What is a punch list?
A punch list in construction is a list of minor items that need to be completed or corrected before the project is considered finished and the final payment is made. In most cases, the contractor and client walk through the home and generate the list together.
Where does the practice get its name? In the days before computers, the builder would reportedly generate a written list and then punch holes next to items as they were completed.
The amount of money that is held back is proportionate to the amount the punch list would be worth.
For example; if the main things on the punch list require the builder to fill some drywall nail pops and do some repainting over these area’s then they amount of money that is held back is relatively small. If there are major issues such as the windows are all the installed wrong and they require replacing then the amount of money held back would be far greater.
Punch lists are created by the builder and the homeowner together and not by one party or the other, the punch list is a collaboration between the two parties because there are always things that need to be done in a new home that are not the builders responsibility under the original contract. The items that are not under the original contract are considered extra’s and therefore are not placed on the punch list. There is no money held back from these extras because they will be done at an extra cost above and beyond the original project.
The main thing a punch list does is put the builder and the homeowner on the same page when it comes to deciding on what the requirements are for the two parties to consider the job completed.
Village Builders Inc.