The build-out is done: what you should have in hand before the final check is paid

What a proper close-out puts in your hands

When a commercial build-out is finished, you should receive the certificate of occupancy and proof that all final inspections passed, a completed punch list, warranties and operating manuals for the equipment and systems, as-built drawings showing what was actually installed, and lien waivers covering the work you have paid for. Restaurants also need their food establishment permit, and in Texas the owner is responsible for obtaining the accessibility inspection on projects that require it. Hold the final payment until the paperwork is complete.

At Harrison Construction, project close-out is a defined phase of every job, not an afterthought, and quality control and close-out are part of the construction management we provide. I treat the last week of a project as seriously as the first, because a sloppy finish leaves the owner chasing missing manuals and unpaid subcontractors long after the crews are gone. When you interview contractors, ask how they close out; it belongs on any list of questions to ask a commercial contractor before hiring.

Walking the punch list the right way

The punch list is the list of items still incomplete or not up to standard as the job wraps up: a scuffed wall, a door that does not latch, a missing cover plate, a light that does not work. Walk the space with your contractor once the work is substantially complete, room by room, and write everything down in one shared list with a location and a responsible trade for each item.

Test things rather than just looking at them. Run every faucet and drain, open and close every door, turn on every light and fan, run the hood and the HVAC, and check that equipment powers up. Agree on a date for the list to be complete, and walk it again to confirm each item before signing off. A punch list that drags on for months is usually a sign that nobody owns it.

Timing matters on a restaurant or practice that is about to open. Furniture, equipment and stock arriving in the final days can damage new finishes, and the crews finishing punch items need room to work. Plan the deliveries with your contractor so the space is protected, and do one last walk after your own vendors have finished, so damage they caused is not confused with incomplete construction work.

Proof the space is legal to occupy

The certificate of occupancy is the document that lets you open. In Fort Worth, for example, the city states that a certificate of occupancy is issued after all final inspections are approved, and that every building used or occupied in the city must have one. Keep a copy on site and a digital copy with your records, along with the signed-off permit cards and inspection results for each trade.

If your project required accessibility review under the Texas Accessibility Standards, there is one more step that is easy to forget. The Texas Department of Licensing and Regulation's inspection request form states that the owner of a building subject to the standards shall obtain an inspection to verify compliance no later than the first anniversary of the completion of construction, and that the request is made to a Registered Accessibility Specialist after construction is complete. Ask your contractor and architect to help you schedule it, but understand that the obligation sits with the owner.

• Certificate of occupancy
• Final inspection approvals for building and each trade
• Food establishment permit, for restaurants
• Accessibility inspection, where the project requires it
• Fire department sign-offs for suppression and alarm work

The binder you will reach for in year one

Every major system and piece of equipment in your space comes with a manufacturer's warranty and an operating and maintenance manual: rooftop HVAC units, the water heater, the exhaust hood and fire suppression system, walk-in coolers, lighting controls, storefront doors and more. Your contractor should collect these from the subcontractors and suppliers and hand them over in an organized set, paper, digital or both.

Check that warranties are registered where the manufacturer requires it, and note the start date of each one. Many begin at installation or at substantial completion rather than on your opening day. The contract should also state what warranty the contractor and the trades provide on their own workmanship and for how long, so read it again at close-out and put the expiration dates on your calendar.

As-built drawings: a map of what is inside the walls

Construction never matches the permit drawings exactly. A pipe moves a few feet to avoid a beam, a circuit is added, a cleanout ends up somewhere else. As-built drawings record those changes so the next person who opens a wall knows what is behind it. They are invaluable when you add equipment, remodel later, troubleshoot a problem or hand the space to a future tenant or buyer.

Ask for as-builts that show the actual location of plumbing, including cleanouts and shut-off valves, electrical panels and circuit directories, data cabling, HVAC equipment and controls, and anything concealed under the slab or above the ceiling. A labeled electrical panel schedule alone will save your maintenance technician hours on their first service call.

Store the as-builts with the warranties and the permit records, and give a copy to whoever maintains the building. If you lease the space, check what the lease says about providing drawings to the landlord at the end of construction; many landlords require them, and it is far easier to collect them now than to recreate them years later.

Lien waivers, retainage and the last check

In Texas, unpaid subcontractors and suppliers may have lien rights against the property they improved, which is why lien waivers matter at the end of a job. Before you make the final payment, ask for a final lien waiver from your general contractor and, for the major trades and suppliers, waivers showing they have been paid. A good contractor will provide these without being asked.

Texas law also sets a retainage rule. Under Section 53.101 of the Texas Property Code, an owner is required to retain 10 percent of the contract price, or of the value of work done, during the work and for 30 days after the work under the contract is completed. How that applies to your project and your contract is a question for a construction attorney, and it matters even more if you hired trades directly, as I explain in running a build-out yourself. This is general information, not legal advice.

Learning to run the building you just paid for

Ask for a hand-over walk-through with the people who will run the space every day. Someone should show your manager how to work the thermostats or HVAC controls, where the water, gas and electrical shut-offs are, how the hood and its suppression system work, where the filters are and how often they are changed, and who to call when something stops working.

For restaurants, put the recurring maintenance on a calendar before opening: hood cleaning, grease interceptor service, HVAC filter changes and refrigeration checks. Your equipment manuals and your city's requirements will tell you the frequency for each. Dallas–Fort Worth summers put a heavy load on rooftop units and refrigeration, and a maintenance plan started on day one costs far less than an emergency call on a busy Friday night.

• HVAC controls, filters and service contacts
• Water, gas and electrical shut-off locations
• Hood, fire suppression and fire alarm basics
• Grease interceptor service schedule
• Keys, access codes and alarm credentials
• Spare materials such as tile, paint and ceiling panels

Insurance changes hands when the keys do

During construction, risk to the work in progress is usually covered under the contractor's arrangements and the builder's risk policy described in the contract. Once the space is turned over, that coverage ends and your own policies have to cover the improvements, the equipment and your business. The improvements you paid for are a real asset, and your property coverage should reflect their value.

Talk to your agent before the turnover date, not after. Tell them what was built, what it cost and what equipment is in the space, and confirm that your property, liability and business interruption coverage start when you take possession. If you want a second opinion on commercial coverage, a property and casualty insurance agent can review it with you.

Your first year in the new space

Small problems show up in the first months: a door that settles, a drain that runs slowly, a thermostat in the wrong spot, a crack in a finish. Keep a running list rather than calling about each item as it appears, and send it to your contractor well before any workmanship warranty expires. A walk-through near the end of the first year is a sensible habit, and a good contractor will welcome it.

Keep the close-out binder and your maintenance records together, and note every service call with the date and what was done. If a warranty question comes up later, a record showing that filters were changed and equipment was serviced on schedule makes the conversation with the manufacturer much simpler. The same records are useful if you expand, sell the business or build your next location.

We keep owners informed from the first meeting through close-out, and our relationships with clients do not end when the certificate of occupancy is issued. If you are opening a restaurant, office or medical space in Dallas–Fort Worth or another state where we are licensed, and you want a build-out that finishes as carefully as it starts, we would be glad to talk about your project.

Questions people ask me