20.5 Final Completion, Final Payment & the Closeout Package
Key Takeaways
- AIA G706 is the contractor’s affidavit of payment of debts and claims, and G706A is the affidavit of release of liens.
- AIA G707 is the consent of surety to final payment, which prevents the surety from later claiming the owner released funds without its consent.
- The closeout package also includes operation and maintenance manuals, certified testing and balancing reports, record drawings, warranties, attic stock, and training.
- Acceptance of final payment by the contractor constitutes a waiver of claims except those previously made in writing and identified as unsettled.
- Final payment is not due until the contractor has delivered the closeout package and the architect has issued the final certificate for payment.
Final Inspection & Closeout Protocol (AIA A201 Section 9.10)
While Substantial Completion grants the owner beneficial occupancy, Final Completion represents the complete fulfillment of all contractual obligations by the general contractor. Final Completion culminates in the release of the remaining retainage and the issuance of the final Certificate for Payment.
Under AIA A201 Section 9.10.1, the closeout process follows an explicit sequence:
- Contractor's Written Notice: Upon completing all punch list items, final cleaning, and closeout submittals, the contractor sends written notice to the architect stating that the Work is ready for final inspection and submits the final Application for Payment.
- Architect's Final Inspection: The architect and consulting engineers conduct an exhaustive final field inspection to verify that all punch list deficiencies have been rectified and the work conforms fully to the Contract Documents.
- Issuance of Final Certificate for Payment: If the architect confirms complete conformance, and all mandatory closeout documents have been delivered and verified, the architect issues the final Certificate for Payment to the owner.
The Mandatory Closeout Documentation Package
Under AIA A201 Section 9.10.2, neither final payment nor remaining retainage can become due until the contractor submits an exhaustive closeout package to the architect. This package encompasses nine essential administrative and technical deliverables:
┌────────────────────────────────────────────────────────────────────────┐
│ MANDATORY CLOSEOUT PACKAGE │
├────────────────────────────────────────────────────────────────────────┤
│ 1. AIA Document G706: Contractor's Affidavit of Payment of Debts │
│ 2. AIA Document G706A: Contractor's Affidavit of Release of Liens │
│ 3. AIA Document G707: Consent of Surety to Final Payment (CRITICAL!) │
│ 4. Final Certificate of Occupancy (C of O) from local AHJ │
│ 5. Operations & Maintenance (O&M) Manuals & Certified TAB Reports │
│ 6. As-Built Record Drawings (showing actual concealed field routing) │
│ 7. Specified Attic Stock (extra tile, carpet, paint, ceiling panels) │
│ 8. Certified Owner Staff Training on Building Systems (HVAC, BMS, FA) │
│ 9. Final Professional Cleaning and Master Key / Cylinder Turnover │
└────────────────────────────────────────────────────────────────────────┘
1. AIA Document G706: Contractor's Affidavit of Payment of Debts and Claims
A notarized sworn statement certifying that all payrolls, bills for materials and equipment, and other indebtedness connected with the work have been paid or otherwise satisfied. This document provides prima facie evidence that the contractor has satisfied its financial debts.
2. AIA Document G706A: Contractor's Affidavit of Release of Liens
A supporting notarized statement accompanied by executed, unconditional lien waivers and releases from the general contractor, all subcontractors, and major material suppliers. This documentation protects the owner's real property title against the recording of mechanics' liens.
3. AIA Document G707: Consent of Surety to Final Payment
The Golden Rule of Surety in Construction Closeout: If the project is bonded under AIA Document A312™ (Performance Bond and Payment Bond), the contractor must obtain formal written consent from the surety company on AIA Document G707™ before final payment or remaining retainage is disbursed.
A surety bond is a tripartite agreement between the Principal (Contractor), the Obligee (Owner), and the Surety. Retainage and final payments serve as collateral equity protecting the surety. If the owner or architect disburses final retainage without obtaining AIA Document G707, the surety is legally discharged and exonerated from all bond obligations! If an unpaid second-tier supplier subsequently files a claim against the payment bond, or if a structural defect manifests that would have triggered the performance bond, the surety can reject liability because the owner impaired the surety's collateral.
4. Final Certificate of Occupancy (C of O)
While a Temporary Certificate of Occupancy (TCO) often suffices for Substantial Completion, Final Completion requires the issuance of the permanent Certificate of Occupancy (C of O) by the local municipal building official, confirming complete compliance with zoning, building, life-safety, and accessibility codes.
5. Operation & Maintenance (O&M) Manuals & Certified TAB Reports
The contractor must compile comprehensive O&M manuals containing manufacturer cut sheets, wiring diagrams, preventive maintenance schedules, and spare parts lists. In addition, the contractor must submit certified Testing, Adjusting, and Balancing (TAB) reports for mechanical air and hydronic systems, proving that HVAC cfm and gpm flow rates meet design specifications.
6. Record Drawings (As-Builts)
Marked-up field prints and digital BIM models prepared by the contractor documenting the exact, physical as-built locations of concealed elements—including in-slab plumbing runs, electrical conduits, structural modifications, and underground site utilities.
7. Attic Stock
The Project Manual specifications routinely require the contractor to deliver extra materials (commonly referred to as "attic stock") to allow the owner to perform seamless future maintenance without dye-lot or pattern mismatches. Standard requirements include:
- 5% to 10% extra ceramic, porcelain, or carpet tile;
- Unopened one-gallon cans of each specified paint formula and color;
- Extra ceiling acoustic tiles and suspension grid clips;
- Replacement filter sets for air handling units.
8. Facility Personnel Training
Specifications mandate formal, documented operational training sessions conducted by factory-certified technicians for the owner's facilities maintenance staff. Training encompasses the Building Management System (BMS), chillers, boilers, fire alarm panels, lighting control relays, and emergency standby generators.
9. Final Cleaning & Key Turnover
The contractor must perform deep commercial cleaning (washing exterior and interior glazing, polishing terrazzo floors, vacuuming carpets, sanitizing restrooms, and changing HVAC construction filters) and execute formal turnover of all master keys, key blanks, construction core removal tools, and electronic security credentials.
An owner is preparing to disburse final payment and release $350,000 in remaining retainage to a general contractor on a high school project. The contractor submits AIA Document G706 (Affidavit of Payment of Debts) and AIA Document G706A (Release of Liens), but fails to provide AIA Document G707 (Consent of Surety to Final Payment), claiming the surety agent is on leave. The owner instructs the architect to certify the final payment anyway. What critical legal risk should the architect immediately communicate to the owner?