109  ACCEPTANCE, MEASUREMENT, AND PAYMENT

109.01  Measurement of Quantities.  The Department will measure the quantities of Work and calculate payments based on the method of measurement and basis of payment provisions provided in these Specifications. When the following units of measure are specified, the Department will measure quantities as described below unless otherwise specified in the Contract Documents. The accuracy of individual pay item estimate payments will be one decimal more accurate than the unit of measure denoted for the pay item.

Lump Sum.  Not measured.  Describes payment as reimbursement for all resources necessary to complete the Work.  When a complete structure or structural unit is specified as the unit of measurement, the unit will include all necessary fittings and accessories.

Each.  Measured by the number of individual items of Work completed.

Foot (Meter).  Measured parallel to the longitudinal base or foundation upon which items are placed, or along the longitudinal surface of the item. Measured vertically to the nearest 0.1 foot (0.01 m), with a minimum vertical measurement of 1 foot (0.10 m), at each unit.

Square Yard or Square Foot (Square Meter).  Measured by a two-dimensional area method on the surface of the item.

M Square Feet.  One thousand square feet.

Cubic Yard (Cubic Meter).  Measured by a three-dimensional volume method.  Measure all “loose material” or material “measured in the vehicle” by the cubic yard (cubic meter).  Haul material “measured in the vehicle” in approved vehicles and measure in the vehicle at the point of delivery.  For this purpose, use approved vehicles of any type or size satisfactory to the Engineer, provided the vehicle’s bed is of such type that the actual contents are readily and accurately determined.  Unless all approved vehicles on a job are of uniform capacity, each approved vehicle must bear a legible identification mark indicating the specific approved capacity.  The Inspector may reject all loads not hauled in such approved vehicles.

Cubic Yard (Cubic Meter) for Asphalt Concrete.  Measure as specified in 401.21.

Acre (Hectare).  Measured by a two-dimensional area method on the surface to the nearest 0.1 acre (0.05 ha).

Pound (Kilogram).  Measured by actual item net weight avoirdupois (mass).

Ton (Metric Ton).  The term “ton” means the short ton consisting of 2000 pounds avoirdupois.  The term “metric ton” means 1000 kilograms.  Weigh all materials that are proportioned by weight on accurate and approved scales that are operated by competent, qualified personnel at locations approved by the Engineer.  However, car weights will not be acceptable for materials to be passed through mixing plants.  If trucks are used to haul material being paid for by weight, weigh the empty truck at least once daily and as the Engineer directs and only if the weight of the truck is used in determining the ticket weight.  Place a plainly legible identification mark on each truck bearing the weight of the truck.

For Work on a tonnage basis, file with the Engineer receipted freight bills for railroad shipments and certified weight-bills when materials are received by any other method, showing the actual tonnage used.  For Work on a volume basis, itemize evidence of the volume used.

Gallon (Liter).  Measured by actual item liquid volume.  The Department will measure the following materials by the gallon (liter) at the following temperatures:

 

Temperatures

Items

60 °F (16 °C)

Creosote for Priming Coat, Creosote Oil, Creosote Solutions for Timber Preservatives, Asphalt Primer for Water-proofing, and Liquefier

100 °F (38 °C)

RC, MC Asphalt Emulsions, CBAE, Primer 20, and Primer 100

300 °F (149 °C)

Asphalt Binder

 

Measure tank car outage of asphalt material at its destination before any material has been removed from the tank car according to Supplement 1060.

Convert the net weight of asphalt material shipments to gallons (liters) at the specified pay temperature according to Supplement 1060.

Convert the gallons (liters) at the measured temperature to gallons (liters) of asphalt material at the specified pay temperature according to Supplement 1060.

M Gallon.  One thousand gallons.

Thousand Board Feet, MBF (Cubic Meter).  Measure timber by MBF (cubic meter) actually incorporated in the structure.  Base the measurement on nominal widths, thicknesses, and the extreme length of each piece.

Standard Manufactured Items.  When standard manufactured items are specified such as fence, wire, plates, rolled shapes, pipe conduit, etc., and these items are identified by size, unit weight, section dimensions, etc., such identification will be to nominal weights or dimensions set by the industry.

109.02  Measurement Units.  The Department will measure using either English or metric units as indicated in the Contract Documents.  Use the Tables 109.02-1 and 109.02-2 to convert units when required.  If Tables 109.02-1 and 109.02-2 do not provide a required factor, then use the appropriate factor provided in the IEEE/ASTM SI 10.

Table 109.02-1  English to SI (Metric) Conversion Factors

Symbol

When You Know

Multiply By

To Find

Symbol

Length

mil

mils

25.4

micrometers

µm

in

inches

25.4

millimeters

mm

ft

feet

0.3048

meters

m

yd

yards

0.9144

meters

m

mi

miles

1.609347

kilometers

km

Area

in²

square inches

645.16

square millimeters

mm²

ft²

square feet

0.09290304

square meters

yd²

square yards

0.8361274

square meters

ac

acres

0.4046873

hectares

ha

ac

acres

4046.873

square meters

mi²

square miles

2.589998

square kilometers

km²

Volume

fl oz

fluid ounces

29.57353

milliliters

mL

gal

gallons

3.785412

liters

L

ft³

cubic feet

0.02831685

cubic meters

yd³

cubic yards

0.7645549

cubic meters

Mass

oz

ounces

28.34952

grams

g

lb

pounds

0.4535924

kilograms

kg

T

2000 pounds

0.9071847

metric tons

t

Temperature

°F

Fahrenheit

C = (F-32)/1.8

Celsius

°C

Illumination

fc

foot-candles

10.76391

lux

lx

fl

foot-lamberts

3.426259

candelas per
square meter

cd/m²

Force and Pressure or Stress

lbf×ft

pounds-force foot

1.355818

newton meter

N×m

lbf

pounds force

4.448222

newtons

N

lbf/ft²
(psf)

pounds force per
square foot

47.88026

pascals

Pa

lbf/in²
(psi)

pounds force per
square inch

0.006894757

megapascals

MPa

 

