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Document Code No.: CON 7-5-2 (AEP)
Department/Issuing Agency: DES / FBOD / Procurement and Contract Services
Effective Date: March 10, 2014
Approved: /s/ Dow Constantine
Type of Action: Supersedes CON 7-5-1 (AEP), October 1, 2000

Signed document (PDF, 132KB)



SUBJECT TITLE:      Contract Closeout

1.1       EFFECTIVE DATE: 10 days after signature by the Executive

1.2       TYPE OF ACTION: Supersedes CON 7-5-1 (AEP) “Project Closeout” dated, October 1, 2000

2.0       PURPOSE:     To establish requirements for closing out completed Construction CONTRACTs and PROFESSIONAL SERVICES CONTRACTs

3.0       ORGANIZATIONS AFFECTED:    All Executive Departments, Offices and Agencies

4.0       REFERENCES:

4.1       CON 7-7-1 (AEP) Procurement for Capital Projects.

4.2       CON 7-8-1 (AEP) Change Order/Amendment Administration.

4.3       CON 7-9-2 (AEP) Capital Project Planning and Management.

4.4       CON 7-10-1 (AEP) Project Control Officer

4.5       CON 7-13 (AEP) Introduction to Construction Management Policies and Procedures.

4.6       CON 7-14-1 (AEP) Design Management.

5.0       DEFINITIONS:

5.1       See CON 7-13 (AEP) Appendix A “P&P Defined Terminology.” All words that appear in CAPS are defined terms that are found in the Defined Terminology Appendix.

6.0       POLICIES:    

6.1       Construction CONTRACT Closeout:

6.1.1    IA staff is responsible for Construction CONTRACT closeout and jointly responsible along with FINANCIAL MANAGEMENT DIVISION STAFF for the timely release of RETAINAGE when all CONTRACT obligations have been met. Release of RETAINAGE shall follow the procedures outlined in RCW CH. 60.28 and King County Policies.

6.1.2    Each IA shall include Construction CONTRACT closeout procedures in its Project Management Manual.

6.2       PROFESSIONAL SERVICES CONTRACTs:

6.2.1    IA staff is responsible for PROFESSIONAL SERVICES CONTRACT closeout.

6.2.2    Each IA shall include PROFESSIONAL SERVICES CONTRACT closeout procedures in its Project Management Manual.

7.0       PROCEDURES:

7.1       For Construction CONTRACTs each IA’s Project Management Manual shall include at a minimum, the steps identified on the Appendix A: Construction Contracts Closeout Checklist.

7.2       RETAINAGE release process for Construction CONTRACTs:    

  1. IA (Implementing Agency) and AP (Accounts Payable) will jointly develop and maintain a standard RETAINAGE release checklist.
  2. The checklist will identify all required documents that must be collected and verified by the IA’s Project Manager (PM)/ Project Representative (PR) or their designee.
  3. The IA’s PM/PR will ensure that all required documents are filed and retained in the IA’s CONTRACT file until the proper destruction date as designated by RCW.
     
    1. AP may randomly review closed Construction CONTRACT files to verify that all checklist documents are being maintained in the CONTRACT files.
    2. Failure by the IA to maintain these documents may result in a revision of this policy that may include requiring copies of all checklist documents to be submitted with the request for release of RETAINAGE.
  4. IA Section Manager or agency designee who is at least one level above PM/PR will verify and attest that all documents on the checklist are present in the CONTRACT file by signing the checklist, prior to submitting a request for release of RETAINAGE from AP.
  5. The IA’s request to AP/Disbursement Officer for RETAINAGE release will include only the signed copy of the checklist and any outstanding verified liens.

7.3         For PROFESSIONAL SERVICE CONTRACTs each IA’s Project Management Manual shall include at a minimum, the steps identified on the Appendix B: PROFESSIONAL SERVICES Contracts Closeout Checklist.

8.0       RESPONSIBILITIES:

8.1       The IA is responsible for fulfilling all CONTRACT and applicable statutory requirements regarding CONTRACT closeout, for Construction and PROFESSIONAL SERVICES CONTRACTs.

8.2       FINANCIAL MANAGEMENT DIVISION STAFF are responsible for issuance of final payment and release of RETAINAGE (as applicable) for Construction and PROFESSIONAL SERVICES CONTRACTs.

8.3       IA is responsible for ensuring the completion of all Construction and PROFESSIONAL SERVICES CONTRACT closeout procedures required in the Project Management Manual.

8.4       PCSS is responsible for closing the CONTRACT in Oracle EBS after receiving DOCUMENTATION and request from the IA.

9.0       APPENDICES:

9.1       Appendix A: Construction Contract Closeout Checklist (PDF, 70KB)

9.2       Appendix B: Professional Services Contracts Closeout Checklist (PDF, 40KB)