Construction Handover: Keys to an Efficient Process

After the months or years it takes to complete a construction project, the handover process begins. 

Project handover is the final part of the construction process, where a project, along with all information and resources needed to occupy and maintain it, is handed back to the owner.

The handover phase can feel like the final stressful hurdle that needs to be cleared, as an owner impatiently tries to take possession of their building, and a contractor hurriedly tries to get on to the next job. However, understanding how to plan for, manage and execute project handover can have major implications for the life of a building and the time and resources of everyone involved.

In this article, we explore all parts of project handover, from what it is, where it fits into the larger closeout process and how to excel at it.

The Importance of Project Handover

The moment an owner receives the keys to their building is exciting. However, the most important part of handover might be the resources they receive, such as certificates, warranties, and training, to help operate and maintain their property for years to come. 

For contractors, project handover is often the last impression they leave with a client, meaning it might be what clients remember when considering coming back for repeat business. A chaotic and unclear handover can also cost contractors time and money, as it becomes more likely they’ll be called back to the building to troubleshoot, fix problems or explain how things work.

The Difference Between Project Handover and Closeout

Some people use “project handover” and “closeout” interchangeably, to represent all that’s required to complete a project. In most cases, and for this article, they are distinct but connected processes. Closeout is the multi-step process of completing a project, which requires wrapping up every part of the job, from inspections to outstanding work to obtaining the certificate of occupancy.

Project handover is the final part of the closeout process, where all that’s been done during closeout is handed over to the owner and their team. Project handover usually happens after “substantial completion,” a key milestone in closeout. 

7 Key Components During Project Handover

Project handover happens when the requirements to fulfill a construction contract—whether it’s legal, aesthetic or documentation—are met.

Most handovers are similar regardless of the type of project, so it’s often helpful to have repeatable systems and templates, as opposed to recreating steps for every job.

Below are seven important steps that take place during most handovers:

1. Delivering Closeout Documents

Owners need all documents and resources to operate and maintain the building, which might include as-built drawings, warranties, certificates, lien waivers, operation and maintenance manuals and reports.

Required documents are usually listed in the contract specifications established at the beginning of the project. Most documents are delivered digitally, which is often easier to transport, store and search. Digital binders should be very organized, with clear naming conventions and well-organized folders.

2. Any Final Inspections or Walkthroughs

Most inspections will already be completed, since they were likely required to close work permits and obtain a certificate of occupancy. However, some important inspections, such as a fire marshal walkthrough, might still need to be done.

3. Outstanding Work

Most remaining work will have been identified during the punch list walkthrough, and taken care of for a building to get substantial completion. However, when owners and their teams are moving in, they sometimes find small issues that should be addressed before the construction team leaves the property.

4. Warranties

Many warranties take effect on the date of a project’s substantial completion. Others are connected to the delivery of closeout documents. In both cases, project handover is an important time for an owner to receive warranties and understand what they cover.

5. Utilities

On many projects, contractors take over utility accounts during construction. During project handover, those accounts are usually transferred back to the owner.

6. Jobsite and Materials Management

A property should usually be completely ready for move-in by the end of project handover. Contractors and their teams should ensure the building is clear of all materials, tools and debris. Contractors often offer excess materials, such as carpeting or paint, to the owner or maintenance team in case it might be useful in the future.

7. Retainage

For many contractors, final payment and retainage are connected to reaching substantial completion. Project handover can be an important time for submitting final pay applications, issuing final payments and releasing retainage.

Roles and Responsibilities in Project Handovers

During handover, construction teams are often winding their work down while owners and their teams are ramping theirs up, so it’s not uncommon for competing priorities to emerge. It’s important to be clear on individual roles and what everyone hopes to accomplish during this time.

General Contractor

The general contractor (GC) often spends much of project handover attending to the needs of their client. They usually answer questions, address concerns and provide an orientation of the newly completed space. The GC is responsible for managing all elements of handover and working to make it as smooth and effective as possible. This includes collecting and delivering closeout documents and facilitating meetings between the owner’s team and the construction team to ensure finishing touches and information exchanges have taken place.

Superintendents

Leaders on the jobsite, such as superintendents, usually oversee any final tasks like being present for a fire marshal’s walkthrough, verifying the punch list is complete and providing any last-minute training. This might mean, in the case of a hotel, going unit by unit to ensure every room no longer requires work, is aesthetically correct and is free from leftover trash or debris.

Subcontractors

Much of the work done by subcontractors is complete by this time. However, they are sometimes called on to provide outstanding closeout documents or do final, last minute work for their part of the project. Subcontractors’ final payments and retainages are often connected to substantial completion, so project handover is often a time they receive money and offer final lien waivers.

Owners/Owner's Representatives

The owner, or their representatives, is mostly focused on getting the building ready to fulfill its intended purpose as quickly as possible. They usually want to ensure the building meets their expectations in terms of quality and check they have everything needed to operate and maintain the building moving forward. 