Table 109.02-2  SI (Metric) to English Conversion Factors

Symbol

When You Know

Multiply By

To Find

Symbol

Length

µm

micrometers

0.03937

mils

mil

mm

millimeters

0.03937

inches

in

m

meters

3.28084

feet

ft

m

meters

1.093613

yards

yd

km

kilometers

0.62137

miles

mi

Area

mm²

square millimeters

0.00155

square inches

in²

square meters

10.76391

square feet

ft²

square meters

1.19599

square yards

yd²

ha

hectares

2.4710437

acres

ac

square meters

0.000247

acres

ac

km²

square kilometers

0.3861

square miles

mi²

Volume

mL

milliliters

0.033814

fluid ounces

fl oz

L

liters

0.264172

gallons

gal

cubic meters

35.31466

cubic feet

ft³

cubic meters

1.30795

cubic yard

yd³

Mass

g

grams

0.035274

ounces

oz

kg

kilograms

2.204622

pounds

lb

t

metric tons

1.1023114

2000 pounds

T

Temperature

°C

Celsius

F = 1.8C + 32

Fahrenheit

°F

Illumination

lx

lux

0.09290304

foot-candles

fc

cd/m²

candelas per
square meter

0.29186352

foot-lamberts

fl

Force and Pressure or Stress

N×m

newton meters

0.7375621

pounds-foot force

lbf ft

N

newtons

0.22480892

pound force

lbf

Pa

pascals

0.02088543

pounds force per
square foot

lbf/ft²
(psf)

MPa

megapascals

145.03774

pounds force per
square inch

lbf/in²
(psi)

 

109.03  Scope of Payment.  Payment of the Contract Price is full compensation for all resources necessary to complete the Contract Item and maintain the Work. Assume liability for risk, loss, damage, or expense resulting from the Work.  The Contract Price and Contract Time shall only be changed by written Change Order or as determined by the Department in writing in accordance with the contract documents.

109.04  Compensation for Altered Quantities, Eliminated Items or Termination of the Contract for Convenience of the Department.  If the agreed quantities of contract items vary from the quantities in the Contract, the Department will make payment at the original Contract unit prices for the agreed quantities of Work. 

A.      If an item is eliminated in accordance with 104.02.E or the contract is terminated in accordance with 108.09 the Department will pay the following in addition to that provided by 104.02.D:

1.      Restocking charges supported by paid invoices and an additional 5 percent markup on the compensation for overhead and profit.

2.      The cost of material transferred to the Department or a local government agency in lieu of restocking or disposal.  The allowed compensation is the paid invoice cost plus 15 percent markup, but no more than the unit bid price for the reference number involved.

3.      Hauling costs, if not included in restocking charges, for returned material and for material delivered to the Department.

B.      If the project is terminated for convenience of the Department, the Department will negotiate compensation with the Contractor for actual costs incurred as a result of the termination. The Department will pay for Extra Work as stipulated in approved Extra Work Change Orders or written authorizations subject to the limitations set forth in ORC 5525.14.  Such authorizations for emergencies and to avoid Project delays are in advance of an approved Extra Work Change Order and commit the Department only to the terms of the authorizations.  The Department will pay for Extra Work after the approval of the subsequent Change Order.

109.05  Changes and Extra Work. 

A.      General.  If the Department revises the Contract under: 104.02, 105.07, 105.10, 105.13, 107.10, 107.14, 107.15, 108.09, 109.06, or 109.07, the Department will pay for changes and Extra Work with a Change Order using the sequence specified in 109.05.B through 109.05.E.

In establishing the method of payment for contract changes or extra work orders, force account procedures shall only be used when strictly necessary, such as when agreement cannot be reached with the contractor on the price of a new work item, or when the extent of work is unknown or is of such character that a price cannot be determined to a reasonable degree of accuracy. The reason or reasons for using force account procedures shall be documented.

Unless otherwise stated in 109.05, the compensation provided in 109.05.B through 109.05.E constitutes payment in full for all changes and Extra Work completed by original Contract Price, agreed unit price, agreed lump sum price, and for work performed on a force account basis, including:

1.      Administration.

2.      Superintendence.

3.      Project and field office overhead.

4.      Home office overhead.

5.      Use of tools and equipment for which no rental is allowed.

6.      Profit.

7.      Taxes other than sales tax.

8.      Premiums on insurance including additional premiums for Commercial General Liability Insurance required by 107.12.B and any additional coverage carried by the Contractor or subcontractor, excluding pollution and railroad General Liability Insurance.  The Department will pay the Contractor’s pollution and railroad liability insurance premiums, if required by the contract, by a separate Change Order for the cost of the premium without any markup.  When the Contractors or subcontractors basic rate for General Commercial Liability Insurance required by 107.12.B is greater than 5 percent of payroll, the Department will pay directly without markup the portion of the premium in excess of 5 percent and provide copies of paid premiums.

Sales tax will not be allowed on any item for which tax exemption was obtained.

B.      Negotiated Prices.  Negotiated prices for changes and Extra Work shall be comparable to prices that would have resulted from a competitive bid contract.  The Engineer and Contractor will negotiate agreed unit or lump sum prices using one or more of the following methods:

1.      Original Contract prices for similar work but adjusted for:

a.      increased or decreased material costs specified in 109.05.C.3.

b.      increased or decreased labor costs specified in 109.05.C.2

c.      increased or decreased equipment costs specified in 109.05.C.4

 

Adjustments of these prices for inflation or markup for subcontractor work is not allowed.

2.      State-wide average unit price awarded for the item or items as listed in the Department’s annual “Summary of Contracts Awarded.”  These prices may be adjusted for inflation using factors issued by the Office of Construction Administration.  No markup for subcontractor work is allowed.

3.      Average price awarded on three different projects of similar work and quantity.  These prices may be adjusted for inflation using factors issued by the Office of Construction Administration.  No markup for subcontractor work is allowed.

4.      Prices computed by the Office of Estimating.

5.      Cost analysis of labor, material, equipment, and markups as allowed in 109.05.C.

6.      For the cost of compensable delays as defined in 108.06, prepare a cost analysis as allowed by 109.05.D.

Provide proposed pricing and cost justification for changes or Extra Work within 5 business days after the Department’s request.  The Department will respond within 5 business days after receipt of the Contractor’s proposal.  The Department and the Contractor can mutually agree to extend these 5-day time limits.

