a. When all of the required improvements have been completed, the obligor shall notify the town council in writing, by certified mail addressed in care of the town clerk, of the completion of such improvements and shall send a copy thereof to the town engineer. Thereupon the town engineer shall inspect all of the improvements and shall file a detailed report, in writing, with the town council, indicating either approval, partial approval or rejection. If partial approval is indicated, the cost of the improvements rejected shall be set forth.

b. If the required improvements are not completed or corrected in accordance with the performance guarantee, the obligor or surety, if any, shall be liable thereon to the town for the reasonable cost of the improvements not completed or corrected and the town may, either prior to or after the receipt of the proceeds thereof, complete such improvements.

c. If any portion of the required improvements is rejected, the reviewing board may require the obligor to complete such improvements and, upon completion, the same procedure of notification as set forth in this section shall be followed.