toward achieving contract milestones. Punchlist is not normally part of the definitions in the construction contract Form. As a result, Punchlist means different things to Sellers and Buyers. Definition From various sources of expertise, punchlist is described as:
Punchlist is interdependent with the progress of work by the Seller and the milestones specified by the Buyer in the Contract. The milestones are typically contained in the General Conditions/Provisions (GCs) of a contract document. Punchlist creation is associated with substantial completion and punchlist completion is associated with construction completion. Work Flow Punchlist work flow:
Most US standard contract Forms, cite the requirements for substantial completion and construction completion in the General Conditions/Provisions regarding section related to Performance Schedule and Payments. Punchlist Content The content of a punchlist should contain only minor touch-ups and repairs to installed/constructed work that is described by specific in-scope observations and the locations to be corrected for completion. A punchlist that contains base scope items not yet installed or tested and operational is not acceptable and not suitable for meeting the completion milestone. Items observed that are not in-scope will be deleted from the punchlist and be addressed by the Buyer through other project processes for changes to work. In addition to contract milestones and payments, an acceptable punchlist that the Buyer determines meets the substantial completion requirements is often tied to incentives and liquidated damages. Meeting substantial completion is also related to other contract requirements. Punchlist Interfaces Interfaces with other contract requirements in the work flow include: Item 4-After substantial completion, Seller and Buyer can initiate reconciliation of incentives and liquidated damages. Buyer can suspend consideration of all potential changes, instruct Seller to demobilize and to perform site restoration by the final completion/contract completion milestone, request Seller to submit deliverables such as O&M Manuals, As-Built Drawings Package and Warranties, and if applicable, release performance bonds. Item 5-After construction completion, Seller and Buyer can initiate the contract closeout. Item 7-After demobilization, Seller can reduce insurance coverage. TIP: A punchlist should only be submitted once by Seller and reviewed by Buyer for completeness an accuracy. Thereafter, it is locked down. No items can be addressed. Items can only be verified as completed and closed. TIP: All items on the punchlist should be addressed and closed by the Sellers within a period that avoids the risk of further damage or new conditions that requires corrective action. TIP: For Buyer’s, including their construction managers, that require in-progress punchlists to assess the contractor’s physical work relative to the construction substantial completion milestone, a more granular definition of punchlist may be needed. Here are some proposed definitions that can provide guidance to Buyer and Seller as the punchlist changes with the progress of construction.
TIP: An observation listed on the punchlist should identify the inspecting agency/inspector name and date, cite the specific location (s) and the drawing/specification/code, and describe the needed correction to meet with the contract requirements, approved shop drawings or other industry standards for the type of work. TIP: The punchlist observations should be actionable and the description begin with words such as repair, replace, adjust, touch-up, polish, remove, rebalance and clean. Items with words such as install, test, paint, fill, energize, backfill and connect may indicate that base scope is not yet completed. |
What is a Punchlist?
| A punchlist is most common in the construction industry. But it may be an overused term on prime contracts between Buyers and Sellers - when a simple To-Do-List might be more appropriate description for a tool construction managers (CM) use to monitor contractor progress toward achieving contract milestones. Punchlist is not normally part of the definitions in the construction contract Form. As a result, Punchlist means different things to Sellers and Buyers. Definition From various sources of expertise, punchlist is described as:
Punchlist is interdependent with the progress of work by the Seller and the milestones specified by the Buyer in the Contract. The milestones are typically contained in the General Conditions/Provisions (GCs) of a contract document. Punchlist creation is associated with substantial completion and punchlist completion is associated with construction completion. Work Flow Punchlist work flow:
Most US standard contract Forms, cite the requirements for substantial completion and construction completion in the General Conditions/Provisions regarding section related to Performance Schedule and Payments. Punchlist Content The content of a punchlist should contain only minor touch-ups and repairs to installed/constructed work that is described by specific in-scope observations and the locations to be corrected for completion. A punchlist that contains base scope items not yet installed or tested and operational is not acceptable and not suitable for meeting the completion milestone. Items observed that are not in-scope will be deleted from the punchlist and be addressed by the Buyer through other project processes for changes to work. In addition to contract milestones and payments, an acceptable punchlist that the Buyer determines meets the substantial completion requirements is often tied to incentives and liquidated damages. Meeting substantial completion is also related to other contract requirements. Punchlist Interfaces Interfaces with other contract requirements in the work flow include: Item 4-After substantial completion, Seller and Buyer can initiate reconciliation of incentives and liquidated damages. Buyer can suspend consideration of all potential changes, instruct Seller to demobilize and to perform site restoration by the final completion/contract completion milestone, request Seller to submit deliverables such as O&M Manuals, As-Built Drawings Package and Warranties, and if applicable, release performance bonds. Item 5-After construction completion, Seller and Buyer can initiate the contract closeout. Item 7-After demobilization, Seller can reduce insurance coverage. TIP: A punchlist should only be submitted once by Seller and reviewed by Buyer for completeness an accuracy. Thereafter, it is locked down. No items can be addressed. Items can only be verified as completed and closed. TIP: All items on the punchlist should be addressed and closed by the Sellers within a period that avoids the risk of further damage or new conditions that requires corrective action. TIP: For Buyer’s, including their construction managers, that require in-progress punchlists to assess the contractor’s physical work relative to the construction substantial completion milestone, a more granular definition of punchlist may be needed. Here are some proposed definitions that can provide guidance to Buyer and Seller as the punchlist changes with the progress of construction.
