Section 2: Issues Affecting Payments
Anchor: #b110008Plans Quantity Measurement
Unless otherwise shown in the contract, accept the estimated plan quantity amounts as the final quantity amounts for payment purposes. Contract adjustments may be made if the actual measured quantity varies by more than 5% from the total estimated plan quantity amount. Either the department or the contractor may initiate this adjustment. If the adjustment is requested by the contractor, obtain field measurements and calculations justifying the revised quantity from the contractor. If the adjustment is made by the department, the revised quantity will constitute the final quantity which payment will be made. Pay the revised quantity at the unit bid price for that bid item. If the revised quantity significantly changes the character of the work under the contract, execute a change order (CO). Detailed information on change orders is located in Chapter 7, Changes to the Contract. Do not use plan quantity measurement for callout work on non-site specific contracts.
Anchor: #b110009Extra Work
Execute a CO in accordance with Chapter 7, Change Orders to amend the contract by adding the extra work.
Anchor: #b110015Material on Hand (MOH)
Develop and administer a district procedure for the monitoring and payment of MOH in accordance with Materials on Hand' in the Estimates Manual.
Anchor: #b110005Damage to the Work
Until final acceptance, the contractor is responsible for the repair of damage to the work. Do not reimburse the contractor for damage to existing facilities or work caused by the contractor’s operations, or for damages to the following temporary appurtenances, regardless of cause:
- signs
- barricades
- changeable message signs
- other work zone traffic control devices.
When caused by any of the incidents in the following list, reimburse the contractor for repair of damage to appurtenances not included in the preceding list (such as, temporary and permanent crash cushion attenuators and guardrail end treatments). Reimburse the contractor for repair of damage caused by:
- motor-vehicle, watercraft, aircraft, or railroad-train incident
- vandalism or
- acts of God, such as earthquake, tidal wave, tornado, hurricane, or other cataclysmic phenomena of nature.
QC/QA Hot Mix Bonus/Liquidated Damages
Use the standard item and description codes listed in the following tables to track the payment of bonuses and penalties for QC/QA Hot Mix. Refer to the “Add/Delete Items of Work (M2)” section of the “Construction Estimate” chapter in the CIS District User Manual or the SiteManager Contract Administration User Manual for instructions to add these standard items to the construction estimate.
1993 Standard Specifications
|
Type of Entry |
Procedure |
Bid Item Code |
|---|---|---|
|
Hot Mix Production Bonus |
For all lots that received a production bonus1 (and combining all types of mix), sum the value found in the “Production Bonus Paid on Estimate” on the Pay Factor worksheet and record the result. 2 |
9500-0501 |
|
Hot Mix Placement Bonus |
For all lots that received a placement bonus1 (and combining all Types of mix), sum the values found in the “Placement Bonus Paid on Estimate” on the Pay Factor worksheet and record the result. |
9500-0502 |
|
Hot Mix Production Liquidated Damages |
For all lots that received a production liquidated damage1 (and combining all types of mix), sum the values found in the “Production Liquidated Damage Deducted from Estimate” on the Pay Factor worksheet and record the result.2 |
9500-0503) |
|
Hot Mix Placement Liquidated Damage |
For all lots that received a placement liquidated damage1 (and combining all types of mix), sum the values found in the “Placement Liquidated Damage Deducted from Estimate” on the Pay Factor worksheet and record the result. |
9500-0504 |
|
Hot Mix Ride Bonus |
Record the total dollar amount of bonus earned for all Daily Pay Adjustments for ride (all types of mix combined) that resulted in a ride bonus. 1 |
9500-0505 |
|
Hot Mix Ride Liquidated Damage |
Record the total dollar amount of ride liquidated damage for all Daily Pay Adjustments for ride (all types of mix combined) that resulted in a ride liquidated damage.1 |
9500-0506 |
|
1. In some cases, hot mix produced in one month has the liquidated damage or bonus recorded on a following estimate. The intent is to record any bonus or liquidated damage that has not already been recorded on a previous estimate. 2. If the contractor is not responsible for placement, sum the values in the “Production Only Bonus” section instead. |
||
2004 Standard Specifications
|
Type of Entry |
Procedure |
Bid Item Code |
|---|---|---|
|
Hot Mix Production Bonus/Liquidated Damage |
For all lots that received a production bonus1 (and combining all types of mix), sum the value found in the “Production Bonus Paid on Estimate” on the Pay Factor worksheet and record the result.2 |
0341-2231 0344-2330 0346-2043 |
|
Hot Mix Placement Bonus/Liquidated Damage |
For all lots that received a placement bonus1 (and combining all Types of mix), sum the values found in the “Placement Bonus Paid on Estimate” on the Pay Factor worksheet and record the result. |
0341-2232 0344-2331 0346-2044 |
|
Hot Mix Ride Bonus/Liquidated Damage |
Record the total dollar amount of bonus earned for all Daily Pay Adjustments for ride (all types of mix combined) that resulted in a ride bonus.1 |
0585-2001 (Item 340) 0585-2002 (Item 341) 0585-2003 (Item 342) 0585-2004 (Item 344) 0585-2005 (Item 346) |
|
1. In some cases, hot mix produced in one month has the liquidated damage or bonus recorded on a following estimate. The intent is to record any bonus or liquidated damage that has not already been recorded on a previous estimate. 2. If the contractor is not responsible for placement, sum the values in the “Production Only Bonus” section instead. |
||
Since any previous monthly estimate which used this method to record bonus or liquidated damage already shows the total of previous lots, total only the lots for the current estimate cycle and add to the previous total.
