Cian BrennanFounder, Quantum Contract Solutions · Founder

Construction Contractors: Beware of the Closeout Team

Name: Construction Contractors: Beware of the Closeout Team
Uploaded: 2024-05-01T19:00:25+00:00
Duration: 30 s
Channel: Cian Brennan
Description: In this brief advisory, the speaker—drawing on experience from corporate strategy teams—exposes a common cost‑saving practice used by large companies at…

1 May 2024 · 1 min

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In this brief advisory, the speaker—drawing on experience from corporate strategy teams—exposes a common cost‑saving practice used by large companies at the end of construction projects. These firms introduce a “closeout team” that replaces the original project contacts, claims that only the written contract governs the relationship, and asserts non‑compliance to withhold payment. The speaker warns contractors that this tactic is designed to sever established relationships, reinterpret prior agreements, and reduce the client’s financial obligations, urging contractors to be vigilant about contract terms and payment protections.

In a lot of these bigger companies, they will bring in what's called a closeout team, and they use this to get rid of the relationship that you previously had. New guy comes in and goes, hey, sorry, the other guy moved on to a different project. I'm here now. I know you agreed X, Y, and Z with this guy, but I can only rely on what the contract says, and you haven't complied, so we can't pay you. Their job, trust me, I was on the strategy team for a lot of these companies on how to save costs, and this is what they do. They're coming in to try and save costs at the end of a project, and that's how they bring in this closeout team.