Section 4: Project Financial Clearance
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This section contains the following pre-letting information:
- Anchor: #ACMBFDSC
- Other Participation Field Anchor: #BOQLMQUR
- Additional Payments Anchor: #RKFXFOAQ
- Financial Clearance Reference.
Other Participation Field
The funding for any project involving participation by another agency, county, city, etc., must be checked prior to and after letting. For more information on inputting this information, see the DCIS User Manual, Chapter 1, Section 2, Fields and Chapter 2, Section 1 of this manual. Most funding agreements require the entity to pay their share of the costs 45 days prior to the proposed letting date. The district personnel who coordinated the agreement with the entity normally receive these payments. Once the total estimated payments are received, the district must prepare and submit a Notice of Financial Clearance For Bid Opening and Award form. This form certifies that all of the necessary estimated payments from the entity have been received.
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After letting, the entity’s participation needs to be recalculated based on the apparent low bidder’s unit prices. If the entity’s participation increases based on the apparent low bid, the district must contact the entity to request payment of the additional costs. The project is conditionally awarded, pending receipt of any additional funds from the participating entities. Once the district has received the additional payments, the district should prepare and submit the financial clearance form to the Contract Services Office. This office verifies that the necessary funds have been received and has the Construction Division issue a letter of award of contracts to the contractor. Once the contract is executed the work order by which construction can commence is issued. This entire process should be initiated and completed as soon as possible so that construction is not delayed. Long delays have resulted in the apparent low bidder electing to withdraw from the contract, and in some instances, filing claims against the department to recover financial losses resulting from the delay.
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For more information about the financial clearance process, see the Negotiated Contracts Procedures Manual, Chapter 9, Advanced Funding Agreements. Contact the Contract Services Office for additional information.