Masonry Magazine June 2000 Page. 19
The Joys of Contracting
That's what I mean by frustrating. But the truly scary part is that the punchlist is only one way that an otherwise profitable and successful masonry job can become derailed in the final (and most critical) stages. There are many other common closeout requirements that if left unperformed - could jump up to plug the money conduit. Now at a point so late in the job, you likely have a lot invested in the project. You may have even extended your own money to cover interim payments to subs and suppliers. It's clearly no time to lose control of the revenue flow!
So, to insure that the payments keep coming (and particularly that crucial last payment), it becomes vital to understand and satisfy your responsibilities for closing out a construction project. You have to know what your responsibilities are, have procedures in place to handle their administration, and be able to anticipate potential roadblocks so as to allow yourself to quickly and efficiently handle any number of possible arguments that could possibly delay your final payout, the very same payout that likely includes your company's entire profit line-item!
Project Close-out Requirements
And so, with this goal in mind, let's take a moment to examine some common requirements of the construction close-out process and try to gain control over those elements that can often spell the difference between receiving your money now or later:
The Punchlist. Already alluded to above, the punchlist is probably the most familiar closeout procedure to most masonry contractors and maybe the most perplexing. A punchlist is a list most often created by the owner and architect in tandem of work items or deficiencies that are required to be completed and/or remedied by all contractors (general & subs) before a final payouts will be released. Obviously, this makes the punchlist a very important document and one that can often end up being hotly disputed between the owner, architect, general, and masonry contractor.
And yet, I've noticed that these disputes generally don't center around that the punchlist itself exists - most reputable masonry contractors understand the importance of fulfilling final details and obligations - but rather, that the overall punchlist procedure itself is so undefined, inconsistent, and so-easily bastardized by an occasional inflamed ego or just plain animosity on the part of the architect and owner.
I've had jobs where I've received just one punchlist that included perhaps a dozen or so items, while at the same time, I've had other jobs (of similar scope, size, and complexity) that generated 3..4..5..and more punchlists, each containing many previously unknown (and growingly ambiguous) "deficiencies." In fact, punchlist directives can often times be so vague that it's difficult to discern the problem - let alone provide a remedy.
I recently finished a city hall project where the architect included in his punch list phrases like "doesn't appear" and "doesn't seem to be what the plans and specs had intended]." No further explanation or detail was offered. Appear? Seem? Apparently, somewhere along the line, mind-reading became a pre-requisite for becoming a construction masonry contractor!
The reality is that punchlist items can range from justifiable to ludicrous and other times, it simply doesn't matter. You see, even if you can prove that a particular item is absurd you're still not out of the woods. Many an architect (who generally do most of the list), not willing to admit that they're in (horrifyingly embarrassing) error and not wanting to show professional weakness in front of the owner-will simply fall back on the classic (say it with me...) "yes-l-know-it-doesn't-make-sense but-I'm-the-architect-and-besides I'm holding-your-money" method of construction project management.
So, to protect yourself and your company, ask your general to insist on one punchlist. Then, you insist on one list from the general and hold firm. If that means that everyone needs more time to work up the (one and only) list; fine. The point is, the punchlist process should (and needs to) have a conclusion that really is a conclusion. Let everyone know that you will be satisfying only one punchlist. Then, once that list is satisfied, have the general, architect, or owner (preferably all, but that just may not be possible) sign off on the work. This eliminates them coming back later for questionable problems. Yes, they may protest but hold your ground! You do have some rights.
Project Record Drawings & Documents (As-builts)
At the end of most commercial building projects, you (the mason contractor) are required to...