When nearing completion on a large construction project, general contractors tend to start allocating their administrative resources to the next project. Yet it’s precisely at the end when one of the largest and most important administrative tasks begins: the closeout process.

For this reason, and many others, closeouts are persistently inefficient across virtually all construction verticals. Read on for a better way forward.

Why Closeouts Go Sideways So Often

In a webinar poll conducted by ARC, a technology company specializing in document solutions, only 4% of respondents said they do not currently have challenges with closeouts. The rest said they struggle with closeouts on some or all of their projects.

Closeouts go off the rails for six primary reasons.

• 90% of closeouts are still delivered in paper form. A paper-based closeout makes it difficult to maintain a single, updated version of the closeout deliverable. Also, because the paper is often mixed in with digital versions of information, normalizing the data becomes especially labor intensive.
• Gathering information from subcontractors is difficult. When subcontractors are allowed to submit their closeout documents in whatever manner they like, the general contractor is forced to manage content in a variety of formats. Compiling this information is time-consuming and the risk for errors and omissions is high.
• Information is located in multiple locations and formats. Even when information is digitized, tracking and organizing these files, which are stored in multiple locations and formats remains highly labor-intensive. In other words, digitizing information is little help to the closeout process if it’s not done in an organized way.
• File names and types are not consistent. With the incredible volume of documents that flow among project team members throughout the life of a project, failing to establish consistent file names and types creates an unnecessary administrative burden during the closeout process.
• Documents get lost. The closeout process should begin well before construction is finished, with project team members updating a central repository as they go along. What usually happens, though, is that general contractors are left scrambling to find and compile missing documentation at the end of a project.
• Incomplete packages are provided. With misplaced documents, improperly named files, paper-based deliverables and siloed information, closeout packages are often delivered incomplete.

Far-reaching Negative Effects

Though the general contracting firm tends to feel the most pain during the closeout process, it’s not the only party that suffers. Virtually every project stakeholder, including subcontractors, owners, and facilities managers, face the negative effects of inefficient closeouts.

Take the renovation of an existing building for example. When it’s time to renovate, because closeout packages are often incomplete, facilities managers can’t find current as-builts that they can hand over with confidence to the renovation design team.

The result can be significant rework costs in tandem with change orders that occur when a construction team starts renovation work based on a design derived from inaccurate building documentation.

The Path to Smarter Closeouts

Every team should ask themselves five questions to help put the closeout problem into perspective, revealing significant issues and solutions that will inform the improvement strategy.

• What is written into your specifications as your deliverable(s)?
• How do you store your closeout documents?
• Can you quickly locate information in the closeout packages you deliver to the owner(s)?
• Do you know when warranties are going to expire on buildings you have previously built?
• Do you have a closeout standard that you require your subcontractors to meet?

To continue building toward a more efficient closeout process and secure buy-in, communicate the specific benefits to each project stakeholder, including the owner, design team and subcontractors, on an individualized basis.

This communication strategy, along with an easy-to-use, digital solution, will help to get everyone collaborating and on the same page so it can become possible to standardize the closeout deliverable(s).

Certain features—ease of use, cloud-based storage and mobility—can signifcantly help facilitate the mindset shift needed among all project stakeholders to start driving more efficient closeouts.