Project Closeout

Volume 5, Chapter 19


This chapter addresses procedures required by the Facility that extend beyond the requirements of the construction contract.


When each capital improvement project is completed, and the account containing the project funds is closed out, the project budget is amended as required to show actual costs in each category.

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Post-Grant Administration. Contact the applicable grant agency or agencies to verify that all reviews and approvals have been completed.

Post-Construction Space Audit. Contact the applicable federal grant agency to ensure that all post-construction space audits have been completed.

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The state civil code establishes specific obligations of the contractor to correct defective work, that is, patent and latent defects (see 19.3.1).

19.3.1 Patent and Latent Defects


- California Code of Civil Procedure, Sections 337.1 and 337.15.

A patent defect is a defect that is known or observable during the course of construction and before Final Completion (see 18.4). A latent defect is a defect that is not visible or active during the course of construction or before Final Completion.

The California Code of Civil Procedure contains statutes of limitations on patent and latent defects. For patent defects, the University has the right to recover damages up to four years after the defect is discovered. For latent defects, the University has the right to recover damages up to 10 years after the date of Final Completion.

19.3.2 Reporting Defects and Deficiencies

Defects and deficiencies are sometimes discovered by Facility operation and maintenance personnel during the Guarantee to Repair Period or within the statutes of limitations for correcting defects (see 19.3.1). Defects and deficiencies must be reported to the Office of the General Counsel as outlined in FM6:4.9. (The procedures for reporting defects and deficiencies are contained in FM6:4.9.1 because the project is turned over to the Facility's operation and maintenance department upon Final Completion.)

19.3.3 Personal Injury Caused by Inadequate Design or Poor Construction

Defects or deficiencies in the work may result from inadequate design or poor construction. The statutes of limitations discussed in 19.3.1 apply to property damage but not to personal injury. There is no statute of limitations for personal injury damage. For example, if a wall collapses 20 years after the wall is completed, and the reason for the collapse is found to be inadequate design,the design professional is still liable for any personal injury caused.

19.3.4 Post Construction Meeting

During the eleventh month following substantial completion or final completion, University conducts a walk through for the purpose of detecting deficiencies and reviewing guarantees, warranties, bonds, and service and maintenance contracts. A list of all deficiencies noted must be issued to the contractor along with instructions to make corrections as required and in accordance with the terms of the General Conditions of the construction contract.

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