In commercial construction, project closeout isn’t just a checklist—it’s the last financial milestone that determines whether a job ends profitably or erodes expected margins through extended overhead costs. For General Contractors, the ability to bill for retention is the ultimate goal at the end of a project. But in reality, that billing is often delayed—not because the work isn’t done, but because all Specialty Contractor Change Orders have yet to be reconciled.
Retention is the final 5–10% of project value held back by the owner (and likewise withheld from subs). You can’t bill for it until the project is closed out. But you can’t close out until every outstanding Change Order is accounted for, negotiated, and resolved. That’s where GCs can get stuck.
Put simply, project closeout is the phase where the project manager verifies that every deliverable has been accepted and every contractual obligation satisfied—a final sign-off that allows all parties to move on.
Meanwhile, the project team, including project managers, engineers, and office staff continues burning hours on a project that’s no longer generating revenue. Overhead keeps ticking. Your margin starts shrinking. And future projects may get delayed because key people are still tied up closing out a job that should be done.
Below, we examine why closeouts stall, the impact on project profitability, and how proactive Change Order resolution with Clearstory helps General Contractors bill for retention faster, protect their fee, and transition teams to new work with confidence.
While it’s easy to assume that slow Subcontractor paperwork or incomplete punch lists hold up closeouts, the truth is more fundamental:
Unresolved Change Orders are the #1 thing delaying retention billing.
Here’s what that looks like in the field:
The result? Your PMs and PEs are stuck charging hours to a project that’s no longer generating revenue, eating into your fee every day closeout drags on.
Delayed closeouts don’t just slow billing—they expose your company to avoidable risk and potential profit fade. The Project Management Institute warns that failing to finish the closing process effectively can “put the organization at a considerable amount of risk” and even “result in significant losses.”
When closeout lags:
For General Contractors, these closeout delays directly impact cash flow, project margins, and the ability to efficiently allocate resources to new work.
Clearstory helps General Contractors address the root cause of closeout delays—unresolved Change Orders—so teams can complete projects faster, protect margins, and transition to new work with confidence.
Project closeout is your last opportunity to finish strong—but only if you stay ahead of the Change Order backlog. By making CO reconciliation part of your daily process (not a fire drill at the end), you put yourself in position to:
Effective project closeout requires a structured approach to Change Order management throughout the project lifecycle. By implementing a structured, technology-driven approach, GCs can streamline the process, reduce delays, and ensure a positive experience for all stakeholders. With Clearstory, GCs gain a powerful tool to automate closeout tasks, centralize Change Order tracking, and ensure all documentation is in place—helping them get paid faster and close projects with confidence.
See how leading General Contractors are reducing closeout delays and protecting project margins. Book a free demo today to see how easy it is to put Clearstory to work on your next project. Our team of commercial construction experts will walk you through a live demonstration of Clearstory's Change Order communication platform.
Project closeout is the last phase of a job. The GC confirms all work meets the contract, every Change Order is approved, punch-list items are finished, and the owner signs off. When these tasks are done, the GC and subcontractors can bill for retention and officially wrap the project.
Retention cannot be billed until all contractual obligations are finalized. If Change Orders remain unresolved, Subcontractor contracts stay open, which prevents the GC from submitting a final application for payment. Even small or disputed Change Orders can delay owner sign-off and lock up 5 to 10 percent of project value.
For most commercial construction projects, closeout should take 30 to 60 days after substantial completion. When Change Orders are reconciled throughout the project, closeout can often be completed faster. Projects that delay Change Order resolution until the end may see closeouts extend several months beyond completion.
Specialty Contractors cannot finalize their contracts or bill for retention until their Change Orders are approved by the GC. If Change Orders are tracked in emails or spreadsheets without shared visibility, approvals often stall. Centralized Change Order platforms allow Specialty Contractors and GCs to resolve issues earlier and avoid end-of-project bottlenecks.
General Contractors can reduce closeout overhead by resolving Change Orders as work is performed, validating T&M in real time, and maintaining a single source of truth for Change Order status. Proactive reconciliation reduces the need for extended project staffing after completion and allows teams to transition to new work sooner.