If you struggle with collecting your final payment from clients after completing design/build projects, implementing a punch list walkthrough can help mitigate this issue.
This was the case for Local Roots Landscaping, based in Pittsburgh, Pennsylvania. While early on they didn’t have a punch list process, after implementing the practice around seven years ago, it has made a noticeable difference for their business.
Rob Friedenberger, director of operations for Local Roots, says the biggest impact from adding punch list walks to their process has been improved cash flow, as they can ensure final payment. After going through the punch list items, the client knows their next step is paying the final invoice.
“From a client standpoint, it gives them notice that you’re completing the job, you’re wrapping things up,” Friedenberger says. “You can get a sense of their perspective on the project. If things were great, it’s the perfect time to say, ‘Hey, if you’re super happy with your project, would you mind giving us a quick Google review?’”
Friedenberger adds that it also gives clients the sense that you take pride in the quality of your work.
Punch List Process Tips
For Local Roots, the client conducts their punch list walk with the project manager before final completion.
“The project manager just sets up a time with the client,” Friedenberger says. “They have a checklist that basically is a Google Form they go through. They check it off as they’re going through different things, making sure that everything is done. They’re keeping an eye out for things that need to be addressed.”
With the Google Form, the project manager can check boxes for issues that come up as well as leave more detailed notes. Friedenberger says they use the checkboxes to get data metrics on a common punch list issue.
“We have weekly trainings on Tuesday mornings, and if we start to notice a trend where they start coming up a lot, that’s when we address them,” Friedenberger says. “It’s not frequent that we have to.”
Friedenberger says their punch list Google Form is always evolving and changing, and as their crews improve, they’ve been able to narrow their scope of what they’re looking for.
“The nice thing with the project manager doing the walkthrough is they can identify why it’s a punch list item,” Friedenberg says. “Is the crew going fast? Or was it a defect? Or is this just part of the process, or is it a lack of training?”
What you should include on your punch list will vary based on your services. Friedenberger says some of the basic elements he looks for are if the polysand is applied consistently, if the pavers have any visible chips or stains or if there are any exposed wires from the landscape lighting. He adds you should consider who is installing the project as well, so if something isn’t an individual’s strong suit, that item should be added to that project’s punch list.
During a punch list walkthrough, Friedenberger says anything from inconsistent mulch to a plant not meeting a client’s expectations can come up.
“Really, that’s what punchless walks should be,” he says. “It shouldn’t be dealing with any major issues. It should be almost preference things more so and just minor touch-ups and clean-ups.”
Once the items have been identified, Local Roots strives to address them while the crews are still on site, so these tasks are added to their daily schedule.
Local Roots opts to cover the punch list process via overhead recovery and allocates about 2-3% of the total job time for handling these final details.
Keys To Minimizing Punch List Problems
One way Local Roots reduces the number of punch list items they need to address is by keeping live tabs on their jobs through daily photo updates. They share these pictures through their white-label app with customers. Friedenberger says this allows them to manage subjective requests throughout the project.
“They get an update in the morning before the crews are off,” he says. “They get an update during the day of progress, and an update at the end of the day with pictures. Even if our clients are not around, they can see that progress as it’s going, so they can provide that feedback live and say, ‘Hey, that wasn’t what I was expecting.’”
For subjective issues that crop up during the punch list walk, Friedenberger advises asking the client how they’d like to see the issue resolved and providing a professional suggestion as well.
“Generally, they go with our recommendations,” Friedenberg says. “If the communication is good on the front end, they learn to trust us, and those problems usually vanish.”
Friedenberger suggests conducting punch list walks with subcontractors as well as. He says it’s all about communication and paying attention to detail.
“If we do have a subcontractor that’s doing hardscape work or something like that, then absolutely, we still follow our same punch list procedure, just as they’re wrapping up,” Friedenberger says. “That’s the ideal time. Just that way we’re not demobilizing, remobilizing all that stuff and keep them on site.”
Friedenberger recommends that other design/build companies utilize a punch list process and digitize it if they haven’t already.
“The data is what drives us to make changes,” he says. “If you walk around with a clipboard and you make a punch list, that’s great. That’s going to get the job done, and you’re going to end up repeating that cycle.”
