Closeout is the final step of your project. It confirms that:
- All participating contractors and subcontractors have been paid in full (less retainage).
- The list of companies employed matches the commitments made in your approved Good Faith Efforts plan, including work awarded to DAS-certified small and minority-owned businesses.
Closeout is how CHRO calculates total participation of small and minority-owned businesses on state contracts. CHRO reports this data to show how state-funded projects have supported small and minority-owned businesses.
What Does a Contractor Need to Do to Close Out the Project with CHRO?
The closeout process begins when the contractor notifies their CHRO reviewer that their work on the project is complete or the project has reached substantial completion. By law, contractors must notify CHRO when the project is substantially complete.
Contractors should ensure the following before requesting closeout with CHRO:
- The final contract amount is known, and,
- All DAS-certified subcontractors have been paid in full (less retainage) or provided notice of a documented dispute regarding the payment.
Once notified of substantial completion or that the contractor has completed their portion of the work, CHRO will request closeout documents, and contractors will have until 45 days from the date of substantial completion to submit them.
What Documents Are Required for Closeout?
As part of closeout, contractors must provide:
- A Template Cover Letter signed by the head of the company containing the project dates, contract value, state-funded value (if different), and a final list of DAS-certified subcontractors employed on the project,
- Partial or full Lien Waivers or other forms of payment proof from all DAS-certified subcontractors confirming full payment (less retainage),
- The Final Change Order, and
- Notice of Substantial Completion (required for general contractors and construction managers)
If you are unable to provide certain documents (e.g. substantial completion notice or final change order), you can also provide a signed notice from the awarding agency providing the required information as part of the template cover letter.
What Happens After the Closeout Documents are Filed?
CHRO reviews the submitted documents and then issues a letter stating:
- The project’s original goals
- The actual amounts and percentages achieved
- Approval to release any CHRO holds (the 2% retainage tied to CHRO compliance)
