How to create a smooth, problem-free construction project handover plan

If a construction project were a relay race, the handover phase would be the last baton pass. And just like a relay race, you wouldn’t want to let the baton fall just before the finish line. 

Unfortunately, it’s common for challenges to come up in the home stretch, often leading to costly delays and decreased client satisfaction when it matters most.

In this article, we’re outlining a variety of strategies and tips to help residential builders minimize the risk of these last-mile disruptions.

What is a construction handover?

A construction handover is the process of transferring a construction project from the contractor to the client or owner.

With the transfer, both parties accept that all requirements – the contractor from a building standpoint and the owner from a financial standpoint – have been fulfilled based on their respective contractual obligations. 

What’s included in the construction handover process?

The handover process is more complicated than simply handing your client a set of keys. There are five typical components of a successful handover strategy. 

1. Documentation and paperwork

This includes gathering and organizing all the necessary documents and paperwork related to the construction project. This is important to ensure all legal and compliance needs are met when transferring ownership of the asset. 

Typical project documentation includes approved occupancy and inspections from local authorities and surveyors, builder and manufacturer warranties, final drawings and the construction contract. 

2. Quality and occupancy inspections

To obtain a certificate of occupancy, new builds require a professional inspection.

This is separate from the final walk-through between the contractor and the owner. Although conducted for different purposes (a professional inspector may be driven by safety and code requirements, while an owner may be driven by aesthetic and design specifications) both inspections are a safeguard to ensure quality standards. 

3. Completion of construction work

All construction work should be completed before the handover takes place.

This includes checking the completion of finishing touches, final installations and any outstanding deliverables that need to be addressed.

4. Addressing issues

Any issues or deficiencies identified during the quality inspections should be addressed and resolved before the handover.

This may involve correcting any defects noted while checking for construction completion, fixing noncompliant work or addressing any outstanding concerns included in the scope of work.

5. Handover meeting

A formal handover meeting should be conducted between the contractor and the client or owner.

It’s important to hold this meeting so the construction project team and the owner can review the project together, ensure handover documentation is correct and foster a positive relationship throughout completion. 

Each of these steps can help ensure a smooth construction project handover.

The benefits of a well-executed construction handover

A well-executed construction handover plan offers many benefits to both contractors and homeowners. 

1. Smooth project transition

A well-executed handover plan ensures a seamless transition from the construction phase to the operational phase. It allows for a smooth transfer of responsibilities, ensuring that all necessary documentation, keys and project information are handed over to the client or facility management team. 

2. Client satisfaction

According to the recent State of the Residential Construction Industry annual report, nearly 42% of a builder’s sales are referral-driven. A smooth handover helps promote client satisfaction by ensuring the owner’s expectations are met, which can increase your referral revenue down the road.  

3. Fewer post-construction issues

A thorough handover process minimizes the likelihood of post-construction issues. The combination of inspections, documentation and effective communication helps identify any details to resolve before the project is handed over. This reduces the chances of last-minute delays or post-construction rework as covered by construction warranties. 

4. Legal and contractual compliance

A well-executed handover plan ensures compliance with all legal and contractual obligations. That’s one of the reasons the documentation step of the handover process is so important. By gathering and sharing all relevant information, both parties can protect themselves legally – and financially – with the assurance of legal and regulatory compliance. 

Common challenges in construction handovers

There are several common hiccups that occur during the construction handover phase that can make the workflow longer and add costs to the project budget. 

Defect identification and rectification

Have you ever walked through an almost-finished home project and seen blue painter’s tape spread across the project? Those are all the imperfections, flaws or corrections an owner and inspector request the contractor fix before the transfer of ownership occurs. This can be a time-consuming process, noting everything from structural flaws to cosmetic issues. 

Coordination between parties

As corrections or changes are requested, there may be added coordination of subcontractors, engineers and suppliers to ensure everything is resolved. Any miscommunication during this step can lead to even more rework and bottom-line expenses.

Documentation management

Managing and organizing all the necessary documentation required for a construction project can be a challenge. Missing or incomplete documentation can cause delays and legal complications, so it’s important to have a simple and accurate centralized place to track and save it.

Meeting regulatory requirements

Construction projects must comply with various regulatory requirements, such as building codes, safety regulations and even environmental standards, each with their own guidelines and inspection steps. Failure to adhere to these details can mean fines and penalties for a contractor. So it’s important to understand what’s required before you ever break ground on a project – and how you can prove you’ve met the required standards. 

