This section is presented to provide information and guidelines for the proper method of measurement of completed items of work and the proper payment to the Contractor.
In the administration of construction projects, it is the policy of the Department to provide the Contractor with prompt payment for all completed and accepted work. After an item of work is completed, but before payment is made, a determination must be made based on the quantities of the various items of work performed. This will be the basis for final settlement between the Contractor and the Department. It is the responsibility of the Engineer to ensure this determination of quantities is performed. Likewise, the Project Inspector is responsible for making the detailed inspections necessary to measure, document, and turn in for payment the determined quantities.
As promptly as everyone expects their paycheck, the Contractor is entitled to prompt and accurate payment for all completed and accepted items of work. As outlined in the Ohio Revised Code Sections 5525.19 and this manual, the Department has the obligation to pay for completed items of work promptly. This payment must be made to the Contractor within 30 days of the first estimate date after the completion of the work, except for additional quantities found during the finalization process. Failure to meet the progressive payment time will result in interest being paid to the Contractor from monies deducted from the District's budget. To ensure prompt payment, the measurement of quantities and the recording for payment must be performed on a daily basis as the items of work are completed. and
Project personnel are responsible for preparing documentation to support payment for work performed by the Contractor by measurement of completed and accepted quantities of work. This documentation serves two important purposes:
It provides validation that the quantity for payment has been determined in accordance with contract requirements (contract proposal, plans, specifications) with the necessary measurements, calculations, weight, etc. This is further detailed under the next section entitled, “Method of Measurement.”
It also verifies that the work was done in close conformity (as defined in Section 101.03 of the C&MS) to the plans and specifications.
Details on project documentation can be found throughout in this manual.
This Manual is not intended to alter or replace the specifications, its purpose is to supplement the specifications and provide assistance to the project personnel in the interpretation of the specifications. As such, this manual is not part of the contract by which the Contractor bids the project. This manual does provide the recommended minimum documentation requirements and guidelines with respect to measurement of quantities and basis of payment.
Changes and Extra Work (109.05)
The purpose of this section is show how modifications are made to ODOT construction contracts by change order. We will discuss reasons for change orders, pricing, preparation and processing, and record keeping.
ODOT contracts are unit price contracts using estimated quantities of work. Simply by the nature of this type of contract, change orders will occur if for no other reason than to adjust estimated quantities to the quantities of work actually performed. Change orders amend the contract by adding or deleting work, making reimbursement for additional costs incurred, making material substitutions, changing specifications, etc.
The Director is empowered by Section 5525.14 of the Ohio Revised Code to amend contracts for highway improvements by change order. This authority has the following statutory limitations:
· Any original bid item can be increased to the lesser of 5 percent of the total original contract amount or $100,000.00.
· A new item of work can be added to a contract to a value of the lesser of 5 percent of the original contract value or $100,000.00.
Additions beyond these limitations must be approved by the State Controlling Board. However, the director can exceed these limits if there are circumstances that warrant the declaration of an emergency. These circumstances could include a threat to public safety, idled equipment costs, delay costs, etc.
Guidelines for preparation of change orders are given in:
State law, ORC 5517.02, and Federal-aid regulations require the Department to contract for work with the lowest competent and responsible bidder after advertisement of the project letting.
ORC 5525.14 authorizes the Director to add Extra Work to a project without competitive bidding and to adjust contract quantities as necessary to complete the project as intended. This authority is subject to competitive bidding and Controlling Board requirements.
Building construction change orders will continue to be controlled by the Office of the State Architect (part of DAS), the Ohio Board of Building Standards, and good practice in the building construction industry.
Work added or modifications to the contract documents made by change order must be only those which are necessary and integral to the completion of the project as intended by the original plan. Work that is not necessary to complete a project as originally intended shall not be added to a project by change order and shall be contracted through the Department’s competitive bidding process or the Director’s emergency contracting authority. Convenience or lower costs are not valid reasons to avoid the competitive bidding requirements of State law.
Added work must be within the existing right-of-way, covered by the approved environmental document and waterway and miscellaneous permits, and within the project limits stated in the plans. If necessary, the District Deputy Director shall acquire additional right-of-way and/or reevaluate and update the approved environmental document and permits. If necessary, project limits shall be modified utilizing the forms contained in this procedure.
Each District shall develop and implement a collaborative process whereby the Production, Planning, and Highway Management Departments and the Construction Office reach consensus on the need for a change order before it is recommended in SiteManager (TRNS.PORT SiteManagerTM).
The District Construction Offices shall determine the terms and conditions (e.g., scope of work, compensation, deduction, etc.) of change orders in accordance with this manual, the C&MS, and the MOP.
All change orders shall be processed expeditiously to ensure prompt payment in accordance with ORC 126.30.
The District Construction Offices shall develop all documentation, with the exception of formal Controlling Board requests, required for the processing of change orders.
Each District Construction Office must subscribe to the Blue Book by: Printed book, CD-ROM, or Internet access and verify all equipment rates submitted by the Contractor.
All change orders shall be entered in SiteManager (TRNS.PORT SiteManagerTM).
The Deputy Director of the Division of Construction Management may instruct that a change order be prepared and approve such change order after consultation with the District and the Director.
A RWCO shall only be used for the following:
a. Increases and decreases of contract quantities to meet field conditions and design modifications as provided in C&MS Section 109.04 within the Contract Limits.
b. Decreases in Extra Work quantities.
a. Adjustment of a contract price when the item is reduced by more than 25 percent as provided in C&MS Table 104.02-2.
b. Price adjustments as specified in the Proposal.
a. Allow a substitute material because of an area-wide material shortage or the specified material is not available.
b. Acceptance of a superior material at no additional cost to the project.
c. Acceptance of undocumented material incorporated into the work and performing satisfactorily.
d. Department ordered change in materials.
e. Accept with a cost savings, non-specification material incorporated into the work that is performing satisfactorily according to the Acceptance of Non-Specification Material Supplement.
5. Revise an interim completion date or a contract completion date.
a. The change order shall be for zero dollars.
b. For change orders postponing the interim/contract completion date the “Explanation of Necessity” shall include one of the following statements:
i. The Department accepts the Contractor’s early completion schedule in accordance with C&MS 108.02.B.2. The amended completion date is _____________. (Reason Code 32)
ii. The Contractor experienced an excusable, non-compensable delay due to (insert reason) as determined in accordance with C&MS 108.06.B. The revised (interim/contract) completion date is ______________. (Reason Code 33)
iii. The Contractor experienced an excusable, non-compensable delay due to weather as determined in accordance with C&MS 108.06.C. The revised (interim/contract) completion date is ______________. (Reason Code 34)
iv. The Contractor experienced an excusable, compensable delay due to (insert reason) as determined in accordance with C&MS 108.06.D. The revised (interim/contract) completion date is ______________. The allowable delay costs will be calculated in accordance with C&MS 109.05.D and processed on a subsequent change order. (Reason Code 35)
c. Attach to the change order copies of analysis and progress schedules with support documentation or other justification substantiating the duration of the revision to the interim/contract completion date.
6. Implement non-performances that result from the acceptance of a Value Engineering Change Proposal (VECP).
7. Other reasons as authorized by Administrative Rulings issued by the Division of Construction Management.
a. Increase of contract quantities to meet field conditions and design modifications as provided in C&MS Section 109.04 and are only those quantities that are beyond the Contract Limits.
b. The addition of new items of work.
c. Increase of quantities previously established by an EWCO.
e. Force Account (commonly referred to as Time and Materials [T&M]) in accordance with C&MS Section 109.05.C and the Force Account Section of this manual.
f. Implement an accepted VECP according to the procedure on Value Engineering and payment of the Contractor’s share of the VECP savings.
g. Payments that differ from fixed amounts established in the Proposal by the Department for specified items.
h. Final payment for an item that differs from the lump sum amount bid by the Contractor.
i. Payment for allowable delay costs.
j. The payment of interest on delays in processing payments. Interest will be calculated according to ORC 126.30. In all cases, interest shall be a separately itemized payment utilizing the item code and description for interest that can be found on the Item Master. Interest shall not be included as part of a negotiated price.
k. Compensate the Contractor for damages associated with claims in accordance with recommendations issued by the Dispute Review Board in accordance with the Dispute Review Board Process, decisions issued by the Director’s Claims Board in accordance with the Dispute Resolution and Administrative Claims Process, and decisions rendered by the Ohio Court of Claims.
