PUNCH LIST PROCEDURES
By James O. Parker, Jr., AIA, CSI, CCS
Davis Partnership, P.C., Architects

One of the final steps in closing out a construction project is the preparation of a punchlist, a simple tabulation of items not yet complete. This important effort is often misunderstood by all parties, and made more complex and painful than necessary.

Those involved in a project always seem to anticipate that the design consultant, architect, interior designer, or engineer - will just race right out to the project as soon as the contractor hints that construction is done to prepare an exhaustive list of everything that the contractor did wrong. Unfortunately, most projects follow exactly that routine! This creates an antagonistic relationship, causes wasted effort, and does not fulfil contract requirements.

UNDERSTAND THE RULES:
All parties should check contractual requirements for closeout procedures early. Don't just assume how or when a punchlist will be done. And don't let someone dictate the process based upon how we have "always done it" or "everyone else does it that way". Responsibilities are usually clearly spelled out in the agreement between the design consultant and the owner, which often references the General Conditions of the Contract or Construction details. If current AIA forms are used, punchlist requirements (although the word "punchlist" is not used) are in AIA A201-1997, paragraph 9.8.2. Some project requirements may be outlined in customized agreements or general conditions, may be modified by supplemental conditions, or may not follow the process outlined in AIA forms.

START EARLY:
Any construction problems should be corrected early on, not left for confrontation in the closing days. The punchlist is primarily to list problems on the surface of the project. It cannot replace on-going observation and communication. (The punchlist process is a lot like taking delivery of a new car - you walk around the car to make sure there are no problems before you drive it off. If you get home and discover the fender is scratched, there is going to be an argument. But, you don't need to check that the fender is bolted to the car. If it falls off later, the dealer has an obligation to fix it.) Care should be taken to avoid creating an adversarial relationship about the punchlist. The design consultant should not adopt the mindset that the punchlist is an opportunity to finally list everything the contractor did wrong through the course of the project.

PLAN AHEAD:
Understand how the contractor plans to finish the job and how the owner will occupy the building, so that everyone knows how many punchlists will need to be done and at what times. (At the very end of a project, both tempers and time may be short!) Understand when the contractor is going to move off the site and when the owner absolutely must move in. If the schedule is going to require many punchlists, additional compensation to the design consultant may be required. Clarify everyone's roles and responsibilities.

LET THE CONTRACTOR START IT:
Inspecting and properly completing construction is the contractor's responsibility, not the design consultant's. The contractor has worked for a long time and many subcontractors coordinating a complex effort. At any time during the project, the contractor knows what needs to be fixed and completed, what materials have not yet been delivered, etc. Does it really make sense that the design consultant should jump in at the last minute and generate a new list of things the contractor already knows about?

The AIA's General Conditions require the contractor to submit, in writing, a "comprehensive list of items to be completed or corrected". This has the important effect of creating a statement that everything else is completed in accordance with the contract documents. Contractors may claim they can't create a list because everything really is finished and they simply don't have anything to list. If so, have them put that in writing. According to the AIA documents, only after receipt of the contractor's list is the design consultant to perform a verifying inspection.

It can really help to have everyone do punchlist in the same order and format - don't let a mechanical consultant prepare their list from floors 3 to 1, while the electrical list is from floors 1 to 3. Communicate to all consultants what the overall process is, and exactly what they are to produce by when. Look out for them making undocumented "deals" with subcontractors or preparing their punchlist without following your procedures.

SUBSTANTIAL COMPLETION:
Don't lose sight of the overall purpose of the punchlist - it is related to substantial completion, the date when the project, or portions of the project, are complete enough so that the owner can occupy or use the project or portion for the intended use. (But, the owner can also move in or use the building before substantial completion.) Read contractual requirements regarding substantial completion carefully. Know where you are headed before you begin the overall close out process. The Certificate of Substantial Completion also establishes responsibilities between the owner and contractor for related security, maintenance, heat, utilities, and insurance issues. Agree well in advance how these items are to be handled.

INSPECTION PROCEDURES:
The design consultant should actually carry and use the contractor's list - no matter how good or bad it is during the walk through. The design consultant can then just verify and add marginal notes to the contractor's list. (Zoom the contractor's list up on a copier.) Performing the inspection in this fashion maintains the contractor's format and shows that the contractor's list was comprehensive (or not).

As the design consultant adds items yet to be completed or fixed, that list should not separate work by trades or contain assumptions about which subcontractor is to do the repair - that is the contractor's job. (The contractor may require the plumber to have a door fixed if the plumber scratched it. Hopefully, the plumber won't actually do the painting!)

The design consultant should not tell the contractor how to fix the problem, just identify it. The "means and methods" of repairs should not usually be detailed. The design consultant may not be able to judge what it takes to fix a problem. If the contractor fixes something using methods recommended by the consultant and the problem isn't corrected the consultant may be at fault. So, just state what is wrong - i.e. - "Door 123 doesn't close properly" instead of "Trim top of door 123". "East wall is stained" instead of "scrub east wall". Think about including photographs in the punchlist documentation.

The contractor's project manager or superintendent should participate in the entire punchlist walk through. If the contractor attends, repairs can start even before the walk through is finished. Everyone will have seen the same thing and can better deal with any confusing or complex issues.

If at all possible, conduct the walk through with the owner and get the owner's comments incorporated. If nothing else, have the owner prepare a list before the walk-through. No one wants the owner coming up with a new list after everyone else has completed their reviews and repairs are underway. If the Owner has specialized consultants - such as security, food service, etc. - make sure they are included in the process.

If the design consultant finds so many things wrong that adding items to the contractor's list simply doesn't work, chances are that the project is not really "substantially complete". The contractor either needs to finish construction or prepare a more comprehensive list. The design consultant shouldn't solve such problems by taking on the responsibility to do an exhaustive list from scratch. The design consultant can stop the substantial completion process when an incomplete or massive list is first received from the contractor or can stop partway through a walk-through when it is discovered the work really isn't done. If repeated or extensive punchlists are required, the consultant may be entitled to additional compensation.

After a walk-through (and the same type of review by all disciplines), the lead design consultant can type up the certificate of substantial completion. Although not specifically required by the AIA's general conditions, punchlists should be physically attached to the certificate of substantial completion. That package may be big - the certificate, the contractor's list, the consultant's additions, the engineers' lists, etc., but it is worth it to have everything in one place, signed off on by everyone to document what remains to be done.

The design consultant should resist the urge to tidy up the punchlist into one nice neat list, even if the contractor has provided something hand-written and a whole pile of sub-lists have been collected from subconsultants. Retyping takes significant effort, and likely will delay how quickly the punchlist can be issued and repairs can start. Redoing the list can also introduce typos, add interpretation, and make the list difficult for the contractor to follow. A retyped list becomes "the design consultant's list", and the consultant then is responsible for constant updating and re-issuing. If it stays the contractor's list, the contractor can keep updating it as items are completed or resolved.

The punchlist is not just a look at the physical building. It should list everything that still needs to be done to complete an entire contract for construction including administrative items not complete, such as operation and maintenance manuals, warrantees, city signoffs, record documents, etc. Review all parts of the specifications and the submittal log to ensure that all open issues are listed.

Through careful communication and attention to established procedures, the completion of a construction project can be rewarding and productive instead of rushed, adversarial, and frustrating for everyone.

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