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Page 90
Suggested Citation:"Glossary." National Academies of Sciences, Engineering, and Medicine. 2021. Practices for Closing Out Highway Projects from Substantial Completion to Final Payment. Washington, DC: The National Academies Press. doi: 10.17226/26304.
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Page 90
Page 91
Suggested Citation:"Glossary." National Academies of Sciences, Engineering, and Medicine. 2021. Practices for Closing Out Highway Projects from Substantial Completion to Final Payment. Washington, DC: The National Academies Press. doi: 10.17226/26304.
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Page 91

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90 e-Construction: The collection, review, approval, and distribution of highway construction contract documents in a paperless environment. e-Construction is used for electronically capturing construction data, electronic submission of all construction documentation, increased use of mobile devices, increased automation of document review and approval, essential use of electronic signatures by all parties throughout the process, and secure document and workflow management accessible to all stakeholders on any device (FHWA 2019a). Final Acceptance: On-site review of the completed construction project, and all the documents generated per the contract requirements, to allow the state DOT to close out the construction contract and the FHWA to close out the federal project agreement. The contractor is typically responsible for notifying the state DOT that the construction is complete and ready for final inspection. When the work has been completed and accepted, the contractor is relieved of liability for the maintenance, reconstruction, or restoration of the work (George-Nwabugwu and Dirks 2013). May also be referred to as Construction Acceptance, Project Acceptance, or Contract Acceptance. Final Estimate: The final contract payment amount for all quantities of work including all changes from the design quantity. This includes the final quantities of all work performed, all retained percentages, and all deductions from the final amount for liquidated damages and any other deductions provided for in the contract (Kentucky Transportation Cabinet 2019). Final Inspection: On-site review at or near the completion of contract work (95–100% comple- tion) to ascertain that the project has been completed in reasonably close conformity to the plans, specifications, and authorized changes (George-Nwabugwu and Dirks 2013). May also be referred to as Final Construction Inspection. Final Voucher: The last billing by the state DOT for allowable final construction cost based on consolidated final project documents and liquidating all remaining obligations. Final voucher should occur within 90 days after the project end date unless an extension is granted by FHWA (FHWA 2018). Financial Project Closeout: The process that closes out the financial award for a transportation highway project when all applicable administrative actions and required work of the project have been satisfactorily completed for a federal aid project (FHWA 2012). Fiscal Management Information System (FMIS): The major financial information system for the FHWA to track federal aid highway projects on a project-by-project basis (FHWA 2019b). Lean Construction: The continuous process of eliminating waste, meeting or exceeding all customer requirements, focusing on the entire value stream, and pursuing perfection in the execution of a constructed project (Diekmann et al. 2004). Glossary

Glossary 91   Project Closeout: The phase during construction from the completion of the construction work through the point when all financials are reconciled and closed, final payments are received and made, and accounts and contracts are finalized. The closeout process incorporates finishing outstanding and defective work, collecting, reviewing, and approving of project information and documentation, reconciling financial information, and making and receiving final payments. May also be referred to as Project Finalization. Substantial Completion: When all project work (or the work for a specified phase of a project) requiring lane or shoulder closures or obstructions is complete, and the traffic is following the lane arrangement as shown on the plans for the finished roadway (or the specified phase of work); all pavement construction and resurfacing are complete; and traffic control devices and pavement markings are in their final position (FHWA 2017b). May also be referred to as Phys- ical Work Complete, Contract Work Complete, or Construction Complete.

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Although project closeout only entails a small portion of actual construction work, closing out highway construction projects for state departments of transportation (DOTs) is a complex and vital process that is a part of project delivery for highway construction projects.

The TRB National Cooperative Highway Research Program's NCHRP Synthesis 570: Practices for Closing Out Highway Projects from Substantial Completion to Final Payment compiles and documents information regarding the current state of the practice for closing out highway projects from substantial completion to final payment.

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