TIP: An observation listed on the punchlist should identify the inspecting agency/inspector name and date, cite the specific location (s) and the drawing/specification/code, and describe the needed correction to meet with the contract requirements, approved shop drawings or other industry standards for the type of work. TIP: The punchlist observations should be actionable and the description begin with words such as repair, replace, adjust, touch-up, polish, remove, rebalance and clean. Items with words such as install, test, paint, fill, energize, backfill and connect may indicate that base scope is not yet completed. |
Know the Contract - Part 14, Contract Completion/Closeout
| This is the 14th in a series of discussions that is intended to prompt Project Teams to be aware of the entire contract document, including Information For Bidders (IFB), General Provisions/General Conditions/Terms and Conditions (GCs) and the Technical Requirements [Specifications and Drawings.] Part 14 of Know the Contract is Contract Completion/Closeout. Closeout is the successor to all other work performed under the Contract and it is final set of activities between the Buyer and Seller. While the requirements for Closeout may be scattered throughout the Contract document, the most important are described in the GC’s sections related to Schedule and Payments. At this phase of the Contract, the Buyer’s Contracting Officer is the primary arbiter for determining that all requirements are met by the Seller and confirmed by the Buyer’s Project Manager. Part 6-Schedule Performance and Part 7-Progress & Milestone Payments of this series describe the content in the typical contract Form. Satisfying these requirements precede completing the Closeout process and documentation, and includes substantiating completion of testing and start-up; training; delivering spare parts; submitting operation & maintenance manuals, software, as-built drawings, asset management data and warranty; and closure of all quality management processes and deliverables. Regardless of the contracting method, such as Design-Bid-Build, Design Build and CM At Risk, the Closeout of the contract is governed by the GCs as well as any Special Conditions and terms negotiated for contract award. The typical activities and topics include:
During the Closeout phase, the Buyer may develop Lessons Learned from the Seller’s performance on the Contract. The Lessons Learned will be utilized by the Buyer to consider changes in requirements as well as management processes and documentation on future Contracts. Some of the topics from Lessons Learned may include:
TIP: The responsible parties for Closeout are the Buyer’s Project Manager with support from the Buyer’s Contracting Officer and the Seller’s Project Manager with support from the Seller’s prime contracting/procurement official. TIP: While risking duplication of requirements, create a separate Division 1 specification covering the requirements and deliverables checklist for contract closeout. TIP: Most US contract Forms were written based on paper transactions throughout the Contract cycle. Due to awareness of threats outside normal contract and project processes, security of products, deliverables and documentation is now part of controlling access to sensitive contract records. As a result, EDMS has replaced paper documents and is used more effectively to segregate, store and restrict distribution of documents that contain sensitive information. TIP: The use of electronic document control system (EDMS) has become a critical part of managing and executing the work at a project and contract level. As a result, there may be a need to create requirements for content, format, compatibility and the transfer method of the Seller’s EDMS with the Buyer’s hardware, software and the organizational management of records. TIP: Ensure Closeout requirements and terminology are well defined and are consistent with the process and requirements in the GCs. Clarity of terms is essential for both the Buyer and Seller. TIP: Buyer’s Contracting Officer should provide clear guidance to the Buyer’s Project Manager on the process, timeline and documentation required to satisfy the contract closeout. |
