Project Payments, Acceptance and Occupancy

PURPOSE: This rule establishes the procedures for payments and acceptance and occupancy of projects. (1) Payments. Payments to the contractor will be made after review and verification of work and materials in place and/or on-site. Review and verification will generally be accomplished as part of a periodic construction progress meeting. When possible, apparent differences between the requests for payment and work or material will be resolved so that the request for payment may be signed by the director’s on-site representative, the contractor and the designer prior to conclusion of the progress meeting. When necessary, the payment request will be transmitted to the department/agency. The department/agency shall sign and return the payment request to the division within five (5) working days after receipt of the payment request. (A) Projects Costing One Hundred Thousand Dollars ($100,000) or More. Payment for labor and material on projects costing one hundred thousand dollars ($100,000) or more shall be made in accordance with section 8.260, RSMo. (B) Projects Costing Less Than One Hundred Thousand Dollars ($100,000). Payment for labor and materials on projects costing less than one hundred thousand dollars ($100,000) shall be made in accordance with section 8.270, RSMo. (C) Final Payment. Final payment will not be made until all work under the contract has been completed and accepted, documentation as required by the director has been furnished, and project records have been delivered to the director’s on-site representative. After review and approval of the requests for payment, reports, records, and other documentation by the director or his/her designee, final payment may be made. (D) Projects Supported with NonAppropriated Funds. All payments for projects supported directly with donated, grant, or other funding not appropriated by the General Assembly shall be made in accordance with agreements established in the initial coordination of that project and after approval of the director or his/her designee. (2) Acceptance and Occupancy. (A) Acceptance. After completion of all work (including deficiencies or discrepancies noted in the final inspection) and delivery of project records, the director or his/her designee shall issue final payment acknowledging acceptance of the project. (B) Occupancy. The employees of the department/agency shall not occupy the facility or area where the project work is performed until after acceptance by the director. In exceptional circumstances, the director may establish conditions for occupancy prior to final acceptance. (C) Project Records. The division shall deliver one (1) copy of project shop drawings, operation and maintenance manuals, record drawings, warranties, and all other pertinent files to a representative of the department/agency. The department/agency shall cause these records to be preserved and stored at the project site or other suitable location for reference in future work at the site. (D) Reporting Changes in Facility Conditions. The department/agency shall report any substantive change in condition of the facility to the division. Substantive changes in condition of the facility resulting from accidents or acts of God shall be reported to the division at the time of occurrence. (3) Exemptions. There are specific exemptions from requirements of this rule provided by the Missouri Constitution or by statute. (A) Department of Transportation projects and expenditures for highway construction and highway maintenance are exempt from the provisions of this rule by Article IV, Section 29, Missouri Constitution of 1945. (B) Institutions of higher learning, community junior colleges and the Department of Conservation are exempted by section 8.310, RSMo from provisions of this rule which requires coordination with or approval by the commissioner of administration, or both Division of Facilities Management, Design and Construction for approval of payments. AUTHORITY: sections 8.310 and 8.320, RSMo 2016.* Original rule filed July 9, 1981, effective Feb. 15, 1982. Emergency Design and Construction amendment filed June 14, 1985, effective July 1, 1985, expired Oct. 29, 1985. Amended: Filed June 14, 1985, effective Aug. 26, 1985. Rescinded and readopted: Filed Nov. 5, 2007, effective June 30, 2008. Amended: Filed Oct. 11, 2018, effective May 30, 2019. *Original authority: 8.310, RSMo 1958, amended 1965, 1984, 1987, 1995, 2014 and 8.320, RSMo 1958, amended 1965, 2014.