ABA Project Closeout Guide

7-1-2015

DBA Project Closeout Guide

“What Agencies Need To Know”

Introduction

The ultimate goal of a capital improvement project is a successfully completed project meeting

and hopefully exceeding your initial expectations. A project reaching this pinnacle is no simple

feat. It takes commitment and considerable resources. Since resources such as time, energy, and

assets are at a premium it is necessary to ensure all resources expended are used to their fullest

potential.

The purpose of this guide is to help you achieve your goal while being good stewards of public

funds. A complete and comprehensive project folder is paramount to reaching this goal. After

reviewing this document you will have a better understanding of the complexity of a construction

project and what documents you will need to close-out your project. This is also offered for you

to gain insight into what to expect and what questions to ask of your Design Professional,

Contractor, and DBA. And last but not least, using this guide and checklist will help to

supplement a better understanding of the Minimum Standards and Criteria (MSC). We hope you

find these attachments helpful. Visit our website at http://www.aba.arkansas.gov/ to review the

MSC and the forms required for project close-out.

The DBA Construction Project Close-Out Checklist

This document lists all the information you will need to incorporate into your project folder.

Closing out a project begins even before you select your Design Professional and may end

several years after the substantial completion. Prior to executing the contract for the construction

project meet with your Design Professional and have them identify which items in this checklist

are applicable to your upcoming project. This step will enable a better understanding of what

steps are needed to complete the project and what documentation you can expect to receive from

your Design Professional and Contractor. During this review process, ask your Design

Professional to provide the plans and specifications, and then compare the requirements of this

checklist with those plans and specifications. This final review will familiarize you and staff

with the project documents. Familiarity with these documents reduces the likelihood of omitting

required items from of the project. The added knowledge you will receive from this exchange

will ensure a smoother project evolution throughout the various stages of construction. We can

not over emphasize the importance of developing a strong relationship with your Design

Professional. Committing your time to clearly communicate the project requirements to your

Design Professional early in the process will yield you immense benefits.

Close-Out Documentation

The documentation needed for approval of the final payment and close-out of the project is listed

on the DBA Construction Project Close-Out Checklist item #3. The following is a description of

those documents and their purposes. Those items marked on the checklist with a * symbol will

need to be submitted to DBA with the final application for payment. Your Design Professional

will provide these documents for your review and approval.

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3(a) Substantial Completion Form: A project has reached substantial completion when the work

is sufficiently complete so the Owner can occupy or utilize the project for its intended purpose.

When the Contractor considers the project to have reached this level, the Contractor should

notify the Design Professional, Owner, and DBA to request an inspection. Substantial

completion must be agreed to by all parties. Satisfaction that the “punch list” of the remaining

work can be accomplished in a reasonable timeframe (normally 30 days or less) should be

reviewed before committing to substantial completion. Extensive punch lists typically do not

meet the definition of “substantially complete”. Owners who inadvertently agree to award

substantial completion to meet their operational needs may be faced with months of uncompleted

work and dissatisfaction. Typically Owners assumes responsibility for maintenance, security,

utilities, damage, and insurance once the project is accepted as substantially complete. For this

reason it is imperative the project truly has reached a level a completion whereby it can be used

for its intended purpose. When an agreement has been reached with the Contractor, Owners

should attach with the punch list any other conditions to a DBA approved substantial completion

form. The executed document is then submitted to the DBA Construction Section for final

approval. Normally substantial completion is approved prior to the request for final payment,

therefore it is not necessary to resubmit this form. Your agency should insist on receiving the

documents listed on the Project Close-Out Checklist item #4 prior to approving the

substantial completion. Again, good communication is the key to a successful project so

inform the contractor at the pre-construction conference that you will require the completed

close-out documents prior to approving project substantial completion.

3(b) Certificate of Final Completion: This certificate is used for two purposes. First, to signify

the project is 100% complete (includes all punch list items). Second, to establish the date the

project is complete. The project completion date begins the 30 day timeframe for the Agency to

release the retainage. The Design Professional will coordinate a date and time for the Agency,

Design Professional, Contractor, and the DBA Observer to meet on site to verify the project is

complete. If all parties agree that final completion has been met, then the parties will execute the

Certificate of Final Completion form on the date each party agrees.

3(c) Contractors Application for Final Payment: The contractor will submit a request for final

payment shortly after the Certificate of Final Completion has been executed. DBA will accept

any format for final payment as long as it contains the required information to process the

payment. In most cases periodic payments have been made to the Contractor as the construction

progresses, excluding the mandatory retainage. Prior to awarding project completion, review

Arkansas Code Annotated §22-9-604 (retainage) and § 22-9-205 (delinquent payment) your

responsibilities as the Owner processing proper payment. Please review §22-9-501 through 505

if your project involves the substitution of securities for retained payments through the Treasurer

of State.

