1 Scope
1.1This standard governs the administrative and procedural requirements for closing out a construction contract, from the Contractor's request for substantial completion inspection through final payment and contract release.
1.2The requirements herein apply to the Contractor, all subcontractors, and all suppliers as directed through the Contract Documents.
NOTE Closeout is the controlled transfer of a finished, documented, and operable facility from the Contractor to the Owner; its purpose is to fix the legally significant dates, verify that the Work is complete and corrected, and assemble the records the Owner needs to operate and protect the facility. (1.3)
NOTE The date of substantial completion is the single most legally significant date in the contract: it starts the warranty and correction-period clocks, starts the statute of repose, triggers retainage reduction, transfers insurance and utility responsibility, and stops liquidated damages. For that reason this standard defines it quantitatively rather than by feel. (1.4)
NOTE This standard covers procedure and sequencing. The content of the deliverables that closeout packages - O&M data, warranties and bonds, and commissioning records - is governed by the standards cross-referenced below, and is incorporated here by reference rather than restated. (1.5)
NOTE Where this standard conflicts with a jurisdictional requirement (building code, certificate of occupancy, statutory lien or retainage law), the jurisdictional requirement governs. (1.6)
2 Referenced Standards
2.1Work and deliverables under this standard shall comply with the latest adopted edition of each of the following unless a specific edition is cited.
2.2Where referenced standards or forms conflict, the more stringent requirement shall govern unless the Engineer of Record or Owner directs otherwise in writing.
| Standard |
Title |
| AIA A201-2017 |
General Conditions of the Contract for Construction (Sections 9.8, 9.10, 12.2) |
| AIA G704-2017 |
Certificate of Substantial Completion |
| AIA G706-1994 |
Contractor's Affidavit of Payment of Debts and Claims |
| AIA G706A-1994 |
Contractor's Affidavit of Release of Liens |
| AIA G707-1994 |
Consent of Surety to Final Payment |
| AIA G734-2019 |
Certificate of Substantial Completion, Design-Build |
| IBC Section 111 |
Certificate of Occupancy |
| ASTM E1971 |
Standard Guide for Stewardship for the Cleaning of Commercial and Institutional Buildings |
NOTE Forms equivalent to the AIA documents above may be substituted where the Owner's contract uses a different document family, provided the substitute captures the same certifications. (2.3)
3 Definitions
NOTE Substantial Completion is the stage at which the Work, or a designated portion, is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or use the facility for its intended purpose. (3.1)
NOTE Final Completion is the stage at which all Work, including correction of every punch list item and submission of every closeout deliverable, has been completed and accepted, allowing release of final payment and retainage. (3.2)
NOTE The Punch List is the itemized record of incomplete or deficient Work observed at the substantial completion inspection that must be corrected before final completion. (3.3)
NOTE Attic Stock (spare materials) is the surplus quantity of installed materials - flooring, ceiling tile, paint, filters, and similar - delivered to the Owner at closeout for future maintenance and repair. (3.4)
NOTE Record Documents (as-builts) are the marked-up and redrawn drawings, specifications, and product data reflecting the Work as actually constructed, including all changes from the Contract Documents. (3.5)
4 Substantial Completion
4.1The Contractor shall request a substantial completion inspection only after the Work, or the designated portion, has reached the minimum completion percentage and satisfied every readiness condition specified in the datasheets below.
NOTE A vague threshold ("essentially complete," "nearly done") is the most common source of closeout disputes because it leaves the warranty, retainage, and damages clocks ambiguous; the quantitative readiness criteria below remove that ambiguity. (4.2)
4.3Prior to requesting inspection, the Contractor shall conduct its own pre-inspection walk with all responsible subcontractors.
4.4The Contractor shall correct all deficiencies identified on the pre-inspection walk before submitting the request for inspection.
4.5The Contractor shall not request the formal inspection until a certificate of occupancy (or certificate of completion for non-occupiable structures) has been obtained or is being issued concurrently.
4.6The Contractor shall submit, with the request for inspection, a Contractor-prepared preliminary list of items remaining to be completed or corrected.
4.6.1Substantial completion readiness
☑ All life-safety systems operational and inspected
☑ All MEP systems started, tested, and in service
☑ Certificate of occupancy obtained or concurrent
☑ Permanent power energized
☑ Contractor pre-inspection walk completed
☑ Contractor preliminary punch list submitted
4.7Upon receipt of the request, the Architect shall inspect the Work to determine whether it is substantially complete.
4.8When the Architect finds the Work substantially complete, the Architect shall prepare a Certificate of Substantial Completion (AIA G704, or G734 on a design-build project) establishing the date of substantial completion.
