Closeout & Turnover · Property Management
The First 90 Days After a Commercial Buildout: What Property Managers Need From the Contractor
The certificate of occupancy is issued, the contractor demobilizes, and the keys change hands. For the general contractor, the project is substantially complete. For the property management team, the real work starts here.
By William Goodin, VP of Project Development, Terrapin Construction Group · Updated November 2026
Quick answer
Before final handoff, a property manager needs five things from the contractor: a verified equipment list with warranty start dates, commissioning and startup reports, O&M manuals and as-builts, vendor contact sheets, and a named post-construction contact. Then treat the first 90 days as an observation period with walks at 30, 60, and 90 days, plus an 11-month warranty walk before the one-year correction period ends.
For the property management team, the first 90 days of occupancy show whether the building works the way the drawings said it would.
Most handoff problems have little to do with the construction itself. They come from missing information: nobody told the property manager who services the rooftop units, who to call about the card readers, or when the warranty clock started. This guide covers what to ask the contractor for, how to tell warranty work from maintenance, and what to check at 30, 60, and 90 days. For how closeout fits into the whole project, see Terrapin's commercial construction process guide.
Where Handoffs Break Down
Post-occupancy failures are rarely dramatic. They surface within weeks of tenant move-in and tend to cluster in four areas.
HVAC
HVAC causes the most friction. A tenant improvement may add rooftop units, VAV boxes, exhaust for commercial kitchen equipment, or supplemental cooling for server rooms. Without the equipment submittals, sequences of operation, filter schedules, and the name of the mechanical subcontractor who holds the service contract, a property manager cannot tell whether a month-two complaint is a failed unit, a misconfigured control, or a clogged filter that nobody knew to change.
Access control and security
These systems are often installed by specialty subcontractors the property manager has never met. If their contact information and key cylinder records do not transfer explicitly, rekeying requests stall and after-hours access complaints sit unresolved while someone calls the general contractor weeks after substantial completion just to find a phone number.
Equipment inventories
Incomplete inventories make everything harder. Without a verified asset list with model and serial numbers, warranty start dates, and the responsible vendor for each item, a property manager cannot schedule preventive maintenance efficiently, process a warranty claim, or bid future service contracts.
Open punch list items
Open punch list items are the quiet problem. Each one may be minor, but tenants experience them as defects, and without a record of what was open at turnover, nobody can say whether a later failure is warranty work or normal wear.
What to Ask For Before Final Handoff
Request these in writing before the contractor closes out, and check that each one is in the property manager's hands and not only in the project binder:
- An equipment list with model and serial numbers, warranty start dates, and responsible vendors
- Equipment startup documentation, commissioning reports, and the test-and-balance report for HVAC
- HVAC submittals, sequences of operation, filter schedules, and the service contractor's contact
- Operation and maintenance manuals and as-built drawings
- Warranty letters that show the substantial completion date, since that is when the clock starts
- Contact sheets for the access control, fire alarm, and elevator vendors
- A named post-construction contact at the contractor, with authority to dispatch subcontractors
The easiest way to get this right is to plan for it early. Teams that bring the property manager into preconstruction can write these deliverables into the contract instead of chasing them at closeout.
Warranty Work or Maintenance?
The distinction decides who pays. Contractors generally owe a one-year correction period on defective work. Under the AIA A201 general conditions, for example, the contractor must correct nonconforming work discovered within one year after the date of substantial completion. That clock starts at substantial completion, which is usually earlier than the tenant's move-in, and it runs whether or not the property manager knows about it. Mechanical equipment and roofing often carry separate manufacturer warranties that last longer.
