For a large-scale construction project, the final payment is made only after receiving all deliverables, closeout documents, and lien releases (Option C).
Why Option C is Correct?
A project is not considered fully complete until all deliverables, warranties, and lien releases have been submitted.
Lien releases ensure that contractors, subcontractors, and suppliers have been fully paid, preventing future legal claims.
Closeout documents include as-built drawings, operation manuals, and warranties, which are critical for facility operations.
IFMA’s Project Management Core Competency states that FM professionals must ensure all final compliance, legal, and financial obligations are met before final payment.
Why Other Options Are Incorrect?
Option A (At the time of substantial completion): Substantial completion means the building is functional, but minor work (punch list items) remains. Final payment should not be made until all contractual obligations are met.
Option B (After 100% construction completion): While physical construction may be completed, final administrative tasks, legal documentation, and compliance verifications must still be finalized before payment.
[Reference:, IFMA Core Competency: Project Management – Ensures facility managers follow project closeout best practices., Source: IFMA Facility Management Professional (FMP) Credential Program Guide (IFMA, 2023)., , ]
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