3(d) Release of Liens/Claims: This form must be submitted to DBA. It is to be completed by the

contractor (and notarized) and submitted with the request for final payment. By executing this

document, the Contractor is certifying that they have paid and otherwise satisfied all obligations

for all furnished materials, equipment, all work, labor and services performed, and for all known

claims against the Contractor arising in any manner in connection with the performance of the

contract with the State. This document gives assurances to the owner that the contractor has

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made proper payments to his suppliers and subcontractors with those state funds paid to the

Contractor.

3(e) Consent of Surety: This document is to be submitted by the contractor along with his request

for final payment. The contractor’s surety company (performance and payment bond) executes this

document and is required to be notarized. Failure to receive this document could result in the

Surety Company rejecting any claims you may have against the contractor’s bond. By executing

this document, the Surety approves the final payment to the contractor. The surety agrees that the

final payment to the contractor does not relieve them of any of their obligations as set forth in the

contract with the State of Arkansas and the Contractor.

3(f) Certificate of Occupancy: Certificates of Occupancy are not issued by any one State Agency

for State projects. The responsibility therefore rests with the Owner/Agency of the project. Prior

to occupancy the agency must verify the safety of the interior and exterior of the facility. This is a

critical stage of the project because the agency assumes responsibility for allowing occupants to

work or visit the building. All systems, equipment, and areas must be inspected to ensure their

proper and safe operation. This review and verification should take place prior to approving

substantial completion. You may want to develop your own Certificate of Occupancy Checklist to

ensure the following important requirements are met.

The following is an example, but not an inclusive list, of some items an agency should review or

receive to ensure a safe operational space:

 Interior, exterior, and street lighting;

 Occupancy limits;

 Fire Marshal’s clearance; fire and life/safety systems inspections/certifications i.e. fire

sprinklers, fire alarms, smoke detectors, heat detectors, fire rated floor systems, duct,

shafts, and penetrations, exit illumination, fire extinguishers, exits, exit systems, and exit

stairways; fire lanes and access to building; fire hydrants; fire department key safe;

 Elevators;

 Accessibility requirements for interior and exterior spaces; parking spaces and allocation;

 Final plumbing inspections;

 Final HVAC inspections;

 Final electrical inspections;

 Agency insurance approval (building and systems);

 Backflow prevention certifications;

 All required ingress and egress points must be completed and clear of obstructions.

DBA does not require an Agency to provide documentation related to a certificate of occupancy

prior to approving final payment.

3(g) Agency’s Request for Final Payment: This is a DBA document which is typically completed

by your fiscal personnel and submitted with the final payment request to the DBA Construction

Section. The DBA Construction section compares the data listed on this form with the data on the

final pay request documentation. Once the review is complete and the documentation are all in

order, the DBA Construction section will signature approval and email the form back to the

individual listed on the form. It is at this time when the agency may release the final payment to

the contractor.

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3(h) Design Professional Closeout Certification: Prior to the DBA approval, your Design

Professional is required to certify they have received, reviewed, and delivered to you the following

documents:

 Certification of Punch List Completion,

 Roof Warranty,

 Maintenance & Operational Manuals,

 Final Plumbing Inspections,

 As Built and Shop Drawings for Inclusion by Design Professional in the Record Drawings,

CD-Rom (one for agency and one for DBA),

 Contractor’s One-Year Warranty,

 Termite Inspection Certificate,

 Certificate of Air Balance,

 Final HVAC Inspection.

The DBA Construction section is required to receive this certification from your Design

Professional prior to approval (3(h)) of the final payment request.

3(i) Agency’s Decision Regarding Assessing Liquidated Damages: Prior to advertising for the

construction phase of the project your Design Professional should ask if you desire to assess

liquidated damages on the construction project. Many factors can influence this decision. Is the

project a revenue generating capital improvement? Will the agency lose revenue if the project is

not completed on time? The answer to this question may seem clear but before answering “no”

take into consideration the fees you pay your design professional for the added inspection services

that will take place after the required completion date has expired on the project. Also consider

your staff’s time expended to keep up with the project. The bottom line is “time is money”. If you

determine liquidated damages will be assessed on the construction project, ensure the amount is

fair and equitable and remember that liquidated damages should never be considered a penalty to

the Contractor. A well documented file is imperative to assessing liquidated damages. Time

delays caused by the Agency which cannot be justified should not be considered. An agency

should extend the contract time equivalently to the lost days due to the unwarranted Agency

delays. If liquidate damages are determined on a project, the total amount is entered onto the

Agency’s Request for Final Payment form. Any liquidated damages assessed will be applied and

the total amount that will be deducted from the final payment.

