The State of Closeout in 2023

Just as the construction industry continues to evolve, so too does the closeout process. As the final step in the construction process, collecting final paperwork, finalizing payments, and transferring management of the building to the owner can has historically been the biggest obstacle to getting onto the next process. Often disdained for its' paperwork-heavy process, the past several years have seen significant changes in how the closeout process is conducted.

As more construction organizations have sought to modernize their process with software like Procore, a natural result is the move towards digital documentation. Construction teams have historically relied on paper-based documentation, which was extremely time-consuming to manage and often prone to errors. Today, however, many construction firms are transitioning to a nearly entirely paperless closeout process using collaborative online platforms which can be accessed and updated in real-time by multiple stakeholders. This change is likely to continue, as more and more construction firms recognize the benefits of digital documentation, such as improved accuracy, efficiency, and cost savings. However, it is important for the average contractor to be aware of an overcorrection of sorts - too many software solutions moving documents away from their primary systems of record can create more silos, or even create lock-in for years of expensive contracts. Tools like Extracts Pro, a software tool for improved extracts and exports of Procore data, can help Contractors minimize software lock-in and provide affordable and flexible ways of managing the closeout process.

As expected, digitization directly reflects the growing trend of manage the closeout process in software platforms. Construction software, like Procore or Autodesk's BIM360, can automate many of the tasks involved in closeout, such as generating punch lists, tracking payments, and managing documents. Procore handles many of the fundamental closeout tasks well, but third-party tools may be required for large-scale projects. It is critical for a business to evaluate its Closeout for Procore needs and decide if the core platform is comprehensive enough to work on its own, or if a secondary tool is required to continue to streamline the process. For example, Procore can create PDFs of documents, but it often struggles to combine Procore PDFs in a traditional closeout package. In addition, Artificial Intelligence and Machine Learning continue to make their debuts in the closeout process, which can help identify potential issues before they become problems or even identify specific documents required in a project's Spec Book. As more construction firms adopt tools like Procore, the closeout process will continue to become more streamlined and efficient.

Finally, collaboration continues to become more critical in the closeout process. Construction teams are continuing to recognize the value of involving all stakeholders, including the owner, contractors, and subcontractors, in the closeout process. Project teams often cite the best-run projects as those with the best communication, and that extends to the closeout process. This collaboration helps ensure that everyone is on the same page and can address any issues or concerns before the project is complete. In the future, we can expect to see even more emphasis on collaboration and communication, as construction teams continue to prioritize transparency and accountability.

The closeout process in construction is evolving rapidly, driven by changes in technology, communication, and collaboration. As we look to the future, we can expect to see innovation continue, as construction firms continue to seek ways to improve efficiency, accuracy, and accountability. This includes new tools to the market, like Extracts Pro for those using Procore for Closeout. Whether through digital documentation, software platforms, or collaborative processes, the future of closeout in construction is bright, and holds great promise for the industry as a whole.