Chapter 11: Measurement and Payment
Anchor: #BIHBIJICSection 1: Estimates and Issues Affecting Payment
Anchor: #b110001Overview
Measure quantities in accordance with the contract as specified in Article 9.1, “Measurement of Quantities”. Pay Contractors according to the amount of work performed. Maintain sufficient documentation to support all quantities paid. Ensure the documentation supports:
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- Contractor satisfaction of contract requirements Anchor: #EUGLRRRR
- prompt and fair payment to the Contractor Anchor: #XDTVQVNF
- current, orderly, and accurate records.
Ensure that the Contractor completes work as provided in the contract before making payment.
Anchor: #i1025144Monthly Progress Estimates
Start generating monthly progress estimates (including zero dollar and negative amounts) when time charges on the project begin. Continue generating estimates monthly until the final estimate/payment is generated. (See Chapter 4 Section 5 Project Closeout for final estimate.)
Anchor: #i1049228Supplemental Progress Estimate
The purpose of a Supplemental Progress Estimate is to pay for work that was not included in the standard monthly progress estimate. When generated the estimate period end date will auto populate to the last day of the previous month's estimate.
Finance will require the district to provide the date an estimate should have been approved based off policies and procedures to ensure the correct amount of interest is calculated based on Prompt Payment Law.
Anchor: #i1025096Collection on Negative Estimates
Do not let a negative estimate exceed the amount of money left on the project. When money is owed to the Department and exceeds the amount of money left on the project, follow the below process.
Send a letter notifying the Contractor to pay the balance owed to the Department within 30 days. Copy Financial Management (FIN) Division-Accounts Payable.
FIN-Accounts Payable will assist in creating Form 1234, “Refund of Expenditure”.
After 30 days have elapsed from the date of the initial notification, send a demand letter instructing the Contractor to make payment within 30 days.
After 30 days have elapsed from the date of the first demand letter, send a second demand letter instructing the Contractor to make payment within 10 days.
In the event the Contractor is nonresponsive to the second demand letter, contact FIN/Revenue Management for collection.
Send all letters via certified mail requesting address correction and verify that the correct address is on record with CST’s Construction and Maintenance Contract Letting Section (CST-CMCL). Carbon copy FIN/Revenue Management and CST/Construction Support Section (CST-CS) on each letter sent. FIN/Revenue Management has template letters available upon request.
Anchor: #i1050203Final Estimates (FE)
Prior to approving the FE:
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- obtain material and tests clearances Anchor: #SWTUNVUX
- ensure all project documentation is acquired Anchor: #SPSKMYYR
- verify the Disadvantaged Business Enterprise/Small Business Enterprise (DBE/SBE) goal has been met [if not, obtain approval from the Civil Rights Division (CIV) prior to processing]. Anchor: #EYGQEWGS
- verify the District Director of Construction's final determination for DBE Clearance during the closeout period. Anchor: #ARKLHDWY
- obtain an On-the-Job Training (OJT) summary from the contractor, if applicable (see Chapter 15, Contractor Workforce) and Anchor: #CBXDCNAT
- complete and approve or deny all COs.
Submit local participation reports (if applicable), federal-aid project forms, and Statements of Cost (SOC) to the Financial Management Division (FIN), Accounting Management Section, no later than 60 calendar days after the FE approval. The Accounting Management Section will review and notify the District of concurrence or the need for a corrected SOC. Refer to the Financial Management Policy Manual for further information (internal access only).
Anchor: #i1050514Supplemental Estimate
Districts process the Supplemental Estimate in SiteManager to make payments to the contractor after the Final Estimate has been approved. These payments are lump sum amounts, not payments based on placed quantities for Contract Line Items. Refer to the SiteManager Contract Administration User Manual for additional guidance.
Anchor: #i1020153Measurement of Quantities
Provide calculations for payments in the DWR remarks bubble. When measurements cannot be described as shown below, computer measurements or drawings for irregular areas will be acceptable as supporting documentation.
EXAMPLE: A section of riprap measures 100 FT by 3 FT and is 5 IN thick. Calculate the area and volume of the riprap.
Area = Length × Width = 100 FT × 3 FT = 300 SF
Area in SY = 300 SF ÷ 9 SF/SY = 33.33 SY
Depth = 5 IN x 1 FT/12 IN = 0.417 FT
Volume = Length × Width × Depth = 100 FT × 3 FT × 0.417 FT = 125 CF
Volume in CY = 125 CF ÷ 27 = 4.63 CY
EXAMPLE: A one-mile highway was striped with 4-in. white broken stripe. Calculate the quantity placed.
1 MI = 5,280 FT
1 broken stripe = 10 FT of stripe + 30 FT of spacing between stripes
1 MI = 5,280 FT ÷ (10 FT + 30 FT) = 132 stripes per MI
132 Stripes per MI x 10 FT of stripes = 1320 LF of stripes
Partial payments to an item of work can be made when agreed upon. Items such as embankment cannot truly be measured; therefore, payment can be made by percentage or by station range if earthwork tables are provided. Cast-in-place inlets are completed in multiple stages, so partial payments in the form of percentages can be made. Document reasons for partial payments in the payment portion of the DWR.
Anchor: #b110008Plans Quantity Measurement
Measurement of actual quantities is not required if a pay item under “Measurement” states in part, “This is a plans quantity measurement Item.” The intent of plans quantity measurement items is to relieve Department personnel from performing quantity field measurements. Monthly estimates for plans quantity measurement items can be established by the quantities shown in the plans or with an established and agreed on payment formula such as a percentage of the total plan quantity installed.
Periodic field measurements and calculations can be performed to verify the required design plan dimensions, but should not be used to establish quantities on plans quantity measurement items. Changes to plan quantity items is addressed in Article 9.2 of the Standard Specifications.
Anchor: #i1020855Payments not to Exceed 10% of the Original Contract Amount
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- 0100 Preparing Right of Way (ROW): total payment of this item will not exceed 10% of the original contact amount until Final Acceptance. Anchor: #QLTBMSAE
- 0502 Barricades, Signs, and Traffic Handling: total payment for this item will not exceed 10% of the total contract amount before Final Acceptance.
Payment of Items with Overweight Loads
Before paying for quantities over the legal weight limit, request copies of overweight permits from the Contractor. Overweight quantities may be paid if the permits are provided. Overweight quantities cannot be paid if the load was transported on the designated Interstate system.
Anchor: #b110011Quality Control (QC)/Quality Assurance (QA) Hot Mix Payments
Use the standard item and description codes to track the payment for QC/QA Hot Mix. Refer to the SiteManager Contract Administration User Manual for instructions to add these standard items to the construction estimate.
Anchor: #b110012Road User Costs (RUC) Incentives and Disincentives
If not using the SiteManager milestone function, use the standard item and description codes to track the payment of incentives and disincentives on contracts with RUC. Refer to the SiteManager Contract Administration User Manual for instructions to add these standard items to the construction estimate.
Anchor: #i1025078Force Account
Force account work is described under Chapter 7, Section 3 - Force Account and Interim Adjustments to the Contract.
Ensure Form 316, “Daily Report of Force Account Work,” is completed on a daily basis and signed by the Contractor. Collect the necessary documentation supporting the information on the form.
Payment for force account work will be made on a created line item for that work.