Practices for Closing Out Highway Projects from Substantial Completion to Final Payment (2021) / Chapter Skim
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37 Introduction This chapter documents project closeouts reported from eight state DOTs. Each DOT provided information on their construction and financial closeout procedures, the practices used to monitor and track project closeout duration, the documents and associated project closeout documentation processes, the implications of not closing out a project, the various specific project closeout processes and tools used, factors that delay project closeout, and lessons learned by DOTs in closing out highway construction projects.
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38 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment A structured interview questionnaire was used for each case example. The questions were structured around six areas: (1)
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Case Examples of Project Closeout 39 construction office, the OOC TSE liaison, and the OOC advisory team to be present along with representatives from other Connecticut DOT divisions, such as traffic, bridge design, and highway operations (Connecticut DOT 2020a)
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40 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment The final packet is then sent to the OOC as well as the Bureau of Finance and Administration (Connecticut DOT 2020a)
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Case Examples of Project Closeout 41 • Obtain contractor evaluation forms for the contractor and subcontractors; • Check the statement of working days with existing office records; • Check the construction report for accuracy and completeness; • Confirm that all construction orders have been approved; and • Confirm that as-built drawings have been completed. The Connecticut DOT uses on-time and on-budget percentages to track projects, including the project closeout phase.
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42 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment projects. Documents are now all electronic, and project information and documents can be shared and reviewed among the project team as the information is readily available.
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Case Examples of Project Closeout 43 documentation and have the urgency to do so, Connecticut DOT staff mentioned that they still have issues gathering final material certifications and other contractor-supplied documents, which always seem to take longer to obtain than what was expected. Factors that Delay Project Closeout The Connecticut DOT mentioned that Disadvantaged Business Enterprise (DBE)
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44 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment • Implement process improvements: The Connecticut DOT implemented Lean Construction techniques throughout the department, which helped the department map out the project closeout process. The mapping process involved many of the Connecticut DOT closeout staff from the construction and financing sides.
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Case Examples of Project Closeout 45 With signoff on final acceptance, a final monthly progress estimate is developed by the Florida DOT District Construction Office, which pays the contractor for the work completed. One last estimate is processed after the monthly estimate, and it is considered the final estimate.
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46 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment Along with measuring the average days to close out a project, Florida DOT uses two other performance measures to track project closeout. First, the Final Estimate is to be submitted to the contractor within 30 days of final acceptance.
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Case Examples of Project Closeout 47 Tools for project closeout at Florida DOT include the use of e-Construction, which incorporates the use of AASHTO Site Manager and the Florida DOT's internal construction and financial programs. The use of these technologies has led to the Florida DOT incorporating electronic sharing of documents and information via a cloud-based server between stakeholders, which makes closeout information available in real time and to anyone involved in closeout.
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48 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment Factors that Delay Project Closeout The Florida DOT noted that changes in staff impact the closeout process. The department mentioned that limited staff availability and changes in the project team personnel tend to slow down closeout, especially in cases when proper documentation did not occur throughout the project.
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Case Examples of Project Closeout 49 • Stay on top of project finances throughout construction: Make sure that the project teams in the different districts, along with their field personnel, are monitoring and tracking all costs throughout the construction phase. Tracking how finances are used, when they are used, and to whom they are paid throughout the project helps to reconcile the financial information at the end of the project rather than having to go back and figure it out after the fact.
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50 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment and certificates (Georgia DOT 2019)
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Case Examples of Project Closeout 51 An improvement in project closeout duration recently experienced by the Georgia DOT is a change made associated with a project's punch list. Instead of issuing a punch list, which would require stopping the clock and chasing contractors to complete work, the Georgia DOT now requires the contractor to satisfactorily complete all construction work, including providing all necessary documentation before accepting the project.
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52 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment Processes and Tools for Project Closeout A few years ago, construction project closeout was revamped, and that triggered improvements for closeout. The Georgia DOT examined the entire workflow for project closeout, challenging why the previous steps were taken and why they were limited to certain groups.
