Punch List Explained

A punch list is the written list of incomplete or defective items identified at substantial completion of a construction project. Substantial completion is the point where the work is complete enough for its intended use, even if minor items remain.

The punch list is created during the final walk-through with the contractor. The contractor commits to completing every item by a specific date, after which the final retainage payment (typically the final 5 to 10% of the contract) releases.

The punch list happens at substantial completion, which is usually 5 to 7 working days before the final payment is due. On a kitchen remodel, substantial completion is the point where the kitchen is functional (cabinets installed, counters set, plumbing and electrical complete, paint and trim done) even if the backsplash grout is curing or a final touch-up coat is pending.

Don't confuse substantial completion with the point at which all materials are on site. Materials on site is not substantial completion. The work has to be installed and functional.

Walk room by room with the contractor. Start at the entry of the room, walk clockwise around the walls, then look up at the ceiling and down at the floor. In a bathroom, also check inside the cabinets, under the vanity, behind the toilet, and inside the shower.

Carry a notebook or use the ContractShield punch list inside the project workspace. Photograph every defect with a wide shot showing the location and a close-up showing the defect. Note the room, the wall (N, S, E, W), and a one-line description.

A typical residential remodel punch list runs 5 to 15 items. Common items: paint touch-ups, caulk gaps at corners, a drawer that does not close flush, a sticky door, a sticker still on a fixture, a missing switch cover.

Punch list items are minor defects in workmanship or small unfinished tasks. Examples: paint runs or drips, drywall dings around outlets, caulk gaps, doors and drawers that do not align, missing fasteners, missing trim returns, paint over-spray on a fixture, missing weatherstripping, fixtures that wobble.

What does not go on a punch list: scope changes, items already excluded by the contract, items the contractor was not contracted to do. Those are change orders, not punch list items. ContractShield contracts distinguish between punch and change to prevent dispute.

Standard turnaround for a residential punch list is 5 to 10 working days. Larger lists or specialty items (cabinet door alignments, refinishing a section of floor) may take 2 to 4 weeks. The completion date is written on the punch list.

If any item requires a returned material from the manufacturer (a replacement cabinet panel, a backordered fixture), note that on the list and set an extended completion date for that specific item. The rest of the list still ties to the original date.

Retainage is a portion of the contract (typically 5 to 10%) withheld from the final payment until the punch list is complete. The retainage is the homeowner's incentive for the contractor to finish punch promptly.

Without retainage, contractors can lose interest in punch items once the bulk of the contract is paid. With retainage, the punch list becomes a contract milestone. ContractShield contracts default to a 10% retainage at substantial completion, released after punch list signoff.

Disputes most often happen when a punch list is verbal. Always create a written list with photos and both sides sign. If the contractor disputes that an item is in scope, document the disagreement on the list itself with a note (e.g. 'contractor disputes: caulk at master bath corner is per-spec sealant, not a defect').

Disputed items either resolve through a manufacturer-spec confirmation (the sealant was applied per spec) or escalate to mediation. ContractShield offers a built-in dispute mediation for any items both sides cannot agree on, with project records (photos, sign-offs, change orders) available for review.

Every ContractShield project includes a punch list module inside the project workspace. The homeowner adds items with photos at the final walk-through. The contractor sees each item, sets a completion date, and marks done with a photo of the fix. The homeowner signs off room by room.

When the list is fully signed, the retainage payment auto-releases from Stripe escrow to the contractor. The project moves to 'closed' status and the workspace stays open for warranty calls.