If the Department negotiates with the Contractor but does not agree on a price adjustment, the Engineer may direct the Contractor to perform all or part of the revised Work under force account. 

C.      Force Account.

1.      General.  The Engineer may direct the Contractor to perform the revised Work under force account.  Submit a written proposal and estimated costs for the Work, including the planned equipment, materials, labor, a work schedule.

The Department will pay the Contractor as specified in 109.05.C as full compensation for performing the force account Work.  The Project and Contractor personnel will document the labor and equipment used on the force account work on a Daily Force Account Record.  At the end of each Workday, the Project and Contractor personnel will compare and sign the Daily Force Account Record. The Department will make no force account payment before the Contractor submits an itemized statement of the costs for that work.

The Engineer will examine and, if found to be acceptable, approve all rates and costs submitted by the Contractor.

Provide the following content in itemized statements for all force account work:

a.      Name, classification, date, daily hours, total hours, rate, and amount for all labor.

b.      Designation, dates, daily hours, total hours of actual operation and idle time, Blue Book rate with reference or category, and amount for each unit of equipment and the applicable Blue Book hourly operating cost for each unit of equipment and invoices for all rental equipment.  The designation includes the manufacturer’s name or trademark, model number, and year of manufacture.

c.      Quantities of materials and prices.

d.      Transportation charges on materials, free on board (F.O.B.) at the job site.

e.      Cost of workers’ compensation insurance premiums, all applicable insurance premiums, unemployment insurance contributions, and social security tax and fees or dues required by a collective bargaining agreement.  Express each of these items of cost as a percentage of payroll, except fees or dues, which should be expressed as a cost per hour.

f.       Documentation showing payment for all surveying, professional, or similar specialized Work not normally a part of a Department contract.

g.      If materials are taken from Contractor’s stock and original receipted invoices for the materials and transportation charges do not exist, provide an affidavit and certify all of the following:

(1)     The materials were taken from the Contractor’s stock.

(2)     The quantity shown was actually used for the force account work.

(3)     The price and transportation costs represent the actual cost to the Contractor.

h.      Documentation showing payment to trucking firms and owner-operators.  Submit documentation showing owner-operations status.  When the trucking is subject to prevailing wage, submit payroll and equipment usage records according to 109.05.C.1.a, 109.05.C.1.b, and 109.05.C.1.e.

i.       Provide “receipted invoices” for all costs substantiated by an invoice. 

If only part of the expenditure represented by an invoice is applicable to force account work, or if the invoice represents expenditure for more than one item of work, clearly indicate the actual amount of expenditure applicable to each item of work. 

2.      Labor.  The Department will pay the wages and fringe benefits currently in effect for each hour the Work is performed by all labor employed in the Work and all foremen in direct charge of the specific operation.  The Department will pay an additional 38 percent markup on these wages and benefits.  “Fringe benefits” are the actual costs paid to, or on behalf of, workmen by reason of health and welfare benefits, pension fund benefits, or other benefits, when such amounts are required by prevailing wage laws or by a collective bargaining agreement or other employment contracts generally applicable to the classes of labor employed on the Project.

The Department will pay the actual itemized cost, without markup, of the following payroll taxes and legally required insurances:

a.      Social Security Tax.

b.      Medicare Tax.

c.      Ohio Workers’ Compensation Premiums.

d.      State and Federal Unemployment Insurance.

e.      Longshore and Harborworkers’ Compensation Insurance for work from a barge or ship, or unloading material from a barge or ship.

Provide itemized statements in addition to the documentation requirements for all labor including the name, classification, date, daily hours, total hours, rate, and amount.  If any person is paid more than the one rate, a separate listing shall be made for that person for each rate paid.  Provide itemized statements for  Ohio Workers’ Compensation insurance premiums, all applicable insurance premiums, State and Federal Unemployment Insurance contributions, and Social Security Tax and fees or dues required by a collective bargaining agreement.  Express each of these items of cost as a percentage of payroll, except fees or dues, which shall be expressed as a cost per hour.

Instead of itemizing the cost of Social Security Tax, Ohio Workers’ Compensation, and State and Federal Unemployment Insurance, the Contractor may elect to receive as compensation for these payroll taxes and premiums, an amount equal to 22 percent of the paid wages.  If the Contractor pays fringes directly to the worker in lieu of paying into a fringe benefit program, then the Department will treat these fringe payments as paid wages when calculating the allowed 22 percent compensation.

The Department will pay, without markup, the actual itemized cost of fees and dues paid to labor unions or to business associations when they are based on payroll hours and required by a collective bargaining agreement.

The Department will not pay for wages or benefits for personnel connected with the Contractor’s forces above the classification of foreman that have only general supervisory responsibility for the force account work.

If the foreman or timekeeper is employed partly on force account work and partly on other work, the Contractor shall prorate the number of hours between the force and non-force account work according to the number of people on each task as shown on payrolls.

The Department will pay the prevailing wage and fringe rates that apply to the Project for the classifications required for Extra Work.  The Contractor must provide payroll records for pay rates higher than the prevailing wages and establish that the higher than prevailing rates are paid for original Contract Work.  The Department will pay for foremen and time keepers not covered by prevailing wages not more than the salaried rate they receive when engaged in original Contract Work.

The Department will pay actual costs for subsistence and travel allowances when such payments are required by the collective bargaining agreement or other employment contracts applicable to the classes of labor employed on the Project.  The Department will not pay a percent markup on these costs.

3.      Materials.  The Department will pay the Contractor’s actual invoice costs, including applicable taxes and actual freight charges, for Engineer approved materials the Contractor uses in force account Work.  The Department will pay an additional 15 percent markup on these costs.

Freight or hauling costs charged to the Contractor and not included in unit prices shall be itemized and supported by invoices.  The cost of owned or rented equipment used to haul materials to the project is not part of the materials cost.  Such equipment, when used for hauling materials, shall be listed under cost of equipment.

