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Education Laws and Regulations

603 CMR 38.00:
School Construction

Section:
38.02:
38.03:
38.04:
38.05:
38.06:
38.07:
38.08:
38.09:
38.10:
38.11:
38.12:
38.13:
38.14:
38.15:
38.16:
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38.12: Payment Requirements and Procedures

(1) All capital construction projects for which the Board has authorized funding shall commence construction on or before June 1 of the fiscal year in which the school building assistance grant was authorized.

(2) The first payment of the grant for an approved school project shall be made in the fiscal year following the Board approval or start of construction, whichever is the later date.

(3) The following procedures shall be used after receipt of a school building assistance grant award notice to ensure that the payment schedule will begin in a timely manner and will not be disrupted during the life of the grant.

(a) The Department shall notify all grant recipients of Board approval. The grant announcement will include a form labeled the "Request for Project Number". This form must be completed and returned to the Department along with the most recent financial and bonding information (Form F), reflecting actual construction bids, to institute payment schedule. Failure to submit this request on or before December 15 of the fiscal year following the fiscal year of Board approval will result in a delay of the entire payment schedule by one fiscal year.

(b) The Board shall determine the final approved cost within two years of the occupancy of new space, or in the year of the third payment, whichever occurs later. Audit materials shall be submitted by the applicant and reviewed by Department staff in accordance with guidelines developed by the Department and issued in the "School Building Assistance Audit Procedure". Subsequent payments will be adjusted to reflect the actual approved project cost on an equal annual payment schedule to begin in the fiscal year following the fiscal year in which the audit is performed. Audit materials are due in the Department by December 1 of the fiscal year in which the audit is scheduled.

(c) Failure of the grant recipient to provide the Department with satisfactory audit materials will result in the suspension of the payment schedule effective July 1 of the fiscal year following the year in which the audit is due.

(d) Suspended payment schedules shall not be reinstated until the fiscal year following the fiscal year in which the audit is performed.

(e) The city, town, or regional school district shall maintain all records related to any school construction project for seven years after the final costs are determined, and shall retain the final project drawings for as long as the completed facility is in service as a public school.

(f) Failure to submit satisfactory audit materials to the Department of Elementary and Secondary Education will result in permanent revocation of grant payments on the applicable project. The Department may take steps to recover previous payments at the Commissioner of Education's discretion.

(4) During construction, staff of the Department may visit the construction site to determine that the project is being built as approved. A review of the completed facility, in operation, shall also be made by the Department prior to acceptance of the final, audited project cost.

(5) All construction contracts and sub-contracts shall be in conformity with all applicable provisions of federal, state and local law, and where in the judgment of the Board, violations of such laws are deemed to exist, the Board may withhold funds due on account of the project until such violations are remedied.

(6) All construction contracts shall be in conformity with applicable law and regulations related to minority hiring. Every state-assisted contract for a school project including sub-contracts shall include the Commonwealth's Supplemental Equal Employment Opportunity/Anti-Discrimination and Affirmative Action Program as part of the contract. Compliance with and enforcement of all safety and building code provisions, shall be the responsibility of the applicant.

(7) Every contractor and subcontractor working under the terms of any contract for construction on an approved school project shall file weekly payroll records with the awarding authority in the form described in M.G.L. c. 149, § 27B. The awarding authority shall withhold payment for any construction work performed on an approved school project for so long as the payroll records for the work performed are not filed with the awarding authority.

(8) Each grant recipient shall submit appropriate contractor and designer evaluations to the Division of Capital Asset Management in a form, manner and timeline prescribed in M.G.L. c. 149, Section 44D and Chapter 7, Section 38E. A copy of the evaluation form shall be included in the audit materials submitted pursuant to 603 CMR 38.12(3)(b).

(9) Each grant recipient shall notify the Department within 90 days if bonds or notes issued for an approved school project are refunded pursuant to M.G.L. c. 44, § 21A.

Regulatory Authority:
603 CMR 38.00: M.G.L c. 69, § 1B and Chapter 70B



Last Updated: June 18, 2004
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