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Case Examples of Project Closeout 53 The Georgia DOT uses e-Construction and AASHTOWare during project closeout. Using electronic documents and digitalizing many construction-related processes, including project closeout, has helped to make the closeout process more efficient.
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54 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment has experienced difficulties receiving invoices in a timely manner, which impacts closeout since all invoices and payments are needed to be complete before closeout can be official. An area of ongoing delay issues that the Georgia DOT experiences is associated with locally funded projects.
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Case Examples of Project Closeout 55 Georgia DOT staff also noted that construction claims can delay closeout. When claims tend to drag on, the project may end up on the FHWA inactive list.
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56 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment audit and a materials audit. The project engineer completes Form 830435 within one week of field completion and acceptance, meaning that the contractor does not have to come back.
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Case Examples of Project Closeout 57 Figure 17. Iowa DOT construction project closeout process flowchart (2019)
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58 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment Figure 18. Iowa DOT financial project closeout process overview flowchart (2019)
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Case Examples of Project Closeout 59 Documentation for Project Closeout Documentation for project closeout is a crucial component so that the Forms 830435 and 830436 can be issued and end the project financially. Due to the auditing processes that Iowa DOT uses, documentation is ongoing throughout construction.
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60 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment incentive to provide those certifications or other documents. The Iowa DOT's "no cert, no pay" policy is an incentive in and of itself.
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Case Examples of Project Closeout 61 Lessons Learned The Iowa DOT reported the following lessons learned for closing out highway construction projects: • Gain signatures and important documents in a timely manner: Focus on getting required signatures for the 830435 and 830436 forms, as these two forms trigger the closeout process to proceed. The Financial Bureau requires the Form 830435 to begin the financial closeout, and without proper signatures gained in a timely manner, financial closeout is at a standstill.
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62 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment Minnesota DOT consultant contracts are not well defined enough to have consultants or other third parties handle closeout on projects, so much of the closeout process falls on DOT personnel. On design-build projects, there may be some closeout assistance from the designbuild team, but again, much of the closeout process is administered by DOT personnel.
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Case Examples of Project Closeout 63 Figure 19. Minnesota DOT project closeout checklist.
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64 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment Factors that Delay Project Closeout The Minnesota DOT noted the following factors that contribute to delays in closing out projects: Construction • Staffing: Staffing has been a challenge whether it is insufficient staff numbers, turnover in personnel that handle closeout, or lack of staff knowledge/training in the closeout process. Additionally, a reorganization that combined maintenance and construction groups reduced the amount of "downtime" that construction staff had during the winter, which is when closeout work was traditionally performed.
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Case Examples of Project Closeout 65 Project closeout at Ohio DOT, which refers to project closeout as project finalization, is defined as the process that begins once construction work is complete to finalize the contract by gaining acceptance of the project from all participating agencies, determining the final value of the contract, completing all remaining contract requirements, and issuing a final change order that then ultimately leads to the final payment and release of the contractor from further responsibility for the project (Ohio DOT 2017)
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66 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment Once the project is accepted by the District Planning, Engineering, and Construction Departments, closeout is handed off to the Finance office within the Division of Finance & Forecasting, and the financial closeout process begins. The final estimate is uploaded to the shared file system at the Ohio DOT, and a closeout notification is sent to the project accounting unit signaling that a project is ready for closeout (Ohio DOT 2017)
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Case Examples of Project Closeout 67 needed to verify quantities and the quality of the work put in place. In order to keep up with documentation and not run into having to complete or track down documents during the project closeout phase, the Ohio DOT specifies that documentation should be created as the construction progresses.
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68 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment closeout process 2 years ago, project closeout on the financial side experienced difficult conversations about funds on projects years after they were closed. In an example provided by Ohio DOT financial staff, several years ago, when the Ohio DOT had a large backlog of projects to closeout, department staff had to have the difficult conversations with some local entities that, although a project has been closed for 4 to 5 years, the Ohio DOT is invoicing the local entity for work that was completed years prior, and they need to pay for it.
