Section 109 — Measurement and Payment
109.01Measurement of Work. Take and record measurements and perform calculations to determine pay quantities for invoicing for work performed. Take or convert measurements of work according to U.S. Customary measures. Unless otherwise specified, measure when the work is in -place and complete according to the contract. Measure the actual work performed, except do not measure work outside the design limits or other adjusted or specified limits (staked limits). Measure structures to the lines according to the plans or to approved lines adjusted to fit field conditions. Take measurements as described in Su bsection 109.02 unless otherwise modified by the Measurement Subsection of the Section controlling the work being performed. Measurement of quantities for payment for the individual pay items will be based on the contract price for each pay item according to Table 109-1. Table 109-1 Decimal Accuracy of Quantities for Payment
Contract Unit Price Decimal Accuracy of
Quantities for Payment
Less than $1.00 0 decimal $1.00 to $100.00 1 decimal Greater than $100.00 2 decimals Decimal precision for measurement is one decimal beyond accuracy of quantities for payment. Remeasure quantities if it has been determined that a portion of the work is acceptable, but has not been completed to the lines, grades, and dimensions shown in the plans or established by the CO. Prepare, sign, and submit measurement notes and supporting field note documentation using an approved format. Unacceptable measurement notes will be rejected and returned. Correct rejected measurement notes and resubmit. Submit measurement notes within 2 4 hours of completing work that is in- place and complete according to the contract. For on -going work, submit measurement notes weekly or as approved. When work is not complete, identify the measurement as being an interim m easurement. Submit the final measurement when the work is completed. Measurement notes form the basis of the Government’s receiving reports described in Subsection 109.08(c) . Include the following information in the measurement notes:
(a)Project number and name;
(b)Line item number, pay item number, and description;
(c)Date the work was performed;
(d)Location of the work;
(e)Measured quantity;
(f)Calculations made to arrive at the quantity;
(g)Supporting sketches and details as needed to clearly define the work performed and the quantity measured;
(h)Names of persons measuring the work;
(i)Identification as to whether the measurement is interim or final; and
(j)Signed certification statemen t by the persons taking the measurements and performing the calculations, that the measurements and calculations are correct.
109.02Measurement Terms and Definitions. Unless otherwise specified, the following terms are defined as follows:
(a)Acre. 43,560 square feet. Make longitudinal and transverse measurements for area computations horizontally. Do not make deductions from the area computation for individual fixtures having an area of 500 square feet or less.
(b)Continge nt sum. Perform only the work authorized by written order. The estimated cost of the contingent sum work is approximate and is considered the maximum cost for the required work. The quantity to be paid w ill be equivalent to the costs incurred. Submit paid invoice receipts as documentation.
(c)Contract quantity. The quantity to be paid is the quantity listed in the bid schedule. The contract quantity will be adjusted for authorized changes that affect the quantity or for errors made in computing this quantity. If there is evidence that a quantity specified as a contract quantity is incorrect, submit calculations, drawings, or other evidence indicating why the quantity is in error and request in writing that the quantity be adjusted.
(d)Cubic foot and cubic yard. Measure by one of the following methods:
(1)In place. Measure solid volumes by one of the following:
(a)Average end area method. Take cross -sections of the original ground. Use design or staked templates to d etermine end areas. Do not measure work outside of the lines or slopes established by the CO. If a portion of the work is acceptable but is not completed to the established lines and slopes, retake cross -sections or comparable measurements of that portion of the work. Use the remeasurements to calculate new end areas. Compute the quantity using the average end areas multiplied by the horizontal distance along a centerline or reference line between the end areas. Deduct quantities outside the designed or staked limits.
(b)Finite element analysis method. Use digital terrain modeling to determine the difference between existing and constructed terrain surfaces.
