An Administrator's Guide to California Private School Law

Chapter 17 – Construction

 What evidence does the school have to support withholdings from the contractor? Photographs and other documentation of non-activity on the project when work should be occurring, damages to property, or defective or incomplete work are important. Estimates from an architect or another contractor regarding incomplete punch list items, back charges, and other items for which the school is withholding payments can provide support for the amounts withheld. A critical path method and delay analysis by competent consultants also provides support for the amounts withheld.

C. R ECORD K EEPING A ND A CCOUNTING On any construction project, it is important for the school, the architect, the construction manager, and the contractor and its subcontractors, to maintain organized and accurate records relating to the project and the contract documents. This may help prevent or reduce disputes on the project. If disputes do arise, the records may facilitate and expedite the analysis and resolution of the disputes. A designated person, either school staff or the construction manager, should maintain a full and accurate accounting of:  The current contract prices.

 Each approved change order, including a description of the work, any adjustment to the project completion date, the amount of the change order, the date the school’s board or other authority approved the change order, and all supporting documentation regarding the change order, including the school’s board or other authority’s approval of each change order;  All payments made to the contractor, including reference to the contractor’s payment requests, the date the payment requests were received by the school, date of review and approval or denial of the payment requests by the architect, any deficiencies in the payment requests, any revisions or amendments to the payment requests by the contractor, a copy of the check issued to the contractor, and the date and amount of payment made to the contractor with respect to the payment requests;  Retention withheld from each progress payment to the contractor, including a reference to the contractor’s payment requests, whether the retention proceeds were deposited in an escrow account, and the date the retention was withheld or deposited in the escrow account;  Project funds withheld for mechanics liens or stop payment notices, including a description of the name of the claimant, subcontractor or supplier that filed the lien or stop payment notice, the date the lien or stop payment notice was received by the school, the amount claimed in the lien or stop payment notice, the amount withheld by the school, if any, and the date the preliminary notice, if any, was received by the school;

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