A punch list is a document listing minor items that need correction, completion, or touch-up before a construction project is considered substantially complete. Near project completion, an inspection identifies issues like paint touch-ups, minor adjustments, incomplete finishes, or equipment that isn't working properly. The contractor addresses punch list items before final payment is released and the holdback is returned. Municipal capital projects use punch lists to ensure facilities meet specifications before acceptance. A thorough punch list process protects the municipality's interests by ensuring contractors complete all work to required standards before the project is closed out.