4.9The Certificate shall fix responsibility for security, maintenance, heat, utilities, damage to the Work, and insurance for the period between substantial completion and final payment.
4.10The date of substantial completion stated on the Certificate shall be the date from which the one-year correction period and all product warranty periods run, unless a specific warranty states otherwise.
NOTE Tying every warranty to a single, certificate-fixed date prevents the common dispute where each subcontractor claims a different start date for its warranty. Extended product warranties are coordinated through
Warranties And Bonds.
(4.11) 5 Phased and Sectional Closeout
5.1Where the Contract Documents permit phased occupancy, a separate Certificate of Substantial Completion shall be issued for each phase or building section placed into service.
5.2Each phase shall have its own punch list, its own record document set for that scope, and its own lien waivers covering the Work in that phase.
NOTE Phasing without per-phase lien waivers leaves the early-occupied phases exposed to liens for months after the Owner has taken beneficial use; per-phase waivers close that exposure as each phase is accepted. (5.3)
5.4A partial certificate of occupancy shall be obtained for each occupiable phase in accordance with IBC Section 111.3 before the Owner takes beneficial occupancy of that phase.
5.4.1Closeout configuration
Prime-contractor-led (single closeout package)
Construction manager at-risk (unified trade-package package)
Design-build (single-entity, G734)
Phased / sectional (per-phase certificates)
● No - single substantial completion
○ Yes - separate certificate per phase
6 Punch List
6.1The punch list shall be produced by a joint walkthrough of the Architect, the Contractor, and the Owner's representative, building on the Contractor's pre-submitted preliminary list.
NOTE A joint walkthrough avoids the two failure modes of one-sided lists: an Architect-only list bloated with items the Contractor considers complete, and a Contractor-only list that omits deficiencies the Owner cares about. (6.2)
6.3Each punch list item shall be indexed by location (room, floor, or zone) and by responsible subcontractor.
6.4Each punch list item shall describe the deficiency specifically enough that completion can be objectively verified.
6.5The punch list shall be frozen at issuance of the Certificate of Substantial Completion.
NOTE Items discovered after the punch list is frozen are not punch list items; they are latent defects handled under the correction period and warranty per
Warranties And Bonds.
(6.6) NOTE Freezing the list prevents "punch list creep," in which the Owner or Architect continues appending new items indefinitely and final completion never arrives. (6.7)
6.8The Contractor shall complete and correct all punch list items within the contract-defined resolution period after the punch list is issued at the Certificate of Substantial Completion.
6.9The Contractor shall notify the Architect when all punch list items are complete and shall request a back-check inspection.
6.10The Architect shall verify each item and shall either accept it or return it as not corrected; returned items shall be re-corrected and re-inspected.
6.10.1Punch list parameters
Joint walkthrough (Architect, Contractor, Owner)
Contractor prepares; Architect verifies
Architect prepares; Contractor responds
○ Location (room / floor / zone)
○ Responsible subcontractor
● Both location and subcontractor
7 Final Cleaning
7.1The Contractor shall perform final cleaning of the entire Work prior to the substantial completion inspection.
7.2Final cleaning shall be performed to the standard of care described in ASTM E1971, supplemented by the specific scope defined in the Contract Documents.
7.3Where the adequacy of final cleaning is disputed, the Architect shall determine acceptance.
NOTE ASTM E1971 is a stewardship guide that establishes the method and level of care; it does not function as a stand-alone pass/fail acceptance criterion, which is why Architect determination governs disputes. (7.4)
7.5Final cleaning shall include removal of all temporary protection, labels (other than required permanent labels), construction debris, and stains from all surfaces.
7.6On a project pursuing green-building certification, the Contractor shall perform the enhanced cleaning and indoor-air-quality flush-out or testing required by the certification program and shall document compliance in the closeout package.
NOTE Indoor-air-quality flush-out and construction IAQ management documentation is a closeout deliverable that is frequently lost because it is assumed to belong to commissioning; assign it explicitly here and coordinate with
Commissioning.
(7.7) 7.7.1Final cleaning scope
Standard contract cleaning (ASTM E1971)
Enhanced / green-building cleaning
Healthcare terminal clean
● Not required
○ Flush-out before occupancy
○ Air testing before occupancy
8 Record Documents
8.1The Contractor shall maintain, at the project site throughout construction, a clean set of record documents on which all changes from the Contract Documents are marked as the Work proceeds.
NOTE Maintaining markups continuously during construction is the difference between accurate record drawings and a guess assembled at closeout from memory; ongoing markup requirements are reinforced in
Construction Progress Documentation.