While most of an owner’s issues will have been identified during the punch list walkthrough, they are keeping an eye out for any areas of concern while they begin to move in. Owners often use project handover as a time to begin hiring staff, renting units or whatever is necessary for the building to be used.

Maintenance teams

The maintenance team’s responsibilities depend on the building, its purpose, and the role they will play in its future operation. Often, they are managing move-in, while also coordinating and communicating with the construction team. This might include asking questions about mechanical equipment, undergoing training or browsing manuals to verify they have all that’s needed.

Government or Municipality

Most of a local building authority’s work is done when a property obtains its certificate of occupancy. However, the municipality will sometimes manage and be in charge of inspections relating to the building’s intended use, such as a fire marshal walkthrough or health inspection. These are often listed on local government websites, such as with Nashville’s fire marshal.

Partial Handovers

Larger projects sometimes benefit from a partial handover, which is a process of handing over parts of a project to be used while the others are completed. This allows an owner to begin operating a facility in a way that’s safe and manageable.

Take apartment complexes that have multiple buildings for example. One building might be handed back to the owner while contractors work on the rest of the property.

Common Challenges and Solutions During Project Handover

Ending construction and beginning to actually use a building is a dynamic process that requires thoughtful planning and open communication to avoid problems and navigate competing priorities. Here are issues that commonly arise, with ways to potentially avoid or address them:

Late Additions of Work to Be Done

As owners move in, it’s not uncommon for them to discover work that’d like to be done. In many cases, this is simple, such as touching up paint, moving signage or tweaking the landscaping. It’s often best to quickly do this work, since a happy client is more likely to return for repeat business and less likely to require time-consuming assistance in the future. 

One of the best ways to avoid a bunch of extra work being added is relationship building. Spending time throughout construction to develop lines of communication and understanding client expectations can help identify potential issues as early as possible and make it easier to troubleshoot later on.

Sometimes, requested changes are outside the scope of the contract. Taking time to hear a client’s concerns and why they feel that way can sometimes lead to creative solutions that don’t create large delays. If the request requires a lot of additional work, such as adding a sink in a place that doesn’t yet have plumbing, it’s generally understood the client will be billed for extra time and labor. 

Wrangling Subcontractors to Do Work

Sometimes, work that needs to be done during project handover requires tracking down a subcontractor who might’ve completed their work long ago and has moved on to another project. Maintaining positive relationships and open communication with subcontractors can go a long way with these last minute asks. This is often why having retainages can be helpful, as it incentivizes subcontractor engagement throughout the process. 

Miscommunication

A lot is happening during handover, as the field team leaves the job, the maintenance team moves in and contractors deliver all necessary documentation. These groups each have their own priorities during this time, so it’s easy for details to get lost and miscommunication to ensue. This can create mistakes that are costly in terms of time, money and, in worst cases, safety. 

It can be helpful to share knowledge and establish communication by using tools that help map out a project and list necessary work and documentation. Tools such as Procore’s Action Plan help GC’s share timelines and requirements with owners and subcontractors. Subcontractors who understand how their work fits into a larger project and what is required of them are more likely to deliver everything before they leave the jobsite. 

Owners who are clear on timelines and expectations are more likely to be accommodating when issues arise and can make better plans for moving in, renting units, or hiring staff.

Maintenance Team Doesn’t Understand Something

Sometimes, a maintenance team doesn’t know how to operate a system or piece of equipment, even when they have received training or operation manuals. This is understandable, as they’re often managing a ton of movein-related variables.

Many issues are best resolved with in-person interactions on the jobsite, which allows the field team to assess the nature of the concern, demonstrate how to operate equipment and show where information is in the closeout documents. 

Many contractors make videos of their training and include those with the closeout documents. This helps avoid confusion by giving the maintenance team something to refer to and share with future team members.

Best Practices for Managing Handover

Every client and job is different, but there are a few practices that almost always make handover more efficient and manageable.

Planning

Contractors should begin planning to collect, complete and deliver closeout documents at the very beginning of the project by making sure they understand contract specifications, know what’s needed from each subcontractor and create an organization system. This can be as simple as creating a spreadsheet that categorizes tasks and documentation by the people who need to provide it.

Templatize

Many parts of handover, such as collecting warranties or organizing closeout documents, are the same for every project. It’s often helpful to create systems and templates that can be repeatedly used and customized for each job, as opposed to recreating resources over and over. This also helps with planning ahead, as people can better anticipate their responsibilities and deadlines.

Communicate

Fostering effective communication throughout construction can make handover smoother and less stressful. Subcontractors should be clear on the documentation they need to submit and when it's needed. Owners should understand what to expect, when to expect it, and receive updates on delays to maintain positive relationships and to align their own planning. Digital tools, such as Procore’s Action Tools, are helpful for planning, and also help communication by being shareable with everyone who needs to see it. 

Improve on project handover over time.

Project handover happens on nearly every project. Becoming familiar with it and taking time to reflect on what goes well, and what doesn’t, allows it to become more manageable over time. It also provides opportunities to build better relationships with clients and subcontractors, as opposed to troubleshooting and fighting over competing priorities.

Written by