Report on Construction Management: Completion Stage Analysis in NZ

This report analyzes the completion stage of construction projects, focusing on handover and closeout processes in New Zealand. It emphasizes the importance of this often-overlooked phase and outlines key aspects such as stakeholder communication, project commissioning, approvals, handover procedures, contract termination, and performance analysis across various metrics like budget, schedule, and deliverables. The report further highlights the significance of documenting lessons learned, implementing recommendations, addressing training needs, and celebrating project milestones. It underscores the necessity of a comprehensive plan and adequate resource allocation for successful completion stage execution, drawing insights from site/project managers regarding practical New Zealand site management processes.

Construction Management: Completion Stage 1
CONSTRUCTION MANAGEMENT: COMPLETION STAGE
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Construction Management: Completion Stage 2
EXECUTIVE SUMMARY
This report presents analysis of different aspects of site management activities in final stage of
construction project execution. This stage involves completion, handover and closeout of the
project. The key aspects that project managers should consider when planning for closing stage
of project execution include: communication to stakeholders about the closure, project
commissioning, project approval, handover, terminate contracts, project performance analysis,
team performance analysis, budget performance analysis, schedule performance analysis,
milestone and deliverables performance analysis, documentation of project closeout activities,
lessons learnt, recommendations and follow on actions, training needs, and celebration. Most
stakeholders in the construction industry do not pay equal attention to closing stage as the
preceding stages (initiation, planning, execution and monitoring & control). However, his final
stag is very important for successful completion of construction projects. Therefore project
managers should have a comprehensive plan on how to execute the completion stage, allocate
adequate resources for it and involve relevant stakeholders to ensure successful implementation.

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Table of Contents
EXECUTIVE SUMMARY.......................................................................................................................2
1. INTRODUCTION.............................................................................................................................4
2. KEY ASPECTS.................................................................................................................................6
2.1. Communicate closure to stakeholders........................................................................................6
2.2. Commissioning of the project......................................................................................................6
2.3. Approvals.....................................................................................................................................7
2.4. Handover.....................................................................................................................................7
2.5. Terminate contracts.....................................................................................................................8
2.6. Analyze project performance......................................................................................................8
2.7. Analyze team performance..........................................................................................................9
2.8. Analyze the budget performance................................................................................................9
2.9. Analyze schedule performance....................................................................................................9
2.10. Analyze milestone & deliverables performance....................................................................10
2.11. Lessons Learnt.......................................................................................................................10
2.12. Recommendations and follow on actions..............................................................................10
2.13. Training Needs.......................................................................................................................11
2.14. Documentation of project closeout activities........................................................................11
2.15. Celebration............................................................................................................................15
3. CONCLUSION................................................................................................................................16
REFERENCES........................................................................................................................................17

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1. INTRODUCTION
Site management is a very crucial element of every construction project. This is because
site management influences workplace environment, integration and cohesiveness of project
team members, safety of workers on site, allocation and utilization of resources, and efficiency
of project execution (Ismail, Baharuddin, & Marhani, 2013). For a construction project to be
successful, the site/project manager has to ensure that all activities are organized and performed
efficiently at every stage of the project lifecycle. Project management lifecycle comprises of five
main phases: initiation, planning, execution, monitoring & control, and closing or closure (Bisk
Education, (n.d.)) (but some project management systems exclude monitoring & control phase
on the basis that it is performed at every other stage). The arrangement of these phases is as
shown in Figure 1 below. (Esposito, 2015)Each of these phases involve different activities that
must be completed through proper coordination and collaboration of all stakeholders. Project
managers play a key role in ensuring that the stakeholders work as a team towards a common
goal. For a project to be executed successfully, all the five phases must be managed effectively.
This report presents an analysis of different aspects of the final phase of project execution –
project closure, in New Zealand. This phase entails project completion, handover and closeout.
Before a project is closed, the project manager has to ensure that the finished product is delivered
to the client, stakeholders are informed about the closure, project resources are released, supplier
contracts are terminated, the success of the project is determined, and all necessary documents
are prepared and handed over to the right individuals. This phase requires detailed tracking,
paperwork and coordination of different stakeholders, processes and systems.