(8.2) 8.3The Contractor shall record all field changes, including changed locations, dimensions, routing, concealed conditions, and substituted products.
8.4At closeout the Contractor shall deliver record drawings, record specifications, and record product data in the format required by the Contract Documents.
8.5Redline PDF record markups shall be acceptable as an interim deliverable at substantial completion where final CAD or BIM record documents are required.
8.6Final record drawings shall be delivered within the contract-defined period after final completion.
8.6.1Record document format
Redline PDF (marked prints)
CAD (DWG / DXF)
Updated BIM model
GIS layer
● Contractor incorporates markups
○ Architect/Engineer incorporates Contractor markups
9 Attic Stock and Spare Parts
9.1The Contractor shall deliver to the Owner the spare materials (attic stock) specified for each product, in original unopened packaging, to the location designated by the Owner.
NOTE Attic stock is routinely missed because the closeout section says "provide attic stock" while the individual product sections omit quantities; this standard sets default quantities by material type so the requirement is enforceable even where a product section is silent. (9.2)
9.3Attic stock shall be labeled with the product identification, color or finish, and the room or area where the matching product is installed.
9.4Spare materials shall be stored in a conditioned space, in their original packaging, until accepted by the Owner.
9.5The Contractor shall obtain the Owner's signed receipt for all attic stock and spare parts delivered.
9.5.1Attic stock quantities
1 gallon per color per floor
1 gallon per color
5% of quantity per color
● One complete replacement set per unit
○ Two complete replacement sets per unit
10 Demonstration and Training
10.1The Contractor shall provide demonstration and training to the Owner's operating personnel for each system identified in the Contract Documents before final completion.
NOTE Training that is scheduled too late, after the systems are running but before the Owner's facilities staff are hired or available, is wasted; a minimum scheduling notice lets the Owner assemble the right people. (10.2)
10.3The Contractor shall give the Owner the contract-defined minimum advance notice before each training session.
10.4Training shall be conducted by qualified manufacturer representatives or installers familiar with the installed systems.
10.5Each training session shall cover startup, normal operation, shutdown, emergency operation, and routine maintenance of the system.
10.6Where required by the Contract Documents, training sessions shall be video recorded and the recordings delivered as part of the closeout package.
NOTE Training references the O&M data delivered under
Operation And Maintenance Data; the O&M manuals shall be delivered before the corresponding training session so trainees can follow along.
(10.7) 10.7.1Training requirements
520
Default: 10 business days
● Not required
○ Required, recordings delivered at closeout
11 Permit Closeout and Certificate of Occupancy
11.1The Contractor shall obtain the certificate of occupancy (or certificate of completion for non-occupiable structures) from the authority having jurisdiction.
11.2The Contractor shall coordinate the final inspections and closure of all sub-permits, including electrical, plumbing, mechanical, fire alarm, fire sprinkler, and elevator permits.
NOTE Sub-permits pulled by subcontractors are the most commonly orphaned closeout item: each trade pulls its own permit and no single party drives the final inspections, so permit cards are left open long after the building is occupied. Naming the Contractor as coordinator closes that gap. (11.3)
11.4The Contractor shall transmit the certificate of occupancy and all closed permit cards to the Owner as part of the closeout package.
NOTE A certificate of occupancy that the Contractor obtains but does not deliver leaves the Owner unable to bind occupancy insurance or document lawful occupancy; transmittal, not merely issuance, is the obligation. (11.5)
11.5.1Permit closeout
Certificate of occupancy
Certificate of completion (non-occupiable)
Partial certificate of occupancy (phased)
12 Commissioning and Closeout Integration
12.1The Contractor shall incorporate the commissioning records - testing, adjusting, and balancing reports, functional performance test records, and building-automation trending data - into the closeout submittal.
NOTE Commissioning records routinely stay with the commissioning authority and never reach the Owner's bound closeout package; this clause forces them into the package. The commissioning process itself is governed by
Commissioning.
(12.2) 12.3The Contractor shall reconcile any deficiencies identified during commissioning against the punch list so that no commissioning issue is closed without a corresponding corrected punch item.
12.3.1Commissioning and closeout integration parameters
Owner's commissioning agent (independent CxA)
Contractor-led commissioning
Design engineer commissioning
Authority having jurisdiction (AHJ) only
☑ Testing, adjusting, and balancing (TAB) report
☑ Functional performance test records
☑ Building automation system trending data
☐ Pre-functional checklist records
☐ Deferred commissioning plan (seasonal or occupancy-dependent tests)
13 Final Completion and Final Payment
13.1The Contractor shall request final inspection only after all punch list items are corrected and verified.