Conclusion

We at DBA are here to help you successfully complete your project. Hopefully the information

provided in the guide will assist you in reaching that goal. If you need further information on any

of the information provided in this guide, we are only a phone call away. You can reach the

Design Review section at 501-682-5544 or the Construction section at 501-682-5574.

Attachments

1) Construction Project Checklist

2) Substantial Completion Form

3) Release of Lien/Claim

4) Consent of Surety

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5) Agency’s Request for Final Payment

6) Design Professional Close-Out Certification

7) Certificate of Final Completion

Sample Form

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DBA Construction Project Close-Out Checklist

State

Agency

Directors

Approval:

Date:

Project

Coordinator

Approval:

Date:

Project

Name:

ABA Project

#:

Substantial

Completion

Date:

Occupancy

Date:

ITEM

DATE REC'D

INITIALS

1

PROJECT BID RELATED DOCUMENTS

a) Bid Documents for A&E Professional Services Contract

1) Request for Proposal

2) Proof of Advertisement(s)

3) Panel Evaluations of Proposal

4) DBA, DFA Approval to Award Documents

b) Plan Submittals and DBA Responses

c) Full Set of Approved Plans & Specifications (including division zero documents)

d) Bid Documents

1) Project Disclosure Statement

2) Invitation for Bid

3) Proof of Advertisement(s)

4) Bid Addendums

e) Bids Received

1) Bid Security

f) Certified Bid Tabulation

g) Negotiated Changes

h) Intent to Award

2

CONTRACTS & AGREEMENTS

a) A&E Professional Services Contract

b) General Contractors Agreement with Owner

c) Performance and Payment Bond

d) Certificates of Insurance and Policies

e) Notice to Proceed

f) EO 98-04 Contract and Grant Disclosure Form(s): Contractor and Subcontractors

g) Change Orders

h) Maintenance and/or Service Contract(s)

3

CLOSE-OUT DOCUMENTS

a) Substantial Completion Form

*

b) Certificate of Final Completion

*

c) Application for Final Payment

*

d) Release of Lien

*

e) Consent of Surety

Sample Form

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DBA Construction Project Close-Out Checklist

ITEM

DATE REC'D

INITIALS

f) Certificate of Occupancy

*

g) Agency’s Request for Final Payment

*

h) Design Professional Closeout Certification

i) Agency’s Decision Regarding Assessing Liquidated Damages

4

DESIGNED PROFESSIONAL / CONTRACTOR SUPPLIED CLOSE-OUT DOCUMENTS

a) Roof Warranty from Manufacture (two copies)

1) Manufactures Inspection of Roof Installation and Final Inspection

2) Inspect Roof 30 Days Prior to Manufactures Warranty

b) Contractors Two-Year Labor Warranty on Roof Installation

1) Inspect Roof 60 Days Prior Warranty Expiration

c) Maintenance and Operation Manuals (HVAC, equipment etc.) and Catalog Data

d) Final Plumbing Inspection by DHS Inspector

e) Record Drawings (as built drawings)

f) CD-Rom with All Contract Documents, Record Drawings, Specifications, etc.

g) Contractors One Year Workmanship, Materials Warranty

1) Inspect Project 30 Days Prior to Warranty Expiration

h) Termite Inspection Certificate

i) Certificate of Air Balance

j) Final HVAC Inspection by DHS Inspector

k) LEED Documentation

l) Facility Key Log

m) Miscellaneous Equipment and System Warranty(s)

n) Contractor Supplied Training on Equipment and Systems (with sign-in sheets)

o) Videos/CD's and Training Manuals on Controls, HVAC, and Equipment

p) Equipment and System Inspections Reports:

1) Boiler and Tank

2) Elevators and Hoist Systems

3) Backflow Preventers on Potable Water, Fire Suppression, HVAC, Misc. Equip.

