BN-G-Y022 Punchlisting, Completion and Turnover Full

Table of Contents

1. General
2. Turnover Stages by Functional Systems
3. Work Phases/Contractual Milestones
4. Punchlisting
5. Turnover
6. References
7. Attachments

1. General

Site works are rarely completed and turned over to the client as a single entity. More usually this is achieved in discrete stages based on functional systems or geographical zones or by complete buildings as the case may be. Ideally the manner in which this is to be organized should be defined before the work on site starts, with specific requirements being incorporated into the Construction Procedure & Execution Manual and into the construction subcontracts.

Such an arrangement enables all parties to know from the beginning their roles in achieving a smooth evolution from construction, through punchlisting and on to turnover. Should turnover stages not being defined at the time the site is opened, the Project Construction Manager shall liaise with the client and the relevant Company departments to clarify this situation as early as possible during the site works.

2 Turnover Stages by Functional Systems

Turnover stages for a process plant are normally defined in terms of functional systems covering both the process units themselves and the offsites and utilities. Each system is defined by means of (where applicable):

• A marked-up process and instrumentation diagram(s) (P&ID).
• A list of piping isometric drawings.
• A list of mechanical equipment.
• A list of instruments.
• A list of electrical schematic diagrams.
• A list of instrument loop diagrams.

For the sake of completeness, infrastructure items e.g. roads, piperacks, buildings, fences, concrete structures, etc. can be assimilated into the list of functional systems (in that for example a piperack is a "pipe support system" or the roads are a "vehicle access system", etc.). This enables each and every item of works to be included in one or other of the turnover packages.

An electrical distribution system can be broken down on a per substation basis. Electric motors, starters and interconnecting cables may be retained within the electrical systems or alternatively grouped with the process systems they serve.

3 Work Phases/Contractual Milestones

Successive work phases on site and contractual milestones can be summarized as follows:

Depending on the terms and conditions of the main contract, turnover to the client may occur:

• At Mechanical Completion declared either before or after Precommissioning.
• At Ready for Start-up.

i.e. there are three alternatives (with possible sub-variants).

In the period leading up to turnover the client, in the persons of his start-up, operations and maintenance personnel, becomes more and more active on the site. However, overall control and responsibility, in particular for safety matters, remain in the hands of Company.

Once turnover is achieved, it is the client who is responsible, and work by Company or by its subcontractors is regulated by the client's permit to work system.

It is important that during the successive stages of construction, precommissioning, commissioning, preparation for start-up and start-up, the respective obligations of client, of Company and of the subcontractors are clearly defined, understood and respected. This may best be defined in terms of an agreed checklist, preferably integrated into the main contract right from the start of the project. Three model checklists are available corresponding to the three alternative points for turnover (see Reference 22.6.1).

4. Punchlisting

A punchlist is a list of outstanding items noted on an entity, e.g. a functional system, previously presented as complete in all respects in relation to specified requirements. Punchlisting takes place as a prelude to acceptance of the works and turnover:

• From - subcontractor(s)
• To - Company
• and onwards to - the client

Organizing and carrying out punchlisting, including follow-up to close out, is the responsibility of the Construction Superintendent, assisted by the Construction Specialists.

Punchlisting may take place at two levels:

• Vis-à-vis a single subcontractor, generally on a mono discipline basis.
• For a functional system covering two or more disciplines/subcontractors.

In the first place a subcontractor shall formally request Company to punchlist a section of the works, using the form shown in Attachment 1.

The concerned Construction Specialist shall inspect the section of the works presented to ascertain its degree of completion with respect to specified requirements. Incomplete items shall be noted on the punchlist form shown in Attachment 2. It should be noted that punchlisting not only covers the physical works, but must include the corresponding quality documentation.

The Construction Specialist shall ensure that the subcontractor completes the items listed, recording completion by signing off the punchlist.

Nonconformances outstanding at the time of punchlisting shall be closed out by transferring them onto the punchlist.

Should a punchlisting operation produce no outstanding items a punchlist form shall still be prepared, bearing the note "No outstanding items".

Punchlisting at the functional system level, generally involving two or more disciplines is carried out by the client; Company's commissioning personnel seconded from the head office Process Department may participate depending on the limit of contractual responsibility i.e. mechanical completion or ready for start-up.

Administration of punchlisting and follow-up of punchlists through to close out remains that of the Construction Superintendent. The latter shall take the necessary steps to ensure that punchlists are closed out as soon as possible. Attachment 3 shows a model form to enable punchlisting to be logged and monitored.

A clear distinction shall be made between punchlist items which cover work within the initial scope of work of Company and those which are in effect additional. The latter must give rise to a change order accepted by the client before they are implemented.

5 Turnover

Completion by the subcontractor of the whole or a part of the works is formalized as follows:

• Subcontractor requests Company to punchlist (Attachment 1).
• Punchlist is prepared and acted upon (Attachment 2).
• Subcontractor receives a copy of the Certificate of Turnover (see Attachment 4) for each functional system in which he has participated. This is to inform him that from then on he only works further on the system with the written permission of Company, (or through the client permit to work system if this is operational).
• On completion of all his scope the subcontractor receives from Company a Completion Certificate i.e. corresponding to the close out of the subcontract.

It should be noted that normally the terms of the General Conditions of Subcontract allow Company "to use and occupy the WORK or part thereof before its completion". For each subcontract this corresponds to the time between:

• Turnover to the client of functional systems including elements of that subcontract.
• The issue to the subcontractor of a Completion Certificate.

See Reference 6.2.

Completion of works includes ensuring corresponding quality records are complete and signed off and "as-built" drawings received by the Site Engineer.

Responsibility for organizing and following through acceptance of completion by the subcontractor is the entire responsibility of the Construction Superintendent. The latter shall be assisted by his Construction Specialists.

Turnover to the client is normally by functional system, which may take place upon "Mechanical Completion" or when "Ready for Start-up" in accordance with the contract conditions. This is formalized using the form shown in Attachment 4. Typically one system certificate covers several disciplines and more than one subcontractor.

Organizing and following through turnover to the client is the task of the Construction Superintendent, who shall liaise as necessary with any commissioning personnel seconded to site by the head office Process Department. The Construction Superintendent shall actively expedite through the Construction Specialists any punchlist items delaying turnover. He shall obtain signatures from the Project Construction Manager and from the client.

It must be clearly understood that formalization of completion by the subcontractors and turnover to the client are important in that they set limits to the responsibility of Company. Assistance by Company beyond turnover is normally given on a different basis, the client having assumed overall responsibility, contractually, technically and for safety.

6 References

7 Attachments

1. Subcontractor Request to Punchlist - click here for .pdf

2. Punchlist -click here for .pdf

3. Punchlist Log and Status Report -click here for .pdf

4. Certificate of Functional System Mechanical Completion/Ready for Start-up and Turnover - click here for .pdf