13.2The Contractor shall request final inspection only after all closeout deliverables required by this standard and by the standards referenced herein — including O&M data and warranties and bonds — have been submitted and accepted.
13.3When the Architect confirms final completion, the Architect shall issue the final Certificate for Payment.
13.4The Contractor shall submit the final Application for Payment, including release of all remaining retainage.
13.5On private commercial projects, retainage shall be reduced from 10% to 5% of the contract value at substantial completion; the remaining retainage shall be released at final completion.
NOTE On public projects, retainage reduction and release shall follow the governing state statute, which overrides the default percentages above. (13.6)
13.6.1Retainage
14 Affidavits, Lien Waivers, and Surety Consent
14.1The Contractor shall submit, as a condition of final payment, a Contractor's Affidavit of Payment of Debts and Claims (AIA G706 or equivalent) certifying that all payroll, suppliers, and subcontractors have been paid.
14.2The Contractor shall submit a Contractor's Affidavit of Release of Liens (AIA G706A or equivalent), accompanied by lien waivers from all subcontractors, sub-subcontractors, and material suppliers.
14.3Where a payment or performance bond is in place, the Contractor shall submit a Consent of Surety to Final Payment (AIA G707 or equivalent) before the Owner releases final payment.
14.4In states with mandatory statutory lien waiver forms, the Contractor shall use the statutory form; a non-statutory form is unenforceable in those states.
NOTE Final lien waivers shall be unconditional and shall match the final payment amount; interim waivers tied to progress payments shall be conditional on receipt of that payment. (14.5)
NOTE Mismatching conditional and unconditional waivers to payment status, or using a non-statutory form where one is mandated, is a frequent and avoidable defect that can leave the Owner exposed to enforceable liens. (14.6)
14.6.1Closeout legal forms
○ Statutory form (state-mandated)
● Non-statutory / AIA-family form
● Unconditional final waiver
○ Conditional on final payment
● No bond - not required
○ Required (payment or performance bond in place)
15 Submittals
15.1The Contractor shall submit the following closeout submittals, packaged and indexed for the Architect's and Owner's review:
- Certificate of Substantial Completion with attached punch list
- Final cleaning certification and any IAQ flush-out or testing records
- Record drawings, record specifications, and record product data
- Attic stock and spare-parts delivery receipts
- Demonstration and training records (and recordings where required)
- Certificate of occupancy and all closed sub-permit cards
- Commissioning records (TAB, functional tests, BAS trending)
- Contractor's Affidavit of Payment of Debts and Claims
- Contractor's Affidavit of Release of Liens with subcontractor lien waivers
- Consent of Surety to Final Payment (where a bond is in place)
- Final Application for Payment with retainage release
☑ Certificate of Substantial Completion + punch list
☑ Final cleaning / IAQ records
☑ Record drawings, specifications, and product data
☑ Attic stock and spare-parts receipts
☑ Demonstration and training records
☑ Certificate of occupancy + closed permit cards
☐ Commissioning records (TAB, functional tests, BAS)
☑ Affidavit of Payment of Debts and Claims
☑ Affidavit of Release of Liens + lien waivers
☐ Consent of Surety to Final Payment
☑ Final Application for Payment + retainage release
NOTE O&M manuals and warranty/bond documents are submitted under
Operation And Maintenance Data and
Warranties And Bonds respectively and are referenced, not duplicated, in this package.
(15.2) 16 Quality Assurance
16.1The Contractor shall designate a single person responsible for coordinating all closeout activities and deliverables across all subcontractors and suppliers.
NOTE A single accountable closeout coordinator prevents the diffusion of responsibility that orphans permit closures, attic stock, and commissioning records when each is assumed to be someone else's task. (16.2)
16.3The Contractor shall not consider any closeout deliverable complete until the Architect or Owner has reviewed and accepted it.
17 Sequencing
17.1The Contractor shall sequence closeout so that the certificate of occupancy and final cleaning precede the substantial completion inspection.
17.2The Contractor shall sequence closeout so that the punch list and record documents precede the final inspection.
17.3The Contractor shall sequence closeout so that the affidavits, lien waivers, and surety consent precede final payment.
NOTE Closeout is a dependency chain, not a checklist done in any order: occupancy enables the inspection, the inspection sets the date, the date starts the clocks, and the clocks bound the resolution and payment steps. Treating it as an ordered sequence is what keeps the legally significant dates clean. (17.4)
17.4.1Closeout milestone sequence
○ Certificate of occupancy before substantial completion
● Certificate of occupancy concurrent with substantial completion