12-25-728 Article 13 SubstantialCompletion-ProjectCloseout.pdf

Article 13: Substantial Completion/Project Closeout R51322

ARTICLE 13: SUBSTANTIAL COMPLETION/PROJECT CLOSE-OUT

When the GC/CM has completed all work on the project, per Part 6 of the General Conditions for Washington State Facilities Construction, the GC/CM shall submit to the DES PM and

Consultant a written notice of completion.

13.1 Substantial Completion

Substantial Completion is the stage in the progress of the work (or portion of the work designated and approved by Owner) when the construction is sufficiently complete, in accordance with Part 6.07 of the General Conditions, so the Owner can fully occupy the Work (or the designated portion) for the use for which it is intended.

The Substantial Completion date is established by the Owner at the beginning of the project and is part of the contract documents. This date can only be adjusted by change order to the contract. The following must be accomplished to achieve substantial completion:

GC/CM has received the required occupancy permits All systems and parts are commissioned and functioning Utilities are connected & operating normally All required owner training on equipment and systems has been completed O&M Manuals submitted Keys and key schedule Draft As-Built Drawings Certificates of Warranty Work is accessible by normal traffic

To achieve Substantial Completion, the GC/CM shall perform a review of all installed work and list any corrections necessary to comply with the contract document requirements and shall immediately begin to resolve those issues. Upon completion of those corrections the GC/CM shall submit the completed list and request, in writing, the walk-through on the project with the Consultant, DES PM and Owner. The PM, Consultant, Owner and GC/CM will formalize an incomplete work list (punchlist) of items remaining to be completed by the

GC/CM.

The Consultant shall send written notification to the PM when these items are complete and requests a final inspection. The Consultant, project manager and Owner will do a final walk through and create the final punchlist. If the remaining items are minor in nature and all certificates, permits, commissioning and training are completed; the Consultant may then recommend Substantial Completion.

When Substantial Completion is achieved, the Consultant shall complete the Substantial Completion Checklist and submit the form “Certificate of Substantial Completion” for completion and approval for signature to the GC/CM and the PM. Prior Occupancy may be issued in accordance with Part 6.08 of the General Conditions if the owner takes possession of specific portions of the work prior to substantial completion.

13.2 Final Completion

Final completion is the stage in the progress of the work when all construction and all physical tasks associated with the project have been finalized. Once the punchlist items are complete, the GC/CM shall sign the Final Acceptance Checklist signifying all work is done per contract.

After verifying the punchlist items are complete and all change orders have been processed, the Consultant completes and signs the Final Acceptance Checklist and sends it to the project manager. The project manager recommends acceptance to the Owner and the DES Assistant Program Manager who authorizes final acceptance.

13.3 Final Acceptance

Final acceptance is established when all parties, the GC/CM, Consultant, project manager and Owner agree that all work is complete and the assistant program manager signs the Final Acceptance Checklist. Final acceptance shall occur within 60 days of substantial completion unless otherwise agreed to in writing by the Owner, project manager, Consultant and GC/CM.

The GC/CM shall submit the final Invoice (100%) for payment of the work.

The project manager ensures that all paperwork (i.e., invoices, affidavits of prevailing wages paid, DES Diversity Compliance, etc.) has been received and the appropriate persons have signed the Final Acceptance Checklist. The PM establishes the date of Final Completion. The assistant program manager establishes the date of Final Acceptance.

The approved and signed checklist is given to the contracts specialist who will prepare the notification of Final Acceptance and initiate the 45-day lien period.

The contracts specialist reviews the contract file for out-standing COs and prepares the acceptance letter and advertises the project as complete. This starts the 45-day lien period on the project.

13.4 Lien Period

During the 45-day lien period, the GC/CM prepares and submits:

• Retainage Invoice;

• Notice to L&I "Request for Release" for the Contractor's Industrial Insurance premiums.

The Owner’s staff prepares the retainage release checklist which includes receipt of the following items:

• Acceptance letter from E&AS

• Intent to Pay Prevailing Wages from each construction firm working on project

• Affidavit of Prevailing Wages Paid from each construction firm working on project

• Submits Notice of Completion to Labor and Industries, Department of Revenue, and

Employment Security Department

• Retainage invoice from contractor

• Escrow confirmation (only if Retainage is invested)

• Request and receipt of a notarized Letter of Reconciliation on principal amount from the bank

The DES Contracts Specialist prepares, if required, the Acknowledgment of Receipt of Liens. At the end of the 45-Day lien period the contracts specialist will review the status of active liens and provide Owner’s staff with written directions for retainage disbursement.

The Notice of Completion provides the Department of Labor and Industries project information to verify that Industrial Insurance Premiums are current. The Department of

Revenue confirms payment of Washington State Sales Taxes and other required taxes based on the project information. Employment Security verifies accurate payment of the GC/CM and associated trade contractor payment of unemployment compensation taxes.

Each agency will send a notice to DES and the GC/CM when their reviews are complete and release any claim they might have on the retainage.

If releases are not received by the contracts specialist within 45 days, a follow-up is made to the appropriate agency to verify receipt of the initial document, identify any problem which is delaying receipt of the release and resolve the problem.

When all items previously listed have been finalized, the contracts specialist confirms that all documents required for release have been received. A warrant is issued or a letter to the bank is issued to release the GC/CM's retained funds by the Owner’s fiscal staff.

The attached copy of the Retainage Release Checklist may be prepared for the individual sub-contracts issued by the GC/CM. This form identifies all items required by the Owner on each contract prior to release of retained funds.

13.5 Warranty

The GC/CM shall provide a warranty of all the work in accordance with Section 5.16 D.

and 5.21 of the General Conditions for Washington State Facility Construction. This general warranty shall be in effect for one year after the date of substantial completion.

Obtain and assemble executed certificates, warranties, bonds, receipts for extra stock, permits signed by any authorities having jurisdiction and any required service and maintenance contracts from respective manufacturers, suppliers, and subcontractors.

These shall be included in the front of the General O&M Manual. Manufacturer’s disclaimers and limitations on product warranties do not relieve the GC/CM of the warranty on the Work that incorporates the products.

Provide the following warranty information:

• Product or work item

• Firm, with name of principal, address and telephone number

• Contractor, name or responsible principal, address and telephone number

• Scope

• Date of beginning of warranty or service and maintenance contract which shall be the date of substantial completion.

• Duration of warranty or service contract

• Proper procedure in case of failure

The Owner shall give notice promptly after the discovery of any warranty repair condition.

The GC/CM shall reply to the owner within seven calendar days with a response and a plan to correct the condition.