Project Completion and Handover
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Project Completion and Handover

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Article summary

At project completion, we are preparing a significant investment for handover to a Client, and the achievement of Practical Completion is a contract requirement linked to:
• liquidated damages (a project runs beyond the contracted date)
• final payment
• release of retention securities (the UNCONDITIONAL bank guarantee or insurance bond)

Note

Hutchies does not want to be in a position where these securities are cashed.
It may have implications on other project/reputation.
Refer to Project Finance if there is ever any potential or threat for this action of occur.

The definition for Practical Completion varies on every job – so understanding the requirements is the very first thing you should interrogate completely.

In simple terms, the Client has contracted Hutchies to deliver a building that meets all their requirements, and in ‘new’ condition – compliant (certified), complete, clean and ‘polished’ with suitable Operation and Maintenance manuals including accurate as-builts and training.

We are not delivering a second hand, defective, or unsuitable/not fit for purpose product.

We are delivering something Hutchies is proud of - not just a contract definition.

With this in mind, you need to carefully plan and control the works during this phase to make sure we have the time and resources to get it right.

There are many parts to Project Completion so it’s important to have a plan for all and resources to manage each aspect. Don’t underestimate the amount of work and the surprises that come with having so many items to close out

It’s a team effort to pull together the:
• completion of all works to meet the detailed schedule,
• testing and commissioning of services,
• authority works, inspections and approvals,
• identification and close out of all defects by numerous parties
• client (and nominated agents) and designers’ sign off
• certificates and warranties
• operation & maintenance manuals + as-builts + training
• owner’s manuals & handover packs (where applicable)
• final inspections by numerous parties
• demobilisation
• changes in people as resource requirements change
• unexpected issues to minimise any impact on the rest of the things above
• final claims / payments & retention releases (and meeting defined dates under legislation)

It’s an intense phase with the Project Team

The goal is to start well, carefully manage the works and finish well. If a project is started well and run well, the completion is usually de-risked and setup for a safe completion.

Finishing well means:
• achieving Hutchies’ objectives and expectations
• achieving contract compliance

It’s a critical time for the Client to determine if the works are acceptable or not, ready to occupy or sell.

If we do what we think is right to our own high standard as if it were our own building, we invariably exceed any standard set by anyone else.

Use the Quality and Services teams to assist in final inspections and make sure every time an issue is raised it’s closed out from all lists by everyone.

The job should be ready to present when we call for handover – polished and something we are proud to present

When a project is struggling for any reason at this stage, it may need a fresh set of eyes/legs with good energy or some other support or driving force to help, and that means making the hard calls in advance.

Any delay to this just makes it worse for everyone and pushes the date out or puts work into the defects period when access is restricted, and it invariably costs much more.

Remember - Clients will remember how well we finished including our effort and commitment to meeting the deadline and holding the line with quality.

Approximately one month after Practical completion complete a Project Performance review – so we can learn from the last job and apply it to the next one.

There are various inspection guides / templates on Hutchies’ Toolbox:

  • Owner’s Manual Template
  • Services & Commissioning Flowchart
  • Commissioning Management Plan
  • Project Finalisation Checklist
  • Project Performance Review

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