Step 8: CONTRACT CLOSE-OUT - FINAL PAYMENT
1. Contractor Requests a Certificate of Substantial Completion
The Notice is filled out by the Project Manager and sent to Johanna Johnson, (608) 264-9274, in Engineering to publish in the newspaper. A copy of the Notice that is published is emailed to Affirmative Action, the Contractor and anyone else in your division who is required to receive the notice.
2. Liquidated Damages
Liquidated damages occur when a Contractor exceeds the contract time stated in the original contract. It is up to the project manager to determine if liquidated damages will be assessed.
3. Final Application and Certificate
Final contract quantities must be verified by the inspector.
The final application and certificate for payment and the request for affidavits (both Prime and Sub Contractor if applicable) should be sent out to the Contractor at this time.
4. Payroll Reports
Payroll reports are reviewed by your division and Colier McNair in Affirmative Action. The Contractor is notified if there is any missing payroll. Once all missing payroll is submitted, the Project Manager verifies all the payroll and affidavits received and emails Colier and anyone else in the division that is required to receive this information.
5. Payment Needs to be Withheld
If notified that payment needs to be withheld, a reason will be included. The Engineer will review the unresolved violations and determine if final payment should be withheld. The Contractor should be notified that payment is being withheld pending resolution of any violations. Once the violations are resolved, payment can then be processed.
6. Prevailing Wage Violations
Affirmative Action has 10 days to respond to any unresolved prevailing wage violations. If you do not receive any notification from Affirmative Action within these 10 days, it is ok to process the final payment.
If there are any liens to be placed on the project, you need to contact the Attorney's office prior to final payment.
Warranty on the project is tied into the substantial completion notice. It is good for one year from the date of notice. Warranty inspections should be made prior to the end of the one year warranty. Warranty issues should be addressed by letter to the Contractor. If a letter of substantial completion was not sent, warranty on the project is one year from the date of the contract's Common Council acceptance.
9. Outstanding Warranty Issues
The Prime Contractors bonding company is notified if outstanding warranty issues have not been resolved before the time the warranty expires.