Provide itemized statements in addition to the documentation requirements for all equipment including the quantity and price of each material and transportation charges free on board (F.O.B.) at the job site.  Attach invoices to support the quantities of materials used, unit prices paid and transportation charges.     If the Contractor uses materials from the Contractor’s stock and original receipted invoices for the materials and transportation charges do not exist, the Department and the Contractor will agree on a price that represents the actual cost to the Contractor.  Provide an affidavit and certify all of the following:

a.      The materials were taken from the Contractor’s stock.

b.      The quantity shown was actually used for the force account work.

c.      The price and transportation costs represent the actual cost to the Contractor.

Do not incorporate materials into the Work without a price agreement.

4.      Equipment.

a.      General.  The Department will pay the Contractor’s costs for equipment the Engineer deems necessary to perform the force account work for the time directed by the Engineer or until the Contractor completes the force account Work, whichever happens first.  The Department will pay the Contractor the established rates for equipment only during the hours that it is operated, except as otherwise allowed elsewhere in these Specifications.  The Department will pay for non-operating hours at the idle equipment rate as specified in 109.05.C.4.c.  Report equipment hours to the nearest 1/2 hour.  The established equipment rates in these Specifications include compensation for overhead and profit except as otherwise specified.

The Department will pay for use of Contractor-owned equipment the Engineer approves for force account Work at established rates.  The Department will pay the rates, as modified in 109.05.C.4.b, given in the Rental Rate Blue Book for Construction Equipment (Blue Book) published by Equipment Watch, a unit of Interec Publishing, a PRIMEDIA Company.

Provide, and the Engineer will confirm, the manufacturer’s ratings and manufacturer-approved modifications required to classify equipment for rental rate determination.  For equipment with no direct power unit, use a unit of at least the minimum recommended manufacturer’s rating.

The Department will not pay rental for small tools or equipment that show a daily rate less than $5.00 or for unlisted equipment that has a value of less than $400.

Tool trucks will be allowed for compensation if they are used at the force account site.  Only the tools used from the tool truck will be allowed for compensation.  Tools in the tool truck that are not used in the force account work will not be compensated.  A tool trailer that remains at the Contractor’s office or yard will not be allowed on the force account work.  Tool trailers that are taken to the force account site will be allowed for compensation along with the tools used on the force account work that were taken from the trailer.

Treat traffic control devices used in Maintaining Traffic and owned by the Contractor as owned equipment.  Allowed rates for common traffic control devices and concrete barrier that are not listed in the Blue Book will be as determined by the Department.

Use Engineer approved equipment in good working condition and providing normal output or production.  The Engineer may reject equipment not in good working condition or not properly sized for efficient performance of the Work.

For each piece of equipment used, whether owned or rented, provide the Engineer with the following information:

(1)     Manufacturer’s name or trademark.

(2)     Equipment type.

(3)     Year of manufacture.

(4)     Model number.

(5)     Type of fuel used.

(6)     Horsepower rating.

(7)     Attachments required, together with their size or capacity.

(8)     All further information necessary to determine the proper rate.

(9)     Dates, daily hours, total hours of actual operation and idle time,

(10)  Blue Book rate with reference or category,

(11) Amount

(12)  Applicable Blue Book hourly operating cost

(13)  Invoices for all rental equipment.

 

b.      Hourly Owned Equipment Rates.  The base rate for the machine and attachments represent the major cost of equipment ownership, such as depreciation, interest, taxes, insurance, storage, and major repairs.  The hourly operating rate represents the major costs of equipment operation, such as fuel and oil lubrication, field repairs, tires, expendable parts, and supplies.

For all equipment used on force account work, determine, and have the Department confirm, the hourly owned equipment rates as follows:

HOER = [RAF * ARA * (R / 176)] + HOC

 

Where:

                HOER =  hourly owned equipment rate

                    RAF =  regional adjustment factor shown in the Blue Book

                    ARA =  age rate adjustment factor shown in the Blue Book

                          R =  current Blue Book monthly rate

                   HOC =  estimated hourly operating cost shown in the Blue Book

 

However, compensation for equipment normally used on a 24 hours per day basis will not exceed the monthly rate plus adjustments and operating costs.

The rate adjustment factor assigned to any attachment will be the yearly factor as determined for the base equipment.

When multiple attachments are included with the rental equipment, only the attachment having the highest rental rate will be eligible for payment, provided that the attachment has been approved by the Engineer as being necessary to the force account Work.

When a piece of owned equipment is not listed in the Blue Book, use the rate for similar equipment found in the Blue Book or use 6 percent of the purchase price as the monthly rate (R) and add the hourly operating rate found in the Blue Book for similar equipment of the same horsepower.

For equipment brought to the Project exclusively for force account work and on the Project for less than a month, multiply the monthly rate (R) by the factor listed below:

Table 109.05-1

Working Hours

Factor

Less than or equal to 8.0

2.00

8.1 to 175.9

2.048 - (hours/168)

176 or greater

1.00

 

The term “WORKING HOURS,” as used in Table 109.05-1, includes only those hours the equipment is actually in operation performing force account work; apply the factor, as determined above, to these actual working hours only.  Calculate compensation for any idle time according to 109.05.C.4.c without application of the factor.

The Department will pay as working equipment for the entire Workday equipment used intermittently during the Workday.  The following criteria qualify for intermittently used equipment:

(1)     Equipment dedicated to the force account exclusively all day and not used on bid work.

(2)     Equipment works before and after the intermittent idle period and its total working time during the Workday is at least 2 hours.

Equipment that is captive to the force account work (i.e.  it must remain at the force account site),  but does not qualify for intermittently used owned equipment, is paid as idle equipment according to C&MS Section 109.05.C.4.c. for the time it is not working.

c.      Hourly Idle Equipment Rate.  For equipment that is in operational condition, on site, and necessary for force account Work, but is idle, the Department will pay an hourly idle equipment rate.  The procedure to determine the hourly idle equipment rate for Contractor owned equipment is as follows:

HIER = RAF * ARA ´ (R / 176) ´ (1/2)

 

Where:

              HIER =  Hourly idle equipment rate.

               RAF =  Regional adjustment factor shown in the Blue Book.

               ARA =  Age rate adjustment factor shown in the Blue Book.

                   R =  Current Blue Book monthly rate.

