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Construction Punch List, by Lorman

Construction Punch List is brought to you by Lorman

Understand how punch lists are used in connection with substantial and final completion of construction projects.

Industry professionals usually think of a punch list as a list of work items to be completed at the end of the job. This topic reviews how a punch list is used and its impact on the legal and contractual rights of project participants. Many construction participants do not understand how punch work relates to substantial completion, delay damages, the release of retention and final completion, statutory definitions of completion, and lien-related deadlines. This topic explains how punch lists get used in connection with substantial and final completion and how an owner protects themself when punch list work remains at the end of a job. In addition, under state laws, project completion triggers the filing periods for mechanic’s liens, stop payment notices, and notices of completion. This topic addresses the thorny issue of whether punch items prevent statutory interpretations of completion. Punch lists can also be the source of disputes. For example, you may have a contractor that contends that the owner is demanding work that exceeds contract requirements and industry standards; then you have the owner that refuses to release retention due to claimed incomplete punch list work. This material offers practical advice on how to analyze these issues. Learn how to comply with contract requirements and how to protect legal rights.

Learning Objectives

  • You will be able to define what a punch list is.
  • You will be able to describe how the punch list intersects with several closeout and completion issues.
  • You will be able to discuss the impact on delay damages.
  • You will be able to explain the interplay with statutory definitions of completion.

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