2. The EWCO shall include a “Description of Work,” and when necessary, a “Supplemental Description.”
a. If the EWCO is for an increase in a contract quantity, use the existing “Description of Work” for that item.
b. If the EWCO is for the addition of a new item of work, use a “Description of Work” contained in the Item Master. Use a “Supplemental Description” that clearly identifies the work for which the EWCO is being processed.
3. The EWCO “Explanation of Necessity” section shall include, at a minimum, the following information, if applicable:
a. A thorough discussion of all the agreed upon or imposed terms and conditions.
c. For change orders that are for an increase in quantity for an original bid item include a reference to the RWCO that increased quantities to the Contract Limits.
d. A statement indicating that the FHWA Transportation Engineer has been consulted.
e. A statement regarding federal participation eligibility and the effect on federal project funding.
f. Whether the work will require additional time. Use one of the following statements:
i. The additional work will not delay work on the critical path and will not delay the project.
ii. The additional work will delay work on the critical path and will delay the project ____ days. A change order postponing the contract completion date will be processed.
iii. The additional work will delay work on the critical path, but will not delay the project.
iv. At this time, it is unknown how the additional work will affect the work on the critical path and time to complete the project. The contractor will perform and submit a schedule analysis within 30 days of the completion of the work authorized by this change order. A subsequent change order revising contract time will be processed, if warranted.
g. If the EWCO includes any work that is subject to price adjustments as specified in the Proposal.
h. If any additional cost of maintaining traffic is included in the agreed prices.
i. If any additional cost to revise or provide a Storm Water Pollution Prevention Plan is included in the agreed prices.
j. The details of a contractor’s reservation of rights in accordance with the Execution and Distribution Section.
k. If the change order is compensating the Contractor for damages associated with a claim, the description of the change order shall include a disclaimer stating: “The execution of this document constitutes full settlement of Dispute or Claim Number ( ) and all rights for any additional compensation based on this cause are waived.”
4. All supporting documentation, including the complete cost analysis, shall be attached to the copy of the EWCO on file in the District.
1. An EWCO for the Estimated Cost of Force Account (ECFA) shall be processed if the amount of the force account work is likely to be greater than $100,000 and is expected to take more than two weeks to complete. When the amount of the force account work is likely to be less than $100,000 and is expected to take less than two weeks to complete, an EWCO for the Actual Cost of Force Account (ACFA) can be processed without processing an associated ECFA.
2. Estimated Cost of Force Account (ECFA)
a. All ECFA’s shall be paid by an EWCO.
b. The ECFA shall state the estimated costs as determined by a cost analysis or estimate based on similar bid items according to the C&MS and MOP.
c. An original affidavit by the Contractor shall be attached to the change order stating:
"Labor rates shown are the actual rates paid for labor, unit prices for materials and rates for owned and rented equipment have been estimated on the basis they are not in excess of those charged in the area in which the work will be performed."
d. The District will process estimates on ECFA every two weeks as the force account work is performed.
e. Approval of an ECFA change order allows payments as the work is performed up to the estimated change order amount.
3. Actual Cost of Force Account (ACFA)
a. After the work covered by an ECFA is complete or if an ECFA is not necessary as described the above Section of this manual, the District shall prepare an ACFA reflecting the actual total cost in accordance with the C&MS and MOP and substantiated by a summary of the actual cost of performing the force account work.
b. The difference between the actual cost and the original estimated cost of the force account work shall be entered as a plus (positive), minus (negative), or zero, as the case may be, and labeled "Difference Between Actual Cost and Estimated Cost of Force Account Work, Authorized by Change Order Number xx."
i. If the difference is positive, another EWCO must be used to authorize payment beyond the ECFA.
ii. If the difference is negative, an RWCO shall be used to non-perform the unused balance of the ECFA.
iii. If the difference is zero, an RWCO shall be used to document that the actual costs equaled those shown on the ECFA.
c. The “Explanation of Necessity” shall include the reasons for the difference in cost and any conditions encountered that differ from those originally anticipated in order to substantiate final payment.
d. An original affidavit by the Contractor shall be attached to the change order stating:
“The name, classification, total hours worked and rates paid each person listed on the Summary of Actual Cost are substantiated by actual records of persons employed on the force account work. All unit prices for materials and rates for owned and rented equipment listed on the Summary of Actual Costs are substantiated by actual records of materials and equipment actually used in performance of the force account work and the price of any owned equipment not previously agreed upon does not exceed prices charged for similar equipment in the area in which the work was performed.”
1. On all Federal oversight projects [per 23CFR635.120(a)(b) &(c)]:
a. Following authorization to proceed with a project, all major changes in the plans and contract provisions and all major extra work shall have formal approval by FHWA in advance of their effective dates (23 CFR635.120 [a]).
b. For non-major changes and for non-major work, formal FHWA approval is necessary, but such approval may be given retroactively (23CFR635.120[b]).
c. All change orders amending contract time shall be submitted for approval by FHWA. When possible, change orders for contract time resulting from contract changes or extra work should be submitted at the same time as the change order for said contract change or extra work for approval by FHWA (23CFR635.120[c]).
2. The District shall consult with the appropriate FHWA Transportation Engineer when a major change is first contemplated on a full Federal oversight project.
a. This consultation may be by e-mail or by telephone with a follow up e-mail. The results of this consultation shall be documented in the project file and in the change order, “Explanation of Necessity,” as indicated in Extra Work Change Order Section of this manual.
b. The e-mail shall have the Project Number, PID, and the County-Route-Section in the subject line and include adequate information to determine the nature and extent of the proposed change.
c. The purpose of the consultation is to determine the eligibility of the change for Federal participation, the effect on Federal project funding, and to obtain approval to execute the change order under the terms and conditions agreed upon in this consultation.
3. FHWA considers a change order to be a major change if it:
a. Results in a project cost increase exceeding the lesser of $250,000 or five percent of the award amount.
b. Alters the planned access controls, highway operations (highway operational characteristics), or work limits.
c. Results in new environmental impacts.
4. FHWA does not participate in maintenance items or the purchase of surplus material.
5. FHWA does not participate in the repair of completed permanent items of work damaged by traffic and compensated under C&MS Section 107.15 with the following exceptions:
a. FHWA participation is allowed on federally funded projects off the NHS as determined by State law and policy.
b. FHWA participation is allowed on federally funded projects on the NHS when the proximate cause of damage was the result of traffic being diverted from its normal path by construction activity.
6. Copies or electronic versions presented through an ftp website or document management system of all change orders, including support documentation, shall be submitted to FHWA for approval on full federal oversight projects only. (Final approval of all major and minor change orders by FHWA based on the change order documentation review is permitted following execution of the change order by ODOT subject to the provisions of this Section of the manual.)
7. ODOT approves change orders on behalf of FHWA for state administered federally funded projects. Change order documents are retained by ODOT only on state administered federally funded projects.
8. The Division of Construction Management will coordinate the review and advance approval of all claims on full Federal oversight projects with FHWA.
a. The Division of Construction Management will provide notification to FHWA upon receipt of Notice of Intent to File a Claim.
b. The Division of Construction Management will provide a copy of all claims decisions for review and advance approval prior to final execution of any change order that may result from the decision.