 

If rented equipment necessary for force account work is idle, the Department will pay the Contractor for the actual invoiced rates prorated for the duration of the idle period.  The actual invoiced rates must be reasonably in line with the Blue Book rates and approved by the Engineer.  The Department will pay a 15 percent markup for overhead and profit for the actual invoiced rates during the idle period.

The Department will not pay idle owned equipment costs for more than 8 hours in a 24-hour day or 40 hours in a week.

The Department will not pay for inoperable equipment.

The Engineer may order specific equipment to the site up to 5 days before its planned usage.  If this equipment is not used for other work, the Department will pay for it as idle equipment until used.

The Department will pay for the cost of idle owned or rented equipment when the Work was suspended for the convenience of the State.  The Department will not pay the cost of idle equipment when the Work was suspended by the Contractor for the Contractor’s own reasons.

The Department will only pay for the number of Calendar Days during the existence of the suspension.  The Department will not compensate the Contractor for days that the Engineer determined were lost to weather.

The Department will only pay for equipment physically located at the Project site that was received to prosecute the scheduled work during the delay.

Compensation for idle equipment will stop at the completion of the force account Work or at the end of the suspension of Work.

d.      Rented Equipment.  The Department will pay a 15 percent markup for overhead and profit for all rented equipment, its corresponding Blue Book hourly operating costs, and State and Local sales taxes.

(1)     Equipment Rented Solely for Force Account Work.  If the Contractor rents or leases equipment from a third party exclusively for force account Work, the Department will pay the actual invoiced amount.  The actual invoiced rates must be reasonably in line with the Blue Book and approved by the Engineer.  The Department will pay a 15 percent markup for overhead and profit for all rented equipment paid for by the actual invoices.  Add the Blue Book hourly operating cost to the marked up actual invoiced rates.

(2)     Equipment Rented for Original Contract Work, but Used for Force Account Work.  If the Contractor uses rented equipment currently on the Project for original Contract Work to perform force account Work, then determine the hourly outside-rented equipment rate as follows:

HRER = (HRI  * 115%) + HOC

 

Where:

                 HRER =  hourly rented equipment rate

                      HRI =  hourly rental invoice costs prorated for the actual number of hours that rented equipment is operated solely on force account work.  Use a monthly invoice rate divided by 176, a weekly invoice rate divided by 40, or a daily invoice rate divided by 8.

                   HOC =  hourly operating cost shown in the Blue Book

 

The Department will not compensate for rental rates that exceed the Blue Book rates unless approved in advance of the Work by the Engineer.

e.      Moving of Equipment.  The Department will also pay for the time required to move needed equipment to the location of the force account work and to return it to its original location.  The Department will pay for loading and transportation costs instead of moving time if equipment is moved by means other than its own power.  Moving time back to the original location or loading and transportation costs will not be allowed if the equipment is used at the site of the force account work on contract items or related work.

The Department will consider the actual cost of transferring the equipment to the Project and returning it to the original location as an additional expense and pay for it as specified, for equipment moved on the Project exclusively for force account work.

The Engineer will confirm the original location of the equipment before the Contractor moves and uses it for force account work.

If the equipment is transported by a common carrier, the allowance is the invoiced amount paid for the freight plus 15 percent.  However, if the Contractor’s forces transport the equipment, the allowable compensation will be Blue Book rate of the hauling unit and hourly Blue Book operating cost plus the driver’s wages and the cost of loading and unloading the equipment calculated according to 109.05.C.2.

5.      Foreman’s Transportation.  The Department will pay the Blue Book rate for every hour the foreman’s truck is on the force account site or moving to or from the site.  This rate includes equipment cost, fuel and lubricants, overhead, profit, and mobile phone or two-way radios.

6.      Subcontract Work.  For Work performed by an approved subcontractor, the Department will pay an amount to cover administrative costs pursuant to Table 109.05-2. No additional mark-up is allowed for work of a sub-subcontractor or trucking services employed by a subcontractor.

Table 109.05-2

Subcontractor Force Account Costs

Mark-up Amount

(109.05.C.2 through 109.05.C.5)

 

Up to $10,000

$500

$10,001 to $500,000

5% of  Subcontractor Force Account Costs

Over $500,000

$25,000 + 2.5% of Subcontractor Force Account amount over $500,000 to a maximum of $37,500

 

7.      Final Adjustment to Premium for Contract Bonds.  The final bond premium amount for the payment and performance bonds will be computed based on the actual final contract value.  For the purpose of computing a bond premium adjustment the actual final contract value is defined as the whole sum of money, excluding any bond premium adjustment, which is passed from the department to the contractor as a result of the completion of the Work.  If the actual final contract value is different from the original contract value, the premium shall be adjusted accordingly; either by refund of part of the original bond premium by the contractor if the original contract value is larger than the actual final contract value; or by payment of additional bond premium by the department if the original contract value is smaller than the actual final contract value.  Additional payment by the department or refund by the contractor will be based on the difference between the invoiced bond premium for the original contract value and the invoiced bond premium for the actual final contract value without any markup.  A final bond premium adjustment will not be made when the actual final contract value differs from the original contract value by less than $ 40,000.00.

8.      Trucking.

a.      Trucking that is not subject to prevailing wage will be paid at the invoiced cost plus administrative costs pursuant to Table 109.05-3.

Table 109.05-3

Trucking Invoice Costs

Mark-up Amount

Up to $10,000

$500

$10,001 to $500,000

5% of  Invoice Costs

Over $500,000

$25,000 + 2.5% of invoice amount over $500,000 to a maximum of $37,500

 

b.      Trucking that is subject to the prevailing wage law will be compensated according to 109.05.C.1, 109.05.C.2, 109.05.C.4, 109.05.C.6, 109.05.C.10, and 109.05.C.11.

Provide documentation showing payment to trucking firms and owner-operators and owner-operations status.  When the trucking is subject to prevailing wage, submit payroll and equipment usage records according to 109.05.C.2 and 109.05.C.4.

