The construction handover is a critical milestone that signifies the successful completion of a project. A well-executed building handover not only ensures that the project meets all agreed-upon specifications and standards but also minimizes future disputes and enhances client satisfaction.
Read on to learn the intricacies of handing over a construction project, highlighting its key components, common challenges, best practices, and how digital tools can streamline this crucial phase.
What is a Construction Handover?
A construction handover is a formal process of transferring ownership of the project from the contractor to the client or the owner. It is an important step, wherein the contractor conducts the final inspections to ensure the project meets all the specifications and quality standards agreed upon in the contract.
At the handover stage in construction, the builder relinquishes all responsibilities to the owner. While it signifies the end of the builder’s role, it also denotes the beginning of the owner’s responsibility of maintaining and using the property.
👉 Construction Project Handover Checklist: Here’s a free template that you can use to efficiently standardize your project handovers, making sure that nothing important is missed.
Why Proper Handing Over of a Construction Project is Crucial
The handing over process in construction officially denotes that the project is completed and the space is ready for the client to use.
A successful building handover involves passing over documentation such as warranties, compliance certificates, user manuals, keys, and access details to the new owners, ensuring they are equipped with all the necessary items to manage the property. This is crucial to minimize the chances of disputes in the future.
Furthermore, it allows contractors to identify and address minor issues before marking the project as done. Whereas for new owners or clients, a construction handover provides an opportunity to familiarize themselves with the newly built space and get all questions answered.
Construction Handover Process: Key Components of a Project Handover
Irrespective of the nature of the project, most construction handovers require contractors to fulfill the following requirements:
Documentation
The first step in handing over a construction project is gathering all the essential documents to facilitate a smooth transition. This typically includes compliance certificates, engineering plans, architectural drawings, permits, contracts, maintenance manuals, and any other relevant paperwork that the client or the owner might require to operate and maintain the facility in the future.
Final Site Inspections
Before handing over the construction project to the client, the contractor must conduct a final site inspection to make sure all systems function correctly per the agreed-upon standards.
This includes structural checks, electrical and plumbing inspections, fire safety tests, etc. The final inspection is crucial as it assures that the project meets all the compliance requirements and is free of any safety hazards.
👉 Useful Resource: Free Construction Inspection Checklists
Here are free templates that you can customize to your specific project requirements:
→ Construction Quality Control Checklist
→ Building Inspection Checklists
→ Roof Inspection Checklist
→ Residential Plumbing Checklist
→ Residential Fuel Gas Piping Checklist
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Punch List Items
A construction punch list is a list of issues or repairs that need to be addressed before the project is handed over. It is usually compiled during the final inspections, and the contractor must ensure all issues are resolved before declaring the project complete.
Warranties
Some warranties come into effect immediately after project completion, whereas others are valid only after submitting the closing-out documents. Regardless of the warranty type, building handover is the time for the future owners to receive warranties and learn about the coverage.
Utilities
At times, the contractor may take over managing and paying for utilities such as electricity, water, and gas while the project is in progress. In such cases, the utility accounts must be transferred back to the client during building handover. This ensures a smooth transition of utility services and billing responsibilities from the contractor to the owner.
Jobsite and Material Management
The construction team is responsible for clearing the project site of debris, materials, and tools before declaring it ready for use. This includes returning rented equipment or other temporary tools. The contractors often give leftover materials to the owners or maintenance teams for future use.
👉 Post Construction Cleaning Checklist: Here’s a free template to systematically inspect & clean all property areas.
Retainage
It is a common practice for contractors to demand the final payment and retainage only after completing the project substantially. Construction project handover is the time to release the final payments and retainage and settle the account.
Common Challenges in Building Handover
Contractors and builders face the following challenges when handing over construction projects:
Defect Identification and Rectification
Identifying and addressing defects is a significant challenge during handover. Discrepancies between as-built drawings and actual site conditions can lead to overlooked issues.
For instance, defects may go unnoticed if field personnel use outdated drawings or fail to update revisions accurately. It’s crucial for contractors to thoroughly inspect and rectify any defects before handover to ensure the building meets the required standards.
Coordination Between Parties
Effective collaboration among subcontractors, engineers, suppliers, and clients is essential during handover. Miscommunication or lack of coordination can result in rework, delays, and increased costs.
Time Constraints
Tight deadlines are common in construction projects, especially as clients are often eager to occupy the new building. Rushed handovers can lead to incomplete documentation, overlooked defects, and inadequate training for the facility’s management team. In some cases, delayed handovers can lead to financial penalties or legal actions from the clients.
Meeting Regulatory Requirements
Compliance checks with building codes, safety regulations, and environmental standards are mandatory during handover. Overlooking any regulatory requirement can result in legal issues, fines, or delays in occupancy permits.
👉 Customer Story: How Woodside Homes Overcame the Challenges of Construction Handover
Woodside Homes, a leading homebuilding company in the US, offers various solutions, including fully equipped and personalized housing. However, due to a lack of a formalized and systematic approach, the team found it challenging to inspect critical checkpoints and communicate the identified issues with trade partners, impacting the overall handover Quality Control.
The company adopted GoAudits to streamline its property quality control process. Custom digital checklists, an intuitive app, and automated reports helped teams enhance coordination with trade partners, improve overall quality, and simplify the general superintendent’s role, leading to significant efficiencies and time savings.
Best Practices for a Successful Building Handover Process
Planning and organization are key ingredients of a successful handover. Here are some tips to ensure your next construction handover is smooth and efficient.
- Plan Early: Start planning the handover at the beginning of the project. Collect and organize documents and understand contract specifications to avoid last-minute chaos.
- Ensure Thorough Final Walkthroughs: Conduct comprehensive inspections to identify and address any last-minute defects or incomplete work so that all issues are resolved before the handover, preventing future complications.
- Communicate Effectively: Establish clear communication channels among all stakeholders, including contractors, clients, and facility managers. Make sure everyone on the team is regularly updated on progress, all concerns are addressed promptly, and everyone is aligned.
- Take a Systematic Approach: Implement a structured construction project handover procedure to bring consistency and thoroughness, minimizing the chances of overlooking critical tasks. One of the ways to stay organized is using building handover checklist templates that outline every item of the handover.
- Use an Audit Management and Collaboration Tool: The best building inspection software facilitates automated reporting, real-time information sharing, tracking timelines, effective collaboration, and more, making the building process more efficient.
How GoAudits Helps Manage Quality & Safety in Construction Projects
GoAudits is a construction inspection software that allows contractors to do their best work while meeting the safest and highest quality standards. Its scalable features allow builders to streamline processes, eliminate communication bottlenecks, enhance resource utilization, and handle multiple projects.
With GoAudits you can:
- Create custom construction inspection checklists.
- Schedule regular inspections before the handover.
- Perform final walkthroughs, even in locations with limited internet connectivity.
- Build a punch list and assign corrective actions to the team.
- Make sure all stakeholders stay updated through instant reporting.
- Hand over projects on time by ensuring last-minute repairs and fixes are addressed promptly.
With a rating of 4.8 stars on Capterra, GoAudits is trusted by some of the biggest names in the construction management industry.
» GoAudits Reviews: Read how companies leverage GoAudits to meet standards in their construction operations.