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Case Examples of Project Closeout 69 when it comes to finalizing quantities and agreeing with contractors. Consultants are also now engaged in the material approval process.
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70 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment From the finance side, a delay mentioned in project closeout is getting invoices for work from the railroads, and sometimes the local utilities, involved in a project. Ohio DOT staff noted that the railroads in Ohio tend to take their time to invoice for work.
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Case Examples of Project Closeout 71 prior to providing final acceptance, which is the point when the department accepts all contract work, releases the contractor from the contract, and proceeds with closing out the financial aspects of the project (Oregon DOT 2021)
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72 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment engineer and RAS determine that all contract work has been fulfilled and obligations concerning project documentation are met, then the area manager and resident engineer provide acceptance of the project using the recommendation of project acceptance form that is then issued to the contractor. After final acceptance, the contractor or the Oregon DOT resident engineer may request a Post-Construction Review meeting to examine the project for possible process improvements that may benefit future projects (Oregon DOT 2017)
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Case Examples of Project Closeout 73 construction units discussing with the contract administration unit about these projects and what they can do to improve their closeout processes for future projects. For financial closeout, the major measure is to not use more than 90 days to get from closing out expenditure accounts to submitting the final voucher to the FHWA.
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74 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment savings, they allocate the funding to other work or projects to cover potential cost overruns and to initiate additional work. Closing out projects in a timely manner helps to find savings and to avoid overruns as well as providing funding flexibility.
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Case Examples of Project Closeout 75 personnel. In addition, the Oregon DOT conducts quarterly region assurance specialist meetings, which allows Oregon DOT personnel to discuss and bring up issues associated with construction, including project closeout.
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76 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment notification that the work is completed and accepted, the program and funding unit is unable to move forward. Other issues with local entities include disagreements with the final costs, which can extend the project closeout time to allow for the final amounts to be negotiated and agreed upon by both the DOT and the local entity.
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Case Examples of Project Closeout 77 they are given a high-level overview training (1–2 weeks) , and then they transition to specific training based on their assignment.
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78 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment Documentation for Project Closeout The Texas DOT's Construction Contract Administration Manual (2020) provides a checklist for the required project closeout.
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Letting Award Execution Preconstruction Safety Meeting Preconstruction Meeting Work Begin Time Suspensions Time Suspensions Milestone Dates Substantial Completion Project Acceptance Final Estimate Other Important Dates Subcontract Agreements Purchase Orders Monthly/Final Progress report Goal shortfall explanations Baseline Schedule Monthly Updates Notice of Potential Time Impact Time Impact Analysis Sources Materials Lists Matl Test Document/Deficiencies Materials Tickets Product Data Sheets Request for MOH Materials Invoices Lab Invoices Testing / Lab Certification Manufacturers Literature Mix Designs Certified Test Reports Quality Control Plans Joint Density Test Results Seed Mix Certifications Bulletin Board Compliance Asphalt Pavement Records Concrete Paving and QC Plan Ride Quality Records Pile Driving Correction Plans Pile Jetting Plans Pile Bearing Eval Documents Soil Nail Wall Construction Plan Temporary Shoring Details Flowable Fill Construction Plan Drilled Shaft Install Plan Freeze Protection Measures Plan for Falsework/Forms Bridge Paint Containment Plans Special Concrete Finish Plans Welding Procedures Technical Support Representatives Work Plans Cert of Conformance Shop/Working Drawings Nonconformance Reports Erection Drawings Demolition Plans SW3P training List Herbicide Records SW3P Documentation BMPs Construction Stage Gate Checklist Flaggers Electricians Irrigators Profilers Labor Interviews OJT29. Labor Compliance 24.
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80 Practices for Closing Out Highway Projects from Substantial Completion to Final Payment • Assigning Quality Individuals to Process Improvement: When the Texas DOT revised their project closeout process, the department assigned its best people to the process revision. This was an organization sacrifice because it pulled these individuals away from closeout operations for significant portions of time over the three- to four-year renovation process.
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