(2)In the hauling vehicle. Measure according to Subsection s 109.03 and 109.04. Measure the cubic yard volume in the hauling vehicle using three -dimensional measurements at the point of delivery. Use vehicles bearing a legible identification mark with the body shaped so the actual contents may be readily and accurately determined. Before use, mutually agree in writing on the volume of material to be hauled by each vehicle. Vehicles carrying less than the agreed volume may be rejected or accep ted at the reduced volume. Level selected loads. If leveling reveals the vehicle was hauling less than the approved volume, reduce the quantity of all material received since the last leveled load by the same ratio as the current leveled load volume is to the agreed volume. Payment will not be made for more than the agreed volume. Material measured in the hauling vehicle may be weighed and converted to cubic yards for payment purposes if the conversion factors are mutually agreed to in writing.
(3)In the structure. Measure according to the lines of the structure as shown in the plans, except as altered by the CO to fit field conditions. Make no deduction for the volume occupied by reinforcing steel, anchors, weep holes, piling, or pipes less than 8 inches in diameter.
(4)By metering. Use an approved metering system.
(e)Day. A 24-hour period starting and ending at midnight. Round portions of a day up to the full day.
(f)Each. One entire unit. Measure the actual number of units completed and accepted.
(g)Gallon. The quantity may be measured by the following methods:
(1)Measured volume container. Use an approved container with a verified volume.
(2)Metered volume. Use an approved metering system.
(3)Commercially -packaged volumes. Use the volume as identified on the commercially -packaged product.
(4)Measured by mass. Use an approved weighing device. When asphalt material is measured by the gallon, measure the volume at 6 0 °F or correct the volume to 6 0 °F using recognized standard correction factors.
(h)Hour. 60 minutes. Measure the ac tual number of hours ordered by the CO and performed by the Contractor. Round portions of an hour up to the next half hour. Measure time in excess of 40 hours per week at the same rate as the first 4 0 hours.
(i)Linear foot. As applicable, measure the work alo ng its length from end -to-end, parallel to the base or foundation, along the top, along the front face, or along the invert. Do not measure overlaps.
(j)Lump sum. Do not measure directly. The bid amount is complete payment for all work described in the contra ct and necessary to complete the work for that pay item. The quantity is designated as "All". Estimated quantities of lump sum work shown are approximate.
(k)M-gallon. 1000 gallons. Measure according to Subsection 109.02(g).
(l)Mil. Thousandth of an inch. Use to measure thickness.
(m)Mile. 5280 linear feet. Measure horizontally along the centerline of each roadway, approach road, or ramp.
(n)Month. A month as defined by the Gregorian calendar. Measure portions of a month by prorating based on the total days worked.
(o)Pound. Measure according to Subsection 109.03 and 109.04. If sacked or packaged material is provided, the net weight as packed by the manufacturer may be used. (p) Square foot and square yard. 1 square yard equals 9 square feet. Measurements for area computations will be made horizontally or vertically to the surface being measured. No deductions from the area computation will be made for individual fixtures having area of 9 square feet or less. Do not measure overlaps.
(q)Thousand board feet measure. 1000 board feet. Measurement equal to 1000 feet of wood that is 12 inches wide and 1 inch thick.
(r)Ton. 2000 pounds. Measure according to Subsections 109.03 and 109.04. No adjustment in a contract price will be made for variations in quantity due to differences in the specific gravity or moisture content. Use net -certified scale masses or masses based on certified volumes in the case of rail shipments as a basis of measurement subject to correction if asphalt material is lost from the car or the distributor, wasted, or otherwise not incorporated in the work. If asphalt material is shipped by truck or tran sport, net-certified masses, subject to correction for loss or foaming, may be used for computing quantities. When emulsified asphalt is converted from volume to mass, use a factor of 240 gallons per ton regardless of temperature. If the asphalt binder for asphalt concrete pavement is stored in tanks devoted exclusively to the project, base quantities on invoices. If asphalt binder for asphalt concrete pavement is not stored in tanks devoted exclusively to the project or if the validity of the quantity requested for payment is in question, base quantities on the asphalt content determined by testing.
(s)Week. A 7-day period starting and ending at the same designated time. Measure portions of a week by prorating based on the total da ys worked.
109.03Weighing Procedures and Devices. Batch masses may be acceptable for determination of pay quantities if an approved automatic weighing, cycling, and monitoring system is included as part of the batching equipment. If a weighing device is determined to indicate less than true mass, no additional payment will be made for material previously weighed and recorded. If a weighing device is determined to indicate more than true mass, material received after the last previously correct weighing accuracy test will be reduced by the percentage of error in excess of 0.5 percent. When material is proportioned or measured and paid for by mass, provide one of the following:
(a)Commercial weighing system. Use permanently -installed and certified commercial scales.
