The Ins & Outs of Closeouts
Jeff Katkowsky, VP with Sachse Construction, will share his insights and experiences as part of a panel focused on overcoming obstacles during closeouts at SPECS/2017.
Every year for more than 50 years, the SPECS conference provides retail professionals with a unique constellation of opportunities to learn from while engaging with fellow professionals. From extensive educational programming to peer engagement and special presentations, SPECS is designed to provide attendees with a packed slate of workshops, panel sessions, special roundtables and other events.
Industry professionals who attend SPECS can expect to benefit from practical advice, penetrating insights, and a wealth of new information, resources and relationships. SPECS’ program includes a selection of educational sessions and seminars designed to address the opportunities and challenges facing professionals in 2017 and for many years to come. The 2017 conference features important information about common concerns and emerging trends, tactics and technologies.
One topic bound to be of interest is Project Closeout: Overcoming Obstacles, a panel session brought back by popular demand from last year’s event. The session offers a deeper dive into the issues and obstacles encountered during project closeout – from certificates of occupancy and lien waivers to open punch list items, inspections and municipality relationships.
Attendees will be able to pull from the real-life experiences of panelists and use that information going forward as they prepare to closeout a project. Jeff Katkowsky, VP with Sachse Construction, will sit on the panel, joining Larry Tureff, a VP of Construction with ULTA; Ken Kosinski, DTC RE Concept Construction Director with Nike, Inc.; and Sheila Cannon, a Senior VP & the National Director with Project and Development Services for JLL.
Katkowsky and his fellow panelists will discuss the closeout process that is a part of every construction project, reviewing some of the challenges that can arise when every client has a list of (sometimes very different) requirements and expectations for how they expect to conduct that process.
He will review the standard items included in the closeout process: copies of all relevant permits; a master list of subcontractors who contributed to the project and what their contributions/responsibilities were; and full operating manuals for any appliances and other third-party products included in the project. He will also discuss the importance of as-built documents, a typical expectation of contractors showing how systems were initially constructed and installed.
Katkowsky’s discussion will include a range of tips and best practices to help professionals on both sides of these relationships plan for and conduct comprehensive and mutually beneficial closeouts. Those tips include:
Begin with the end in mind
Identify what the closeout requirements are before the project begins. Most general contractors have a strong sense of what information and documentation will be needed, but if you wait until the end of the project to communicate about client needs, you can get into a predicament. The goal should be to create clarity – and this requires clear and consistent communication. Be proactive: reach out to your client or contractor to determine what their expectations are.
If you track it, it will improve
Make a point to track the information and documentation you will need as you go. Creating a checklist and monitoring it throughout the construction and development process – and talking with the project team on a weekly basis to update that checklist – is not only an efficient way to operate, but prevents many of the common end-of-project issues that can crop up around closeout documentation. Weekly team meetings are an ideal place to engage in ongoing discussions about progress, timing and any emerging issues.
Big problems were once little problems
One of the most common issues that can slow down or derail the closeout process revolves around subcontractors. Financial issues with subcontractors can be a particularly common source of snags. Consequently, it’s critical to resolve all subcontractor financial issues well before the end of the project. Almost all big problems were once little problems, and working with an experienced general contractor who can catch issues early can save enormous amounts of time and money. Securing a final lien waiver–a signed document where the subcontractor acknowledges that they have been paid in full and there are no open financial disputes–is critical, and a delay in providing them can be problematic. For example, until final lien waivers are produced, a landlord might not release monies set aside for tenant improvements.
Attendees will hear from Katkowsky about strategies he and his team have deployed effectively to ensure financial complications with subcontractors are ironed out well before the closeout process, including sending and receiving signed monthly reconciliation forms outlining agreed-upon payment schedules, fees and receipts.
Katkowsky will discuss the process of securing a certificate of occupancy, including issues like inspections and documentation that needs to be resolved before a temporary certificate is converted to a final. Attendees will hear about the importance of sticking to completion dates, and the dire implications of missing those dates. Retailers often order advertising and structure merchandising, operations, and team logistics around the opening date. Permitting hangups or lingering construction issues can create costly delays to those plans.
Finally, Katkowsky will emphasize the top priorities and big-picture issues that should inform all closeout work, including the need to be proactive and service-focused. He will remind attendees that closeout really starts before the project begins, and that “the last one percent of a project is all the client remembers.” Because no matter how smoothly the construction process goes, if you can’t manage closeout efficiently and in a timely manner, all of the accumulated goodwill goes down the drain.