Final Inspection
Upon completion of the construction activities, the architect/engineer must provide the grantee with a set of asbuilt plans with a request for final payment.
Before making the final payment less five percent for retainage, the grantee must conduct a final inspection of the construction work. (In water and sewer projects, the grantee should also notify the State Health Department of the project's completion so that it can be inspected.)
Additionally, the grantee should determine whether all federal and state requirements (e.g. labor standards, Exhibit VIII-X, Final Statement of Wage Compliance) have been satisfied, and that all contract files are complete.
The grantee can then issue an Acceptance of Work and make final payment less the five percent retainage. After 45 days and upon submission of a Clean Lien Certificate (lien release), see Exhibit VIII-Y, by the contractor, the grantee may release the retainage after having successfully met the requirements as stated in the "Notice of Final Payment", Exhibit VIII-Z.
If after 45 days, there remain claims or liens against the contract, the grantee must take appropriate action including making payments from the retainage and/or the performance and payment bonds as prescribed by state law.
Note: Records must be maintained for five years after close-out of contract.
State Monitoring
Labor Standards Monitoring can be found in Section X - State CDBG Monitoring. This section specifically details the items to be addressed when the state program manager monitors your CDBG project.