25.
C-1.20
each such payment interest at an annual rate of 10% commencing on the first day after
said payment is due and continuing until the payment is received by the Contractor.
Acceptance and Final Payment provisions shall be as follows:
25.1 Substantial completion and payment.
a. Substantial completion shall be that point, as certified by the Engineer, at
which the contract has been completed to the extent that the Owner may occupy
and/or make use of the work performed for the purposes for which it was
intended. Upon substantial completion there may be minor items, such as
seeding, landscaping, etc., yet to be completed or items of work to be corrected.
b. Upon receipt of written notice from the Contractor that the work is
substantially complete, the Engineer shall promptly make an inspection, and when
he finds the work complies with the terms of the contract and the contract is
substantially completed, he will issue a signed and dated certificate, and a list of
all items to be completed or corrected, stating that the work required by this
contract has been substantially completed and is accepted by him.
c. Upon substantial completion, the entire balance due and payable to the
Contractor less 2 percent of the Contract Price, and less a retention based on the
Engineer's estimate of the fair value for the cost of completing or correcting listed
items of work with specified amounts for each incomplete or defective item of
work shall be made.
d. The general guarantee period for the work shall begin on the date certified
by the Engineer that the work is substantially completed.
25.2 Final completion shall be that point at which all work has been completed and all
defective work has been corrected. Unless the Engineer has issued a certificate of
substantial completion, the general guarantee period shall begin upon certification by the
Engineer of final completion.
25.3. At the end of the general guarantee period for the entire contract which has been
certified finally completed or substantially completed, the Owner, through the Engineer,
shall make a guarantee inspection of all or portions of the work. When it is found that the
work is satisfactory and that no work has become defective under the terms of the
contract, the Owner will accept the entire project and make final payment, including the
reimbursement of monies retained pursuant to the guarantee period.
25.4 If the guarantee inspection discloses any work as being unsatisfactory, the
Engineer will give the Contractor the necessary instructions for correction of such work,
and the Contractor shall immediately execute such instructions. Upon correction of the
work, another inspection will be made which shall constitute the guarantee inspection,
provided the work has been satisfactorily completed.
25.5 Before issuance of final payment, the Contractor shall certify in writing to the
Engineer that all payrolls, material bills, and other indebtedness connected with the work
have been paid or otherwise satisfied; except that in case of disputed indebtedness or
liens, if the contract does not include a payment bond, the Contractor may submit in lieu
of certification of payment a surety bond in the amount of the disputed indebtedness or