9. Federal oversight project criteria are provided in the ODOT/FHWA Stewardship & Oversight agreement which can be found at: www.fhwa.dot.gov/ohdiv/soa.htm.
10. Any questions regarding the status of federal oversight projects can be directed to the FHWA Transportation Engineer assigned to your District. The current FHWA Transportation Engineer map can be found at: http://www.fhwa.dot.gov/ohdiv/.
a. Change orders on district funded projects must be approved by the appropriate district program manager in accordance with processes established by the DDD.
a. Change orders on projects funded by a Central Office program must be approved by the Program Manager (PM) if the change order amount exceeds the specified threshold for the program. Districts shall consult the appropriate PM when they first anticipate a change order over the threshold. The OCA will maintain a list of Program Managers and thresholds for each program on its website.
b. The Deputy Director of the Division of Construction Management may require Districts on specific projects to consult with a PM on change orders below the normal program threshold.
Prior to approving any change order for an item containing local funding the District shall:
1. Discuss with an agent of the LPA the circumstance giving rise to the change order.
2. Provide written notice to the LPA detailing the proposed change order.
3. Obtain written acknowledgement of the LPA’s receipt of notice of proposed change order.
Attach the written notice and written acknowledgement to the change order. Except for Contract quantity adjustments less than Contract Limits, ensure that the change order is approved prior to performing the authorized work.
An EWCO with a pay item in excess of the Contract Limits, regardless of the funding source, and not covered by the second paragraph below, must be submitted to the Controlling Board for approval prior to performance and payment of an EWCO.
a. The District shall recommend the EWCO, obtain the Program Manager’s signature, and obtain the Contractor’s signature in accordance with Execution and Distribution Section of this manual.
b. The District shall forward to the Division of Construction Management the signed copy of the EWCO and a draft explanation appropriate for the Controlling Board request. This draft explanation shall be free of technical jargon and shall give a person unfamiliar with the project a basic understanding of the project and the request.
c. The Division of Construction Management will process the information submitted by the District and will officially request Controlling Board approval.
d. The Division of Construction Management will notify the District by telephone or e-mail of the Controlling Board’s action by the next business day following the Controlling Board meeting. The District shall then approve the EWCO in accordance with the Execution and Distribution Section of this manual. DO NOT APPROVE THE EWCO UNTIL IT HAS BEEN APPROVED BY THE CONTROLLING BOARD.
e. The District will then inform the Contractor of the Controlling Board approval.
f. The Division of Construction Management will send to the District the executed Controlling Board approval of the EWCO. This approval shall be attached to the EWCO on file.
An EWCO with a pay item in excess of Contract Limits, regardless of the funding source, must be reported to the Controlling Board quarterly in accordance with ORC 5525.14(B), but does not have to be approved by the Controlling Board as follows:
3. Added work for which the Director has granted emergency permission to proceed with work in accordance with the Emergency Permission Section of this manual.
The Division of Construction Management will prepare and submit a Report to the Controlling Board.
All change orders for the extension of an existing contract item of work or for the addition of a new item of work beyond the Contract Limits shall be approved by the Director.
All change orders for additional work (new work beyond the scope or elective work), which consists of multiple related items (existing or new), the sum of which exceeds the lesser of $100,000.00 or 25 percent of the original contract value, shall be approved by the Director.
The District shall have authority to approve all change orders that do not require approval by the Director as set forth above.
For change orders requiring approval by the Director, the procedures are as follows:
1. Change orders based upon an emergency declaration.
a. The District Construction Office shall obtain declaration of emergency as set forth in the Emergency Permission Section of this manual.
b. The District Construction Office shall then prepare the change order and execute as set forth in Execution and Distribution Section of this manual.
2. Change orders based upon Final Measurement.
a. The District Construction Office shall prepare and submit “request for Estimated final meaSuRement approval” or “request for Actual final meaSurEment approval” form to the Division of Construction Management for approval by the Director.
b. The Division of Construction Management will obtain the Director’s approval and signature, promptly notify the District Construction Office of the Director’s action by e-mail, and return to them the fully executed document.
3. Change orders not based upon an emergency declaration and not Final Measurement.
a. The District Construction Office shall prepare and submit “request for preliminary change order approval” form to the Division of Construction Management for approval by the Director.
b. The Division of Construction Management will obtain the Director’s approval and signature on “request for preliminary change order approval” form, promptly notify the District Construction Office of the Director’s action by e-mail and return to them the fully executed document.
c. The District Construction Office shall then prepare the change order and execute as set forth in the Execution and Distribution Section of this manual.
4. The DCA shall have authority to recommend change orders requiring approval by the Director.
For change orders approved by the District, the procedures are as follows:
1. The District shall establish a change order approval process whereby two different signatures are required.
2. The people selected to sign change orders shall be knowledgeable with this manual and familiar with the project involved and the circumstances of the proposed change. One signature on the change order shall be from a person within the Construction Department while the other signature shall be from a person not within the Construction Department.
3. A person will be granted authority to recommend the change order.
4. A person who is a Professional Engineer registered with the Ohio State Board of Registration for Professional Engineers and Surveyors will be granted approval authority.
5. Several people may be authorized for each of the two signature levels on a project.
a. The District shall inform the Contractor, at the preconstruction conference, of the people with change order approval authority for the project.
b. The Deputy Director of the Division of Construction Management has approval authority of change orders prepared in accordance with the General Section of this manual.
In all cases, the District Construction Offices shall coordinate and obtain all necessary approvals (e.g., FHWA, Director, Program Managers, Controlling Board, Local Participating Agency) prior to execution. Printed copies of change orders shall be signed, copies distributed, and filed as follows:
1. A person with recommended authority signs and dates on the “Recommended by” line indicating their title as appropriate. This person shall enter this action into SiteManager (TRNS.PORT SiteManagerTM).
2. The District shall indicate any required Program Manager approval on the change order. If approval is required, the District must indicate the date concurrence was obtained and provide documentation verifying concurrence.
3. The Contractor signs and dates on the “By Contractor” line indicating their title as appropriate. At the discretion of the District, contractor signature can occur before or after signature by the person recommending the change order.
a. In the event a Contractor attempts to “reserve its rights” either on a separate document (e.g., cover letter) or on the face of the change order:
i. The District shall not execute change orders which contain any sort of reservation of rights language included by the Contractor except as set forth below.
ii. Under limited circumstances, there may be a few instances where it is not feasible for the Contractor and Department to reach full agreement on all the costs and/or time damages arising from a specific circumstance. However, these instances should be rare. In such cases, it is expected that the Contractor notify the Engineer of its specific need and justification for such need to reserve its rights to claim specific time or costs at a later date. The Engineer may, only with the approval of the Division of Construction Management, permit a Contractor to reserve its rights. In all cases, when a reservation of rights is permitted, the details of the reservation of rights shall be documented in the “Explanation of Necessity” section of the change order.
iii. Any additional time required to process the change order as a result of this decision will not be justification for interest.
4. For change orders approved by the Director:
a. The District Construction Office shall then submit the change order to the District Deputy Director
b. The District Deputy Director will obtain the Director’s signature providing the approved preliminary amount of the change does not increase in value and the scope of the change remains consistent with the approved preliminary request. In the event that an increase in the approved preliminary amount of the change order or a change in scope occurs, the District Construction Office shall submit a revised preliminary approval document to the Division of Construction Management for Director approval as set forth in the Approval Authority and Authority to Proceed Sections with work.
c. The District Construction Office shall notify the Division of Construction Management of this approval action by e-mail with an attached copy of the fully executed document.
d. A person assigned approval authority for District level change orders for the project shall enter this action into SiteManager (TRNS.PORT SiteManagerTM).
