contract closeout, reporting and documentation system

7/23/2019 Contract Closeout, Reporting and Documentation system

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CONTRACT CLOSEOUT/

REPORTING/DOCUMENTATIONSYSTEM

Construction Method and Management


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...Construction Phase CM tasks

ProjectdocumentationRequirements

ProjectDocumentation

System

Prepare anAgenda

and Meeting

Transfer ofOwner-purchased

material

MonitorContrator'sprogress

Communicationand

Exchange ofinformation

Daily reportingsystem#4. Slide

4Administer QA

Review safetyplan

Resolve Changes

Issue *CO reportMonitor Cost

recordEstablish Cash

Flow report

Establish a systemTo control Contractor's

paymentEstablish report

PrepareSummary

To the Owner

Receive andEvaluate notices

Review drawingsBefore approving

Final payment

Reporting System


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...Post Construction Phase CM tasks

compilation,organization andturnover of thesematerials

Final Inspectionswith the ownerand designer

expeditecompletion of the

Contractorssubmittals

should providethe owner with alist of contacts forremaining work

, summarizing theproject history

at the ownersrequest, the CMshould assist inmove-in/start up.

the acquisition ofand compliance

of all permitrequirements

requirements forspare parts and

warranties.

Contract closeout


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...reporting systemDaily Construction Report

Report numberDate and day reportProject name and numberWeather conditionsName of contractor whose workwas specifically involvedWorkforceDescribe all works in progressProblems and difficulties

encounteredCompleted form should be signed

and dated.

PMArea superintendentProject engineersinspectors

Identify the number and classification of allcraft labor at the site for each contractor

Identify the number and type of major constructionequipment on the job. Specifically note if equipmentwas idle or active.

Items requiring supervisory attentionshould be attended to promptlyandsonoted on the original inspectionreportModifications to original reportshould be notedand initiated bysupervisor at a time of reviewOne copy of each report should besent off site for safe storage.Information contained in the dailyreports should be summarized as

appropriate to form the basis of anyweekly or monthly reporting that isrequired.


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Monthly Change Order report

Date of discovery, notification of the problem

Brief description of the issue

Potential changes should be assigned areference number

Construction managers evaluation of theissue

Construction manager estimate of time, cost,or both requires for equitable compensation.

Any time cost adjustments requested orproposed by the contractor.

Agreed upon compensation Date of resolution

Change order reference number.


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. Monitor and maintain cost records

establishing a system for segregating and documenting

forced account work resources.


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establish cash flow reporting system

develop a cash flow monitoring system and integrateit 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 performedthrough the period of payment request.


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establish report formats for submissions to the owner ona weekly, monthly or quarterly basis, depending upon theindividual project requirements.

Typical report includes:construction schedulesummary project costcash flowchange order (pending and approved)


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Prepare narrative to the owner

pointing out impacts, exceptions and revisions to the management plan.

including:monthly report incl. problemimpactchangesdelaysplan approach in solving the effect of ff. mentioned above.


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...Documentation System

Capable of:

RecordingStoringRetrieving information

TechnicalFinancialadministrative


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Required Project Documentation

- is imperative for the following reasons:

- integral part of all construction managementactivities. Project records should be:

Project- subject of LENGTHY claims and LITIGATION.

Actual recordcan beinvaluable when negotiating and Evaluating

Contractors request for compensation.

Written recordcan be valuable.

made CONTEMPORANEOUSLYwith 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 therecords at a later date.


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Recording Construction Activities Use still photographic images and narrated video camera recording to enhance all written documentationfrom preexisting site conditions to final inspections. The Construction Field Inspection Log (see Figure 4.21) or other line management approvedform should provide a documented factual record of the work performed each day, as well asAll changesthat 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 ofhazardous materials (residual radioactive material, hazardous waste, hazardous substance).Construction inspections and quality control tests performed. Include time of tests and inspectionsand 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.
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Typical information that must be handled by a project documentation system:

Pre- Contract Documents Contract Documents Technical Contemporaneous Correspondence Scheduling Cost

1. Bid package drawings and specifications2. Pre-bid Meeting minutes3. Pre-bid schedules4. cost estimate and takeoffs (designPhase)5. contractor's bid proposal6. bidder prequalification information7. technical proposal8. bid analysis

1. original contract2. bonds and assurance certificates3. pre-contract negotiation4. plans and specifications issued for contruction5. notice to proceed.

6. any notices or changed conditions, request for *CO,or *CO proposals7.directives8. 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


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1. log and file of all design and fieldrevisions

2. log and file of all request for information.3. log and file of all shop drawings4. inspection/ testing/ QC report.5. record drawings.6. operation and maintenance manuals7.warranties and guarantees.

1. daily reports2. daily diaries3. daily labour reports4. accident reports5. progress photos6.material deliveryreports

1. directives2. meeting minutes

3. generalcorrespondence


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1. Project/ program master schedule2. preliminary contractor schedule3. approved contractor baseline schedule

4. periodic updates5. scheduling meeting minutes.

1. approved schedule of values2. applicable labour rates3. work order time sheets4. bid analysis5. periodic labour distribution6. control budget.7. payment request and actual disbursementWith explanation of discrepancies.


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Contract Closeout

By definition, projects have an end point. Closing out is a very importantphase 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 contractualrequirements Preparing for the transition of the projectinto the next operational phase,such as from production to field installation, field operation, or trainingAnalysing overall project performancewith regard to financial data,schedules, and technical efforts.


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Although most project managers are completely cognizant of thenecessity for proper planning for project start-up, many project managers

neglect planning for project termination. Planning for project terminationincludes:

Transferring responsibilityCompletion of project records

Historic reports Post project analysis


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Documenting results to reflect "as built" product or

installationAcceptanceby sponsor/user Satisfying contractual requirements Disposition of materials Closing out work orders (financial closeout) Preparing for financial payments


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Closeout Document:warranties/guaranteesCertifications

maintenance manualscontractors' statements (tax forms)Targeted Small Business Reporting forms (if applicable), etc.


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the completion of the project identifying the sales taxand/or use tax paid on all supplies and materialsincorporated into the Work.


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coordinate the compilation, organization andturnover of these materials

Post Construction Phase CM tasks


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coordinate the requirements for spareparts and warranties.



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coordinate the acquisition of allrequirements permits and compliance of allpermit requirements



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at the owners request, the CM shouldassist in move-in/start up.



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conduct Final Inspections with the ownerand designer when the final punch list iscomplete. When the parties are satisfied that allwork is complete, the CM should recommendthat the final payment be made.



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should expedite completion of theContractors submittals including certificate ofsubstantial completion, punch list completion,final lien viewers, guarantees/warranties andfinal payment application.



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the CM may stay on to complete warranty

work, but it is usually not cost effective.Therefore, the CM should provide the ownerwith a list of contacts for remaining work.



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all reports that have been issued during thedesign and construction phase should be

prepared in final form, summarizing the projecthistory including costs reports. The reportshould note the date of substantial completionand commencement of warranties.



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CloseoutProcess

It is important to note that the closeout of the construction contract or contracts onthe project is only one step in the closeout of the project.
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