Capital Improvement Program
Project Close-out Overview
July 14, 2026
Background
• Overview of Capital
Improvement Program (CIP)
Project close-out steps
• Close-out ensures contract
compliance and that all work
meets scope, quality and
acceptance criteria
• Includes administrative, financial,
and regulatory tasks
• Begins at the substantial
completion stage
• Duration varies by project size and
funding requirements
Notes for
Large
Town-Wide
Projects
• Mobilizations occur often in “trains”
• Critical path work items occur in specific
sequences which can create perceptions
of certain areas being finished where in
fact, a new “train” for work is planned to
return.
• Gaps of work activity sometimes can last
days, weeks or in very rare cases, months.
• Common examples include second lifts of
asphalt paving, striping and general jobsite
demobilization.
Phase 1 – Substantial
Completion, Quality
Assurance, and Punch List
• Verify Quality Assurance/Quality
Control inspections and testing
conform to Contract Documents
• Conduct project walk through and
generate punch list
• Complete punch list items and resolve
outstanding deficiencies
• Complete regulatory closure items
Phase 2 – Contract and
Payment Close-out
• Prepare and process:
• Final change orders
• Final progress estimate
• Execute Letter of Acceptance
• Issue Final Payment minus 5%
retention
• Reconcile project costs and finalize
budget
Phase 3 – Town
Acceptance
• Prepare Notice of Completion (NOC)
• Obtain Town Council acceptance
• Recordation of NOC
• Statutory claim period begins
Phase 4 – Final
Documentation
• Obtain As-built plans and operations
and maintenance manuals
• Warranty documentation
• 5% Retention release (35 days postNotice of Completion) • Prepare project file for final records
retention
Phase 5 – Warranty
Period
• One-year warranty monitoring
• Contractor responsible to repair defects
attributable to faulty workmanship or
defective materials
• Ensures project integrity and performance
Conclusion
• CIP closeout is the final stage of
the project lifecycle and is a
critical component of project
delivery
• Ensures all objectives,
deliverables, and contractual
obligations have been met
• Provides structured record
retention needed for audits and
future reference
Questions?