Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery (2020)

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31 8.1 Introduction This chapter introduces the closeout phase and presents tools that facilitate administering the CM-GC project closeout. It addresses • CM-GC closeout process overview and • Closeout phase contract administration. When a highway project covers a long distance, the closeout phase may be spread over a long time. A proactive approach to the administration of closeout will help ensure that all closeout activities are completed in a timely manner before project activities wind down and allow team members to move on to other projects. 8.2 Construction Manager–General Contractor Closeout Process Overview Closeout is the final phase of CM-GC contract administration. This phase ensures that the project scope is completed and that all activities are well documented. In general, the CM-GC closeout process is similar to the D-B-B closeout process. There are only a few differences for CM-GC closeout. For example, the engineers may provide less detail in some of their designs because they only needed to design for one contractor’s interpretation. In some cases, then, as-built plans may need additional detail to comply with agency requirements for record drawings. Key activities in the closeout phase include • Conduct final inspection. – Perform inspection. – Review punch list work. • Review final turnover documentation. – Review as-built plans. – Review contractor turnover documentation. – Review contractor payments. • Review invoice for final payment. • Review corrective action completion. • Execute contractor release. • Conduct contractor evaluation and lessons learned. • Execute warranties. C H A P T E R 8 Closeout Phase Administration

32 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods 8.3 Closeout Phase Contract Administration Tools In this phase, the agency seeks to ensure the completion of construction and facilitate the transfer of responsibility of the completed project from the CM-GC firm. As introduced earlier, these actions may include conducting final inspections, receiving turnover documen- tation, and reviewing corrective actions. Activities leading up to closeout are typically initiated early in the project so that the appropriate project documentation can be made available in the closeout phase. Construction challenges and the push to close out a project can strain relationships. The 9 Continuity of Team Members tool can help support closeout activities because the same key people working on the project during early alignment, design, preconstruction, and construc- tion are also involved in closeout. Decisions and agreements made earlier in the project are more easily remembered and fulfilled when key team members have been involved throughout the project. Using the 8 CM-GC–Specific Partnering tool during the project—from procurement until closeout—can provide a team with a framework for working collaboratively and efficiently. Federally funded projects will have FHWA requirements at the closeout phase, and 10 FHWA Involvement Overview can help the team keep track of these requirements. Some permit com- mitments with regulatory agencies may also be a part of closeout, and the 11 Permit Commit- ment Database tool can facilitate compliance. The 20 Delegation of Authority tool facilitates timely decision-making when questions arise related to payment, punch list items, claims, warranties, and other documentation. 32 Payment Checklist clarifies the steps for invoicing and final payment, as well as responsibilities for each activity. 7 CM-GC Management Fee Table identifies project costs to which CM-GC fees are tied, including costs incurred late in the project. By closeout, the public has lived through a period of construction, and 19 Public Announcements can help communicate the benefits—such as time, cost, access, and safety—that the project achieved. Closeout is a continuation and culmination of the construction phase, with the added requirements of finalizing documentation and payments. Some of the tools used in earlier phases can and should continue to be used during closeout. Tools used in closeout help the project team fulfill project goals, permit requirements, and contract requirements. Closeout administration tools are listed in Table 8.1. 8.4 Summary The closeout phase of a project is a joint effort between the agency and the CM-GC firm. This chapter highlights tools that agencies can use to administer CM-GC project closeout. All of the tools for this final phase were used in one or more of the earlier phases. So, by the time the project gets to closeout, the team should have a good process in place for using these tools. The primary goal of these tools is to help project participants communicate, document, plan, and execute closeout efficiently. The tools presented in this guidebook may inspire agencies to develop new tools or adapt some of the existing tools based on the needs of a particular proj- ect or their agency’s organizational structure. Detailed information on each tool—and various examples generously provided by leading agencies—are available in Appendix A.

Closeout Phase Administration 33 Contract Administration Phase Project Complexity Project Size Tools for Construction Manager–General Contractor Closeout A lig nm en t D es ig n P re co ns tr uc ti on C on st ru ct io n C lo se ou t N on co m pl ex M od er at el y C om pl ex C om pl ex $1 0 m ill io n $1 0 m ill io n– $5 0 m ill io n > $5 0 m ill io n Phase 5. Administer Closeout of Construction Manager–General Contractor Project 7 Construction Manager– General Contractor Management Fee Table 8 Construction Manager– General Contractor– Specific Partnering 9 Continuity of Team Members 10 FHWA Involvement Overview 11 Permit Commitment Database 19 Public Announcements 20 Delegation of Authority 32 Payment Checklist Note: = Recommended; = Consider case by case; = Not recommended. Table 8.1. Summary of construction manager–general contractor closeout phase tools.