In commercial construction, project closeout isn’t just a checklist—it’s the last financial milestone that determines whether a job ends profitably—or eats into stakeholder revenue. For General Contractors, the ability to bill for retention is the ultimate goal at the end of a project. But in reality, that billing is often delayed—not because the work isn’t done, but because all Specialty Contractor Change Orders have yet to be reconciled.
Retention is the final 5–10% of project value held back by the owner (and likewise withheld from subs). You can’t bill for it until the project is closed out. But you can’t close out until every outstanding Change Order is accounted for, negotiated, and resolved. That’s where GCs can get stuck.
Meanwhile, the project team—project managers, engineers, office staff—continues burning hours on a project that’s no longer generating revenue. Overhead keeps ticking. Your margin starts shrinking. And future projects may get delayed because key people are still tied up closing out a job that should be done.
This blog breaks down why closeouts stall, what that means for your bottom line, and how resolving Change Orders proactively with a tool like Clearstory helps you bill for retention faster, protect your fee, and move on with confidence.
Why Closeouts Get Stuck: The Real Bottleneck Isn’t the Work
While it’s easy to assume that slow Subcontractor paperwork or incomplete punch lists hold up closeouts, the truth is more fundamental:
Unresolved Change Orders are the #1 thing delaying retention billing.
Here’s what that looks like in the field:
- Final push = surge in T&M: The last 30 days of a job often involve schedule acceleration, trade damage fixes, cleanup, and overtime—all of which generate last-minute T&M Tickets and Change Orders.
- Backlog of older COs: At the same time, Change Orders from earlier phases of the job may still be floating in email threads or stuck in review.
- Subcontractor dependencies: You can’t finalize a subcontractor’s contract—and they can’t bill for their retention—until their COs are reconciled.
- Owner approvals: GCs can’t bill the owner for retention until everything downstream is clean and approved.
The result? Your PMs and PEs are stuck charging hours to a project that’s no longer generating revenue, eating into your fee every day closeout drags on.
The Cost of Delayed Closeouts in Commercial Construction
Let’s put a finer point on it. When closeout lags:
- You can’t bill for retention (often 5–10% of the contract value).
- You’re still paying staff to manage the job without corresponding revenue.
- Your fee erodes as those overhead hours pile up.
- You can’t fully transition teams to the next job, creating bottlenecks on future projects.
- Cash flow tightens, affecting your ability to invest in growth or operations.
- Surprise change orders begin to erode your project fee – if you don’t have a grip, you can’t go back to the owner.
For GCs, this isn’t just a paperwork issue—it’s a financial drag on the business.
How Clearstory Helps GCs Close Out Faster and Bill for Retention
Clearstory helps GCs tackle the root cause of closeout delays—unresolved Change Orders—so you can wrap up faster, protect your margin, and move on with confidence.
- Real-Time Change Order Tracking
Centralize all Change Order Requests from every subcontractor in a single, cloud-based COR Log that updates in real-time. No more searching inboxes or spreadsheets to see what’s still open. - Proactive Change Order Resolution Throughout the Project
Instead of letting COs pile up until the end, Clearstory empowers stakeholders to align and resolve costs as the work happens. That means no surprises—and fewer disputes—during closeout. - T&M Tag Reconciliation on the Fly
Capture, track, and validate Time & Material work as it's performed with our powerful, easy-to-use mobile app. Avoid the end-of-project flood of loose tags and unclear backup that stalls final negotiations. - Seamless Integration with Your Construction Management Platform
Push received CORs directly into Procore, CMiC, Autodesk Construction Cloud, and other leading project financial platforms. Eliminate double entry and ensure every COR is captured in a PCO in your financial software.
Final Thoughts: Get Paid, Move On, Protect Your Fee
Project closeout is your last opportunity to finish strong—but only if you stay ahead of the Change Order backlog. By making CO reconciliation part of your daily process (not a fire drill at the end), you put yourself in position to:
- Finalize subcontractor contracts faster
- Bill for retention sooner
- Reduce overhead drag
- And keep your fee intact
Project closeout doesn’t have to be a headache. By implementing a structured, technology-driven approach, GCs can streamline the process, reduce delays, and ensure a positive experience for all stakeholders. With Clearstory, GCs gain a powerful tool to automate closeout tasks, centralize Change Order tracking, and ensure all documentation is in place—helping them get paid faster and close projects with confidence.
Want to learn more? Book a free demo today to see how easy it is to put Clearstory to work on your next project.
