11.
12.
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d. Failure to comply with monthly reporting requirements, as applicable.
e. For projects with an On-The-Job Training (OJT) requirement, failure to submit OJT
Form 1 - On-The-Job Training Acknowledgement and Statement of Intent within 30
days of the project start date.
f. Failure to submit closeout documentation.
g. Ail other causes that the Department reasonabiy determines negatively affect the
State’s interest.
Final Payment Release: Once final project records are transferred to the OFC, a final
review shall be performed to determine compliance with the Federal provisions. Release of
any final payment shall not be made to the Contractor until the OFC issues a payment release
letter (Okay to Pay) certifying:
a. All required payrolls, labor, and Equal Employment Opportunity (EEO)
documentation have been received and deemed complete and correct.
b. DBE requirements stipulated in the Contract and/or the Required Contract Provisions
have been fulfilled.
Deposits in Escrow: Every attempt is made to complete compliance actions and resolve any
disputes before the project is completed and final payments are made. Sometimes, however,
corrective actions or disputes continue after completion and provisions must be made to
ensure that funds are available to pay any wage restitution that is ultimately found due. In
these cases, the project can proceed to final closing provided the Prime Contractor, from
payments already provided him/her, provides written evidence a deposit of an amount equal
to the potential liability for wage restitution and liquidated damages, if applicable, has been
deposited in an escrow account. When a final decision is rendered, the Prime Contractor
makes disbursements from the account in accordance with the decision. Deposit/escrow
accounts are established for one or more of the following reasons:
a. Where the parties have agreed to amounts of wage restitution that are due but the
employer has not yet furnished evidence that all the underpaid workers have received
their back wages. The deposit is equal to the amount of restitution due to workers
lacking payment evidence. As proper documentation is received, an amount
corresponding to the documentation is returned to the depositor. Amounts for any
workers who cannot be located are held in the escrow account for three (3) years.
Amounts remaining in the account not disbursed by the end of this three-year period
shall be returned to the Prime Contractor.
b. Where underpayments are suspected or alleged and an investigation has not yet been
completed. The deposit is equal to the amount of wage restitution and liquidated
damages, if applicable, that is estimated to be due. If the final determination of wages
due is less than the amount estimated and placed in the escrow account, the escrow
will be reduced to the final amount and the difference will be returned to the
depositor. If the parties agree to the investigative findings, the amounts due to
workers will be disbursed from the escrow account in accordance with the schedule
of wages due. Amounts for unfound workers will be retained for a period of three (3)
years and subsequently disbursed to the depositor as described above in Paragraph
12a.
