Closeout: What to Collect Before Final Payment

The end of a build moves fast. Furniture is coming, the movers are booked, and everyone is ready to be done. That's exactly when the paperwork that matters for the next twenty years gets skipped.

Closeout is the process of finishing the job on paper as well as on site. Most of it is gathering things. It's much easier to gather them before the final payment, while everyone is still working on your house, than six months later when the crew has moved on.

Certificate of occupancy

The building department issues it once the house passes final inspection. In most places you can't legally move in without it, and your lender and insurer may ask for it. Get a copy for your records.

The final walkthrough list

Walk the house with your builder and write down everything that still needs finishing or fixing, room by room. Agree on the list in writing and on when it will be done. Some contracts tie part of the final payment or the holdback release to completing it. See How to walk your site without starting a fight for how to keep the list useful.

Final reconciliation

Before the last payment, everything should add up in one place:

• The original contract amount
• Every approved change order
• Each allowance, reconciled against what was actually selected, with any overages and credits
• Everything you've paid so far, and any amount being held back

That gives you the final number. If anything is pending or disputed, list it separately so the rest can close. Allowance credits are easy to lose track of at the end, so check that any you're owed show up. More in Allowance math.

Final lien waivers

A lien waiver is a document in which a contractor, sub, or supplier says they've been paid and gives up the right to file a lien for that amount. Before final payment, many people collect final waivers from the builder and from the major subs and suppliers. How waivers work, and which ones you need, depends on your state and your contract. See Lien waivers, and ask your construction attorney or your lender what they require.

Holdback release

If your contract holds back a percentage of each payment (often called retainage), it says when that money is released. Usually it's tied to completion, the walkthrough list, final paperwork, or a set time after occupancy. Know the terms before you get to the end, so nobody is surprised.

Warranties and manuals

Ask for the builder's warranty in writing, plus every manufacturer warranty that came with the house: roofing, windows, doors, appliances, the boiler or furnace, water heater, and any specialty equipment. Many manufacturer warranties need to be registered, sometimes within a set number of days. Get the manuals too, and learn how to service the systems: filters, the heating system's settings, any water treatment, the snow melt if you have one.

The finish schedule

This is the list I wish every client got and almost nobody asks for. Paint colors and sheens by room, tile names and grout colors, wood floor species and finish, cabinet stain, plumbing and lighting fixture models, door hardware, and countertop material. When something gets scratched in five years, this is how you match it.

As-builts, leftovers, keys and codes

Ask for drawings or photos showing where things ended up, especially anything buried or behind walls: plumbing and electrical runs, blocking for future grab bars or TVs, and the location of the septic tank or utility lines. Keep the leftover materials: spare tile, flooring, paint, and trim, labeled. And collect every key, garage remote, lock code, alarm code, and network login before the crew leaves.

None of this is legal advice about when or whether to make a final payment. That's between you, your contract, and your attorney if it comes to it. This is just the list I'd want in hand.

Questions worth asking

• When will the walkthrough list be complete, and how will we confirm it?
• Can you send a final reconciliation of the contract, change orders, and allowances?
• Which lien waivers will I receive with the final payment?
• When is the holdback released, and what triggers it?
• Which manufacturer warranties need to be registered, and by when?
• Can you send the finish schedule and any as-built information?