View source for 109.07 Final Inspection, Acceptance, and Final Payment

==[[#FINAL INSPECTION, ACCEPTANCE, AND FINAL PAYMENT|FINAL INSPECTION, ACCEPTANCE, AND FINAL PAYMENT]]==

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===[[#Local Agency Force Account Projects|Local Agency Force Account Projects]]===

The Michigan Department of Transportation (MDOT) is charged with overseeing local agency construction projects to ensure compliance with federal funding requirements. There are four distinct types of local agency projects involving federal funding that involve MDOT staff oversight. These project types with their letting process are noted below. 

# MDOT Letting Process a. Local Agency Projects for Road, Bridge, and/or Enhancement Work 
# Local Agency Letting Process a. Local Agency Projects for Enhancement Work 
# Non Letting Process a. Economic Development Direct Grant Projects 
# Non Letting Process a. Local Agency Force Account Construction Projects (Direct Force) 


Oversight requirements for local agency construction projects 1a through 3a are defined in [http://mdotwiki.state.mi.us/construction/index.php/Local_Agency#REGION_OVERSIGHT_OF_LOCAL_AGENCY_CONSTRUCTION_PROJECTS Region Oversight of Local Agency Construction Projects].<br />

Non-Letting Process, Local Agency Force Account Construction Projects (Direct Force) 
The oversight requirements for projects in this category are described in Appendix III - Oversight, Inspection, and Materials Acceptance Requirements for Federally Funded Local Agency Transportation Projects of the Updated [http://www.michigan.gov/documents/mdot/Updated_Force_Account_guidance__FINAL_052411_353826_7.pdf Guidance for Construction of Federally Funded Local Agency Projects by Non-Competitive Bid Contract (Force Account), August 2015] document. 

The final inspection requirements for local agency force account projects note that the completed [http://mdotjboss.state.mi.us/webforms/GetDocument.htm?fileName=1120.pdf 1120 form], Final Inspection/Acceptance and Certification Report, is to be placed into the project files. The project files are maintained by the local agency and the local agency must maintain the original [http://mdotjboss.state.mi.us/webforms/GetDocument.htm?fileName=1120.pdf 1120 form] for auditing purposes. The distribution of this form will be as follows and will not follow the distribution shown on the form: 


Original Form: 
* Local Agency Project Files 


Copies: 
* Region Construction Engineer (RCE) 
* Local Agency Program – Staff Engineer 
* Transportation Service Center (TSC) Construction Engineer 
* Designated Representative at TSC  
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===[[#Acceptance of Work|Acceptance of Work]]===

When the project is substantially completed, a post construction inspection of the project should be performed by the Engineer and senior technician.  The purpose of this inspection is to develop a checklist of work items remaining to be completed.

Timing of the preparation of the checklist is important.  A list composed of more than 50 items usually indicates the project is not near enough completed to warrant preparation of a checklist.  However, the list should be in final form and delivered to the Contractor’s representative in time for the items listed to be completed before the project completion date.  The items on the checklist should be specific as to location and the nature of the uncompleted work.  The Contractor’s representative should have a clear understanding of the items shown on the list.

The intent of this procedure is to give the Contractor a specific list of work items that will not be added to as the project progresses to completion.  If extra work is necessary for which the Contractor will be reimbursed, an appropriate work order will be prepared describing the work to be done and the nature and amount of reimbursement to be made.  Such items should then be added to the checklist prepared at the time of the post construction inspection.  An item that was obviously omitted from the original checklist, or work made necessary by the Contractor’s operations after preparation of the checklist, should not be paid for as extra work.

When the items on the checklist have been completed to the satisfaction of the Engineer, the Region office should be contacted to make arrangements for a final inspection and acceptance of the project.  On local government projects, local agencies should be contacted for final inspection and acceptance.  Final MDOT acceptance will be made by use of [http://mdotjboss.state.mi.us/webforms/GetDocument.htm?fileName=1120.pdf ''Form 1120''] initiated by the Transportation Service Center (TSC).

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|[[File:FHWA Interaction in MDOT Project.jpg|thumb|center|500px|FHWA Interaction in MDOT Project.]]
|[[File:MDOT Project Completion Flow Chart Rev.jpg|thumb|center|500px|MDOT Project Completion Flow Chart.]]
|}
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===[[#Pay Estimate and Inactive Project Notification|Pay Estimate and Inactive Project Notification]]===
The Federal Highway Administration (FHWA) considers inactive projects as one of their top priorities. A project in the inactive state can potentially delay federal funding that could be utilized on other MDOT projects. Rebecca Jones, in the Financial Operations Division, is to be notified via e-mail at [mailto:JonesR6@michigan.gov JonesR6@michigan.gov] when all construction work is complete and accepted, but the next pay estimate or the final pay estimate will not be or has not been generated for more than nine (9) months from the most recent pay estimate. This notification is also to be provided when the only remaining work is watering and cultivating. The notification must include the following information: 

:* Current Project Status 
:* Remaining funds that are to be paid to the contractor 
:* Estimated date of payment 
:* Reason for delay in payment and/or work operations 
:* Specific action or plan for continuation of work and/or future payments (generalities or vague statements will not be accepted) 

This applies to state and local Federal-aid projects. Please share this information with local agencies and consultants within your area.
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