B-145899, APR. 7, 1965
Highlights
ARCHITECT OF THE CAPITOL: REFERENCE IS MADE TO YOUR LETTER OF APRIL 2. ARTICLE 1-07 OF THE CONTRACT PROVIDES THAT THE GOVERNMENT SHALL MAKE PARTIAL PAYMENTS AS THE WORK PROGRESSES AND SHALL HAVE THE RIGHT TO RETAIN 10 PERCENT ON 50 PERCENT OF THE CONTRACT PRICE UNTIL FINAL ACCEPTANCE AND COMPLETION OF ALL WORK UNDER THE CONTRACT. IN YOUR LETTER OF APRIL 2 YOU STATE THAT THE BUILDING IS NOW SUBSTANTIALLY COMPLETED. YOU FURTHER STATE THAT UNDER THE PROVISIONS OF ARTICLE 2-42 OF THE CONTRACT THE BUILDING HAS BEEN ACCEPTED FOR BENEFICIAL OCCUPANCY AND WILL BE COMPLETELY OCCUPIED BY APRIL 6. YOU ALSO STATE THAT KEY PERSONNEL OF YOUR STAFF AND YOUR CONSULTING ARCHITECTS FOR THE PROJECT RECOMMEND THAT THE AMOUNT RETAINED BE REDUCED AT THIS TIME TO 2.5 PERCENT OF THE TOTAL CONTRACT PRICE AND THAT IN SO DOING THE INTERESTS OF THE GOVERNMENT WILL BE ADEQUATELY SAFEGUARDED AND THAT THE SURETIES UNDER THE CONTRACT CONSENT TO THE PROPOSED PAYMENT.
B-145899, APR. 7, 1965
TO THE HONORABLE J. GEORGE STEWART, ARCHITECT OF THE CAPITOL:
REFERENCE IS MADE TO YOUR LETTER OF APRIL 2, 1965, REQUESTING A DECISION AS TO THE PROPRIETY OF RELEASING ONE-HALF OF THE SUM OF $2,846,203 REPRESENTING 5 PERCENT OF THE CONTRACT PRICE BEING RETAINED UNDER CONTRACT ACHO-204, DATED MARCH 10, 1960, WITH MCCLOSKEY AND COMPANY, FOR CONSTRUCTION OF THE SUPERSTRUCTURE OF THE RAYBURN HOUSE OFFICE BUILDING.
ARTICLE 1-07 OF THE CONTRACT PROVIDES THAT THE GOVERNMENT SHALL MAKE PARTIAL PAYMENTS AS THE WORK PROGRESSES AND SHALL HAVE THE RIGHT TO RETAIN 10 PERCENT ON 50 PERCENT OF THE CONTRACT PRICE UNTIL FINAL ACCEPTANCE AND COMPLETION OF ALL WORK UNDER THE CONTRACT. FOR PRACTICAL PURPOSES, THIS AMOUNTS TO APPROXIMATELY A 5 PERCENT RETENTION ON THE TOTAL AMOUNT OF THE COST OF THE WORK COMPLETED. ARTICLE 2-42 OF THE CONTRACT AUTHORIZES THE GOVERNMENT TO TAKE POSSESSION OF, OR USE, ANY COMPLETED OR PARTIALLY COMPLETED PART OF THE WORK PRIOR TO COMPLETION OF ALL WORK UNDER THE CONTRACT.
IN YOUR LETTER OF APRIL 2 YOU STATE THAT THE BUILDING IS NOW SUBSTANTIALLY COMPLETED, WITH THE EXCEPTION OF PUNCHLIST ITEMS AND DISPOSITION OF A QUESTION OF RESPONSIBILITY FOR SETTLEMENT OF THE CHILLED WATER TUNNEL ADJACENT TO THE RAYBURN BUILDING AND REMEDIAL MEASURES NECESSARY TO BE TAKEN TO REMEDY SUCH SETTLEMENT. YOU FURTHER STATE THAT UNDER THE PROVISIONS OF ARTICLE 2-42 OF THE CONTRACT THE BUILDING HAS BEEN ACCEPTED FOR BENEFICIAL OCCUPANCY AND WILL BE COMPLETELY OCCUPIED BY APRIL 6, 1965. YOU ALSO STATE THAT KEY PERSONNEL OF YOUR STAFF AND YOUR CONSULTING ARCHITECTS FOR THE PROJECT RECOMMEND THAT THE AMOUNT RETAINED BE REDUCED AT THIS TIME TO 2.5 PERCENT OF THE TOTAL CONTRACT PRICE AND THAT IN SO DOING THE INTERESTS OF THE GOVERNMENT WILL BE ADEQUATELY SAFEGUARDED AND THAT THE SURETIES UNDER THE CONTRACT CONSENT TO THE PROPOSED PAYMENT.
THE PURPOSE OF RETAINING MONIES UNDER THE CONTRACT IS, OF COURSE, TO INSURE PERFORMANCE, OR IN THE CASE OF DEFAULT, TO PROTECT THE INTERESTS OF THE UNITED STATES.
SINCE YOU STATE THAT IT HAS BEEN DETERMINED ADMINISTRATIVELY THAT THE RETENTION OF 2.5 PERCENT OF THE CONTRACT PRICE IS DEEMED SUFFICIENT TO PROTECT THE INTERESTS OF THE GOVERNMENT, PAYMENT OF ONE HALF OF THE SUM PRESENTLY RETAINED LEGALLY MAY BE MADE TO THE CONTRACTOR AT THIS TIME AS PROPOSED.