(b)Invoices. If bulk material is shipped by truck or rail and is not passed through a mixing plant, submit a supplier’s invoice with net mass or volume converted to mass. Perform check weighing as requested.
(c)Project weighing system. Provide, erect, and maintain approved automatic digital scales. Provide scales that record mass at least to the nearest 10 0 pounds. Maintain the s cale accuracy to within 0.5 percent of the correct mass throughout the calibration range of the scale. Do not use spring balances. Do not use scales mounted on non- stationary equipment. Install and maintain platform scales with the platform level with rigid bulkheads at each end. Make the platform of sufficient length to allow simultaneous weighing of all axle loads of the hauling vehicle. Coupled vehicles may be weighed separately or together according to Subsection 2.20, paragraph UR.3.3, Single -Draft Vehicle Weighing of the NIST Handbook 44, Specifications, Tolerances, and Other Technical Requirements for Weighing and Measuring Devices . Install and maintain belt- conveyor scales according to Subsection 2.21, Belt-Conveyor Scale Systems of the NIST Handbook 44, Specifications, Tolerances, and Other Technical Requirements for Weighing and Measuring Devices. Before production on the project, after relocation, and at least once per year; have the weighing portion of the system checked and certified by the State bureau of weights and measures or a private scale service certified by the bureau of weights and measures. Seal the system to prevent tampering or other adjustment after certification. Attach an automatic printer to the scale that is programmed or otherwise equipped to prevent manual override of mass information. For weighed pay quantities, program the printer to provide the following information for each weighing:
(1)Project number and name;
(2)Line item number, pay item number, and description;
(3)Date;
(4)Time;
(5)Ticket number;
(6)Haul unit number;
(7)Net mass in load at least to the nearest 10 0 pounds;
(8)Subtotal net mass for each haul unit since the start of the shift; and
(9)Accumulated total net mass for all haul units since the start of the shift. If a printer malfunctions or breaks down, the Contractor may manually weigh and record masses for up to 24 hours provided the method of weighing meets other contract requirements. Provide competent scale operators to operate the system. When platform scales are used, weigh empty haul units at least twice per day. Use an approved format for the mass records. Submit the original records and a written certification as to the accuracy of the masses at the end of each shift.
109.04Receiving Procedures. When the method of measurement requires weighing or volume measurement in the hauling vehicle, provide a person to direct the spreading and distribution of material and to record the location and placement of the material on the project. During the placement, maintain a record of each delivery and document it in an approved manner. Include the following as applicable:
(a)Project number and name;
(b)Line item number, pay item number, and description;
(c)Location where placed;
(d)Date;
(e)Load number;
(f)Truck identification;
(g)Time of arrival;
(h)Mass or volume; and
(i)Spread person’s signature. Submit the original records and a written certification of the delivery of the material at the end of each shift.
109.05Scope of Payment. Payment for contract work is provided, either directly or indirectly, under the pay items listed in the bid schedule.
(a)Direct payment. Payment is provided directly under a pay item listed in the bid schedule when one of the following applies:
(1)The work is measured in the Measurement Subsection of the Section ordering the work and the bid schedule contains a pay item for the work from the Section ordering the work.
(2)The Section ordering the work references another Section for the work and the bid schedule contains a pay item for the work from the referenced Section.
(b)Indirect payment. Work for which direct payment is not provided is a subsidiary obligation of the Contractor. Payment for such work is indirectly included under other pay items listed in the bid schedule. This includes instances when the Section ordering the work references another Section for performing the work and the work is not referenced in the Measurement Subsec tion of the Section ordering the work. Compensation provided by the pay items included in the bid schedule is full payment for performing contract work in a complete and acceptable manner. Risk, loss, damage, or expense arising out of the nature or prosecution of the work is included in the compensation provided by the pay items. Work measured and paid for under one pay item will not be paid for under other pay items. The quantities listed in the bid schedule are approximate unless designated as a contract quantity. Limit pay quantities to the quantities staked, ordered, or otherwise authorized before performing the work. Payment will be made for the actual quantities of work performed and accepted or material provided according to the contract. No payment will be made for work performed in excess of that staked, ordered, or otherwise authorized.
