Causes, Implications, and Strategies for Project Closeout Delays in Highway Construction

In highway construction, completing projects on time is critical. However, when projects are not completed on time, one of the aspects that is often neglected by the state departments of transportation (DOTs), which causes delays in highway construction, is project closeout. The project closeout phase, if delayed, not only has consequences for transportation agencies and contractors, but also leads to substantial social costs to the public. Despite the potential magnitude of the impact, there is limited knowledge about the factors that cause project closeout delays or about strategies for timely highway construction project closeouts. This study identified the causes that delay highway project closeouts, raises awareness of the implications of delays, and provides recommendations for efficient highway project closeout practices. The research methodology included an extensive literature review, a survey questionnaire (40 state DOTs participating), and case studies of eight state DOTs. The results showed that difficulties in attaining the required documentation, claims and litigations, managing multiple funding sources, a lack of urgency from local utilities/entities, and the lack of sufficient DOT project staff are major factors that delay project closeout. When a highway construction project is not closed out in a timely manner, the DOT can be subject to additional costs, obsolete funding sources, loss of project documentation, loss of staff with project knowledge (through retirement/attrition), and potential adverse impacts on internal and external relationships. The authors provide recommendations for state DOTs to mitigate closeout delays and help ensure timely finalization of highway construction projects.