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Figure 1: Phases of project managementtt6
As aforementioned, project closure is the final phase of a construction project. This phase
comprises of actions that have to be undertaken or deliverables to be produced so as to
administratively bring the project to an end and transfer the created structure or products to the
client (Project Management Institute, 2008). However, some people give little attention to
project closure phase not knowing that it is as important as the other previous phases, and even
more important because it analyzes the performance of the other phases and the findings are used
to improve performance of future projects (Aziz, 2015). Therefore project closure is used to
ascertain that the contractor has completed all works, the project manager has executed all
processes agreed upon with the client, and the project completion is formally recognized and
agreed upon by all stakeholders who were involved in the project. For project closure phase to be
successful, the project manager should allocate adequate resources to it (Zohrehvandi,
Khalizadeh, Hajizadeh, & Cheraghi, 2017). It is usually recommended for the project manager to
identify and use an appropriate project closure model so as to ensure that all relevant activities
and aspects are covered. It is also worth noting that project closure is mandatory even for
terminated projects (Singh, 2017).

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2. KEY ASPECTS
There are various activities performed in the closing phase of a construction project. Some of
these include the following:
2.1. Communicate closure to stakeholders
When the project is coming to an end, the project manager has to inform all stakeholders
about the same. This is very important as it helps stakeholders to raise any issues they may have
concerning the project. For example, if there are suppliers who were not paid fully for the
products delivered, they will now pursue the payment before the project is closed. In case of any
stakeholders who did not expect the project to be terminated at this time, this communication
will help them follow up the unfinished business or raise their issues (Lazar & Serono, 2010). In
general, communication helps in avoiding adverse and unfavorable scenarios. The
communication should also be made to relevant government authorities so that they can carry out
their assessment in preparation to issuing certifications such as compliance permits.
2.2. Commissioning of the project
Before closing the project, it has to be commissioned. The commissioning process
involves verifying different elements of the building to ensure that they meet the requirements of
the client and those of the building engineers and architects. Here, the project manager has to
seek the services of certified building commissioning agents to perform the process. The
commissioning process should be undertaken in presence of a client representative. The
commissioning largely involves checking whether building subsystems such as building
envelopes, HVAC (heating, ventilation and air conditioning), electrical, plumbing, fire safety,

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interior systems, security systems, lighting, sustainable systems, building control, etc., are
working properly. Most of the buildings nowadays are constructed to meet specific energy and
water efficiency targets, which helps in protecting the environment (Kantola, 2015). The
commissioning agent will verify proper installation of the building systems and confirm that they
are operating properly and their performance meets the original design requirements. Thereafter,
a report is prepared on the same and used to establish if the building can be handed over to the
client as it is or if there are any necessary changes and improvements (Contratto, 2013). The
building can only be handed over to the client if the commissioning report confirms that all
systems have been installed properly, they are in proper operation or working conditions and
their performance meets the minimum design requirements.
2.3. Approvals
Relevant government authorities should also be involved in the closing stage of a project.
Here, the project manager invites authority officials to inspect the property for approval. The
client can only start using the property if it has been approved by the government. For the case of
a residential property, a completion certificate and an occupancy certificate must be issued by the
relevant government agencies. Therefore this is also a crucial aspect of closing phase of
construction projects.
2.4. Handover
This is what is also referred to as release of final deliverables. It simply involves
transferring project deliverables to the client (Pathak, 2016). This comes after product
commissioning. In case of a residential construction project, this activity entails handing over the

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property to the client. But before the property is handed over to the client, there have to be an
acceptance criteria to be followed. The criteria comprises of checklists (measurement of
completion) that will determine if the client accepts or rejects the project deliverables. During
handover, the project manager should give the client the following documents and items: as-built
drawings from specialist suppliers, consultants and contractors; building user’s guide; building
log book; building owner’s manual; health and safety document; testing & commissioning
report; certificates and warranties of works done; copies of waivers, statutory approvals,
conditions and consents; equipment test certificates; and keys and fobs. The project manager
should also prepare an agreement to be signed between the client and main contractor on the
procedure of reporting defects in case they arise within the warranty period. It is important for
the project manager to involve specialists such as legal experts on issues he does not understand
well. A project can only be said to have met its goals and objectives of it is accepted by the client
(Maunda & Moronge, 2016).
2.5. Terminate contracts
This is also known as contract closeout. It involves settling and closing all contract
agreements that were created for the project. The project manager has to terminate any contract
related to the project with stakeholders such as the consultants, contractors, suppliers, etc. This
process include product verification (that involves establishing whether all works have been
correctly and satisfactorily completed) and administrative closure (that involves updating all
contract document such as records, product descriptions, technical details, deliverable acceptance
criteria, etc.)
2.6. Analyze project performance

