Construction 101 – Punch List

The Punch List phase of construction is conducted by the buyers along with the construction manager. It is informally known as a "blue tape inspection." It occurs a few weeks before closing to address any errors well before move in.
Photos © Mark M. Hancock / DFWmark.com

By Mark M. Hancock / DFWmark.com

This post is part of the New Build Construction 101 series, which includes: Pre-pour, Mechanical, Punch List (this post), plus a bonus Pre-Closing Walkthrough for new homes.

If you're interested in a new-built house, I'd strongly suggest these two posts too: Want to Buy a New-Built House?, New-Build Home Basics


Inspecting a new home
Many builders have an informal buyer walkthrough for a “punch list” with the builder or project manager shortly after the private inspection. The punch list ensures all items that need attention are addressed before closing.

A punch list is a list of problem items or errors to repair or replace. Essentially, it is work that remains to be done.
Historically, contractors would pierce or punch a hole in the repair document to indicate the work was completed.

The punch list inspection is informally called a “blue tape” inspection. The buyer and builder or project manager inspect the property together and place pieces of blue painter’s tape on any found errors. Afterward, repair crews can locate and repair the problem or error.

Who handles the warranty?
The builder’s goal should be to keep quality high while minimizing cost. It’s the Buyer’s job to ensure the builder didn’t sacrifice quality for savings. Once the Buyer signs the final walkthrough (acceptance) form, they have accepted the property “As Is.”

Ask the builder, “how does your warranty work?”



Many builders support their own warranties. Other builders will support the warranty for two years and then hand off to a warranty contractor. Meanwhile, some builders are eager to hand off the warranty responsibility at closing to a third-party warranty contractor. If it will be a handoff, it’s best to know this before the final walkthrough because it becomes vital that all repairs are complete before closing.

Builders must pay up front or at the end of the warranty for any errors. It’s best and cheaper for the builder to deliver an error-free product.

That said, a third-party contractor sometimes has very little motivation to spend any money or effort to repair a “new” house. Consequently, they may delay repairs to the end of the warranty period in the hope that it will be forgotten until after the deadline.

Meanwhile the builder will spend time and money to complete any repairs and keep the closing on track. In short, don’t close until all promised work is done. Trust, but verify.

Company quality inspection
Before we continue, please understand that builders can’t deliver a perfect house. Quality is a continuum with no absolute “perfect.” The builders should always want “good” to “great” houses.

The first 95% of a house is easy to construct. The last 5% is the hard part because it is so detailed. Some companies use a quality control inspector to check each house. Quality builders expect to have the builder’s representatives present in every house every day and looking for problems.

When the inspector arrives, the house must be clean and ready for inspection. If the house isn’t ready to be inspected, they won’t inspect because a partial list won’t work. It is normal to have about 150-200 items on a checklist for the final quality inspection.


Just like any home improvement project, nobody notices when an issue is repaired properly. However, it is obvious to everyone when an issue isn’t repaired properly.

The only way for a company to protect its name is to ensure they catch the mistakes themselves. If the mistake is found by the inspector or the buyer, it’s already too late. The buyer will remember the problem existed rather than the solution.

A “B3 Walk” is a construction manager’s walk through. It’s named that because it’s B4 the homeowner. The construction manager wants to ensure everything is square, level, clean, etc. Once it passes the construction manager’s approval, it’s ready for the buyer.

While Inspecting
Inspect for quality. The punch list walk is like a mechanic letting you inspect after engine repairs. Most owners will notice a puddle of oil under the vehicle, but not much else.

Do not try to duplicate a third-party inspection. The third-party inspector is an expert who addresses code compliance. Buyers look for scratches, dents and gaps that the inspector may have ignored.

Procedure and Process
Be systematic. As you enter, keep your left shoulder on the wall and start walking and looking for errors. Look for level lines, square corners, screws completely seated, no nail pops (nail heads sticking out of a surface) on the ceiling or walls, lights align to each other and to nearby walls, no lumping caulk and neat paint touchup.

There will always be minor flaws if you examine any work with a flashlight in detail. The industry standard is for everything to look “normal” from a six-foot distance under normal lighting conditions.

Windows should be clean and work properly (smooth). Window locks should work.

Look along the wall. A quarter-inch deviation is allowed for each 30 inches of wall length. This tolerance is a specific standard. The walls can get crazy if builders don’t check for variance and ripples.

During construction, project managers look for bowing studs. There’s an internal framing punch to check before sheetrock is installed. The inspectors use a 6-foot-long level to help mark stud bows. Those studs must be shaved or replaced.

All trees are unique and have flaws. Lumber grades define the quality of lumber while it also estimates cost and waste expectations of the wood. Top builders use Grade 2 or Grade 1 lumber. Grade 1 is premium quality lumber. It is mostly used in visible areas of custom homes and accepts paint well. Grade 2 is industry-standard lumber. It has more and larger knots than Grade 1 while it also accepts paint well. No boards should have splits or knot holes.

Look back down the wall because light will change as the viewer’s angles change. Look for ripples, bowed walls and irregularities. From the builder’s point of view, if it isn’t a structural issue or visibly a problem, it’s OK.

The builder will need to make any repairs for structural problems found. If possible, walk through the house in the morning, noon, and evening to find different errors under different lighting conditions prior to the punch list walkthrough.

Shake doorknobs. Look inside the closets. Look for texture problems (those may hide bigger problems). Look for paint problems (missing in areas or splashed elsewhere). Ensure there are no “ghosting” doors – when an open door drifts on its own.

How does the walkthrough work?
Each builder is different. Be on guard for missing major items because it creates a chain reaction of other problems that lead to delayed closings.

