Before Substantial Performance or any occupancy takes place, an initial review is conducted and a list of deficiencies is prepared by the contractor per OAA/OGCA Document 100. For purposes of clarity the list created by the contractor is typically referred to as a “Punch List” and the consultant’s list is referred to as the deficiency list.
When requested and deemed appropriate for the status of the completion of the Work the consultant(s) will conduct a joint review, which may include the entire design team, to agree on the nature of the deficient Work listed in the contractors punch list and the values to be retained for completion.
The consultant should expect to receive a punch list from the contractor before conducting their review. The punch list should include a complete list of all the items identified in the contract that the contractor and their sub-trades feel are still incomplete or deficient in any way. Each room or area should be effectively identified such that the consultant can reference the punch list during their review of the work. The deficiency list is then made up of the items identified in the punch list plus any other items found by the consultant deemed to be incomplete or deficient.
Where possible, it is acceptable for the consultant to ask the contractor for the electronic file of their punch list in order to edit it with the additional consultant’s comments to help expedite the process.
The consultant should be familiar with the quality standards and performance requirements shown on the drawings, in the specifications and in the standards and other documents referenced in the specifications. It is also the consultant’s responsibility to be aware of the maximum and minimum allowable levels of workmanship for the various trades’ work as defined by their trade associations. For example, the Ontario Painting Contractor's Association standard is to review painted surfaces from a distance of three feet. Assuming the correct preparation, paint, number of coats, film thickness, etc., have been achieved, if no deficiencies can be seen at that distance, there are no deficiencies in the paint even if irregularities or lack of coverage are noticeable from six inches away. For a complete listing of trade associations and their websites, refer to the Construction Canada Website.
When advised by the contractor that the deficient Work has been completed, a final review and check off is conducted. Further reviews are dependant on the contractor.
As the consultant, we should also advise the Owner as to what they can anticipate during the deficiency review process. Just as our documents should not be expected to be perfect, there should not be an expectation on the part of the Owner or the Consultant that the construction or finishing of the project will be perfect. Depending on the size of the project, there may even be a situation where certain concessions will have to be made. Since this comes at the end of the project where when the schedule and budget will most likely be close to spent, if not completely spent, deficiencies can sometimes used as a means toward negotiation of remaining changes to be paid for, move in and other related schedule requirements, etc.
Once timelines and remaining items to completed are agreed upon by all three parties and the work can be deemed substantially performed, or ready for it’s intended use, then the architect is able to issue their Certificate of Substantial Performance.
NOTES
Deficiency reviews follow a similar process to general reviews, but are more about finish quality and design compliance, because most structure, and functional elements are covered with the final finishes. Deficiencies can include scratches to paint, floor finishes, ceiling tiles, placement and function of lights, switches, outlets, etc. This however, doesn't tend to happen with design build, usually the builder takes this responsibility. Tip Try to avoid creating your deficiency list without first receiving a punch list.
Here are some of the reasons why:
• The contractor is less likely to dispute the item when they find it rather than when you find it
• We shouldn’t be made to do the work of the general contractor by listing all the items so they can simply hand our list over to their sub-trades to take care of
• More accountability is instilled in the contractor when they produce a punch list • Greater awareness of the deficiencies is known to the contractor when they have reviewed the work themselves
• Less time has to be taken in describing and substantiating the deficiency
"Cost to complete" reports are used for a variety of reasons. Financial Institutions use cost to complete reports to determine the remaining cost of a project in construction ensuring there are enough funds to complete the development. Cost to complete reports can be used by solicitors and accountants to determine the remaining costs in a project dispute or for determining the value of the construction remaining when the builder can no longer complete the project.
See Practice Tip 17 for additional information.
Adapted from: www.quanto.com/construction-cost-to-complete-reports.html
Updated: 2020/Jun/30