Common use of Final Acceptance and Payment Clause in Contracts

Final Acceptance and Payment. A. Following the Agency’s acceptance of the Work, the Contractor shall submit to the Agency a detailed Project accounting as detailed in the Contract. B. When the Work has been accepted there shall be paid to Contractor a sum equal to the Contract Price less any amounts previously paid Contractor and less any amounts withheld by the Agency from Contractor under the terms of the Contract. The final five percent (5%), or the percentage specified in the Notice Inviting Bids where the Agency has adopted a finding of substantially complete, shall not become due and payable until as required by Public Contract Code section 7107. If the Contractor has placed securities with the Agency as described herein, the Contractor shall be paid a sum equal to one hundred percent (100%) of the Contract Price less any amounts due the Agency under the terms of the Contract. C. Unless Contractor advises the Agency in writing prior to acceptance of the final five percent (5%) or the percentage specified in the Contract Documents where the Agency has adopted a finding of completion, or the return of securities held as described herein, said acceptance shall operate as a release to the Agency of all claims and all liability to Contractor for all things done or furnished in connection with this Work and for every act of negligence of the Agency and for all other claims relating to or arising out of this Work. If Contractor advises the Agency in writing prior to acceptance of final payment or return of the securities that there is a dispute regarding the amount due the Contractor, the Agency may pay the undisputed amount contingent upon the Contractor furnishing a release of all undisputed claims against the Agency with the disputed claims in stated amounts being specifically excluded by Contractor from the operation of the release. No payments, however, final or otherwise, shall operate to release Contractor or its sureties from the faithful performance bond, labor and material payment bond, or from any other obligation under this Contract. D. In case of termination of the Contract any unpaid balance shall be and become the sole and absolute property of the Agency to the extent necessary to repay the Agency any excess in the cost of the Work above the Contract Price. E. Final payment shall be made no later than 60 Days after the date of acceptance of the Work by the Agency or the date of occupation, beneficial use and enjoyment of the Work by the Agency including any operation only for testing, start-up or commissioning accompanied by cessation of labor on the Work, provided that a release of liens and claims has been received from the Contractor pursuant to Civil Code section 8136. In the event of a dispute between the Agency and the Contractor, the Agency may withhold from the final payment an amount not to exceed 150% of the disputed amount. F. Within ten (10) Days from the time that all or any portion of the retention proceeds are received by Contractor, Contractor shall pay each of its Subcontractors from whom retention has been withheld each Subcontractor’s share of the retention received. However, if a retention payment received by Contractor is specifically designated for a particular Subcontractor, payment of the retention shall be made to the designated Subcontractor if the payment is consistent with the terms of the subcontract.

Final Acceptance and Payment. A. Following The Contractor shall notify the AgencyArchitect/Engineer when the Work, including the punch list, is complete, and the Architect/Engineer will arrange a final inspection with the Contractor and the Owner. If, upon inspection, the Architect/Engineer or Owner determines that the Work, including the punch list, is not complete, Contractor shall be charged with the cost to Owner of any and all additional inspections deemed necessary by the Architect/Engineer or Owner to determine that the Work, including the punch list, is complete. If Contractor fails to complete the Work, including the punch list, within the time period for completion of the punch list fixed by the Architect/Engineer in the Certificate of Substantial Completion or within sixty (60) days after Substantial Completion, whichever is later, Owner may charge Contractor with the reasonable cost to Owner of additional Architect/Engineer services (including Project site visits) deemed necessary pending Contractor’s acceptance completion of the Work, unless such services relate only to new Work authorized by Change Order following the Contractor shall submit to date of Substantial Completion. Upon completion of the Agency a detailed Project accounting as detailed Work, including the punch list, in the Contract. B. When the Work has been accepted there shall be paid to Contractor a sum equal full and strict conformity to the Contract Price less any amounts previously paid Contractor and less any amounts withheld by the Agency from Contractor