4) Fire Suppression System

5) Fire Alarm System

6) Security System

7) Backup Power Generator

8) Cable Test/Certification Reports and Startup Records

q) Contractor Provided Written Instructions on Seasonal Adjustments

r) Mechanical System Balance Once Per Each Major Season Change; 1st year

5

MISCELLANEOUS

a) Project Correspondence (meeting minutes, emails, etc.)

b) DBA Observers Reports

c) Design Professionals Inspection Reports

d) State Inspectors Reports

e) Owners Inspection Reports

f) Progress Photos

g) Progress Payments With Backup Documentation

h) Plan Review Submittals and Responses From ABA

i) Predesign Project Studies

Sample Form

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DBA Construction Project Close-Out Checklist

ITEM

DATE REC'D

INITIALS

j) Future Maintenance and Operational Cost Studies

k) Environmental Studies and Reports

l) Floodplain Management Plans and Programs

Notes:

Sample Form

CERTIFICATE OF SUBSTANTIAL COMPLETION

DIVISION OF BUILDING AUTHORITY/CONSTRUCTION SECTION

501 Woodlane, Suite G-05, Little Rock, AR 72201

PROJECT: Owner/Agency:

DBA Project Number:

DEFINITION OF DATE OF SUBSTANTIAL COMPLETION:

The Date of Substantial Completion of the Work, or designated portion thereof, is the date

certified by the Design Professional and approved by the Owner and DBA when the Work is

sufficiently complete, in accordance with the Contract Documents, so the Owner can occupy or

utilize the Work or designated portion thereof for the use for which it is intended, as expressed in

the Contract Documents. Check the appropriate box below to denote a full or partial substantial

completion.

PARTIAL SUBSTANTIAL COMPLETION

The partial substantial completion includes the following area(s):

The Work performed under this Contract has been reviewed and found to be substantially

complete. The Date of Substantial Completion for the above portion(s) of the Project is hereby

established as: _______________, which is the date of commencement of applicable warranties

required by the Contract Documents, and assumption by the Owner of responsibility for

maintenance, security, heat, utilities, damage to the Work and insurance excepting as stated

below.

FULL SUBSTANTIAL COMPLETION

The Work performed under this Contract has been reviewed and found to be substantially

complete. The Date of Substantial Completion for the Project is hereby established as:

_______________, which is the date of commencement of applicable warranties required by the

Contract Documents, and assumption by the Owner of responsibility for maintenance, security,

heat, utilities, damage to the Work and insurance excepting as stated below.

The responsibilities of the Owner and the Contractor shall be as follows: (Note - Owner's

and Contractor's legal and insurance counsel should determine and review insurance

requirements and coverage; Contractor shall secure consent of the Surety Company, if any.)

A list of punch list items to be completed or corrected, prepared by the Contractor and verified

and amended by the Architect/Engineer is attached hereto. The failure to include any items on

such list does not alter the responsibility of the Contractor to complete all Work in accordance

with the Contract Documents. The date of commencement of warranties for items on the

attached list will be the date of final completion and inspection/acceptance by the

Architect/Engineer, owner and DBA.

In the case of a full substantial completion the Owner and Contractor understand and agree that

Sample Form

all items listed on the attached punch list must be completed within 30 calendar days from the

date of substantial completion. Failure to complete the punch list items within the above

referenced timeframe may result in notification to and request for action of the Surety

Company’s Performance and Payment Bond.

Certification of Design Professional:

Firm Name ____________________________________________________________

Address ____________________________________________________________

____________________________________________________________

Signature Title Date

Approval of Contractor:

Company Name ____________________________________________________________

Address ____________________________________________________________

____________________________________________________________

Signature Title Date

Approval of State Owner-Agency:

Agency Name ____________________________________________________________

Address ____________________________________________________________

____________________________________________________________

Signature Title Date

Approval of DFA – Division of Building Authority:

_____________________________________________________________________________

Signature Title Date

Cc: Surety Company

Sample Form

RELEASE OF CLAIMS

Section 00 65 19.13

Comes the undersigned, who does hereby swear and affirm that:

1. My name is: , and

(printed or typed)

I am doing business as:_____________________________________________ ___

and my legal address is:

_______________________________________________________________________

2. Except as stated in Paragraph Four (4) below, pursuant to Contract # : _____ ____,

which was executed on: ______________, on the following project: _______ _

____________________________________________________________,

I have paid and have otherwise satisfied all obligations for all furnished materials and equipment,

all work, labor and services performed, and for all known claims against the Contractor arising in

any manner in connection with the performance of the above referenced contract for which the

Owner or his property might in any way be held responsible.

3. Except as stated in Paragraph Four (4) below, to the best of my knowledge,

information and belief, the releases or waivers of Claims, attached hereto and incorporated

herein, includes the above referenced contract, all subcontractors, all suppliers of materials and

equipment, and all performers of work, labor or services who have or may have claims against the

Owner arising in any manner out of the performance of the contract.

4. The Exceptions are: (if none exists, then indicate “none.” The Contractor shall furnish

a written explanation to the Owner for each exception.)

