Project close-out: counting equipment, reusable materials and tools

Before the applause at the project hand-over has died away, equipment, formwork, scaffolding and tools start leaving the site: some back to the head warehouse, some to the next project, some to the lessor and some for disposal. The more hurried the departure, the messier the records, and when head office later asks where that equipment is, nobody can say. The purpose of a close-out count is to put on paper, as things leave the site, what each item is, how many there are, in what condition and where they went.

Start with a list: three kinds of items, four destinations

Three kinds of items:

• Owned equipment: generators, compressors, welders, vehicles and the like, normally already in the fixed asset register.
• Reusable materials: formwork, scaffolding tubes and couplers, props and safety nets, used again and again.
• Tools and low-value items: hand tools, power tools, protective equipment.

Rented equipment is listed separately and checked against the rental contract for quantity, condition and return date.

Four destinations: back to the head warehouse, transfer to another project, return to the lessor, or disposal (sale or scrapping). Disposal needs approval, and its financial and tax treatment should be confirmed with your accountant.

The list draws on four sources: the asset register, issue and transfer records, rental contracts and the site store's own records. Only when all four are laid side by side do you have a reasonably complete list.

Count item by item and check condition

Walk the whole site, including subcontractors' work areas and temporary sheds, count each item and classify its condition:

1. Good: can be reused directly.
2. Needs repair: note the fault or missing part.
3. Scrap: no use remaining; approval required.
4. Missing: in the records but not found on site.

Photograph every piece of equipment. For rented equipment, photograph its condition before return and have the lessor confirm it on the return note, to avoid disputes about damage afterwards. Count reusable materials by category and specification, and for scaffolding keep tubes, couplers and base plates apart.

An invented example: the issue records show the project has been issued 1,200 scaffolding tubes in total. At close-out you count 1,085 in good order, 60 bent and 55 missing, a missing rate of about 4.6 percent. (Figures are illustrative.) Some wear on reusable materials is normal after many uses, but how much is acceptable should be agreed by the project and finance, not decided by the warehouse alone.

What to do with missing and damaged items

For missing equipment, follow these leads:

• Was it taken by a subcontractor, or left in their work area? Check the contract terms.
• Was it transferred to another project without paperwork?
• Was it consumed or disposed of without being removed from the books?
• Was it entered twice, or under the wrong number?

Write down what was checked and what was found. Compensation from subcontractors and the division of responsibility should go to a legal adviser. The warehouse supplies quantities, condition and records.

Signatures: the project and the receiving side

The commonest failure is to ship first and count later, so that when the goods arrive and something is wrong, it cannot be traced. Count and sign on site before loading:

• The close-out note states equipment number, name, quantity, condition and photo numbers.
• It is signed by the project manager or a named delegate, the head of the receiving side (head warehouse or other project) and finance.
• Disputed items go on an "open items" list with an owner and a deadline.
• At loading, photograph the vehicle and goods and write down the plate number.

Timing

Do not wait for the final week. Release equipment as each area is finished, start four to six weeks ahead and clear it in batches, and leave the last week for tidying up only. Decide early which areas and equipment leave last, and book the counters and vehicles in advance.

In short

The value of a close-out count is that the project's books are settled while the equipment is still leaving. UzWarehouse's project and site warehouse counts check issue, return and transfer records and count each warehouse, while the fixed asset count and tagging service registers equipment piece by piece and keeps photographs on file.