Glossary  ·  Change & Conversion

Punch list

In short

Minor items of modification work done after substantial completion and before final completion. Arizona defines the term in the tax statute.

In full

A punch list is minor items of modification work performed after substantial completion and before final completion of the project. That definition is statutory, at A.R.S. § 42-5075(O)(1)(b).

The definition exists in the tax statute for one reason. Administration or supervision of modification work performed pursuant to a punch list is a construction phase service, and construction phase services cannot be excluded from the tax base as design phase services or professional services under A.R.S. § 42-5075(O). A contract that separately states its design phase pricing cannot place punch list administration on that side of the line.

The two events bounding a punch list — substantial completion and final completion — are used in the same subsection without being defined anywhere in it.

A.R.S. § 42-5075(O), (O)(1)(b)

Related entries