under the terms of the Contract. The final five percent (5%), or the percentage specified in the Notice Inviting Bids where the Agency has adopted a finding of substantially complete, shall not become due and payable until as required by Public Contract Code section 7107. If the Contractor has placed securities with the Agency as described herein, the Contractor shall be paid a sum equal to one hundred percent (100%) of the Contract Price less any amounts due the Agency under the terms of the Contract. C. Unless Contractor advises the Agency in writing prior to acceptance of the final five percent (5%) or the percentage specified in the Contract Documents where the Agency has adopted a finding of completion, or the return of securities held as described herein, said acceptance shall operate as a release to the Agency of all claims and all liability to Contractor for all things done or furnished in connection with this Work and for every act of negligence of the Agency and for all other claims relating to or arising out of this Work. If Contractor advises the Agency in writing prior to acceptance of final payment or return of the securities that there is a dispute regarding the amount due the Contractor, the Agency may pay the undisputed amount contingent upon the Contractor furnishing a release of all undisputed claims against the Agency with the disputed claims in stated amounts being specifically excluded by Contractor from the operation of the release. No payments, howeverDocuments, final or otherwise, shall operate to release Contractor or its sureties from the faithful performance bond, labor and material payment bond, or from any other obligation under this Contract. D. In case of termination of the Contract any unpaid balance shall be and become the sole and absolute property of the Agency to the extent necessary to repay the Agency any excess in the cost of the Work above the Contract Price. E. Final payment shall be made no later than 60 Days after the date of acceptance of the Work by a Contracting Officer, and Contractor’s satisfaction of its obligations for final payment, Owner shall pay the Agency unpaid balance of the Contract Amount less any sum that may be necessary to settle any claim Owner may have against the Contractor or that may be necessary to settle any outstanding obligations of the Contractor or of its subcontractors arising out of or incidental to the performance of the Contract or which is otherwise withheld pursuant to the terms of the Contract Documents. Neither the Certificate of Substantial Completion, nor final acceptance payment, nor any other provisions in the Contract Documents, shall relieve the Contractor of its obligations under the Contract Documents or under any warranty. B. Prior to final payment and as a condition thereto, Contractor shall furnish Owner with all warranties, instructions, lien releases, documents and other submittals required by the Contract Documents, or otherwise required by Architect/Engineer or Owner, a notarized Certificate of Satisfaction of Bills, stating that all bills and claims for labor, materials, equipment and otherwise, connected with the Work for which the Owner or the date of occupationOwner’s property might be responsible or encumbered, beneficial use and enjoyment shall have been satisfied, or will be fully satisfied out of the Work by the Agency including any operation only for testing, start-up or commissioning accompanied by cessation final payment within 30 days of labor on the Work, provided that Contractor’s receipt of such payment. Contractor shall also furnish a release of liens all claims against Owner, in form satisfactory to Owner, whether of Contractor, subcontractors or of others, arising under and claims has been received from by virtue of the Contract. In addition, the Contractor pursuant shall deliver to Civil Code section 8136Owner all As-Built Drawings and three Owner’s Manuals containing all Contractor and subcontractor names, addresses and phone numbers; all warranties and plumbing, electrical, and communication equipment/fixture product data; all special equipment product data; and all parts lists and operating, maintenance, and service manuals. In the event of a dispute between the Agency and the Contractorthere are any (1) subcontractors, the Agency may withhold from the suppliers or other third-party claims against Contractor which will not be satisfied by Contractor after final payment an amount not to exceed 150% of the disputed amount. F. Within ten (10) Days from the time that all or any portion of the retention proceeds are received by Contractoris made, Contractor shall pay each of its Subcontractors from whom retention has been withheld each Subcontractor’s share of the retention received. However, if a retention payment received by Contractor is specifically designated for a particular Subcontractor, payment of the retention shall be made to the designated Subcontractor if the payment is consistent with the terms of the subcontract.or