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Project Managementaka: final walkthroughaka: close-out inspection

Final Inspection

In Plain English

The official review at the end of a project to confirm all work is complete and meets code before the building can be occupied.

Definition

A final inspection is a formal review conducted by the building official, owner, and/or architect at the completion of construction to verify that all work complies with the permit, approved plans, and applicable codes. Passing the final inspection is required to receive a certificate of occupancy. A contractor's internal final inspection (walkthrough) is also conducted to identify and address punch list items before the formal inspection.

Why It Matters in Bidding

A failed final inspection delays the certificate of occupancy, which can trigger liquidated damages, push back the owner's revenue date, and freeze final payment and retainage release. For estimators, the cost of correcting deficiencies and remobilizing trades is rarely budgeted, so a clean inspection protects both schedule and the closeout cash flow that funds the next project.

Example

The superintendent runs an internal walkthrough to clear punch list items a week early, then schedules the city building official's final inspection so the owner can occupy the tenant space on the contracted move-in date.

Related Terms

Certificate of OccupancyBuilding PermitWalk-ThroughProject Closeout

Frequently Asked Questions

The inspector issues a correction notice listing deficiencies, and the certificate of occupancy is withheld until they are fixed and re-inspected. This stalls owner move-in, can incur re-inspection fees, and often delays final payment, so contractors front-load corrections through their own walkthrough before requesting the formal inspection.
The authority having jurisdiction's building official conducts the code review, often joined by the architect and owner for compliance with approved plans. Specialty inspectors may verify fire, electrical, plumbing, or mechanical systems separately. The general contractor's superintendent typically escorts inspectors and addresses questions on the spot.
The punch list walkthrough is an internal or owner-architect review identifying incomplete or defective work for the contractor to correct. The final inspection is a code-driven, official review by the jurisdiction that determines whether the building can legally be occupied, and it cannot be appealed away with cosmetic fixes.

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