Defects and Snag Lists: How to Close Out a Project Without Losing Your Mind

There's a saying in construction: the first 95% of the project takes 95% of the time. The last 5% takes the other 95%.

It's a joke, but it captures something real. Closing out a project — resolving defects, clearing snag lists, getting sign-off — is disproportionately painful compared to the main construction phase. Your team's moved on mentally (and often physically, to the next job). Your subcontractors are even less interested in coming back for callbacks. And the client's expectations, having lived with an unfinished building for weeks, are often higher than they were at the start.

Defects management is where good contractors distinguish themselves from mediocre ones. Not because the work is technically difficult — most defects are minor — but because the organisational discipline required to track, resolve, and close out hundreds of items across multiple trades is genuinely hard.

Snag Lists vs Defects: The Distinction

People use these terms interchangeably, but they're different things with different contractual implications.

A snag list is produced before or at practical completion. It's a list of items that need attention — minor defects, incomplete work, cosmetic issues, items that don't meet the specification. The snag list inspection is typically the last hurdle before the PC certificate is issued.

Defects are issues that become apparent after practical completion, during the defects liability period (DLP). A door that starts sticking after six months. A patch of paintwork that's peeling. An air conditioning unit that's not performing to specification during its first summer.

The distinction matters because snag list items should ideally be resolved before practical completion (or at least acknowledged, with the PC certificate issued on the basis that they're minor). Defects during the DLP are a separate contractual obligation — you're required to return and remedy them within a reasonable time when notified.

Before the Inspection

The single best thing you can do for the close-out process is carry out your own internal snag inspection before the architect or employer's agent sets foot on site. Walk the building methodically. Room by room, floor by floor. Check every surface, every fixture, every door, every service outlet.

Take a tablet or phone with a camera. Photograph each item. Note its location precisely (not "level 2" but "room 2.14, north wall, adjacent to door frame"). Assign it to the responsible trade. Give it a severity — cosmetic, functional, or defective.

This pre-inspection serves two purposes. First, it gives you a chance to fix items before the formal inspection, reducing the list the architect produces and making the PC process smoother. Second, it demonstrates to the client that you take quality seriously — which matters more than you might think when you're negotiating the final account.

I've walked into formal PC inspections where the architect produced 40 items on a project we'd already self-inspected and resolved 120 items. That changes the tone of the whole conversation.

During the Inspection

Be there. Walk around with the architect or employer's agent. This isn't optional — it's your opportunity to:

Challenge items that aren't defects. The specification calls for a satin finish and the architect thinks it should be matt. The floor has a slight colour variation that's within the manufacturer's tolerance. The client's staff have scuffed the walls after partial possession. Not everything on a snag list is your responsibility. Challenge constructively, with reference to the specification and contract.

Agree remedial actions on the spot. For items that are clearly defects, agree the remedy immediately. Touch-up paint? Replacement fitting? Adjustment? The faster you agree what needs doing, the faster you can programme the callbacks.

Note items you can fix that day. Many snag items are five-minute fixes — a loose handle, a missing cover plate, a paint touch-up. If your team is on site during the inspection, have them follow behind and resolve items in real time. Clearing 30% of the snag list on the day of the inspection is entirely achievable on most projects.

Record everything. Your record of the inspection should match the architect's, item for item. Don't rely on the architect's list alone — you need your own record to manage the resolution process and to dispute any items you disagree with.

Managing the Resolution

This is where most contractors fall down. The snag list is produced. It gets emailed to the site manager. The site manager calls the relevant subcontractors. Some come back. Some don't. The list slowly gets shorter but never reaches zero. Three months later, the architect is chasing, the client is frustrated, and the retention is stuck.

The fix is systematic management:

Assign every item to a specific subcontractor or your own team. Not "M&E" — which M&E subcontractor, and which person within that subcontractor's organisation is responsible for scheduling the callback?

Set a deadline for each item. Not "as soon as possible" — a specific date. Priority items (functional defects) within one week. Cosmetic items within two weeks. Items requiring parts or materials within the lead time plus one week.

Track completion. When an item is resolved, record who resolved it, when, and get sign-off (ideally a photograph showing the completed remedy). Don't rely on the subcontractor's word that it's done — inspect it yourself or have your site manager verify.

Escalate systematically. If a subcontractor hasn't returned for callbacks within the agreed timescale, escalate. First a phone call. Then a written notice referencing their subcontract obligations. Then a formal letter stating your intention to engage an alternative contractor and back-charge the costs. Most subcontractors respond at the second stage.

Report weekly. Produce a weekly defects status report showing: total items, items resolved, items outstanding, items overdue, and the plan for the coming week. Share this with the architect and the client. It demonstrates active management and keeps pressure on resolution.

The Defects Liability Period

Once practical completion is certified, you enter the DLP — typically 12 months under JCT. During this period, the employer can notify you of defects and you're obliged to remedy them.

A few practical points:

Budget for it. Defects callbacks are not free. Even if the remedial work itself is your subcontractor's responsibility under their warranty, there's management time, coordination, and sometimes access costs. Budget a small allowance in your project overheads for DLP management — it's a cost that's guaranteed to materialise.

Respond promptly. A defect reported and remedied within a week maintains the relationship. The same defect left for two months damages it. And a client who's been chasing defects for months is not a client who'll give you the next project.

Track what's reported vs what's a defect. Not everything reported during the DLP is a defect in the contractual sense. Normal wear and tear, client damage, issues caused by the client's own contractors — these are maintenance items, not defects. Be reasonable, but don't accept responsibility for things that aren't your problem.

Keep your eye on the certificate of making good. At the end of the DLP, the architect should issue a certificate of making good, confirming that all notified defects have been remedied. This triggers the release of the remaining retention. Chase the certificate if it doesn't come — every day without it is a day your retention is stuck.

The Real Cost of Poor Defects Management

Bad defects management doesn't just cost you money in callbacks and management time. It costs you reputation. The client who spent three months chasing snag items will tell other clients. The architect who had to escalate defect callbacks three times will remember your name — and not in a good way.

For small contractors, where most work comes from repeat business and referrals, how you close out a project matters as much as how you build it.

At Construction AI, the site management module includes snagging list software designed for exactly this workflow. Capture items on site with photos, assign to subcontractors, track resolution dates, and maintain a clear record through to the certificate of making good. It links directly to your document control and programme, so defects are tracked in context — not on a disconnected spreadsheet. Because the last 5% of the project shouldn't take 50% of the pain.