9.      Professional and Specialized Work.  The following work, when performed by a firm hired by the Contractor, is paid at the reasonable and fair market invoiced cost plus a 5 percent markup.  The markup is limited to $10,000 for all the work performed by the firm.

a.      Surveying.

b.      Engineering design.

c.      Specialized work that is not normally part of a Department Contract and is not normally subject to prevailing wage.

d.      Installation, periodic maintenance, and removal of traffic control devices under Item 614 performed by a traffic control service or rental company, provided the workers are not on the Project full-time. Maintenance of Traffic services performed by LEO.

e.      Other professional or specialized work not contemplated at the time of Bid.

Provide documentation showing payment for professional and specialized Work.

10.    Payment for Force Account Work.  Submit an analysis of estimated cost prepared in accordance with 109.05.C for work that will be performed on a force account basis.  Attach an original affidavit to the analysis 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.”

The Engineer will process an Estimated Cost of Force Account (ECFA) 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.  The Engineer will process an Actual Cost of Force Account (ACFA) to make any necessary adjustment between the ECFA and the final itemized costs for the force account work.

For force account work estimated to be less than $100,000 and anticipated to require less than two weeks to perform, the Engineer will process an Actual Cost of Force Account (ACFA) at the conclusion of the work.   

Submit biweekly itemized statement of costs prepared from the Daily Force Account Records to the Engineer as the work is being performed.  The Engineer will process estimates as the force account work is performed.  Payment will only be made upon receipt of the Contractor’s itemized statement of costs.

Upon conclusion of the work performed by an ECFA or work performed by an ACFA submit an itemized statement of the actual costs prepared from the Daily Force Account Record and utilizing the Department’s electronic template titled “Electronic Force Account.”  Submit a compact disk (CD), labeled with the contractor’s name and the project number, and a hard copy of the “Electronic Force Account.”  The “Electronic Force Account” template can be downloaded from the following website: 

www.dot.state.oh.us/divisions/constructionmgt/admin/pages/default.aspx

The Engineer may approve an alternative electronic template provided all calculations and printouts are equivalent to those generated by the “Electronic Force Account” template. 

Attach an original affidavit to the hard copy 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.”

Daily Force Account Records signed by both the Department and Contractor will govern over other Department and Contractor records subject to the following:

a.      When the Contractor is subject to a Union Contract that requires a minimum number of paid hours, the compensation will be for the verified contract minimum hours.

b.      Material quantity disagreements will be resolved by field measurements of the installed quantities or the Engineer’s estimate of the amount of temporary or un-measurable material used.  The Engineer may also review and consider the Contractor’s material invoices and material certifications to make the final determination.

In the event the Contractor declines to sign the Daily Force Account Record, the Department’s records shall govern.  Any resulting dispute must be pursued in accordance with 108.06.G.

D.      Delay Costs.

1.      General.  If the Department agrees that it has caused a delay, the Department will pay for the costs specified in 109.05.D as allowed by 108.06.D, unless these costs have been previously paid as listed in 109.05.B or 109.05.C.  Such payment constitutes full compensation for any and all delay costs

The Department will make no payment for delays occurring during the period from December 1 to April 30 unless the Contractor’s approved progress schedule depicts critical Work occurring throughout this period.

The Department will not pay for delay costs until the Contractor submits an itemized statement of those costs.  Provide the content specified in 109.05.C.1, for the applicable items in this statement and as follows:

a.      Proof of cost of Superintendent, or other project staff salaries, wages, and payroll taxes and insurance.

b.      Proof of cost of office rent, utilities, land rent, and office supplies.

c.      Proof of escalated cost for labor and material.

d.      Proof of material storage costs.

2.      Allowable Delay Costs

a.      Extended Labor.  Compute labor costs during delays as specified in 109.05.C.2 for all non-salaried personnel remaining on the Project as required under collective bargaining agreements or for other Engineer-approved reasons.

b.      Escalated Labor.  To receive payment for escalated labor costs, demonstrate that the Department-caused delay forced the Work to be performed during a period when labor costs were higher than planned at the time of Bid.  Provide adequate support documentation for the costs, allowances, and benefits specified in 109.05.C.2.   The Department will pay wages and fringes with a 20 percent mark-up to cover administrative costs.

c.      Idle Equipment or Equipment Demobilization.  The Department will pay the Contractor according to 109.05.C.4.c for idle equipment, other than small tools, that must remain on the Project during the delays.  The Department will pay the Contractor’s transportation costs to remove and return equipment not required on the Project during the delays.  No other equipment costs are recoverable as a result of delay.

d.      Material Escalation or Material Storage.  The Department will pay the Contractor for increased material costs or material storage costs due to the delay. Obtain the Engineer’s approval before storing materials due to a delay. Payment will be based upon the accepted quantity of work performed during the period for which escalated costs have been approved. The Department will pay increased material costs with an 8 percent mark-up to cover administrative costs and any material waste inherent to the Work. 

e.      Field Overhead.  The Department will pay any Contractor or subcontractor for field overhead costs which include the cost of supervision, field office and office supplies, and utilities for which payment is not provided for in 109.05.D.2.f, during a delay period provided all of the following criteria are met:

(1)     The Contractor or subcontractor has incurred an excusable, compensable delay that delays the Work at least 10 Calendar Days beyond the original Completion Date.  These days are cumulative throughout the project.

(2)               The delay for which payment of field overhead is sought is only due to delays defined in 108.06.D.2, 108.06.D.3, 108.06.D.5 or for delays due to revised Work as specified in 104.02.B or 104.02.F.

The Department will pay the salary and fringes plus a 5 percent markup for field personnel identified in Table 109.05-4.

Table 109.05-4

Original Contract Amount

Field Personnel

Up to $5,000,000

One Superintendent

$5,000,001 to $50,000,000

One Superintendent,

One Assistant Superintendent or One Engineer, One Clerk

Over $50,000,000

 One Superintendent,

One Assistant Superintendent,

One Engineer,

One Clerk

 

Superintendent’s transportation is compensable at the same rate allowed for foreman’s transportation in Section 109.05.C.5, which includes the cost of mobile communication devices. The allowed hours are when the superintendent is at the project site.

Superintendent’s subsistence, provided this is the company’s terms of compensation to such employees, as documented by the Contractor’s written company policy or contracts with their employees.