If the house isn’t ready, don’t inspect. If a buyer inspects while items are stacked against the walls, those items may hide significant damage. It’s best to walk away and inspect a different day.

There’s a process to fix major problems. It may take time to fix because other things must be repaired first.

Do a full roundabout of the house first, and then look back at the overall view of each room for problems. Look for anything that seems out of place. If it looks wrong, it probably is wrong.

In the master bedroom, ensure fans operate properly and are balanced. Walls are straight. Windows work.

In the master bath, check the lights. Are they level and same height? Do the drawers move smoothly and close quietly? Do sink stoppers hold the water? Is there paint on the back of a medicine cabinet (bring a mirror to the inspection to check the back sides of items). They should be painted. Look under shelves.

Walk over the entire carpet of each room. Listen carefully for any noises and feel for loose carpet. Carefully listen when you step on each stair. Was there a squeak? Check again.

When looking at a big wall of windows, buyers want them to be straight, crisp and clean. Seams in the baseboard need to be flat. Look for wavy sheetrock around plugs. Look out the windows. How is the fence?

Any room that faces light needs to be visually inspected from both directions to ensure a defect isn’t covered by the glare of window light.

Check all doors. Ensure they move freely without “ghosting” to a specific position. Ensure they are square and don’t scrape anywhere.

Check the tile “lippage” - the height of one tile above the next on a flat plain. There should not be more than one credit card thickness difference between any two adjacent tiles. This ensures nobody hurts their feet on the floor.

Inspect for paint touchups. Look for mis-matched dots, spills or unpainted areas.

Look in the power panel and ensure it is clean and looks orderly. Ensure most of the slots are used with different breakers rather than “ganged” onto a few overloaded breakers.

Ensure the fireplace works and is level.

Check all the functions of the sink and its associated plumbing fixtures: faucet, handles, sprayer (all settings), disposal, leaks and smooth drainage.


Check each drawer for smooth operation. Ensure any “soft close” options were properly installed since the buyer paid extra for those options.

Custom cabinets can be realigned if they are not perfectly aligned. It can be fixed. The cabinet company is responsible to pad and adjust the doors. Ensure it’s done correctly or have it fixed immediately.

Check the caulk to ensure it is smooth and has no gaps or bumps.

Correct molding can cover significant problems. When there’s an obvious gap, it’s typically solved with molding. Test cooktops and vents and everything else mechanical in the kitchen.

Caulk maintenance
Everything in the house that isn’t made from petroleum products (plastic) is made from water. The house will dry out during the first year because the ideal interior humidity for health and comfort is around 30 to 50 percent.

Most builders leave sample paints for the buyers to make
touch ups later. Keep the lid to ensure future color matches. 

Materials are expected to shrink over time as those products dry into place. Builders don’t warranty caulk and paint. It is important that this is understood by first-time buyers and buyers who haven’t purchased a home in a long time.

Owning a home is work. Seams will need caulk. Paint will flake off. Hinges will squeak. The Sun and rain will damage the exterior each year. Get some basic tools to handle small projects such as removing and recaulking a corner seam or the seal around a window.

Iron doors
Be careful about scratches. It must be fixed fast because it will rust. Always check the powder coat and beware of metal on metal scratches (i.e. keys scraping against door).

Code plus inspection
Transparency is the key. Builders have no need to hide an error because it will be revealed later. Get builder to type up all repairs and sign the form.

Builders hire their own engineers. Third-party inspectors may suggest a repair, but they get trumped by the builder.

Communication
Expect weekly communication at a minimum. The builder’s representative will say, “I’m just calling to let you know where we are…”

Builders often have a Homeowners Log for each house. These detail calls and emails as well as the subject of those communications. Everybody is in the communication: builder, buyer and REALTOR to ensure no miscommunication.


Final checks and Warranty
Any engineering firm hired by the builder will have the final check list. New homes come with warranties of varying lengths. The warranty stays with the house.

When builders have completed all their sites in a subdivision, they will move to the next construction site. However, they will often handle warranty work through an arrangement with the closest available builder.

The builder will provide a contact sheet for different warranty vendors (plumbing, HVAC, etc.). When homeowners have a warranty problem, they should get a call within 24 hours of notification to inspect the problem.

Do NOT use an outside handyman to address warranty work without written authorization. An outside handyman voids the warranty. It MUST be repaired by builders or their designated vendors.

If it’s an emergency, DEFINITELY call the emergency numbers, and they will get someone to you.

As stated in the Pre-closing Walkthrough post, it’s an emergency if:
• It is below 45°F outside and the house loses heat.
• It the interior temperature exceeds 95°F when the A/C breaks.
• Loss of electricity to the house itself that doesn’t affect the neighborhood.
• Loss of water to the house itself that doesn’t affect the neighborhood.
• Leaks that require use of the water cutoff valve to stop water flow to the entire house. However, if the local shutoff for a sink or toilet will stop a leak, it is not an emergency and should be handled through the builder’s website.

Manuals and remotes typically are placed in one drawer in the kitchen.

You Are Ready!
If you’ve read this whole series, you’re ready to make the move to a new-built house. You have the right to have your best interests represented by a licensed REALTOR. The builder’s sales agent represents the builder – not you. The builder planned to pay a REALTOR fee. This cost is built into the purchase price. Don’t PAY for services that you don’t get! Contact a qualified REALTOR before you sign anything at the builder’s office. Otherwise, you possibly waive your right to no-cost representation.

DFWmark is certified as a New Home Sales Agent, Green Home Sales Agent in addition to having the Military Relocation Professional (MRP) and Graduate, REALTOR Institute (GRI) designations. I can ease the strain of finding your new-built home with my proprietary research information as well as help you liquidate your current house.





I’ve Got Your Six!