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Hey Contractors Here s How To Survive Close Out
uring the lead up to
substantial completion, » Coordination
problems start popping up » Communication
like crabgrass. You can’t stop » Commitment
them. You can’t avoid them. They » Forgiveness
drive you nuts, constantly
testing your temper by pushing Each habit is simple, doable, and
your hot buttons. takes just a little
self-discipline.
If you are one of the finishing
trades (painter, flooring, finish COORDINATION
carpenter, etc) you end up
tripping all over yourself to Start your close-out process
finish the job, to avoid weeks or months in advance. A
liquidated damages, and to remain good rule of thumb is one month
efficient. for any job whose duration is
less than 6 months. Two months
Regardless of whether you are a for jobs up to one year, and
finishing trade, all trades three months for jobs over one
struggle with the close-out year.
paperwork.
At the appropriate time, your
You need an emergency action plan office should scour the
to survive close-out and to get specification to list all of the
your retention application paid items required for close-out and
promptly. final payment. A check sheet of
all requirements should be made
Four habits will help you ride and sent informally to the
out the close-out process builder.
relatively painlessly.
Start pulling together all of the to everyone involved on the
paperwork required for close-out. project: your in-house staff,
Pester your suppliers for the your field leader, and your
operation, maintenance, spare suppliers. Create a detailed
parts, and warranty action plan that includes
documentation. Get your lien completion date and responsible
releases up-to-date and party for each task.
organized. Make sure your
insurance certifications are Visit with the builder and the
ready to go with properly architect to learn their quality
identified insured parties. hot buttons. Everyone has
personal pet peeves - best to
Sit down with your site leader uncover them while you can still
and plan out the remaining work. do it right the first time. If
Make sure you have arranged for you start this discussion early,
all of the materials, equipment, you may have time to reason with
and personnel he needs to finish them.
the job promptly.
Your expertise on the standard
Make sure every one of your RFIs means and methods for your trade
has been answered to your probably far exceeds the
satisfaction. Follow up on open knowledge of the architect and
change orders. Triple check your builder. They can be persuaded if
pay applications to make sure approached correctly. Act
they are correct. sufficiently humble to avoid
putting them on the defensive.
COMMUNICATION
If you feel their demands are
Express the importance of a above and beyond the contract,
smooth, well-organized close-out settle that later. Fighting that
fight during close-out is exercise program to a "T".
guaranteed to cost you money now
and in the future. Action plans only produce the
desired results when their tasks
The best approach to punch lists are carried out on time. On-time
is to take the bull by the horns. completion often requires a
Don’t lie back and hope the commitment of significant
builder, architect, and owner resources for a brief period of
will let you slide on quality. time. Make that commitment.
If they see a perceived problem Nobody involved in the project
and do let you slide without can approach close-out as if
fixing it, they will end up their usual work effort will be
demanding an unfair reduction in sufficient. It will not be.
payment to offset perceived
less-than contracted quality. Close-out requires a sense of
urgency, a total commitment to
Once you know their quality hot finishing every task 100%
buttons, create your own punch complete. Other priorities must
list which identifies areas that be juggled to accommodate
would upset them. successful close-out.
COMMITMENT FORGIVENESS
You must stay committed to your To avoid financial punishment,
action plan, your contractual you must keep your emotions in
obligations, and your check during close-out.
professionalism. People don’t
lose weight and get in shape Why? As in emergencies, where our
unless they follow their diet and natural instincts are often fatal
courses of action, so go You will need to dig deep in your
close-outs. During close-out, our heart to forgive your fellow
natural instincts will often lead contractors, the builder, and his
to horrific financial outcomes, client, the owner, for the things
turning a profitable job into a they say and do during close-out.
money loser.
Forgiveness displays leadership.
Contractors who keep their heads Leadership earns respect. Respect
during close-out, score big leads to fair resolution at job
points with builders and the end...and more work in the
owners. future.
Contractors who fail to temper Close-out is the tipping point of
their anger, place the bull’s eye customer satisfaction. It forms
of back charges on their chest. the builder’s and owner’s final
opinion of your company’s
The key to controlling your performance and reliability.
emotions when all those around
your can’t? Excelling during close-out sets
the stage for future work.
Forgiveness.
About the Author:
Ron Roberts, The Contractor's Business Coach, teaches contractors how to turn their businesses into a profit spewing machines. To receive Ron's FREE Contractor Best Practices Newsletter visit http://www.FilthyRichContractor.com.
Read more articles by: Ron Roberts
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