Capital Programs Management Group (CPM)

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Effective: 6/1/1986

Revised: 11/1/2016

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CPM 306–11: Substantial Completion and Liquidated Damages

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Purpose

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To ensure that the general contractor on university projects is contacted to assess liquidated damages, and to delegate signature authority for substantial completion of construction projects

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Source

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University policy

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Applicability

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All university construction projects

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Policy

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The Capital Programs Management Group (CPMG) project manager (PM) is the university staff representative responsible for monitoring the project schedule. It is the PM’s responsibility to inform the CPMG authorized administrator, the Purchasing and Business Services authorized administrator, and the general contractor whenever a project continues beyond the contract completion date resulting in the assessment of liquidated damages.

The certificate of substantial completion for a project shall be approved and signed by the Facilities Management authorized administrator for the appropriate ASU campus. Any delegation of this authority must be sent in writing to the Purchasing and Business Services authorized administrator.

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Procedure

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If the project does not receive substantial completion by the contract date, then the project manager (PM) prepares the Notice of Assessment of Liquidated Damages and forwards the form to the director of Purchasing and Business Services for signature.

The director of Purchasing and Business Services issues the Notice of Assessment of Liquidated Damages to the general contractor, with a copy to the PM.

The PM:

  1. obtains written confirmation of the failure of the general contractor to meet the completion date from the construction manager or the architect/engineer

    and

  2. determines the amount and deducts the value of the liquidated damages from the final payment to the general contractor.

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