Time constraints

It’s no secret that the longer a construction project drags on, the more costly it becomes. There are often additional due dates that pop up during the handover process, especially as the client is motivated to take ownership and move in. It’s important to treat the handover phase as another part of the project schedule, ensuring time and assets are managed correctly to keep the timeline as short as possible. 

How to improve the construction handover process

1. Communicate

Effective communication is the key to the success of the project. From the very beginning, establish clear lines of communication with all stakeholders involved in the handover process. Regularly update them on the progress, address any concerns or issues promptly and ensure that everyone is on the same page.

2. Plan early for handover

Handover should never be an afterthought. Start planning for it right from the project’s inception. Collect and record documentation as you go, involving the client throughout so that nothing comes as a surprise when you’re getting close to handover. 

3. Implement a systematic approach

A systematic approach is crucial to ensure that nothing falls through the cracks during the handover process. One way to do this is by creating a project handover checklist within your construction management software, detailing all items that will be needed during the handover. Even better – turn this checklist into a template so you can easily duplicate this process and scale it across all of your active projects at once. 

4. Establish a robust document management system

Implement a document management system that allows for easy storage of and access to important documents. This will help save you the effort of sifting through mountains of different document versions at the point of handover. 

5. Conduct comprehensive inspections, walk-throughs and tests

Before handing over the project to the client, conduct thorough final inspections and walk-throughs to ensure everything is in tip-top shape. This can help proactively address areas to work on before a client ever brings them up. 

6. Show the client how to operate and maintain the property

Once a project is no longer in the contractor’s ownership, it’s up to the homeowner to maintain and care of it. But many new construction builds offer a months-long warranty post-handover. To reduce the amount of work required by your team members after you pass your client the keys, provide instructions on how to best maintain the property. This may include cleaning and upkeep tips or instructions on how to navigate the electrical panel. 

7. Stay updated with local building codes, safety regulations and permits

Building codes, safety regulations and permits are constantly evolving. By staying current with the latest requirements, you can ensure your projects are compliant as you build. 

8. Use project management software and collaboration tools

Many of the tips we’ve identified above can mean a lot of manual work for an already busy contractor. Construction project management software can do the heavy lifting for you by facilitating communication, tracking project timelines and schedules, centrally storing documentation and streamlining project financials. 

9. Offer post-handover support to the client

The handover process doesn’t end once the project is completed. Offer post-handover support to the client, including addressing any issues that may arise after the handover and providing ongoing assistance if needed. This extra-mile effort can set you apart from other builders and ensure long-term client satisfaction. 

10. Ask for reviews and feedback

Direct client feedback can give you one more opportunity to meet client expectations while also helping improve your future projects.

Construction handover checklist

Do you remember that checklist we mentioned above? Well, here’s an example of what one of those might look like. Keep in mind every project is unique, so this may not be an exhaustive list. Still, use this as a guide when creating action steps for your construction handover checklist template and customize as needed. 

• Submit warranties
• Submit maintenance agreements
• Obtain certification of occupancy
• Submit final project photos
• Submit property surveys
• Gather and package:
  • Final drawings
  • Warranties, certifications, permits, etc. 
  • Operating and maintenance manuals
  • Construction contract records
• Log maintenance and additional task needs
• Handover acceptance document

Master your construction handovers with Buildertrend

Buildertrend is an all-in-one platform created to track and manage every aspect of your construction process – including closeout sign-off.

Here are specific features to assist in handover:

• Client and subcontractor portals: Buildertrend provides a centralized portal for all project-related communication, ensuring everyone is on the same page throughout the build and minimizing disagreements at the end of the project. 
• Document management software: With Buildertrend’s centralized document management solution, you can easily store contracts, permits, plans and financial paperwork. It also helps organize document versions, ensuring contractors and clients are all referring to the most recent project files. 
• Construction templates: Buildertrend’s construction company software allows contractors to create templates across many areas of their work – takeoff processes, schedules and handoff checklists, to name a few. This reduces the amount of time you need to invest in administrative tasks, giving you more time to focus on the actual construction and client relationships. 

Learn more about how Buildertrend can improve your entire construction process, including the handover stage, by requesting a demo today. 

Construction handover FAQs

Get answers to the most common questions about construction handovers.