5. For change orders approved by the District:
a. A person with approval authority signs their own name as a Professional Engineer with the initials P.E. next to their signature on the “Approved by” line and enters the date. This person shall enter this action into SiteManager (TRNS.PORT SiteManagerTM).
b. Do not approve a RWCO that is for the increase in the quantity of an original bid item to the Contract Limits that is in companion with an EWCO for the further addition of quantities to that same original bid item until the Declaration of Emergency or other preliminary authorization for the EWCO has been granted by the Director.
a. District sends the original signed document of all RWCO’s, including attached documents to the Office of Accounting for filing with the original contract.
b. A copy of the signed RWCO shall be kept in the District project file.
c. Copies of the signed RWCO’s shall be distributed to the Contractor and Project Engineer on all projects.
d. Copies of all executed RWCO’s, including back-up documentation shall be provided to the FHWA on federal oversight projects.
a. District sends the original signed document of all EWCO’s, including attached documents to the Office of Accounting for filing with the original contract.
b. A copy of the signed EWCO shall be kept in the District project file.
c. Copies of the signed EWCO’s shall be distributed to the Contractor and Project Engineer on all projects.
d. Copies of all executed EWCO’s, including back-up documentation, shall be provided to the FHWA on federal oversight projects.
e. Copies of signed EWCO’s, for additions due to Final Measurements and work added due to Federal mandates, shall be sent to the Division of Construction Management upon request for inclusion on the quarterly report to the Controlling Board.
Authority to proceed with work prior to processing a change order may be granted to the Contractor by the following people under the specified conditions and procedures. The Director may grant emergency permission under ORC Section 5525.14 to proceed with added work that exceeds the Contract Limits prior to processing a change order.
1. This permission shall be in writing and granted to add work that is necessary to eliminate emergency circumstances that would:
a. Create a life, safety, or health threatening situation.
b. Unduly delay the completion of a project and increase its costs.
2. Added work in these circumstances may include the following:
a. Construction needed to complete a project.
b. Adjustments needed to meet changed conditions.
c. Alterations in original plans.
d. Unforeseen contingencies.
e. Payments necessitated by contract terminations or suspensions.
3. The declaration of emergency and permission to proceed with work shall be fully documented using only the “DECLARATION OF EMERGENCY AND PERMISSION TO PROCEED WITH WORK” form.
4. The District Construction Office shall complete the “DECLARATION OF EMERGENCY AND PERMISSION TO PROCEED WITH WORK” form, including all supporting documentation, obtain signature of the DDD, and submit to the Division of Construction Management for approval by the Director.
5. The Division of Construction Management will obtain the Director’s approval and signature on “DECLARATION OF EMERGENCY AND PERMISSION TO PROCEED WITH WORK” form, promptly notify the District Construction Office of the Director’s action by e-mail, and return to them the fully executed document.
6. The original signed “DECLARATION OF EMERGENCY AND PERMISSION TO PROCEED WITH WORK” form with supporting documentation shall be kept in the District project file.
7. Copies of the signed “DECLARATION OF EMERGENCY AND PERMISSION TO PROCEED WITH WORK” form shall be sent to:
a. The Contractor, as the Department’s written commitment to pay for the work. The Contractor may proceed with the proposed work; however, it is not legally required to perform the proposed work until the change order is approved,
b. The Project Engineer.
8. Attach a copy of the emergency permission to the subsequent EWCO.
9. The EWCO shall be designated “Emergency” in SiteManager (TRNS.PORT SiteManagerTM).
10. When the amount of an emergency change order exceeds the authorized amount, the Director may authorize the excess amount by an amended emergency declaration using only the “AMENDED EMERGENCY AND PERMISSION TO PROCEED WITH WORK” form. Copies of the “AMENDED EMERGENCY AND PERMISSION TO PROCEED WITH WORK” form shall be distributed in the same manner as the original Emergency Declaration.
11. When a District discovers that added work beyond the Contract Limits was performed without emergency permission, and the added work did not qualify as Final Measurements, the Director may declare an emergency provided the added work did qualify for emergency status. This action must be documented on the “DECLARATION OF EMERGENCY AND PERMISSION TO PROCEED WITH WORK” form.
The DCA, under authority given to the Director by ORC Section 5525.14, may grant permission to proceed with new items of work, if the total payment for each pay item is less than the Contract Limits and Director authorization, if required, has been obtained.
1. The written permission shall define the extent of the work and the agreed price for the work negotiated with the Contractor or the estimated cost of the force account.
2. The District shall consult with the FHWA under the conditions stated in the FHWA Section of this Procedure prior to granting permission to proceed.
3. The District shall consult with the Program Manager under the conditions stated in Program Manager Consultation and Concurrence Section of this Procedure prior to granting permission to proceed.
4. The permission shall be kept in the project file with a copy to the Contractor.
When such payments exceed the Contract Limits, a Controlling Board request and approval are required before payment is made. Payments for damages associated with claims do not qualify as an emergency.
Change orders on projects under litigation shall be coordinated with the Office of Chief Legal Counsel prior to submitting to the Contractor for signature. Monthly, the Office of Chief Legal Counsel will supply each District with a list of projects that have pending litigation. For each listed project, the District shall inform the Office of Chief Legal Counsel, Court of Claims Section, of the following:
The DDD may extend Project Limits on a project under contract for the purpose of adding work outside of the original project only to accomplish the following:
1. Complete the project as intended by the original plan.
2. Eliminate circumstances arising from the project that would create a life, safety, or health threatening situation.
The procedures are as follows:
1. The extension of project limits shall be fully documented on the “EXTENSION OF PROJECT LIMITS” form.
The Division of Construction Management will conduct routine Technical Process Reviews (TPR) to ensure District compliance with this manual.
Districts found in non-compliance may have their change order approval authority revoked until conformity is ensured.
The necessity for a change orders to an ODOT construction contract may arise for many reasons. The most common causes for change orders are discussed below. A complete list of ODOT’s reason codes for change orders is included at:
The quantities of work actually performed differ from the quantities originally estimated and established in the contract for the following reasons:
· Final Measurements/calculations.
· Quantity changes to meet field conditions.
· Plan errors.
Existing field conditions differ from the plan to the extent that performance of additional or non-bid work is required for the following reasons:
· Differing subsurface conditions.
· Presence of any conditions not shown in the plan.
Changes to the project that are so far reaching that they can be considered outside the original intent of the work can be caused by:
· Significant changes in the quantities of work.
· Significant alteration of the work due to:
o Sequence of construction.
o Method of construction.
Changes in the work ordered by the owner to meet the needs of the owner. The following changes are typically not required for the proper construction of the project:
· Addition of new work or deletion of work.
· Change in materials.
· Suspension of work.
Restriction, regulation, or delay imposed on the Contractor beyond the terms of the contract by an entity who is not a party to the contract can be caused by:
· Utility companies.
· Regulatory agencies.
· Local governments.
Practically every change order will contain the following elements:
· Project identification: project number, county, route, section, federal number, federal acceptance type.
· Change order identification: change order number, type of change order.
· Work item information: reference number, participation code, item code, item description, units of measure.
· Cost information: unit price/lump sum amount, reference total, addition/non-performance, change order total addition/non-performance.
· Reference number identification: reference number, extra work number participation code.
· Reason code: mandatory field in SiteManager for each reference. SiteManager contains a list of reason codes to choose from.
· Explanation of necessity.
· For request and approval by the Department.
· For agreement by the Contractor.
· For agreement by the local (when applicable).
· Emergency declaration, preliminary approval or Final Measurement request as approved by the Director.
· Support documentation: additional information describing need for the change order.
· Cost documentation: cost analyses, comparative pricing information, etc.
· Forms and detailed instructions are available on the Division of Construction Management webpage.
Once the need to perform extra work on a project has been identified a basis of payment for this work must be established. Pricing for extra work is usually established using one of the following methods.
