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You are here: Home / Campus Resources / Construction Contracting Procedures / Acceptance and Final Payment

Acceptance and Final Payment

1. The contract documents must be followed. What follows is a general guide.

2. The contractor must give the design professional designated in the contract documents a written notice that the project is ready for final inspection. If no design professional is designated, the notice is submitted to the campus.

3. The work is inspected. If a design professional has been retained, the design professional and the campus perform the inspection.

4. The construction project is closed out once all items on the punch list have been completed and the owner has received all close out documents including test reports, record drawings, maintenance manuals and proper training.

5. The commissioning agent or architect should submit a full commissioning report and systems manual upon project closeout

6. Before acceptance and final payment, the contractor must furnish evidence that it has paid all debts for labor, materials, and equipment incurred and that the surety has consented to final payment, and must provide documentation of any special warranties such as subcontractor or manufacturer warranties. This documentation requirement includes executed copies of current editions of AIA standard documents as follows or substantially equivalent documents:

  • AIA G704-2000 Certificate of Substantial Completion
  • AIA G706-1994 Contractor’s Affidavit of Payment of Debts and Claims
  • AIA G706A-1994 Contractor’s Affidavit of Release of Liens
  • AIA G707-1994 Consent of Surety to Final Payment

7. If the work is acceptable and the contract fully performed, a certification of acceptance will be issued to the contractor.

  • Before issuing a certificate of acceptance or final payment to the contractor, review the terms of the contract to confirm that all conditions to acceptance and final payment have been met.

8. Final payment will be the contract sum plus any approved change order additions, less approved change order deductions, less previous payments made, less any adjustments for defects in the work, and less liquidated damages, if any.

9. If the contractor is not paid within 90 days of the date payment is due, interest may be paid at the rate of 10% per annum pursuant to Ark. Code Ann. § 22-9-205 unless the contract documents provide otherwise.

10. The Contractor must furnish a one-year acceptance warranty, copies of bonds, roof warranties, termite inspection, maintenance and operation manuals, and operation training, air balance data, shop drawings, catalog data, as-built “record” reproducible sepia prints, etc., as called for under the various divisions of specifications, to the design professional for review and approval prior to transmission to the institution

11. Design professionals should provide to owner a copy of the material outlined above in a neatly bound folio. In addition, the design professional should furnish one original set of construction documents reflecting all changes and corrections.

12. If requested by the campus, the design professional should also furnish corrected as-built drawings in the form of AutoCAD electronic drawing files on a CD or USB external flash drive.

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