Phased Closeout

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Author Message Wayne Smith New member Username: wayne_smith Post Number: 1 Registered: 05-2019 Posted on Thursday, May 02, 2019 - 01:35 pm:    Has anyone had to put together a "Phased Closeout Procedure" section in Division 01. We are involved in very large interior renovation project that will be constructed in 5 phases - each represent approximately half of a floor in the building. The owner will move out of the half floor under construction and, when that phase is completed, the owner will move back in. Phase close out will be close to a regular full project closeout, including obtaining occupancy permit for the portion completed. I am looking for some examples of how such a Phased Closeout would be structured and how to relate it to a final project close out. Does anyone have some examples to offer? David G. Axt, CCS, CSI ,SCIP Senior Member Username: david_axt Post Number: 1782 Registered: 03-2002 Posted on Thursday, May 02, 2019 - 01:52 pm:    (rolling eyes and shaking head in disgust) Yeah I have. It is my opinion of "phased closeout" is that it is a strategy for the Contractor (who is behind in their work) to avoid liquidated damages. The project I worked on, the Owner was eager to occupy the school building ASAP. The Contractor phased the closeout to allow the librarian to move in to the library, the administration people to move in to their offices, the gym teacher to move in to the gym, etc. Each portion of the building was issued a temporary certificate of occupancy. The punchlist was kind of a mess because there were separate lists for each portion "phase" of the building. If I remember correctly the Owner acquiesced on many of the correction items in order to expedite the schedule. The school was able to open on time but the Contractor was still working inside the building when kids were in class and after school. Of course the Contractor missed established deadlines but it would have been very complicated and convoluted to apply liquidated damages. David G. Axt, CCS, CSI, SCIP Specifications Consultant Axt Consulting LLC David G. Axt, CCS, CSI ,SCIP Senior Member Username: david_axt Post Number: 1783 Registered: 03-2002 Posted on Thursday, May 02, 2019 - 01:54 pm:    FYI, Phased closeout was never discussed prior to bid and was not in the original Owner/Contractor Agreement. David G. Axt, CCS, CSI, SCIP Specifications Consultant Axt Consulting LLC John Bunzick, CCS, CCCA, LEED AP Senior Member Username: bunzick Post Number: 1780 Registered: 03-2002 Posted on Friday, May 03, 2019 - 04:31 pm:    I had done this many times over the years. It was inevitable in projects like a school expansion, where existing portions may not be renovated until new ones were done. My firm used phasing documents, often drawings with specs augmenting. The extent of each phase needs to be very clear. Also, to get a certificate of occupancy, all life safety must work in each phase, and means of egress must meet code without the unfinished work needing to be done. Sometimes that means having temporary means of egress in place. Then, closeout would be just like the completed project, but for each phase. It takes a little work to set up, but we never had any real issues with this. If there is nothing in the documents about it, then you are likely going to incur additional costs to put all of this in place. If the building design lends itself, they may only be the soft costs if you don't need to build temporary facilities to make it work. David G. Axt, CCS, CSI ,SCIP Senior Member Username: david_axt Post Number: 1784 Registered: 03-2002 Posted on Monday, May 06, 2019 - 01:35 pm:    Do not get "phase construction" confused with "phased closeout". I have done a few phase construction projects where it was very clear in the documents what work was to be done in each phase. Phased construction projects can get quite complicated especially if the remodel is going on while occupants still use portions of the building. Each construction step should be well thought out and a contractor should probably be retained to advise on the most efficient construction progression. In phase construction the closeout is pretty well defined as to what constitutes substantial completion for each phase. It is quite a different matter when the contractor recommends phased closeout on project that was not designed to have any phases. David G. Axt, CCS, CSI, SCIP Specifications Consultant Axt Consulting LLC Anne Whitacre, FCSI CCS Senior Member Username: awhitacre Post Number: 1449 Registered: 07-2002 Posted on Tuesday, May 14, 2019 - 04:27 pm:    I have done phased closeout frequently on projects with multiple buildings. I think the language belongs in the contract for construction but I'm often over-ridden by an owner or contractor who wants it in division 01. We tie it to the Temporary Certificate of Occupancy for each building, and then run the entire one-year correction period to start when the last building is finished. Phil Kabza Senior Member Username: phil_kabza Post Number: 626 Registered: 12-2002 Posted on Wednesday, May 15, 2019 - 08:23 pm:    The key may be to go back to 011000 SUMMARY and define phases with completion dates and separate certificates of occupancy. Avoid trying to define "phased closeouts," as each phase must meet the closeout requirements, substantial completion, and final completion requirements. Chris Grimm, CSI, CCS, SCIP, LEED AP BD+C Senior Member Username: chris_grimm_ccs_scip Post Number: 478 Registered: 02-2014 Posted on Tuesday, June 04, 2019 - 03:43 pm:    I'm working on one where the designers are keeping the phases so separate that we are only allowed to specify Phase 1, a renovation, until that work gets underway. Then when it is nearly complete they will let us specify Phase 2, the addition. Separate project manuals. Similar Division 01. Wayne Smith Junior Member Username: wayne_smith Post Number: 2 Registered: 05-2019 Posted on Wednesday, June 05, 2019 - 05:20 pm:    There is a lot of good information in these posts. Thank you all. But what I am really interested in is what to require to closeout a phase. Obviously the contractor must obtain at least a temporary occupancy permit. But do you require partial Record Drawings? Do you require O&M and Warranties for the portion complete? Do you do anything special in the way you handle the punchlist and "final inspection"? Thoughts? David G. Axt, CCS, CSI ,SCIP Senior Member Username: david_axt Post Number: 1795 Registered: 03-2002 Posted on Wednesday, June 05, 2019 - 05:44 pm:    I would treat a closeout of a phase the same as a whole building closeout and require all that you described (warranties, record drawings, O&M manuals. etc.) David G. Axt, CCS, CSI, SCIP Specifications Consultant Axt Consulting LLC J. Peter Jordan Senior Member Username: jpjordan Post Number: 1090 Registered: 05-2004 Posted on Thursday, June 06, 2019 - 09:05 am:    A critical set of issues has to do with insurance, security, and maintenance. Typically, the Contractor is responsible for this stuff during construction. At Substantial Completion, this responsibility is turned over to the Owner. If different buildings are being phased, this is relatively easy to accomplish using typical closeout language, but where phased construction involves work on a single building (additions or renovations), careful thought should be given to exactly what the Contractor will remain responsible for and what the Owner will be responsible for. Ideally, conversations should involve the Owner's insurance carrier. Construction keying will be affected by this as well. J. Peter Jordan, FCSI, AIA, CCS, LEED AP, SCIP