Common use of Final Completion, Acceptance, and Payment Clause in Contracts

Final Completion, Acceptance, and Payment. A. Final Completion defined: Final Completion shall be achieved when the Work is fully and finally complete in accordance with the Contract Documents. The date Final Completion is achieved shall be established by a final inspection of the Work by Owner following receipt of (1) written notice from the Contractor that the Work is ready for final inspection and (2) a final Application for Payment. When the Owner finds the Work acceptable and fully performed under the Contract Documents and the Contractor has delivered to the Owner all warranties, permits, and operations manuals, the Owner will issue a Notice of Final Completion. In no case shall Final Completion constitute Final Acceptance which is a subsequent, separate, and distinct action. B. Final Acceptance defined: Final Acceptance shall be achieved when the Contractor has completed the requirements of the Contract Documents. The date Final Acceptance is achieved shall be established by Owner in writing. Prior to Final Acceptance, Contractor shall, in addition to all other requirements in the Contract Documents, submit to Owner a written notice of any outstanding disputes or claims between Contractor and any of its Subcontractors, including the amounts and other details thereof. Neither Final Acceptance, nor final payment, shall release Contractor or its sureties from any obligations of these Contract Documents or the payment and performance bonds, or constitute a waiver of any claims by Owner arising from Contractor’s failure to perform the Work in accordance with the Contract Documents. C. Final payment waives Claim rights: Acceptance of final payment by Contractor, or any Subcontractor, shall constitute a waiver and release to Owner of all claims by Contractor, or any such Subcontractor, for an increase in the Contract Sum or the Contract Time, and for every act or omission of Owner relating to or arising out of the Work, except for those Claims made in accordance with the procedures, including the time limits, set forth in Part 8. PART 7 - CHANGES

Final Completion, Acceptance, and Payment. A. Final Completion defined: Final Completion Upon completion of the Work, Contractor shall be achieved when give the Engineer written notice that the Work has been fully and finally completed and must certify that the Work is fully complete and finally complete was built in conformance with the Plans, Technical Specifications, and other Contract Documents. Such written notice must be accompanied by all documentation called for in the Contract Documents, including but not limited to (i) the consent of surety to final payment; (ii) Contractor Affidavit for Final Payment and Bills Paid; and (iii) as-built drawings, as described in Section 6.31 of this Contract. Drawings will be reviewed by Engineer and returned to Contractor so that any adjustment required may be made. Contractor shall also furnish like certifications from all Subcontractors who performed Work on the Project. Subcontractor certifications shall be limited to that Work actually performed by the Subcontractor. Such certifications shall be executed on the forms provided. These certifications are a condition precedent to final payment and must accompany the executed Contractor Affidavit for Final Payment and Bills Paid. Within 10 calendar days after Engineer receives Contractor’s written notice, certification(s), and required documentation, Engineer will schedule inspection by Engineer, Owner, and Regulatory Agencies; provided, however, that additional time shall be allowed for scheduling such inspections if required due to the Regulatory Agencies’ availability or responsiveness. If the Work is found to be completed in accordance with the Contract Documents. The date Final Completion is achieved , including the Plans and Technical Specifications, and acceptable to the Engineer, Owner, and Regulatory Agencies, Engineer shall be established by proceed to make final measurements and prepare a final inspection statement of the value of all Work by Owner following receipt performed and materials furnished under the terms of (1) written notice from the Contractor that the Work is ready for final inspection and (2) a final Application for Payment. When the Owner finds the Work acceptable and fully performed under the Contract Documents and shall submit the final statement to Contractor for approval. Upon receipt from the Contractor has delivered of the executed approved final statement and all other documents required by the Contract Documents for final payment, the Engineer shall issue to the Owner all warrantiesa certificate of completion and Contractor-approved final statement of the value of the Work performed. The Owner shall thereafter accept the Work and shall pay to the Contractor, permits, and operations manualson or before the 46th day after the date of the certificate of completion, the balance due Contractor under the terms of this Contract, provided he has fully performed his contractual obligations under the terms of this Contract. The Owner will issue a Notice of Final Completion. In no case shall Final Completion constitute Final Acceptance which is a subsequent, separate, and distinct action. B. Final Acceptance defined: Final Acceptance shall be achieved when entitled to withhold any amounts from such final payment for any amounts in dispute or claims made by third parties arising from the Work. For example, but not by limitation, should Owner receive notice of any claim(s) of unpaid labor or materials (or damages) from Subcontractors, material suppliers, or any other person or entity, Owner may, at its option, withhold part or all of any of the final payments due the Contractor until Owner, in its discretion, is satisfied that such claim(s) have been fully resolved and paid by Contractor, or Owner may, at its option pay for such claims(s) using the withheld funds. The 5 percent retainage, withheld from the Progress Payments, as described in Section 9.2 above, may be held by Owner for 30 calendar days after the date of said final payment, after which said retainage shall be paid to Contractor in full, provided he has completed fully performed his contractual obligations under the requirements terms of the Contract Documentsand Owner is not otherwise entitled to withhold payment. The date Final Acceptance It is achieved shall understood that in the event that all Work has been completed, final payment less 10 percent retainage has been paid, and 30 calendar days have passed but, due to no fault or neglect on the part of Contractor, notification of Regulatory Agency acceptance has not been obtained, then Owner may, at Owner’s option, pay Contractor a reasonable and equitable portion of the retainage; or Contractor, at Owner’s option, may be established by Owner in writing. Prior relieved of its obligation to Final Acceptancefurther perform hereunder, and thereupon, Contractor shallshall receive payment of the balance due it under the Contract subject to the conditions stated in this Section. Neither final acceptance by Owner, in addition to all other requirements nor the final payment, nor any provision in the Contract Documents, submit to Owner a written notice shall relieve Contractor of: (i) the obligation for fulfillment of any outstanding disputes or claims between Contractor and any of its Subcontractorsall warranties that may be required in the Contract Documents, including the amounts and other details thereof. Neither Final Acceptance, nor final payment, shall release Contractor Technical Specifications; (ii) the obligation to repair defective Work or its sureties from any obligations of these Contract Documents or the payment and performance bonds, or constitute a waiver of any claims by Owner arising from materials; (iii) Contractor’s failure to perform the Work in accordance with the Contract Documentsindemnification obligations under this Contract; or (iv) any of Contractor’s continuing obligations. C. Final payment waives Claim rights: Acceptance of final payment by Contractor, or any Subcontractor, shall constitute a waiver and release to Owner of all claims by Contractor, or any such Subcontractor, for an increase in the Contract Sum or the Contract Time, and for every act or omission of Owner relating to or arising out of the Work, except for those Claims made in accordance with the procedures, including the time limits, set forth in Part 8. PART 7 - CHANGES