109.06Pricing of Adjustments. Determine costs according to FAR Part 31 Contract Cost Principles and Procedures. Follow the requirements of FAR clauses providing for an equitable price adjustment. If agreement on price and time cannot be reached, the CO may make a unilateral determination. If the work will delay contract completion, request a contract time extension according to Subsection 108.04.
(a)Contract m odification standard rates. Provide the following information to the CO with contract modification proposals.
(1)Overhead. Provide copies of the current job site and home office overhead rates for the Contractor and subcontractors that have been certified or audited by the C ontractor’s controller or accountant. Provide supporting data, which justifies the rates. List each cost category that is included in overhead and identify the cost pools to which overhead is applied.
(2)Equipment. Provide a complete descriptive listing of equipment to be used by the Contractor and s ubcontractors, including the make, model, and year of manufacturer of each piece of equipment and attachments to the base equipment. Provide the following cost information:
(a)Rented equipment. Provide current invoices to support rented or leased equipment costs.
(b)Owned equipment. Determine allowable ownership and operating costs for Contractor - and subcontractor- owned equipment using actual equipment cost data determined from the operating cost records and following the U.S. Army Corps of Engineers Construction Equipment Ownership and Operating Expense Schedule (CEOOES) method. If actual equipment cost data is no t available, provide the CO with a statement signed by an individual that can bind the C ontractor that such cost data is not available. Provide a complete set of supporting documentation containing ownership records that are available, including purchase records, depreciation records, maintenance records, or other records that relate to the ownership and operating costs for each piece of equipment. If actual costs cannot be determined, or are not provided at the preconstruction conference, use the rates shown in the CEOOES for the region where costs are incurred. Adjust the rates for used equipment and for other variable parameters used in the schedules. Provide the CO with supporting documentation. Compute standby costs from approved owners hip records or, if actual costs cannot be determined , according to CEOOES. Do not exceed 8 hours in a 24- hour period or 40 hours in a week. Do not include standby for periods when the equipment would have otherwise been in an idle status or for equipment that was not in operational condition.
(b)Proposal for forward priced work. Submit a written proposal, including price breakdown, for each line item of the work. Identify the major elements of the work, the quantity of the element, and its contribution to the proposed price. Submit additional information as requested to allow the CO to determine the reasonableness of the proposed price. Provide the following information:
(1)Direct costs.
(a)Material. Include estimated costs of material delivered to the work.
(b)Labor. I nclude a list of anticipated crew members and estimated work hours. Show basic hourly wage rates, fringe benefits, applicable payroll costs (such as FICA, FUTA, worker’s compensation, insurance, and tax levies), paid subsistence, and travel costs for each labor classification and foreperson employed in the work.
(c)Equipment. Include documentation or invoices to support equipment costs according to Subsection 109.06(a)(2) .
(d)Other direct costs. Include documentation to support other estimated direct costs ( such as bonds, mobilization, demobilization, permits, and royalties ).
(e)Production rates. Include estimated production rates for major elements of the work.
(f)Subcontract costs. I nclude supporting data as required.
(2)Overhead. Include overhead costs according to Subsection 109.06(a)(1) . Limit Contractor overhead applied to subcontractor payments to 5 percent unless a higher percentage is justified.
(3)Profit. Include a reasonable profit, except when precluded by the FAR.
(c)Post-work pricing. When a contract modification is not forward priced, it requires a change order and a supplemental agreement reflecting the resulting equitable adjustment. When negotiating the price of a contract modification after all or most of the work has been performed, submit the following:
(1)Direct costs.
(a)Material. Include invoices showing the cost of material delivered to the work.
(b)Labor. Include a list of crew members and actual hours worked. Show actual wage rates, fringe benefits, applicable payroll costs (such as FICA, FUTA, worker’s compensation, insurance, and tax levies), paid subsistence, and travel costs for each labor classification and foreperson employed in the adjusted work.
