Closing a construction company: the claims tail and the project records
A contractor that closes is not done with its jobs. Defect claims can arrive years after a building is handed over, and the project files are the contractor’s defense. What is left to license is the paper trail of how projects were managed: change orders, requests for information, submittals and the email around them. Those are the records AI labs ask about, and they are also the ones the contractor may need if a claim comes.
Rules to read first
The OSHA retention section is short. The repose period is a state question: find it before you decide how long the files stay, and ask your insurer whether tail coverage depends on the files.
| Source | What it asks of a closing contractor |
|---|---|
| 29 CFR 1904.33 | The OSHA 300 log, the annual summary and incident reports are kept five years after the end of the calendar year they cover. |
| State statutes of repose | Each state sets a time limit after completion in which a claim for defective construction can be brought. The limit differs by state and by type of work, and it can run many years. |
| Contract and bond terms | Surety agreements, warranties and owner contracts often require records to be kept and made available for audits after completion. |
What project records show
A change order thread shows a problem, a negotiation and a decision. That sequence is the valuable part, and it is also what a lawyer would want in a dispute. Copy first, then license the copy.
- Change orders with the cause, the cost effect and who approved it.
- Requests for information and the answers, with the design team’s names removed.
- Submittals and the review comments on them.
- Daily logs and weather delay notes.
- Estimating history: how a bid was assembled and where it differed from the final cost.
Where it sits, and the trap
Project management software, accounting, estimating tools, drawing storage and email. The common loss is the project management account, which holds the whole job in one place and gets cancelled with the last project. Ask the vendor how long a closed account is kept and whether a project can be exported with its attachments and comments.
Do not delete anything on a project still inside the repose period without checking with your insurer and counsel. The files may be the only proof of what was built and when.
What stays out
| Record | Why it stays out |
|---|---|
| Plans and specifications owned by the design team | The architect or engineer holds the rights. |
| Owner financial information | Lending and contract terms are confidential. |
| Subcontractor pricing and bonding details | Those are the subcontractor’s confidential terms. |
| Employee injury files with names | Personal and kept under the OSHA rule. |
Read next
- Closing or bankrupt companies. Who signs and what to keep.
- Records to keep before you close. A checker by industry.
- Liability. Who answers for what in a deal.
- Construction while open. What a running contractor can license.
Questions about closing a construction company: the claims tail and the project records
How long can a claim be brought after a project ends?
It depends on the state and the work. The limit is called a statute of repose, and some run for ten years or more.
Can we license RFI history?
Yes, once project names, owner names and the design team are removed, and the contract does not forbid it.
Should we keep the files or license them?
Both. Keep the originals for the claims period and license a cleaned copy.
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