A GUIDE TO SUCCESSFUL
                                    PROJECT MANAGEMENT

As Project Manager, you should check at the beginning of the project that there has been a
procedure established by the Contractor or Construction Manager regarding documentation of
changes on the project. This would include monitoring, reviewing, and documenting changes on
the project and monitoring transference of that information onto the plans. You should also
check the plans periodically to make sure that any changes made are accurate.


Preparation of As-Builts
On small projects, charge the Contractor with the responsibility for preparing the as-builts. On
all other projects, you have the option of having the Construction Manager prepare the as-builts.

Documenting Changes
Changes on the project should be documented periodically throughout and at the end of the
project. The Contractor and the Construction Manager should review all changes made to
ensure that they are accurate. As a check, you (Project Manager) should look at the as-builts to
make sure the changes have been reflected on the plans every time a Change Order is issued.

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                                    A GUIDE TO SUCCESSFUL
                                    PROJECT MANAGEMENT

SECTION VIII:              PROJECT CLOSEOUT—Warranties/Guarantees
As Project Manager, you should collect the appropriate warranties and guarantees from the
Contractor during the project closeout period. Once you have them, you are responsible for
comparing the length of warranties/guarantees in the contract to the length of time as actually
submitted by the Contractor to verify that they match.


Collecting Warranties/Guarantees
The Contractor is responsible for gathering together all warranties/guarantees for appropriate
contract items; this includes those from all subcontractors. Of particular importance are the
warranties/guarantees for electrical, mechanical, and plumbing.

Get three copies of each warranty/guarantee from the Contractor, along with a notarized
Warranty/Guarantee Assurance form (see Index) for each. Once you have them, check their
length of time with the requirements in the contract. Bring any discrepancies to the attention of
the Contractor.

Distribution of Warranties/Guarantees
Distribute the three copies of the warranties/guarantees as follows (along with any
maintenance/operations manuals collected):

  1.     A copy to the Client Department as part of the final documentation.

  2.     A copy to the Maintenance Management Division or other appropriate Client

  3.     A copy filed in the project file, along with the original of the Warranty/Guarantee
         Assurance Sheets.

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                                    A GUIDE TO SUCCESSFUL
                                    PROJECT MANAGEMENT

SECTION VIII:              PROJECT CLOSEOUT—Ribbon Cutting Ceremony
The Client Department should be involved in preparation for any ribbon-cutting event that is
organized at the end of the project. They will want to have input regarding the timing of the
event, the people involved, and the publicity for the event. Your job as the Project Manager is to
work with the Client Department in deciding whether a ribbon-cutting ceremony is needed and
the magnitude of the event. You will serve as the facilitator of the event, working with other City
staff and the firm hired to organize and implement the event.


Determining the Need for the Event
In deciding whether or not to have a ribbon-cutting ceremony, involve the Client Department in
all decisions. To evaluate the need for such an event, consider the:

  1.     Impact on the project area's businesses, residences, and community.

  2.     Political and social support for the ribbon-cutting.

  3.     Magnitude such an event would take.

Setting Up the Event
If both you and the Client Department decide that a ribbon-cutting event is desirable, establish a
ribbon-cutting committee to be involved in the organization of the event. This committee may
involve people from within and outside of the Project Team. Consult with the Client Department
regarding those who will serve and how the Client Department wants to be represented on this
committee. Make sure to include the Assistant to the City Manager – Community Relations in all
planning of the event.

Possible things that the committee may want to discuss are the type of promotions or ads in
local papers and/or on cable TV. Involving business groups in the ceremony is definitely

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                                    A GUIDE TO SUCCESSFUL
                                    PROJECT MANAGEMENT

SECTION VIII:              PROJECT CLOSEOUT—Project Files
You (the Project Manager) are responsible for overseeing the purging, consolidation/
integration, and storage of the project files after completion of the project.


