Step 8: CONTRACT CLOSE-OUT - FINAL PAYMENT
1. Contractor Requests a Certificate of Substantial Completion
The Notice is filled out by a Facilities Project Manager and sent to EnAdmin @cityofmadison.com to create the Substantial Completion letter. Alane Boutelle creates the notices for all other Engineering divisions. Johanna Johnson, (608) 264-9274, in Engineering, will publish both notices in the newspaper. A copy of the Notice that is published is emailed to Affirmative Action, the Contractor, the Alderperson, the bonding agent, 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 Final Subcontractor should be sent out to the Contractor at this time.
4. Affirmative Action Review
Alane Boutelle emails Juan Pablo Torres Meza when the Final Subcontractor List has been received, as well as anyone else in the division that is required to receive this information. This prompts the final demographic and payroll report review by Juan Pablo Torres Meza in Affirmative Action. (10 working days) The Contractor is notified if there is any missing 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.
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.
8. Outstanding Warranty Issues
The Prime Contractors bonding company is notified if outstanding warranty issues have not been resolved before the time the warranty expires.