Anchor: #b110012Road-User Costs Incentives and Disincentives
Use the standard item and description codes listed in the following table to track the payment of incentives and disincentives on contracts with road-user costs (RUC). Refer to the “Add/Delete Items of Work (M2)” section of the “Construction Estimate” chapter in the CIS District User Manual, or the SiteManager Contract Administration User Manual for instructions to add these standard items to the construction estimate.
1993 Standard Specifications
|
Project with |
Description of Payment/Deduction |
Item and Description Codes |
|---|---|---|
|
A+B Bidding |
Credit or Damage Item Description – A+B CREDIT OR DAMAGE* Units should be Lump Sum (L. S.) |
9500-0507 |
|
RUC (road-user costs) with Credit or Damage |
Credit or Damage Item Description – RUC CREDIT OR DAMAGE* Units should be Lump Sum (L. S,) |
9500-0508 |
|
RUC (road-user costs) with Damage Only |
Damage Only Item Description – RUC DAMAGE* ONLY Units should be Lump Sum (L. S.) |
9500-0509 |
|
Third Party A+B or RUC with Credit Only |
Credit Item Description – RUC/A+B (CREDIT to be paid by THIRD PARTY) Units should be Lump Sum (L. S.) |
9500-0510 |
|
*Note: Use a negative number when damage is involved. |
||
2004 Standard Specifications
|
Project with |
Description of Payment/Deduction |
Item and Description Codes |
|---|---|---|
|
A+B Bidding |
Credit or Damage Item Description – A+B CREDIT OR DAMAGE* Units should be Lump Sum (L. S.) |
9501-2001 9605-2001 |
|
RUC (road-user costs) with Credit or Damage |
Credit or Damage Item Description – RUC CREDIT OR DAMAGE* Units should be Lump Sum (L. S.) |
9501-2002 9605-2002 |
|
RUC (road-user costs) with Damage Only |
Damage Only Item Description – RUC DAMAGE* ONLY Units should be Lump Sum (L. S.) |
9501-2003 9605-2003 |
|
Third Party A+B or RUC with Credit Only |
Credit Item Description – RUC/A+B (CREDIT to be paid by THIRD PARTY) Units should be Lump Sum (L. S.) |
9502-2004 9605-2004 |
|
*Note: Use a negative number when damage is involved. |
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Anchor: #b110003
Retainage for Wholly State Funded Contracts
Contracts with Recycled Materials
Prior to the first monthly progress estimate, obtain documentation supporting the contractor’s use of nonhazardous recycled materials (NRMs) as defined by Item 6, “Control of Materials” of the Standard Specifications and "DMS 11000, Evaluating and Using Nonhazardous Recyclable Materials Guidelines." Revise the zero percent retainage amount in SiteManager to 4% and retain 4% of the contract amount until completion and final acceptance of the work. After final acceptance, release 50% of the retained amount.
Contracts without Recycled Materials
Revise the zero percent retainage amount in SiteManager to 5% and retain 5% of the contract amount until completion and final acceptance of the work. After final acceptance, release 60% of the retained amount.
Contracts with Vegetative Establishment, Maintenance or Performance Period (VEMP)
After completion and acceptance for all non-VEMP work, all but that portion of the retainage amount determined necessary to ensure overall contract compliance may be released. Prior to release, obtain all completed submittals and final quantities for all work accepted from the contractor.
Final Retainage Release
Release all remaining contract retainage when final quantities are determined and all contractor submittals are received.
Zero Retainage for Federally Funded Contracts
For projects let beginning with the April 2006 letting, the percent retainage on all SiteManager projects and federal-aid construction projects in CMCS (use of CMCS for federal-aid construction projects is allowed only for building projects) will default to zero percent. When the prime contractor owes more money than remains to be paid on the contract or the prime contractor is in jeopardy of default with more work to be performed than remains to be paid, notify the prime contractor and retainage bond surety of the condition detailing the amount owed. Claims may not be filed on retainage bonds until final acceptance.
If, at final acceptance, the contractor owes more money than remains to be paid on the contract, initiate the following actions:
- Notify the prime contractor and the retainage bond surety that an amount is owed and demand payment within 30 days of the date of the letter.
- If payment is not received within 30 days, send a letter to the surety demanding payment under the retainage bond surety bond for the amount owed.
- If payment is not received from the surety within 30 days, contact the Construction Division, Construction Section Field Engineering Branch (CST-FE) for assistance.
CST-FE will assist in making a claim against a retainage bond. Any bond claims should be filed within one year of final acceptance.
Effect of Zero Retainage on Payment Items
For Item 100, “Preparing Right of Way,” release final payment upon final acceptance. For Item 500, “Mobilization,” the definition of the term work is revised to include all contract required submissions. Release 97% of the bid price for mobilization upon final acceptance, and release the remaining 3% upon receipt of all contract required submissions. Submissions may include payrolls, prompt payment certifications, DBE payment reports, material certifications, etc. For Item 502, “Barricades, Signs, and Traffic Handling,” do not pay more than 10% of the total contract amount prior to final acceptance. Use consistent and fair practices for any payment withholding to address subsidiary or bid item final completion.
Anchor: #b110007Final Payment
Prepare a final estimate for payment to the contractor when:
- the contract has been completed
- all work has been approved
- final acceptance has been made in accordance with the contract and
- contractor submittals have been received.
The final estimate for payment to the contractor will show the total quantity of work completed and the money owed the contractor, less any sums previously paid.