Closing Out the Project

1. JOB LOOP 1 . 0 Project Qualification 2 . 0 Project Estimating 3 . 0 Project 4 . 0 Project Pricing Management 5 . 0 Post Project Review Closing Out the Project Project Manager Academy Section Eighteen

2. Performance Objectives • Understand the meaning of “done” • Differentiate between “punch list” and “warranty” • Utilize “kick-finish approach” • Leverage closeout into future business opportunities

3. Heat Tape Installation Start-Up HVAC Pipe Test Reports Pipe Specification Form Plumbing Memo Plumbing Issues Plumbing Start-Up Checklist Plumbing Test Procedures Plumbing Test Procedures Attachment Plumbing Test Reports Refrigeration Checklist Refrigeration Test Report Sample Pipe Specification Form Start-Up Chillers When Job is Awarded, Closeout Begins Start-Up CHW-HW Fan Coil Units Start-Up Commercial Self Contained Start-Up Cooling Tower Start-Up Domestic Water Heaters Start-Up Domestic Water Pump Start-Up Exhaust Supply Fan Start-Up Fan Coil Units Start-Up Forms Split Systems Start-Up Heaters Start-Up PIU Start-Up Roof Top Units Start-Up VAV Start-Up Water Source Heat Pump

4. Submittals CO Management Collections Scheduling Commissioning Punch List When to Use Closeout Closeout should be a part of every aspect of a project

5. Closeout • Proactive management • Starts before mobilization – during Pre-Job Planning • Where is the project’s profit? • Retention • Unresolved change orders • Lingering jobs • It’s what customers remember most…

6. Closeout – A Customer’s Perspective 2003 FMI / CMAA Owners Survey

7. What is a Punch List? • A punch list is a list of items completed at the end of a project that include all errant or incomplete components or activities • Your QA/QC program should eliminate 99% of punch list items • Sheet metal Quality checklist sheet

8. Common Problems Affecting Closeout (1 of 2) • Punch list • Develop internal punch list and resolve on your schedule • Your QA/QC process should eliminate punch lists • Keep the field manager on the project until it is complete • Measure time to complete – keep the pressure on • Get owner sign-off on punch list • Eliminate recurring punch list items and multiple punch lists

9. Punch List Workshop Identify items that continually show up on your punch lists: 1. ______________________________________ 2. _______________________________________ 3. _______________________________________ 4. _______________________________________ 5. _______________________________________ 6. _______________________________________ 7. _______________________________________

10. Common Problems Affecting Closeout (2 of 2) • Close-Out Documents • Operations & Maintenance Manuals • As-Built Drawings • Warranties • Lien Waivers • The list goes on …so make a list….. • Unresolved Change Orders

11. Kick-Finish – An Alternative (1 of 3)

12. 100% quality Client's Quality budget Effort (=$) Kick-Finish – An Alternative (2 of 3) Shout “Stop” right here 80%?

13. Kick-Finish – An Alternative (3 of 3) TheKick- Finish 100% quality Quality Client's budget Effort (=$)

14. Kick Finish Agenda • Kick Finish Agenda

15. Closeout – Things to Consider What else should we think about when closing out a job? • Service department opportunities • Commissioning • Lien release • Bond release

16. Retention Collection $$$$ Test &BalanceReport O&MManuals As-Builts TrainingComplete PunchList CommissioningReports

17. Summary • Closeout should be ongoing throughout the project • It's what customers remember most • Always know the project’s profit margin • It takes more money to create a new customer than to keep an existing one • Kick-Finish

18. Take Aways • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________

19. Performance Objectives – Closeout Meetings • Understand sound reasons to conduct Post Job Reviews • Learn some good Post Job Review techniques • Review the importance of Follow-up

20. Post Job Review • Why bother looking at a bad job again? • If we did a good job, why meet at all? • How many jobs should be reviewed? • What types of jobs should be reviewed?

21. Post Job Review • A team that refuses to learn from the past is destined to repeat its performance • Provide constructive feedback from field to estimating • Provide the “final score” to the team • Use an agenda • Stick to the facts as much as possible • Communicate major lessons learned to others

22. Post Job Review • Purpose Close Out Meetings • See Typical Post Job Review Process Map • See Typical Post Job Review Agenda • Post Project Review

23. Post Job Review • Critical “Lessons Learned” from this job • Greatly increases accountability • Don’t make the same mistakes on the next one • Make sure we know what we did well and repeat those things on the next job!

24. Follow-Up • Appreciate value of long-term, repeat sales opportunities • Contractors with a high level of repeat business consistently make higher margins • It takes more money to create a new customer than to keep an existing one

25. “Leveraging Relationships” Additional jobs with GC Joint ventures with other trade contractors Additional jobs with end user Maintenance contracts with end user

26. The Follow-Up • Customer surveys • Leverage training opportunities • Quarterly warranty visits • ALWAYS … • Listen to the customer • Think creatively “out of the box” • Serve your customer before the competition does

27. Summary • “Lessons Learned” for both good jobs and bad jobs • Repeat good jobs and do not make the same mistakes again from bad jobs • Follow up by surveys and quarterly warranty visits • Serve your customer before the competition does

28. Take Aways • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________