The Contractor’s or subcontractor’s field office costs include field office trailers, tool trailers, office equipment rental, temporary toilets, and other incidental facilities and supplies.  Compute these costs on a Calendar Day basis.  Owned trailers are paid at the Blue Book rate.  Rented trailers are paid at the invoiced cost plus a 15 percent markup.  Rented office space, toilets, and office equipment are allowed a 5 percent markup.  Purchased office supplies are allowed a 5 percent markup.

Office utilities include, but are not limited to, telephone, electric, water, and natural gas.  Compute these costs on a Calendar Day basis and allow a 5 percent markup.

f.       Home Office Overhead.  The Department will pay the Contractor for home office overhead, unabsorbed home office overhead, extended home office overhead, and all other overhead costs for which payment is not provided for in 109.05.D.2.e, including overhead costs that would otherwise be calculated using the Eichleay formula or some other apportionment formula, provided all of the following criteria are met:

(1)     The Contractor has incurred an excusable, compensable delay that delays the Work at least 10 Calendar Days beyond the original Completion Date.  These days are cumulative throughout the project.

(2)     The delay for which payment of home office overhead is sought is only due to delays defined in 108.06.D.2, 108.06.D.3 and 108.06.D.5.

Any subcontractor that has approved C-92’s for subcontracted work totaling $4,000,000 or more is eligible for reimbursement of home office overhead provided the criteria set forth in 109.05.D.2.f.(1) and 109.05.D.2.f.(2) are met.

Payment will be made for every eligible day beyond the original contract completion date at the rate determined by 109.05.D.2.f.i.  Payment for eligible days occurring during an unanticipated construction period will be calculated in accordance with 109.05.D.2.f.ii.  Payment for eligible days occurring during an unanticipated winter period will be calculated in accordance with 109.05.D.2.f.iii.

(i)      Home Office Overhead Daily Rate

Calculate the home office overhead daily rate using the following formula:

Daily HOOP = (A * C)/B

Where:

                   A = original contract amount

                   B = contract duration in Calendar Days

                   C = value from Table 109.05-5

 

Table 109.05-5

Original Contract Amount

C

Up to $5,000,000

0.08

$5,000,001 to $25,000,000

0.06

Over $25,000,000

0.05

 

   Daily HOOP = home office overhead daily rate

 

Contract duration term, B, includes every Calendar Day from the execution of the Contract, unless otherwise specified by the Director, to the original Contract Completion Date.

When the Contractor requests home office overhead compensation for a subcontractor, use the above formula to calculate the subcontractor’s Daily HOOP; however, in the subcontractor calculation, A is equal to the subcontractor’s portion of the original contract amount as determined by the sum of all approved C-92’s issued for the subcontracted work.

(ii)    Home Office Overhead Payment for an Unanticipated Construction Period

Calculate the home office overhead payment for an unanticipated construction period occurring between May 1 and November 30 using the following formula:

CP HOOP = Daily HOOP × D

Where:

                         D = sum of all excusable, compensable delays in Calendar Days minus the sum of all delays due to 108.06.D.1 and 108.06.D.4 in Calendar Days

                         Daily HOOP = daily home office overhead rate

                         CP HOOP = home office overhead payment for an unanticipated construction period occurring between May 1 and November 30

 

The excusable, compensable delay term, D, is the additional, unanticipated extended period for work performed between May 1 and November 30 in Calendar Days.

(iii)   Home Office Overhead Payment for an Unanticipated Winter Period

Calculate the payment for home office overhead for an unanticipated winter period occurring between December 1 and April 30 using the following formula:

WP HOOP = Daily HOOP × F × D/E

Where:

                         D =  sum of all excusable, compensable delays in Calendar Days minus the sum of all delays due to 108.06.D.1 and 108.06.D.4 in Calendar Days

                         E =  sum of all excusable, compensable delays in Calendar Days plus the sum of all excusable, non-compensable delays in Calendar Days

                         F = 151 for a non leap year or 152 for a leap year

                         Daily HOOP = daily home office overhead rate

                         WP HOOP = home office overhead payment for an unanticipated winter period occurring between December 1 and April 30

 

Payment for Home Office Overhead for an unanticipated winter period will not be made when the value of the remaining work is below the lesser of $500,000.00 or 10 percent of the estimated final contract value.

(iv)   Total Home Office Overhead Payment

Calculate the total home office overhead payment using the following formula:

Total HOOP = CP HOOP + WP HOOP

Where:

      CP HOOP = home office overhead payment for an unanticipated construction period occurring between May 1 and November 30

     WP HOOP = home office overhead payment for an unanticipated winter period occurring between December 1 and April 30

   Total HOOP = total home office overhead payment

 

E.      Changes in Materials.  Changes in material specifications that result in increased cost to the Contractor are compensated by lump sum adjustment to the reference number. The allowed compensation is equal to the invoice supported material cost increase plus 15 percent markup for profit and overhead.

Material cost savings resulting from a specification change shall be credited to the project by a lump sum adjustment to the reference number plus a 15 percent markup if the originally specified material has not been ordered.

If the original material was ordered before the Contractor was informed of the change, the savings markup allowed is 2.5 percent in order to exclude profit on the original bid price and pay only for incurred overhead. 

109.06  Directed Acceleration.  The Engineer may order the Contractor to accelerate the Work to avoid delay costs or to complete the Project early.  The Director and the Contractor will negotiate acceleration costs.

109.07  Inefficiency.  The Department will compensate the Contractor for inefficiency or loss of productivity resulting from 104.02 Revisions to the Contract Documents.  Use the Measured Mile analysis comparing the productivity of work impacted by a change to the productivity of similar work performed under un-impacted conditions to prove and quantify the inefficiency.

109.08  Unrecoverable Costs.  The Contractor is not entitled to additional compensation for costs not specifically allowed or provided for in 109.05 including, but not limited to, the following:

A.      Loss of anticipated profit.

B.      Consequential damages, including loss of bonding capacity, loss of bidding opportunities, insolvency, and the effects of force account work on other projects, or business interruption.

C.      Indirect costs.

D.      Attorney’s fees, claim preparation expenses, and the costs of litigation.

109.09  Estimates.  If satisfactory progress is being made, the Contractor will receive monthly payments equaling the Work and materials in place. The monthly payment is approximate, and all partial estimates and payments are subject to correction in the Final Estimate and payment. Payment for Work and materials shall not, in any way, prevent later rejection when defective Work or material is discovered, or constitute acceptance under 109.11 or 109.12.

