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 126.30 and 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.
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:
·
C&MS Section 104.02,
109.03,
and 109.04.
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.
Ohio
Revised Code 126.30, 127.16, 5517.02, 5525.11, 5525.14, and 5525.99.
Code
of Federal Regulations 635.
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.
c. Price adjustments as specified in an individual pay
item’s specifications, such as, but not limited to, price adjustments specified
in C&MS Sections 401,
446,
448,
and 451 or the Proposal.
d.
Compensation for
eliminated items as provided in C&MS Section 104.02.E
and 109.04.
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.
d.
Project
termination costs in accordance with C&MS Section 109.04
when the contract is terminated for convenience of the Department under
C&MS Section 108.09.
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.
b. Basis of compensation (e.g., negotiated prices [109.05.B]
or force account [109.05.C]).
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.
6. RWCO’s:
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.
7. EWCO’s:
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:
http://www.dot.state.oh.us/Divisions/ConstructionMgt/Admin/Change%20Orders/CO_REASON_CODES.htm
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.
o
Materials.
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.
·
Acceleration.
·
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.
·
Railroads.
·
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
Classification
o
Hours worked,
regular and overtime
·
Contractor
equipment
o
Type
o
Model
o
Age
o
Capacity
o
Hours worked
o
Hours idle
·
Materials
o
Description
o
Quantity
o
Invoices
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 Revised
Code (ORC) Sections 1311.25 - 1311.32, 5525.16, 5525.18, and 5525.19
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.
b. Delivered
materials will be paid in accordance with C&MS Section 109.10
and ORC Section 5525.19. Delivered material invoices shall be kept in
the project file.
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.
Payments
withheld to satisfy liens against contract funds in accordance with ORC
Sections 1311.25 - 1311.32 will be withheld by the
Office of Accounting.
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.
1. CA-D-10: Contractor Signature Authorization.
2. CA-D-11: Contractor Progress Payment Certification.
3. CA-D-12: Contract Compliance Certification.
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
(Cubic Meter)
613 Cubic Yard Low
Strength Mortar Backfill
(Cubic Meter) (Type ___)
The few exceptions include
Items 441,
499,
and 501.
These are all general specifications dealing with asphalt concrete, concrete,
and structures.
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.
Partial and
Final Acceptance (109.11 and 109.12)
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:
i.
Contractor.
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.
(6)
Clean-up - The
project is not acceptable if clean-up in accordance with 104.04
is not complete. All borrow and waste areas must be restored in accordance with
105.16.
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.
(4)
The Form
C-85-Partial or Form
C-85-Final shall list the dates of the beginning of the warranty periods by
item and location in the Remarks section.
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.
ii. Liquidated damages can be waived as per the requirements of 108.07 and 109.12.B. if the Contractor completes the Punch List work in the stipulated time.
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.
4. For ODOT administered projects, the Final Inspector shall sign and distribute copies of the completed C-85-Partial and C-85-Final forms to:
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).
h. Contractor.
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.