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This entails determining if the goals of the project were effectively met – activities were
completed on time and within stipulated budget. Here, the project manager has to assess the
success of each task against the checklist of deliverables or scope that was prepared at the start of
the project (Harvard Business Review Staff, 2016).
2.7. Analyze team performance
This entails assessing how different project team members performed in the activities
they were assigned. The assessment entails determining the quality of their work and whether
they achieved their goals within the specified timelines. The project manager can also share the
findings with team members to help them learn from areas they failed (Shepherd, Patzelt,
Wlliams, & Warnecke, 2014).
2.8. Analyze the budget performance
This is also known as financial closeout. Here is where the project manager accounts for
used and unused resources. The resources include machines, equipment, materials and workers.
If there are any resources remaining, they have to be returned to the client or allocated for future
projects (Lucidchart Content Team, 2017), what is referred to as resource deposition. It is from
this budget analysis that the project manager should determine whether resources were
appropriately allocated and utilized.
2.9. Analyze schedule performance
Here is where the project manager evaluates the time they took to complete each task of
the project and compare it with the scheduled plan. In most cases, some tasks can be completed

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earlier than planned or be delayed. This helps in concluding why the project was completed
ahead or behind the schedule. It must be remembered that early or late completion has direct
implications on the overall cost of the project (Torp, Belay, Thodesen, & Klakegg, 2016).
2.10. Analyze milestone & deliverables performance
Construction projects are usually divided into milestones. There are sets of deliverables
for each milestone. Dividing a project into milestones helps to simply complex projects. For the
project to proceed, the deliverables for each milestone must be met. The project manager should
therefore analyze how each milestone was accomplished and the impact they had on the overall
performance of the project.
2.11. Lessons Learnt
This is a very important aspect of the final phase of a project especially for the purposes
of improving execution efficiency of similar projects in the future. The project manager has to
describe innovative approaches, good work practices, performance of subcontractors, negative
experiences, dispute prevention and remediation approaches, variations between what had been
planned originally and what was performed, how unexpected events were dealt with, etc., and the
lessons they learnt from each of these items. The lessons should include everything that was
learnt from the successes and failures of the project. Recommendations should also be made on
how to capitalize on the successes and prevent the failures when executing similar projects in the
future.
2.12. Recommendations and follow on actions

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This is another important aspect of project closure. The project manager has to clarify
any pending issues that need a follow-on action and the persons who will be involved. The
project manager should also suggest how these issues should be followed up and the best way to
resolve them. In case the issues are not resolved as anticipated, the project manager has to
provide alternatives.
2.13. Training Needs
Every residential property is unique in its own way. The project manager is in a better
position to know if there are any training that the owner or property manager has to undergo in
order to use or manage the property. For example, the property owner or manager may require
training on how to operate the building automation or management system or the BIM of the
property.
2.14. Documentation of project closeout activities
It is important to document every aspect of project closure phase. This makes
documentation a very important aspect of construction project management. The best way to do
this is by preparing a comprehensive closeout report. Every requirement, decision, discussion,
variation, action, agreement or tests related to the project should be documented for future
reference and to avoid disputes. It is important to note that construction projects involves many
stakeholders, each with specified tasks. The best way to keep all the data and information related
to the project is by compiling a report that provides an outline and overview of the project plus a
list of all participants who were involved in the project. To help retrieve required information
easily and quickly, it is recommended for the documentation to be organized chronologically as

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the project progresses (Frost, (n.d.)). Building information modeling (BIM) can be used to ensure
efficient and effective storage and retrieval of information (Demian & Walters, 2014).
Closeout report should be prepared by following a specific format, depending on the type
of project and the company’s project management system. However, a typical project closeout
report should contain the following information:
Executive summary – this entails a summary of the scope of project, project
accomplishments and other details such as start and finish dates, cost and a statement on whether
the project goals and objectives were met.
Introduction – this section states the version of the report (initial, draft or final), date of
the report and the location of the project.
Acquisition approach – the section describes the approach that was used to acquire and
execute the project. It provides details of the procurement method used, type of contract, the
contractor and subcontractors, and any other key third parties involved in the project.
Project organization – this section describes how the project was structured and managed.
It gives the organization structure of the project team showing the layout of various project team
members in a hierarchical order. Any management team changes that may have been made along
the project execution process should also be discussed in this section.
Scope baseline – this section describes the scope of the project and key performance
indicators or parameters.