This method of pricing is used when the extra work can be broken down into measurable units. The number of units necessary to perform the work is estimated and a unit price is determined and agreed upon as described below. Final payment is based upon the final measurement of the number of units of work actually performed:
· Unit prices already established in contract.
· Comparative pricing. Contract unit prices for similar work on other projects (SiteManager database).
· Use force account type analysis (Appendix V).
This method of pricing is a negotiated amount and can be used when the extra work can be identified as something that is usually paid as a "lump sum." The "Agreed Lump Sum" can also be used as an alternate to the force account method:
· Prepare lump sum using force accounts style analysis.
· Maintain force account record of the work for a period of time and use to develop lump sum.
· Third party billing.
· Lump sum adjustment.
A force account method is used when the work cannot be broken into measurable units or when a unit price cannot be agreed upon. This method reimburses the Contractor the actual costs of labor, equipment, and materials incurred in the performance of the work, including allowable overhead and markup. This method requires a significant amount of record keeping and is described in Section 109.05 of the C&MS.
This method usually requires the preparation of two change orders both of which use the same format. The first change order is known as an "Estimated Cost Force Account" and is established so that money can be encumbered and payments can be made to the Contractor as the work is performed. The second change order is known as an "Actual Cost Force Account" and represents the final accounting of the cost of the performance of the work and is used to reconcile the "Estimated Cost Force Account" change order.
The performance of extra work or additional quantities of work may warrant an extension of contract time. Extensions of contract time may involve additional direct project overhead costs.
Record keeping is an integral part of contract administration and is especially important when considering change orders. Adequate records must be maintained to document the need for changes and to establish pricing for extra work.
Measurements of the quantities of work in the units prescribed by the plan actually performed by the Contractor must be recorded by the project personnel. Change orders must be prepared to make adjustments for any differences between contract quantities and the quantities actually performed.
Issues of efficiency or other similar factors may arise that may impact unit costs when the quantities actually performed differ significantly from those shown in the plan. For these occasions the quantity records must be thorough enough to determine actual production rates and other such items.
The records required for force account pricing of extra work must accurately depict all labor, equipment, and materials used by the Contractor to perform the work. The items that are necessary to record are as shown below:
· Description of work.
· Contractor's work force
o Employee name
o Hours worked, regular and overtime
· Contractor equipment
o Hours worked
o Hours idle
The Department is required to pay for completed contract work promptly in accordance with ORC Section 5525.19, OAC Section 126.30, and C&MS 109.09. Interest penalty payments resulting from the tardy processing of progress estimates will be deducted from the appropriate District budget. Currently, it is the Department’s goal to pay the final estimate on the project within six months of the physical work complete date.
SiteManager will be used to generate progress estimates on the assigned estimate dates and to generate the final estimate when project finalization is complete.
It is the District Construction Administrator's responsibility to establish the first estimate date for a project. This first estimate date, in general, should be two weeks after the first day of work or as otherwise agreed to by the Contractor at the preconstruction meeting. Once the first estimate date is established, a second estimate date is established 15 days later. Estimates will continue to be generated on the same two dates per month as long as the project is under construction.
Ohio Administrative Code (OAC) Section 126.30
PAYMENTS UNDER THE PROMPT PAYMENT ACT 2770.2A August 2, 1991
The daily accumulation of the information entered on the project is found in CA-D-3 SM and/or CA-D-4 SM. When entered into SiteManager in the Daily Work Report, these forms will become the Daily Diary. The Daily Work Report has five tabs: DWR Info, Contractors, Contractor Equipment, Daily Staff, Work Items, and Force Account.
All information contained on the CA-D-3 SM/CA-D-4 SM forms is transferred by the project personnel to one of these tabs. For purposes of payment of completed items of work, pay items listed on the CA-D-3 SM/CA-D-4 SM forms are entered on the Work Items tab.
Once all information is entered on the various screens of the Daily Work Report, the Engineer, or alternate who has update authority, reviews the report, and if found acceptable, approves it as the Daily Diary. This approval is performed on the Diary screen.
Once approval of the Daily Diary takes place, the SiteManager system automatically transfers any quantities turned in for payment to the Estimates screen. This SiteManager screen lists details about individual reference number quantities completed for payment. Any amount shown on this screen as being completed, but not previously paid, will now be picked up for payment when the next estimate is generated.
This procedure establishes uniform processes and criteria for the prompt payment of completed contract work on Ohio Department of Transportation (ODOT) administered projects.
The District shall establish procedures for approving estimates and payments as required by C&MS Section 109.09. These procedures shall include the following minimum requirements:
1. Establish the first estimate date at the Preconstruction Conference. The first estimate date should be two weeks after the first day of work or as otherwise agreed to by the Contractor.
2. Obtain from the Contractor an executed Contractor Signature Authorization CA-D-10 Form at the Preconstruction Conference.
3. Assign SiteManager approval authorities.
4. Confirm the accuracy of the pay quantities and delivered material quantities entered into SiteManager.
a. Project inspectors may be granted update authority to enter these quantities.
5. Verify that all pay items have associated materials approved at the time of the estimate approval.
6. Establish a process for the daily review of SiteManager to determine estimates requiring approval.
7. Establish a process to override deficiencies on a SiteManager estimate. Deficiencies are limited to the following:
a. An estimate held for deficient payrolls when the District verifies that all required payrolls were submitted, reviewed, and are acceptable.
b. An estimate held for the lack of material approval when the PE/PS establishes that the material used is approved and the hold is caused by the approval not being processed in time for the estimates.
8. Record the date the estimate was transmitted to Contractor for certification.
9. Obtain from the Contractor an executed Contractor Progress Payment Certification CA-D-11 form. Do not approve an estimate until it has been reviewed by the Contractor and the required certification received. Every estimate must have a signed Contractor Progress Payment Certification CA-D-11 Form attached to the estimate and retained in the project records.
Issue payment for contract bonds any time following the execution of the contract, but no later than two weeks after the start of work.
Following completion of physical work, agreements are reached with the Contractor as to final quantities. These agreed upon quantities are generated with the Final Quantities report from the SiteManager Portal.
Calculate and enter final price adjustments as required by the Contract, such as bituminous price, fuel, steel, Portland cement concrete pavement or base thickness, smoothness, etc.
The District generates and approves the final change order. The District generates and approves the final estimate. The final estimate shall be from zero dollars ($0.00) to no more than five-hundred dollars ($500.00).
The District Construction Administrator shall certify the correctness of the Final Estimate by signing it. Final quantities shall agree with the Contract quantities as adjusted by the approved change orders on the final report.
The District shall inform the Contractor by letter that the Final Estimate has been signed. Use the Final Estimate Letter standard form. Distribute copies to the Surety and others as indicated on the sample letter.
The District shall enter dates for appropriate finalization milestones on the Key Dates/Critical Dates screens in SiteManager.
Copies of the signed Final Estimate and signed Final Report with Summation of Extra Work Items shall be submitted to Central Office Capital Accounting as the Final Package. Distribute copies of the Final Package as follows:
1. Non-Federal Projects - Submit one signed copy each of the Capital Final Estimate and one signed copy of the Contractor Final Estimate with the final report attached.
2. Federal Projects - Submit one signed copy each of the Capital Final Estimate and two signed copies of the Contractor Final Estimate with the final report attached.
The Final Payment shall be generated by Central Office Capital Accounting when all the requirements of C&MS section 109.12 have been fulfilled and the FHWA final voucher is issued.
In the event the District cannot obtain all the required documentation and judges that the Contractor cannot supply these documents, the District will refer the project to the Division of Construction Management for an Administrative Closing.
