Project Closure Steps for Distribution Projects

1. Project Closure
****Gyaneshwar Suman

2. Introduction
Closing a project is a process of finalizing all activities across all the project
management groups to formally close the project or a project phase or this is the
last phase of a construction project and is as important as any other phase in the
project.
This is a process of completing and documenting all the construction tasks
required to complete the project.
A poor project closure (or close-out, as it is referred to sometimes) leaves the
client unsatisfied and may prove to be a cause for not getting repeat business.
Thus, project closure should be meticulously planned.
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3. Closing a Project:
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 Project closure consists of a number of tasks. The project closure phase can be
divided into the following broad headings:
i. Construction closure or Closing Procurements
ii. Financial closure
iii. Contract closure
iv. Project manager’s closure
v. Lessons learned from the project
vi. Closing Project or Phase(Administrative Closure)
The process also includes activities to investigate and document the reasons
if a project is terminated before completion.

4. Procurement Closure
This involves preparation of the project punch list, which is a list of deficiencies
identified during the combined inspection of constructed facilities by the
representatives of client, contractor, consultant.
 During the regular inspection also, deficiencies are reported to the contractor by
the consultant, and the client’s representative.
The punch list is prepared usually towards the end of the project when all major
construction activities are completed.
The punch list is formally handed over to the contractor, who takes steps to rectify
the deficiencies thus pointed out.
There may be a situation in which some of the deficiencies pointed out in the
punch list may not be part of the contract, and the contractor in such cases usually
asks the owner for extra payment.
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5. Certificate of Substantial Completion
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For a contractor, obtaining the certificate of substantial completion is an important
milestone event as it ends the contractor’s liability for liquidated damages (LD).
Substantial completion refers to a situation in which the project is sufficiently
completed.
In other words, even though some minor deficiencies may be present (all the
deficiencies pointed out in the punch list may not have been attended to), the
constructed facility can now be used for its intended function.

6. Certificate of Occupancy
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This is usually issued by the municipality under whose jurisdiction the project
location falls.
It indicates that the constructed facility complies with the entire codal requirement
and is safe to be occupied.

7. Demobilization or Release of Resources
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This consists of demobilization (release) of resources such as staff and workers, and is
as important as their mobilization.
The closure of office, removal of unused materials lying in store, and disconnecting
water, electricity and sewerage lines are all part of the demobilization process.

8. Financial Closure:
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Financial closure consists of writing applications for final payment, release of various
bank guarantees, and settlement of any change order issued by the client.
Final Payment
The contractor has to apply for the release of final payment after he has attended to
all the deficiencies pointed out in the punch list. The request for release of retention
money is also made.
Release of Various Bank Guarantees
During the course of execution of project, the contractor submits a number of bank
guarantees to the owner. A written request is made to the client to release the bank
guarantees.

9. Contract Closure:
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Construction contract usually specifies the requirement of contract closure and, thus,
the contractor should prepare a list of requirements for contract closure as per the
contract between him and the owner.
Submission of As-built Drawings
i. During the project execution process, due to site constraint there might be some
changes in the as-built facility from that as specified in the contract drawings.
ii. it is very important to prepare the as-built drawings by estimating the actual
dimension and condition of the constructed facility.
iii. The as-built drawings of all the trades such as civil, electrical and mechanical
disciplines should be compiled and submitted to the owner.

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Submission of Operation and Maintenance Manual
i. Modern projects involve a number of mechanical and electrical appliances—for example, elevator,
cooling tower, air-handling unit and diesel-generator set.
ii. The manufacturers of these appliances provide operation and maintenance manual associated with
these appliances.
iii. These should be handed over to the owner.
Submission of Warranties
i. It is the duty of the contractor to collect all the warranties and guarantees from vendors,
subcontractors and suppliers, and submit these to the owner.
Submission of Test Reports
i. During the execution of project, a number of tests are conducted on materials, appliances and
systems that are installed in the project.
ii. The test records need to be compiled and submitted to the owner for future reference.

11. Project Manager’s Closure
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This includes tasks such as preparation of an as-built estimate, analysis of actual cost
versus estimated cost, analysis of items where cost overrun was high etc.
conduct of meetings with external agencies such as client, architect and consultants
for understanding their feedback on various project management aspects.
Meetings with own staff and subcontractor should also be held to get their feedback
on various issues.

12. Lessons Learned From The Project
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This involves collection and compilation of all records associated with the project, and
preparing archives of important project records.
It also involves documenting the important issues faced in the project and their
resolution.
This helps in planning for such type of issues in the early stages of other projects.
i. Did the project meet its requirements and objectives?
ii. Was the customer satisfied?
iii. Was the project schedule met? Was the project completed within the stipulated cost?
iv. Was the level of achieved quality acceptable?
v. Were the risks identified and appropriately mitigated?
vi. What better ways can be employed to improve project execution and its
management?

13. Administrative Closure:
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Administrative closure includes:
 Close each phase of the project
 Collect and summarize project results, compare to plan time, cost, scope and
technical approach.
 Gathering the lessons learned.
 Formal documented acceptance by customer.
 Archive and index project records for future reference.

14. Project Closure:
The data to be documented includes:
Administrative closure
Product verification
Early contract termination conditions
Payment terms
Formal acceptance documentation
Project files
Project closure documents
Historical information
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15. Thank You