_____________________________________________

Affiant Date

VERIFICATION

STATE OF ARKANSAS >

>

COUNTY OF __________________ >

SUBSCRIBED AND SWORN TO before me this _____ day of __________________20__

______________________________

NOTARY PUBLIC

My Commission Expires: _______________________.

Sample Form

CONSENT OF SURETY

Section 00 65 19.19

Comes the undersigned, who does hereby swear and affirm that:

1. My name is and I am an authorized

representative of a surety company.

2. With regards to the Project

; DBA Project # ; Contract Date ________

__ Contractor; and the Project Owner ______

_________________________________ _______; I hereby approve the final payment to the

Contractor. I agree that the final payment to the Contractor shall not relieve the Surety Company of any of

its obligation as set forth in the contract with the State of Arkansas and this Contractor.

AFFIANT DATE

VERIFICATION

STATE OF ARKANSAS )

)

COUNTY OF )

SUBSCRIBED AND SWORN TO before me this of

, 20 .

NOTARY PUBLIC

MY COMMISSION EXPIRES:

Sample Form

Agency Request for Final Payment

To: Division of Building Authority

Construction Section

501 Woodlane, Suite G 05

Little Rock, AR 72201

Telephone: 501-682-5574, Fax: 501-682-5560 Date:

Name of State Agency

Name of Project

Name of Contractor

Original PO#

DBA Project #

Pay Application #

Current Contract Amount

All Payments to Date

Less Liquidated Damages

(If the contract documents list a dollar amount per

day to assess liquidated damages {LD’s} due to the

project exceeding the required completion date and

the agency is assessing LD’s please enter the dollar

amount of LD’s in the space provided along with

the agencies justification. If LD’s will not be

assessed and the project exceeded the required

completion date enter the reason why LD’s will not

be assessed. Attach additional documents as

needed.)

Final Payment Amount

Amount of Retainage Withheld

(previously withheld)

____________________________________________ _______________

Approved By: DFA – Division of Building Authority Representative Date

I certify that all project progress payments were processed in accordance with state laws and rules.

Completed By (name & signature):

Return By Email To:

Phone Number:

Fax Number:

Sample Form

To: Architects and Engineers

From: Marie Ordonez, Contract and Construction Manager

Re: Design Professional Closeout Certification; MSC § 4-500 Et Seq.

Your checkmark in the space provided confirms the items listed below have been received,

completed, and approved by your agency as appropriate. Your checkmark below also signifies

you have sent the items listed below to the project owners. Please place N/A in any space that is

deemed not applicable to this project. Please fax, email or mail the completed form to the DBA

Construction Section.

1) Completion of All Punch List Items 2) Contractor’s 1-Year Warranty

3) Roof Warranty 4) Termite Inspection Certificate

5) Maintenance & Operation Manuals 6) Certificate of Air Balance

7) Final Plumbing inspection 8) Final HVAC inspection

9) As Built and Shop Drawings for inclusion by A/E in Record Drawings

10) CD-Rom being prepared for DBA Construction

Please complete the following:

DBA Project Name and Number:

Architect / Engineer Firms Name:

Firms Address:

Authorized Agent of the Firms

Printed Name, Signature, and

Date:

Sample Form

Certificate of Final Completion – Capital Improvement Project

DBA Project Number: Project Name:

We, the undersigned parties, state:

1) The date of final completion for the above referenced project is herein established

as: . Pursuant to Arkansas Code Annotated §22-9-604, retainage shall be released

within thirty (30) days of the final completion date. The establishment of the final

completion date shall not be deemed to relieve the Contractor of its obligation contained

in the contract documents including but not limited to providing all close out documents

for final payment.

2) All known details of the project are resolved and there is no uncompleted work left, no

Contractor claims or outstanding progress payment(s).

3) The project punch list items, excluding warranty work is complete.

4) The substantial completion certificate previously executed established the twelve (12)

month warranty period for projects and a twenty four (24) month warranty for roofing

projects, or both. Sixty (60) days prior to the warranty expiration the parties listed below

shall conduct a final warranty inspection; this report will be delivered to the Contractor

who will correct all defects identified in the Design Professionals or Owners follow-up

inspection reports.

Contractor: Design Professional:

____________________________________ _______________________________________

Contractor Company/Corporation Name Design Professional Firm Name

____________________________________ _______________________________________

By: Contractor Authorized Representative By: Design Professional Authorized Representative

______________________________________________________ __________________________________________________________

Print Name Date Print Name Date

State Agency, Board & Commission: Division of Building Authority

____________________________________ _______________________________________

Owner/Agency Name By: DBA Observer or Authorized Representative

_______________________________________ __________________________________________

By: Agency Authorized Representative Print Name Date

_______________________________________

Print Name Date