Except for estimates generated during Project finalization, the Department will not pay an estimate until the Contractor certifies to the Engineer that the work for which payment is being made was performed in accordance with the contract. Certification will be made on forms provided by the Department.

The Department may pay estimates twice each month if the Engineer concludes the amount of work performed is sufficient.

No estimate or payment shall be construed as acceptance of defective Work or improper materials.

The Department will not pay the adjusted final estimate until the Contractor remedies all defective Work and accepted Work damaged by the Contractor’s operations.

Interest will be paid in accordance with ORC 126.30 when warranted.

109.10  Payment for Delivered Materials.  The Department will pay, up to 75 percent of the applicable contract item, for the invoiced cost of the delivered and approved materials before they are incorporated in the Work, if the approved materials are delivered, accepted, and properly stored on the project or stored in acceptable storage places in the vicinity of the Project.

The Department will pay for the cost of approved materials before they are incorporated in the Work when asked by the Contractor, if the Engineer determines that it is not practical to deliver the material to the Project site.  This provision applies only to bulky materials that are durable in nature and represent a significant portion of the project cost, such as aggregates, steel, and precast concrete.  The Department will not pay delivered materials on small warehouse items or for plant materials.

109.11  Partial Acceptance.  Upon completion of a portion of the Work, the Contractor may request acceptance of a completed  portion of the Work. 

A.      An inspection may be performed on a completed portion of the project roadway section provided:

1.      All safety items are in place including permanent pavement markings.

2.      Traffic is in its final pattern.

3.      A completed portion of the project constitutes a completed geographic section of the project or a direction of traffic on a divided highway.

4.      Is in accordance with other contract provisions.

 

B.      An inspection may be performed on a completed bridge provided:

1.      All work on the bridge and approaches are complete, including all safety items and permanent pavement markings.

2.      The Contractor will not return to the bridge for any work except as allowed in 4.

3.      Traffic is in its final pattern.

4.      Painting of structural steel is either completed or scheduled to be performed.

5.      Is in accordance with other contract provisions.

 

The Final Inspector will grant written partial acceptance for that portion of the Work or reject the Contractor’s request.  Such written partial acceptance will designate what portion of the Work is accepted, the date of acceptance, and the warranty provisions started by the partial acceptance.

Partial acceptance will relieve the Contractor of maintenance responsibility for the designated portion of the Work.  This does not relieve the Contractor of responsibility to correct defective Work or repair damage caused by the Contractor or waive any other remedy to which the Department is entitled at law or in equity.

109.12  Final Acceptance..

A.      Final Inspection.  The Department will perform a Final Inspection for the sole purpose of relieving the Contractor of maintenance responsibility for the Work.

The Final Inspection shall be a limited visual review of the Work and shall only serve as the Department’s verification that the Work appears substantially complete.  Final Inspection does not waive any available rights or remedies of the Department, nor divest the Contractor of any responsibility for compliance with the contract or liability for damages.

Notify the Engineer when the Project is complete and all of the Engineer’s punch list items are complete.  If the Engineer agrees the Project is complete, then within 10 business days the District Final Inspector will inspect the Work and categorize it as one of the following:

1.      Unacceptable or not complete.

2.      Substantially complete with punch list items found by the Final Inspector.

3.      Substantially complete.

If the Final Inspector finds the Work substantially complete or substantially complete with punch list items, then the Contractor’s maintenance responsibilities end on the day of the Final Inspection, except for any maintenance related to unfinished punch list items.  This does not relieve the Contractor of responsibility to correct defective Work or repair damage caused by the Contractor or waive any other remedy to which the Department is entitled at law or in equity.  The Final Inspector will issue a Final Inspection Report that will document the findings of the inspection and start any warranty period.

B.      Punch List.  The Final Inspector will issue to the Contractor a written punch list of work required as a condition of acceptance.  The Final Inspector’s punch list will stipulate a reasonable time to complete the required Work.  Failure of the Contractor to complete the punch list items by the stipulated time will result in the assessment of fifty percent of the Liquidated Damages according to 108.07 for each Calendar Day for every day beyond the stipulated time the punch list work remains incomplete and beyond the revised Completion Date.

C.      Finalization.  The Contractor shall accept the final quantities as determined by the Engineer or provide a written notice indicating the reason for disagreement within 30 Calendar Days of receiving the Engineer’s list of final quantities. The prescribed 30 Calendar Day period can be modified by mutual agreement of the Contractor and the District Construction Engineer. If no notice of disagreement is received, then the final payment will be based on the Engineer’s list of final quantities.

Supply all documents necessary for Project finalization within 60 Calendar Days from the date that the Work is physically complete. These documents include:

1.      Delinquent material certifications.

2.      Delinquent certified payrolls or required revised payrolls.

3.      Wage affidavit required by ORC Chapter 4115 on projects without any Federal funding.

4.      Delinquent force account records.

5.      If applicable, DBE affidavits.

6.      Any other document required to complete finalization of the project.

Failure to submit these acceptably completed documents will result in an administrative fee of $100 per Calendar Day for every day that any of the required documents remain delinquent, starting 30 Calendar Days after receipt of written notification from the Engineer of a document deficiency.

D.      Final Payment.  Final payment is based on:

1.      The agreed final quantities or as determined by the Engineer if agreement is not possible, no compensation for unauthorized work is allowed.

2.      Finding of substantial completion  by the Final Inspector.

3.      Receipt of acceptable finalization documents.

4.      Contractor certification that the Work was performed in accordance with the contract.

E.      Completion of Contract and Continuation of Contractor’s Responsibility.  The Contract is complete, except for items covered by the required bonds, when the Contractor receives final payment.  The DCA will issue a letter confirming completion of the contract, noting any exception as provided in Items 659 and 661 and any warranty.   The date the final payment is approved by the District constitutes acceptance for the purpose of ORC 5525.16.  Neither Completion of the Contract nor substantial completion relieves  the Contractor of any responsibilities to properly perform or correct the Work or to repair damage or waives any remedies to which the Department is entitled at law or in equity.