(c)Equipment. Include documentation or invoices to support equipment costs according to Subsection 109.06(a)(2).
(d)Other direct costs. Include documentation to support other estimated direct costs ( such as bonds, mobilization, demobilization, permits, and royalties ).
(e)Production rates. Include actual hours of performance daily for each labor classification and for each piece of equipment. Include production rate information reflecting the actual work occurring on an approved Contractor daily record document.
(f)Subcontract costs. Include supporting data as required.
(2)Overhead. Include overhead costs according to Subsection 109.06(a)(1) . Limit Contractor overhead applied to subcontractor payments to 5 percent unless a higher percentage is justified.
(3)Profit. Include a reasonable profit, except when precluded by the FAR. L imit profit to 10 percent of the total cost. Due to the limited risk in post- work pricing, a lower profit percentage may be determined by a profit analysis according to FAR 15.404- 4 Profit.
(d)Cost or pricing data. When the contract modification exceeds the amount indicated in FAR Clause 52.214- 27 Price Reduction for Defective Cost or Pricing Data - Modifications - Sealed Bidding, FAR Clause 52.215- 10 Price Reduction for Defective Certified Cost or Pricing Data, or FAR Clause 52.215-11 Price Reduction for Defective Cost or Pricing Data - Modifications, and the CO has determined that an exception does not apply, submit cost or pricing data according to Subsection 109.06(b) or (c) as applicable and as defined in FAR Subpart 2.1 Definitions, for the Contractor and each major subcontractor. See FAR Subpart 15.4 Contract Pricing and FAR Table 15-2 Instructions for Submitting Cost/Price Proposals When Certified Cost or Pricing Data A re Required for guidance. Certify cost or pricing data according to FAR Subpart 15.4 Contract Pricing, upon completion of negotiations.
109.07Eliminated Work . Follow the requirements of FAR Clause 52.243-4 Changes. Work may be eliminated from the contract without invalidating the contract. The Contractor is entitled to compensation for direct costs incurred before the d ate of elimination of work plus profit and overhead on the direct incurred costs. Anticipated profit and overhead expense on the eliminated work will not be compensated.
109.08Progress Payments. Follow the requirements of FAR Clause 52.232-5 Payments und er Fixed - Price Construction Contracts and FAR Clause 52.232-27 Prompt Payment for Construction Contracts.
(a)General. Only invoice payments will be made under this contract. Invoice payments include progress payments made monthly as work is accomplished and the final payment made upon final acceptance. Only one progress payment will be made each month. No progress payment will be made in a month in which the work accomplished results in a net payment of less than $1,000. The CO may withhold full or partial pro gress payment according to Subsection 109.08(h) .
(b)Invoice requirements. Submit the invoice to the Government’s designated billing office with the following items:
(1)The information required by FAR Clause 52.232-27(a)(2) Contractor ’s invoice.
(2)A tabulation of total quantities and contract prices of work accomplished or completed on each pay item. Do not include quantities unless measurement notes for those quantities were submitted by the closing date. Do not include quantities of work involving material for which test reports required under Sections 153 and 154, or certifications required by Subsection 106.03 are, or will be, past due as of the closing date.
(3)The certification required by FAR Clause 52.232- 5(c) and if applicable, the notice required by FAR Clause 52.232-5(d).
(4)If applicable, a copy of the notices that are required by FAR Clause 52.232-27(e)(5) and (g).
(5)The amount included for work performed by each subcontractor under the contract.
(6)The total amount of each subcontract under the contract.
(7)The amounts previously paid to each subcontractor under the contract.
(c)Government’s receiving report. The Government’s receiving report will be developed using the measurement notes received by the CO and determined acceptable.
(d)Closing date and invoice submittal date. The closing date for progress payments will be designated by the CO. Include work performed after the closing date in the following month's invoice. Submit invoices to the designated billing office by the 7th day following the closing date. Invoices received by the designated billing office after the 16th day following the closing date will not be accepted for payment processing that month. Include late, unprocessed invoice submittals in the following month’s invoice. (e) Processing progress payment requests. No payment will be made for work unless measurement notes for the work are submitted by the closing date.