The Administrative Closing referral will consist of:
1. The signed final estimate copies, if available.
2. The finalization documents that were received.
3. Written explanation of why the Contractor cannot provide the required documents.
4. Written explanation and documentation of the efforts the District has made to obtain these documents.
The Division of Construction Management will perform Technical Process Reviews (TPR’s) of the District project files to assure proper finalization of projects.
4. Final Estimate Letter.
The Engineer is responsible for the electronic approval of their project's estimate on each estimate day. Before this approval takes place at the project level, the Engineer must ensure that:
· The pay quantities and delivered material quantities entered into SiteManager are correct.
· Any liquidated damages due to failure to meet an interim completion date are entered into SiteManager.
· Any pay item deficient in material approval and not eligible for override is deleted from the estimate.
· An executed Contractor Progress Payment Certification CA-D-11 form is obtained from the Contractor.
With respect to delivered materials, payment is allowed in accordance with Section 109.07 of the C&MS and ORC Section 5525.19. Payment is limited to approved, durable items that have a significant value in comparison to the total price of the contract and shall not be in excess of what is required to do the contract work. The unit costs allowed are the invoiced material costs and any reasonable delivery charges less any contractor's discounts. The allowed unit cost shall not exceed the applicable contract unit price. Delivered material invoices shall be kept in the project file. Costs for stockpile materials may be established by documents other than invoices.
Payment for approved materials outside the vicinity of the project may be made if it is determined that it is not practicable to deliver the material to the project site. This should apply to only bulky material that represents approximately $5,000 or more for related items of work. For small projects, payment for materials less than $5,000 may be made at the discretion of the District Construction Administrator. These materials are intended to include, but not be limited to guardrail, fence, aggregates, structural steel, precast concrete, light/strain poles, etc. Materials that have established shelf life or are temperature susceptible shall be protected in accordance with the manufacturer's recommendations. Small warehouse items shall not be included. Certain additional requirements must also be met before payment of delivered material off the project takes place.
· The storage site of the material must be approved and documented in writing. This can be performed by the project personnel or other ODOT individuals (in cases where it is more practical for other Districts or Central Office Plant Inspectors to perform the inspection and provide the documentation).
· The material must meet the same level of approval at the storage site as that required of material at the project.
· The existence of the stored material must be verified and documented provided that it is designated or reserved for the particular project. This can also be performed by personnel from another District or Central Office when warranted by the location of the material.
· Payment for off-site storage of material must also be supported by invoices kept on file in the project records.
Liquidated damages due to the failure of the Contractor to meet the project completion date are automatically accounted for by SiteManager. The Engineer must, however, enter into SiteManager any liquidated damages as a result of failure to meet an interim completion date, such as a road closure limitation required by the plan notes. This is performed by entering the dates subject to liquidated damage and the amount per day into the Contractor Adjustments tab in SiteManager. Both automatic and manual Liquidated Damages are then saved for inclusion into the estimate total. SiteManager automatically checks to see if enough materials have been reported, approved, and entered into SiteManager to cover the amount paid at the time the estimate was generated. If a deficiency occurs, the project shall make every effort necessary to resolve the deficiency issues as soon as possible. SiteManager automatically checks to see if prime contractor payrolls have been submitted in a timely manner. When deficiencies occur the project will check with the District Prevailing Wage Coordinator and resolve any deficiencies as soon as possible. Consult the SiteManager Construction Administration Business Rules for resolving the material or payroll deficiencies. Once the Engineer has determined all the above has been accomplished, electronic approval of the estimate at the project level can take place. This is accomplished in the Contractor Payments tab and Estimates tab in SiteManager. The estimate is now ready for the District Level Approval.
District Level Approval is the responsibility of the DCA or back-up person. Before this level of approval takes place, all deficiencies should be resolved. .
The DCA or back-up person can now approve the estimate. This is accomplished in the Contractor Payments tab and Estimates tab in SiteManager. The estimate is now automatically forwarded to the Office of Accounting in Central Office for further processing and payment to the prime contractor.
In determining the proper method of measurement for a particular item of work encountered on a project, several sources of information exist. Section 109.01 of the C&MS provides general information for the determination of various units of measurement. These include items measured by weight, those measured by cubic meter (cubic yard), and those measured by the liter (gallon). In addition, specific information can be found for every listed pay item with few exceptions. Every item number in the C&MS contains a unique section entitled, "Method of Measurement," which provides this specific information. For example:
605.08 Method of Measurement. The Department will measure Unclassified Pipe Underdrains, Shallow Pipe Underdrains, Deep Pipe Underdrains, Base Pipe Underdrains Construction Underdrains, Rock Cut Underdrains, and Prefabricated Edge Underdrains by the number of feet (meters) completed and accepted in place, measured from end to end of each run.
The Department will measure Aggregate Drains by the number of feet (meters) completed and accepted in place, measured along the bottom of the trench.
The few exceptions includes Items 402, 403, 404, 412, 446, and 448. These are all asphalt concrete items with the method of measurement for all these items described under Section 401.21. Likewise, Section 641.12 provides the method of measurement for all the pavement stripping items (642, 643, 644, and 645). No specific section exists for Items 441, 499, 501, 502, 505, 506, 508, 510, and 623. These are all general specifications, items involving lump sum payment, or items not paid separately, but included in other items for payment.
For items of work not covered in the C&MS, other sources can be utilized to determine the proper method of measurement. Supplemental Specifications are individual documents which describe the construction and material specifications for items whose requirements are changing from year to year, are still in the development or experimental stage, or are used only occasionally. These can be identified by their 800 series number. Just like the C&MS, these Supplemental Specifications contain a unique section entitled, "Method of Measurement," which provides the specific information for measurement purposes.
Items listed as "Special," which have no item number, have specific information with respect to proper measurement. This is included in a section entitled, "Method of Measurement," and is incorporated in either the plan notes or listed in the specific proposal for the project.
Another possible source of information with respect to method of measurement is items listed "as per plan." Reference items with an "as per plan" designation have been modified in some way from what would normally be required by the Specifications, Proposal, Standard Drawings, etc. This modification will be found in a plan note within the contract plans. The project personnel must investigate these "as per plan" modifications to determine what has been changed with the item.
For those projects designed in metric units, specific information with respect to measurement can be found. Section 109.02 of the C&MS provides information with respect to metrification, along with a list of conversion factors for converting English to metric.
As per Section 109.03, "Scope of Payment" in the C&MS, payment to the Contractor for an item of work performed by the Contractor shall be full payment for furnishing all materials and performing all work under the contract in a complete and acceptable manner. The "Basis of Payment" for any item of work details that the unit bid price is full compensation for certain work and/or materials essential to that item. As such, this work and/or material will not be measured or paid for under any other pay item which may appear elsewhere in the plans or Specifications. Like "Method of Measurement" (with few exceptions), every item number in the C&MS contains a unique section entitled, "Basis of Payment," which provides specific information as to what is covered by the pay item. The following example is provided:
613.10 Basis of Payment. The Department will pay for accepted quantities at the contract prices as follows:
Item Unit Description
613 Cubic Yard Low
Strength Mortar Backfill
613 Cubic Yard Low
Strength Mortar Backfill
(Cubic Meter) (Type ___)
For items of work not covered in the C&MS, the same type sources exist. As with "Method of Measurement," item numbers in the 800 series are covered under Supplemental Specification.
Items listed as "Special" also have a unique section entitled, "Basis of Payment." These are found either in plan notes or the proposal.
"As per plan" modifications need to be investigated by the project personnel. These modifications could change the basis of payment of the particular item of work.
The purpose of this section is to explain the process by which ODOT construction contracts are closed out. We will discuss final inspections, the completion of contract requirements, the determination of the final contract value, and the issuance of the final payment and release.
Following the completion of the physical work of a project, a process to "closeout" the contract begins. This process ultimately leads to the final payment and release of the Contractor from further responsibility for the project. This process includes gaining acceptance of the project from all participating agencies, determining the final value of the contract, the completion of all remaining contract requirements, and the issuance of a final change order. It is the Department's goal that this process be completed within six months of the completion of the physical work for at least 90 percent of our projects.