A property manager without a clear escalation path to the general contractor can let a claim expire through inaction. Put the criteria in writing so whoever takes the call can make the decision. As a rule of thumb (check your contract and the manufacturer's terms for the details):
- A rooftop unit or compressor that fails early
- Leaks at roof penetrations or windows
- Door hardware or closers that fail under normal use
- Plumbing fixtures that leak from an installation defect
- Electrical panels or fixtures that fail from installation errors
- Filter changes and scheduled service
- Damage from tenant fit-out or moving
- Cleaning and touch-up after move-in
- Clogs from misuse
- Lamps and other wear items
Warranty terms vary by contract. Your agreement and the manufacturer's warranty documents control. See our guide to design-build contract terms owners should negotiate.
A 30/60/90-Day Review
Rather than treating closeout as a single event, treat the first 90 days as an observation period with three checkpoints.
30 days Walk & log
- Walk the building with the general contractor and the major subcontractors, focusing on HVAC performance, plumbing fixtures, electrical panels, and life safety systems.
- Confirm that startup and commissioning reports are in hand.
- Log every tenant complaint and mark it as a possible warranty issue or an operating item.
- Give the warranty contact sheet to everyone who might take a call.
60 days Find patterns
- Look for patterns in the complaint log that point to a systemic defect and not a one-off.
- Confirm that preventive maintenance is running on all new equipment.
- Test access control and life safety under real conditions, including after hours.
- Escalate any open punch list items to the contractor in writing.
90 days Close out
- Hold a closing review with the contractor to resolve outstanding warranty items.
- Write a short lessons-learned summary for the project team.
- Confirm that as-built drawings, O&M manuals, and warranties are archived where the property management team can still find them years from now.
11 months Warranty walk
- Do not stop at 90 days. The warranty clock runs a full year, so schedule a walk at 11 months, while the contractor is still obligated to fix what you find.
Setting Up an Escalation Process
The contractors who create the least friction name a specific post-construction contact, and it is not the superintendent who has already moved to the next job. That person should answer warranty questions and have the authority to dispatch subcontractors for warranty work.
Property managers need a matching internal log of every post-occupancy issue, with the date, a description, photos, and resolution status. It supports warranty claims and shows whether a problem is recurring or isolated. Property management software makes this easier. Rhino Property Management runs maintenance and inspections through online owner and tenant portals, the kind of habit a commercial team can set up for a new buildout from day one.
Frequently Asked Questions
The contractor's correction period usually starts at substantial completion, not at tenant move-in. Under AIA A201, the contractor must correct nonconforming work discovered within one year after the date of substantial completion. Manufacturer warranties on equipment and roofing may run on separate, often longer, terms.
A property manager should get an equipment list with model and serial numbers and warranty start dates, startup and commissioning reports including HVAC test and balance, HVAC submittals and sequences of operation, O&M manuals, as-built drawings, warranty letters showing the substantial completion date, vendor contact sheets, and a named post-construction contact.
Warranty work covers failures caused by defective equipment or installation, such as an early compressor failure or a leak at a roof penetration. Maintenance covers wear, scheduled service, misuse, and tenant damage, such as filter changes or clogs. Your contract and the manufacturer's terms make the final call.
At 30 days, walk the building with the contractor and log every complaint. At 60 days, look for patterns, confirm preventive maintenance is running, and test access control and life safety after hours. At 90 days, hold a closing review, resolve warranty items, and archive the closeout documents.
An 11-month walk catches defects while the contractor is still obligated to fix them. Because the one-year correction period typically runs from substantial completion, waiting until month 12 or later can let a valid claim expire.
The post-construction contact should be a named person at the contractor who answers warranty questions and has authority to dispatch subcontractors. It should not be the superintendent who has already moved to the next job.
Planning a Buildout? Plan the Handoff Too
Terrapin Construction Group builds closeout, commissioning, and warranty support into every design-build and tenant improvement project, in all 50 states.
Related Reading
Sources
- American Institute of Architects, AIA Document A201, General Conditions of the Contract for Construction (one-year correction period, Section 12.2.2).
- Terrapin Construction Group, Commercial Construction Process & Project Delivery guide.
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