(1)Proper invoices. If the invoice meets the requirements of Subsection 109.08(b) , and the quantities and unit prices shown on the Contractor’s invoice agree with the corresponding quantities and unit prices shown on the Government’s receiving report, the invoice will be paid.
(2)Defective invoices. If the invoice does not meet the requirements of Subsection 109.08(b) , or if any of the quantities or unit prices shown on the Contractor’s invoice exceed the corresponding quantities and unit prices shown on the Government’s receiving report, the invoice will be deemed defective and the Contractor notified according to FAR Clause 52.232- 27(a)(2). Defective invoices will not be corrected by the Gover nment and will be returned to the Contractor within 7 days after the Government’s designated billing office receives the invoice. Correct and resubmit returned invoices. If the defects are minor, the Contractor may elect, in writing, to accept the quantities and contract prices shown on the Government’s receiving report for payment.
(f)Partial payments. Progress payments may include partial payment for material to be incorporated in the work according to FAR Clause 52.232- 5(b)(2), provided the material is delivered on or in the vicinity of the project, or stored in an approved storage location. Provide test results and material certifications for material when partial payment is requested. Do not request partial payment for materials that do not meet the contra ct specifications according to Subsections 106.03 and 106.04 or when the pay factor is less than 0.9 as calculated under Subsection 106.05. Partial payments will not be made for living or perishable material. Submit measurement notes according to Subsection 109.01. Provide a price breakdown of the bid item components and submit invoices or other documents supporting the partial payment. Individual and cumulative partial payments for preparatory work and material will not exceed the lesser of:
(1)80 percent of the contract bid price for the item; or
(2)100 percent of amount supported by copies of invoices submitted. The quantity paid will not exceed the corresponding quantity estimated in the contract. Partial payment for preparatory work and materials does not constitute acceptance of work. The CO may adjust partial payments for protection of the Government.
(g)Lump sum. If the basis for lump sum progress payments is not specified in the Section controlling the work, submit a price breakdown for use in making progress payments. Payments will be made based on the information in the price breakdown, and the work completed.
(h)Retainage. Follow the requirements of FAR Clause 52.232- 5 Payments under Fixed- Price Construction Contracts. The CO may withhold, retain, or adjust the invoice after validation of the invoice as follows:
(1)The CO may withhold full or partial progress payment until a construction schedule or schedule update is submitted according to Section 155, and according to FAR Clause 52.236- 15 Schedules for Construction Contracts.
(2)The CO may withhold full or partial progress payment until certified payrolls are submitted according to FAR Clause 52.222- 8 Payrolls and Basic Records.
(3)The CO may withhold a maximum of 1 0 percent of the amount the progress payment until satisfactory progress has been made according to FAR Clause 52.232- 5 Payments under Fixed - Price Construction Contracts. Satisfactory progress includes performance of all work under the contract including submittals, schedules, certifications, reports, test results, and drawings. (4) The CO may withhold Liquidated Damages for failure to complete work according to Subsection 108.05 and FAR Clause 52.211- 12 Liquidated Damages – Construction.
(5)After substantial completion of the contract, the CO may retain an amount adequate for protection of the Government according to FAR Clause 52.232- 5 Payments under Fixed- Price Construction Contracts.
109.09Final Payment. Follow the requirements of FAR Clause 52.232 -5 Payment s under Fixed- Price Construction Contracts and FAR Clause 52.232- 27 Prompt Payment for Construction Contracts. Upon final acceptance and verification of final pay records, the Government will send an SF 1034, Public Voucher for Purchases and Services other than Personal (final voucher) and a release of claims document. Execute both the voucher and the release of claims and return the documents to the Government for payment. The date of approval by the Government of the final voucher for payment constitutes the date of final settlement of the contract. If unresolved claims exist or claims are proposed, reserve the right to the claims by listing a description of each claim and the amount being claimed on the release of claims document. Failure to execute and return the voucher and release of claims document within 90 days after receipt will constitute execution of the documents and the release of claims against the Government arising by virtue of the contract. In this event, the day after 9 0 days from receipt constitutes the date of final settlement of the contract. 60 DIVISION 150