Once the physical work is completed for a project there are a number of administrative contract requirements that must be completed before final payment can be issued. These requirements may differ from contract to contract and typically include the processing of various documents or the Contractor supplying certain information:
· Payroll requirements completed.
· Affidavit of Compliance.
· Final Wage Affidavit (state projects only).
· Profilometer Report.
· Concrete Core Report.
The dates on which each of these contract requirements has been satisfied are entered and recorded in SiteManager.
The Ohio Department of Transportation (ODOT) will perform a Final Inspection of all completed construction projects. The Final Inspection is typically conducted by a team that is headed by the District Deputy Director's Appointee for Final Inspection. This team shall include representatives of all local participating agencies and FHWA, when applicable, ODOT maintenance personnel, the Engineer, and the Contractor. The team will determine the need for any corrective or additional work and prepare a "Punch List" for the project. In the case of any disagreements among the team, the District Deputy Director's Appointee is empowered with final authority. The Punch List is provided to the Contractor in writing along with a specified time frame or a specified date for completion of the prescribed work. Final inspection must follow the standard procedure below and generally must include the following items:
Each District Deputy Director will designate a person as the Final Inspector for their District. The person designated as the Final Inspector will be a Professional Engineer, registered by the State of Ohio, in order to comply with 4733.17 ORC. The Final Inspector will not be the Project Engineer for the project under inspection or any other person who had daily responsibility for inspection of the work. Each District Deputy Director will designate a person meeting the same criteria as the Final Inspector, as the Back-up to the Final Inspector.
Acceptance of a project or portion of a project by the Final Inspector or Back-up and their signature on the required form C-85 will constitute acceptance by the Director.
The Division of Construction Management will foster consistent standards of Final Inspection among the various Districts by sponsoring periodic meetings of all Final Inspectors and Back-ups. The Districts shall comply with the standard procedures for final inspection of construction projects established in standard procedure below.
For ODOT administered construction contracts, the Final Inspection is a contract event to start Warranty Maintenance Periods, to relieve the Contractor of maintenance responsibilities, and to transfer maintenance responsibilities to the appropriate ODOT District or Local Public Agency (LPA). The Final Inspection of ODOT projects acknowledges receipt of the Contractor certifications of compliance with Contract conditions and work performed in a reasonably close conformity with the contract documents and consistent standards of inspection and project administration among the various Districts.
The Final Inspector and Back-up will do Partial Inspections to accept a completed significant portion of the work when such acceptance serves the mutual interests of the Contractor and Department or to start a warranty period according to the relevant warranty specification.
The Ohio Department of Transportation will perform a Final Inspection of Local Let, LPA projects to ensure general conformity with the approved plans and scope of the project in compliance with federal aid requirements.
Federal Aid Policy Guide 635.105
The District Deputy Director (DDD) is responsible for appointing personnel to perform the Final Inspections on Department and LPA projects. This inspection is performed by the Final Inspector as the authorized agent of the Director.
1. Each DDD shall appoint a Final Inspector and a Back-up Final Inspector to perform Final and Partial Inspections of construction projects in their District.
a. Each Final Inspector and Back-up Final Inspector shall be a Professional Engineer, registered in the State of Ohio according to 4733 ORC.
b. The Final Inspector and Back-up Final Inspector must have construction experience commensurate with the work being inspected.
c. The Final Inspector and Back-up Final Inspector must have an independent and objective view of the work. Accordingly, the P.E./P.S. shall not perform the Final Inspection.
2. The names of each Final Inspector and Back-up Final Inspector shall be submitted to the Central Office, Division of Construction Management, who will maintain a list of Final Inspectors and will verify their qualifications.
Near the completion of the work, the P.E./P.S. shall create an Engineer’s Punch List, in writing, of items not yet completed or requiring correction. The Engineer’s Punch List must be provided to the Contractor and all items on the list must be complete before the Final Inspection.
The P.E./P.S. shall inform the Final Inspector of the end of work and the completion of the items on the Engineer’s Punch List. The Final Inspection will be performed within 10 business days of the Final Inspection Requested Date in accordance with C&MS Section 109.12. The date the final inspection is requested is entered into SiteManager as the Final Inspection Requested Date when applicable.
1. Final Inspection, as defined in C&MS 109.12:
a. The P.E./P.S. is responsible for coordinating attendance for the Final Inspection. In addition to the Final Inspector, the following people should be given an opportunity to attend the Final Inspection:
ii. District Highway Management Administrator or County Manager, in accordance with the District’s organization preferences.
iii. Any local government representative, in accordance with part VII of this procedure, if the project is LPA.
iv. FHWA, in accordance with part VI of this procedure, if the project is subject to federal oversight.
v. Other relevant personnel.
b. The Final Inspector shall review the pertinent contract documents and shall physically inspect the project.
i. District wide projects (e.g., pavement marking, guardrail, etc.) may be checked by randomly selecting sections rather than inspecting all affected routes.
ii. Particular attention must be made to the following critical items:
(1) Rideability - If the project involves new pavement, resurfacing, bridge replacement, or a bridge overlay, it must be checked to see if it meets the applicable contract surface tolerance requirements. If the surface tolerances do not meet the contract requirements, the project must not be accepted.
(2) Drainage - The pavements, a random selection of underdrains, ditches, conduits, catch basins, and other items must have positive drainage and be free of obstructions.
(3) Structures - Bridges must be checked for all items which constitute the completed structure, both above and below the deck.
(4) Erosion Control - Roadside items must be checked to see that all erosion control items have been placed or established. The project’s post construction Best Management Practices must be checked to ensure they are installed and working properly.
(5) Safety - Guardrail, end treatments, impact attenuators, lighting, pavement markings, signing, traffic signals, and other safety items must be in place, properly installed, and functioning.
iii. The Final Inspector shall also pay particular attention to items that are, by experience, known to be problematic.
c. Report of Final Inspection (Form C-85-Final).
i. The Final Inspector shall complete Form C-85-Final to document the condition of the work inspected during the Final Inspection.
(1) The Final Inspection date on the C-85-Final shall be the date the Final Inspector performs the Final Inspection. This date is entered into SiteManager when applicable.
(2) If there are no Punch List items, the Final Inspector will fill in the date that the physical work was completed on the C-85-Final. This date is entered into SiteManager when applicable.
(3) The Remarks section of the C-85 shall list Final Inspection Punch List items found during the Final Inspection.
d. The Final Inspection Punch List.
i. The Final Inspection Punch List is a list written by the Final Inspector denoting deficiencies found during the Final Inspection.
ii. There shall be only one Final Inspection Punch List on a project. Punch Lists created by local authorities or other Department personnel will have no standing unless they are included on the Final Inspection Punch List by the Final Inspector.
iii. At the Final Inspection, the Final Inspector and Contractor shall agree to a duration or date for the completion of the Final Inspection Punch List. The Final Inspection Punch List shall state:
(1) The detailed list of items and locations found deficient during the Final Inspection.
(2) The duration or date established for completion of the Final Inspection Punch List (this is the “stipulated time” denoted in 109.12.B).
(3) The statement: Failure of the Contractor to complete the Punch List items by the stipulated time will result in the assessment of fifty percent of liquidated damages in accordance with 108.07 for every day beyond the stipulated time the Punch List work remains incomplete and beyond the revised completion date.
iv. The P.E./P.S. shall notify the Final Inspector, in writing, of the satisfactory completion of the Final Inspection Punch List.
e. Report of Punch List completion.
i. When the Contractor completes the Final Inspection Punch List to the satisfaction of the P.E./P.S., the Final Inspector will complete the Report of Punch List completion.