Integration/Organization of Files
When the project has been completed, integrate all project files. This includes files of
Inspection, the Consultant, the project files, and the Project Manager's/Construction Manager's
working files.

Once all the project files have been integrated, go through all the existing documentation,
organizing them and purging any duplicates. Organization means sorting the documents so that
like documents are together (e.g., Change Orders and Change Order backup).

Storage of Project Files
When preparing records for storage off-site, have permanent records (e.g., Specifications,
Change Orders, etc.) boxed separately. Likewise, documents with a finite storage life should be
boxed together, with the destruction date included on the outside of the box. Any information
regarding maintenance/operations of the project facility or equipment should not be stored
offsite. Make a duplicate of the maintenance/operation files and give them to the operators of
the facility being constructed.

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                                    A GUIDE TO SUCCESSFUL
                                    PROJECT MANAGEMENT

SECTION VIII:              PROJECT CLOSEOUT—Final Payments and Final Accounting
Final payments should not be made (i.e., Final Progress Payment and the release of the
retention amount) nor the project closed out until everything required has been completed. This
includes settlement of all claims, submission of all Change Orders, completion of all punchlist
items, etc.
Final Progress Payment
Once the Contractor has reached substantial completion on the project, process the Final
Progress Payment according to the guidelines for progress payments throughout the project
(refer to Section VII, Progress Payments). Be sure that the guidelines for final completion and
final payment are in agreement with those same topics in the General Conditions of the Contract
Before processing the Final Progress Payment, determine whether there are still items
remaining on the punchlist. If there are, estimate the value of all of these items yet to be done
and deduct one and one-half times the estimated value of those items from the final payment.
In addition, make sure that the project has been completed (e.g., there are no stop notices,
you've received the maintenance/operations manuals and Warranty/Guarantee Assurance
Sheets, the punchlist items have been completed, etc.
Do not hold final payment because of uncompleted work. You may only retain one and one-half
times the actual value of the uncompleted work.
Final Accounting/Release of Retention
As part of the final accounting closeout process:
  1.     Process a Change Order to balance/adjust the contract to reflect the actual work
  2.     If there are reimbursement requests and project reports that need to be submitted to the
         funding agency, process them at this time.
  3.     Prepare a project acceptance report entitled Request to Accept Work as Complete (see
         Index). This will include items such as the:
               Summary of Change Orders.
               Date maintenance period was completed.
               Summary of all payments.
               Cost of construction to date.
               Construction period to date.
               Number of additional days on contract.

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                                    A GUIDE TO SUCCESSFUL
                                    PROJECT MANAGEMENT

SECTION VIII:              PROJECT CLOSEOUT—Final Payments and Final Accounting
Final Accounting/Release of Retention (cont'd.)
  4.   Have the City Engineer and the Client Department sign their acceptance of the report.

  5.     Release the amount retained within 35 days after the recording of the Notice of
         Completion in the County Recorder's Office.

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                                    A GUIDE TO SUCCESSFUL
                                    PROJECT MANAGEMENT

SECTION VIII:              PROJECT CLOSEOUT—Notice of Completion
The Notice of Completion is prepared and sent to the County for recording after the project
reaches final completion.


Once the project reaches final completion as defined in the General Conditions of the Contract
Documents (refer to criteria identified in Section VIII, Final Payments and Final Accounting),
identify any things that are not finalized when the Notice to Completion is about to be executed.
Include these items in the Notice of Completion as exceptions.

When the Notice of Completion is ready to be prepared and executed, forward the name of the
project and the project completion date to the Administrative Staff Assistant (for Construction
Services). The Administrative Staff Assistant will prepare the Notice of Completion (see Index)
and forward it to the City Engineer for signature. This Notice must be signed by the City

Once the document has been prepared, send it to the County Recorder's Office. The Notice of
Completion will be recorded and a copy returned to you. Within 35 days of receipt, you may
release any retention funds owed to the Contractor.

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