Punch list
Encyclopedia
A punch list is generally a list of tasks or "to-do" items. In the U.S. construction industry, a punch list is the name of a contract document used in the architecture and building trades to organize the completion of a construction project. In other places, it is also commonly known as "snag list".

In the United States construction
Construction
In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...

 industry, contract agreements are usually written to allow the owner to withhold (retain) the final payment to the general contractor
General contractor
A general contractor is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and communication of information to involved parties throughout the course of a building project.-Description:...

 as "retainage
Retainage
Retainage is a portion of the agreed upon contract price deliberately withheld until the work is substantially complete to assure that contractor or subcontractor will satisfy its obligations and complete a construction project.- History and Purpose :...

". The contractor is bound by the contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...

 to complete a punch list of uncompleted contract items in order to receive final payment from the owner. The designer (typically a licensed Professional Architect
Architect
An architect is a person trained in the planning, design and oversight of the construction of buildings. To practice architecture means to offer or render services in connection with the design and construction of a building, or group of buildings and the space within the site surrounding the...

 or Engineer
Engineer
An engineer is a professional practitioner of engineering, concerned with applying scientific knowledge, mathematics and ingenuity to develop solutions for technical problems. Engineers design materials, structures, machines and systems while considering the limitations imposed by practicality,...

), is usually also incorporated into the contract as the owner's design representative and agent, to verify that completed contract work has complied with the design.

The typical construction contract agreement calls for the contractor, when he believes it to be so, to declare the construction project to have reached "substantial completion" and request a "pre-final" inspection. The architect then observes the project as a whole in a "walk around" inspection and creates a punch list of uncompleted or unsatisfactory work items owed to the project as defined by the contract agreement (which also incorporates the design documents). Final contractor payment is made when the punch list of items are completed to meet the project design required by the contract, or some other mutually agreed resolution for each item is reached. Examples of punch list items include damaged building components (e.g. repair broken window, replace stained wallboard, repair cracked paving, etc.), or problems with the final installation of building materials or equipment (e.g. reinstall peeling carpet, replace missing roof shingles, fire and pressure test boiler, obtain elevator use permit, activate security system, etc.).

The phrase takes its name from the historical process of punching a hole in the margin of the document, next to one of the items on the list. This indicated that the work was completed for that particular construction task. Two copies of the list were punched at the same time to provide an identical record for the architect and contractor.
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