(1) The date of Punch List completion shall be entered in SiteManager as the date of physical work completed date when applicable.
(2) Copies of the signed Form C-85 and report of Punch List completion shall be sent to the Contractor and the maintaining agency.
f. End of Contractor maintenance responsibility.
i. When the Final Inspector completes the Final Inspection and finds the work substantially complete or substantially complete with Punch List items, the Contractor’s maintenance responsibilities end on the day of the Final Inspection for the project, except for:
(1) Maintenance related to unfinished Punch List items.
(2) Defects in work that becomes known before the final estimate is paid.
(3) Specific items on projects that specify a guarantee, support, establishment period, or warranty period in accordance with the applicable specification.
ii. The District shall immediately inform the appropriate maintaining agency of the end of the Contractor’s maintenance responsibility for the project. This is particularly important when guardrail, stop signs, traffic signals, or other safety devices are part of the project.
iii. The Final Inspection does not waive any available rights of the Department nor divest the Contractor of any responsibility for compliance with the contract.
iv. If there is a project guarantee, operational support, or continued maintenance that specifies a period of establishment (e.g., traffic control equipment, grass, trees, shrubs, or vines), the Final Inspector will note this period on the C-85, but shall accept the project without regard to completion of the establishment period. The Project Engineer is responsible for the inspection at the end of specified establishment period.
2. Partial Inspection, as defined by C&MS 109.11. A Partial Inspection will only be performed following a request by the Contractor.
a. Report of Partial Inspection (Form C-85-Partial).
i. If the Final Inspector determines that the work for which Partial Inspection was made was acceptable, the Final Inspector shall complete a Form C-85-Partial to document the Partial Inspection.
(1) The Partial Inspection date on the C-85-Partial shall be the date the Final Inspector performs the Partial Inspection.
(2) The Final Inspector will fill in the work completed date for the work for which Partial Inspection was made on the C-85-Partial. This date is entered into SiteManager when applicable.
(3) The Remarks section of the C-85-Partial shall state if there were any warranty items accepted during the Partial Inspection and list the specific location and item.
ii. If the Final Inspector determines that the work for which Partial Inspection was made was unacceptable, the Contractor’s request for partial acceptance is denied and a subsequent partial inspection will not be granted.
b. End of Contractor Maintenance Responsibility.
i. When the Final Inspector completes the Partial Inspection, the Contractor is relieved of maintenance responsibilities for the items of work identified on the C-85-Partial, except for:
(1) Defective work or damage caused by the Contractor as defined by 109.11.
(2) Specific items on projects that specify a guarantee, operational support, establishment period, or warranty period in accordance with the applicable specification.
ii. The Partial Inspection does not waive any available rights of the Department nor divest the Contractor of any responsibility for compliance with the contract.
c. The District shall immediately inform the appropriate maintaining agency of the end of the Contractor’s maintenance responsibility for the items of work identified on the C-85-Partial. This is particularly important when guardrail, stop signs, traffic signals, or other safety devices are part of the Partial Inspection.
3. FHWA Notification.
a. If a project is designated as a federal oversight project, the FHWA representative shall be notified of the date of the Partial or Final Inspection and invited to participate.
b. If the project is exempt from federal oversight, FHWA shall be notified when the project has been accepted.
a. Office of Accounting.
b. Office of Construction Administration.
c. Office of Contracts.
d. County Manager.
e. Maintaining Agency.
f. District Warranty Coordinator (if warranty items).
g. FHWA (if federal oversight project).
i. District LPA Coordinator (for traditional LPA projects).
j. Local Participating Agency (for traditional LPA projects).
5. For non-traditional LPA projects, the LPA will notify the Construction Monitor of the established time and date for the Final Inspection once the project is finished and corrective work items identified by the LPA are complete. The Construction Monitor will coordinate with the DCA/Designee or other ODOT/FHWA representatives, as appropriate, for attendance at the Final Inspection “walk-through” with the LPA and complete a District Construction Inspection Report marked “Final Inspection.” Final Inspection Punch List items identified shall be noted in the “Remarks/Exceptions” section of the District Construction Inspection Report and assurance of completion is the responsibility of the LPA. The LPA will supply the remaining closeout documentation to the District who will then closeout the encumbrance.
A key element of the project closeout process is the determination of the final dollar value of the construction project. This is accomplished by determining the final number of units to be paid for each item of the contract and by processing all necessary change orders, including a final change order.
In order to ensure timely closeout, it is strongly recommended that some of the activities, which will be discussed, be performed as work is completed on the project.
The Engineer is responsible for determining and preparing support documentation for the final quantity (final number of units) to be paid for every item of work contained in the construction contract. Ideally, this is accomplished progressively as the items are completed during the course of construction of the project. Once the physical work has been completed for the project, the Engineer submits all project records to the District Office for an audit. This audit is performed by the District Level Reviewer for the purpose of verifying the final quantities and ensuring that adequate documentation exists to support payment of those quantities. It is currently the Department's policy to audit a minimum of 25 percent of all projects awarded each calendar year. The District can audit additional projects at its discretion. Again, it is preferred for larger projects that the audit be performed progressively as items of work are completed and documented. The audit must be performed before a list of approved final quantities is prepared and is forwarded to the Contractor for concurrence. Once agreement with final quantities has been obtained, a change order is prepared to make any necessary adjustments between the final and original contract quantities. Any necessary pay estimates resulting from these change orders are initiated by the District Construction Office.
As discussed in earlier sections, all materials incorporated into construction projects must be approved for use. Once the work is completed for the project, an audit must be performed to ensure that sufficient quantities of material have been approved for each reported final quantity. As the final quantity audit is being performed and final quantities are approved, the quantities are reported to the District Engineer of Tests for the material audit. The District Engineer of Tests and staff review the project testing and acceptance records to ensure that sufficient materials are approved for the final quantity for every contract item. Material deficiencies are reported to the Engineer who is responsible for resolution of the deficiency. Once all material deficiencies are resolved, the District Engineer of Test generates the Letter of Certification of Materials for the project. This letter is signed by the District Engineer of Tests and the District Highway Management Administrator and is included in the final estimate package.
The project closeout process is modified as follows for projects constructed under the material acceptance process described above.
Under this policy, the Engineer prepares a material certification for the project and submits it along with the final contract quantities to the District for an audit. The final quantity documentation is audited by the District Level Review Team as described earlier. The District Engineer of Tests now only audits the Engineer’s material certification using project audit guidelines similar to those used by the District Level Review Team. Deficiencies identified by the District Engineer of Test's audit are reported to the Engineer who is responsible for their timely resolution.
The Highway Management Administrator approves the material certification, which is included in the final estimate package.
A final change order is required for every construction project. Change orders for all quantity adjustments, extra work, additional costs, price adjustment, or contract amendments must be processed prior to the issuance of the final change order. Approval of the final change order signifies that all necessary changes have been made to adjust the contract from the original bid condition to the final "as built" condition.
Following the approval of the final change order, the final estimate is prepared and processed, and the Contractor is released from any further responsibility for the project in accordance with C&MS Section 109.12.
A final estimate package is prepared for the project and includes the following items:
· Final estimate (reconciles payment to final quantities).
· Letter of Certification of Materials.
· Certification of Payroll Affidavit (100 percent State projects only).
· Letter of Acceptance from Participating Agency.
· Affidavit as to Non-Specified Materials (when applicable).
· Receiving ticket for Salvaged Materials (when applicable).
· Signed Contractor Certification Form CA-D-12.
The final report is certified by the District Construction Administrator and the District Deputy Director. The final estimate is approved by the District Deputy Director.
Once submitted, the final estimate package is audited and approved for payment. Following this approval, the District Construction Office generates a letter to the Contractor advising of the final value of the contract and of their release. This letter also serves as the Department's formal acceptance of the project.