9 PAYMENT
9-1.01 General
9-1.02 Measurement
9-1.02A General
The Department determines bid item quantities under US customary units . Except for final pay item quantities, the Engineer measures quantities for payment.
9-1.02B Weighing Equipment and Procedures
9-1.02B(1) General
Measure material quantities for payment with devices that comply with:
1.4 CA Code of Regs § 4000 et seq.
2.Bus & Prof Code § 12001 et seq. To de termine the material payment quantities, use measuring devices that have been sealed by the Department of Food and Agriculture's Division of Measurement Standards or its designated representative. If a device is not type approved by the Division of Measure ment Standards, type approve it under California Test 109. Notify the Engineer at least 1 business day before equipment testing. Use material plant controllers having elements affecting the data accuracy and delivery that have been sealed by the Engineer. Make these elements available to the Engineer for inspection. If the elements are adequate for use, the Engineer seals them. If manipulation of a security seal occurs, stop material production. Do not resume production until the Engineer reinspects and res eals the device. Measure material paid for by weight on sealed scales regularly inspected by the Department of Food and Agriculture's Division of Measurement Standards or its designated representative. Obtain authorization of portable vehicle scale install ations before sealing.
9-1.02B(2) Equipment
Each scale must be long enough to fit an entire vehicle or a combination vehicle on the scale deck. The Department allows you to weigh a combination vehicle separately if you disconnect the vehicles. Construct s cale undersupports:
1.Using portland cement concrete containing at least 470 pounds of cementitious material per cubic yard produced from commercial quality materials
2.Such that footing heights are at least 20 inches thick
3.With a bearing surface at l east 30 inches wide and bearing pressure on the footing not over 4,000 lb/sq ft In constructing a scale:
1.Provide drainage to prevent water from saturating the ground under the scale
2.Use bulkheads that prevent displacement
3.If shimming is necessary: 3.1. Use securely attached metal shims or grout 3.2. Do not use wedges to shim the supports 3.3. Do not use shim material in excess of 3 inches
4.Install mechanical indicating elements level, plumb, and rigidly mounted on the concrete undersupp orts
5.For a hopper scale, rigidly attach the lever systems and mechanical indicating elements such that no weight is lost from bending or support distortion SECTION 9 PAYMENT Each scale used to determine material payment quantities must be operated by a licensed weighmas ter (Bus & Prof Code § 12700 et seq.). Submit a public weighmaster's certificate or certified daily summary weigh sheets for each weighed material quantity. The Department may witness material weighing and check and compile the daily scale - weight record. Each vehicle operator must obtain weight or load slips from the weighmaster. Submit these records at the delivery point.
9-1.02B(3) Procedures
Each day weigh empty vehicles used to haul material paid for by weight. Each vehicle must have a legible identifi cation mark. The Department may verify a material weight by having an empty and loaded vehicle weighed on any scale the Engineer designates. If imported topsoil , soil amendment , wood m ulch, or compost is measured by volume:
1.Each vehicle must allow for an accurate determination of its contents
2.Unless vehicles are of uniform capacity, each vehicle must have a legible identification mark showing its volumetr ic capacity
3.Load vehicles to at least the volumetric capacity
4.Level vehicle loads on arrival at the delivery point If determining a quantity paid on a volume basis is impractical or if authorized, weigh the material and the Engineer converts the res ult to a volume measurement. The Engineer determines the conversion factors and, if you agree, adopts this method of measurement.
9-1.02C Final Pay Item Quantities
The Department shows a bid item quantity as a final pay item for pay ment purposes only. For a final pay item, accept payment based on the Bid Item List quantity, regardless of the actual quantity used unless dimensions are changed by the Engineer.
9-1.02D Quantities of Aggregate and Other Roadway Materials
The Engineer de termines the weights of aggregate and other roadway material that are being paid for by weight as shown in the following table and does not include the deducted weight of water in their pay ment quantities: Determination of Quantities of Aggregate and Other Roadway Materials Material Quantity determination Aggregate or other roadway material except as otherwise shown in this table By deducting the weight of water in the materiala in excess of 3 percent of the dry weight of the material from the weight of the material Imported borrow, imported topsoil, AB By deducting the weight of water in the materiala in excess of 6 percent of the dry weight of the material from the weight of the material Straw By deducting the weight of water in the materiala in excess of 15 percent of the dry weight of the material from the weight of the material Fiberb Engineer do es not deduct the weight of water AB and aggregate for CTBs As specified in section 26 and section 27 NOTE: Percentage of water is determined by California Test 226. aAt the time of weighing . bWeight of water in the fibera must not exceed 15 percent of the dry weight of the fiber.
9-1.03 Payment Scope
The Department pays you for furnishing the resources and activities required to complete the work. The Department's payment is full compensation for furnishing the resources and activities, including:
1.Risk, loss, damage repair, or cost of whatever character arising from or re lating to the work and performance of the work SECTION 9 PAYMENT
2.PLACs and taxes
3.Any royalties and costs arising from patents, trademarks, and copyrights involved in the work The Department does not pay for your loss, damage, repair, or extra costs of whatever charac ter arising from or relating to the work that is a direct or indirect result of your choice of construction methods, materials, equipment, or labor, unless specifically mandated by the Contract. Payment is:
1.Full compensation for all work involved in eac h bid item shown on the Bid Item List by the unit of measure shown for that bid item
2.For the price bid for each bid item shown on the Bid Item List or as changed by change order with a specified price adjustment Full compensation for work specified in divisions I, II, and X I is included in the payment for the bid items involved unless:
1.Bid item for the work is shown on the Bid Item List
2.Work is specified as change order work Work paid for under one bid item is not paid for under any other bid item. Payment for a bid item includes payment for work in sections referenced by the section set forth by that bid item. If an alternative is described in the Contract, the Department pays based on the bid items for the details and specifications not described as an alternative unless the bid item is described as an alternative, in which case, the Department pays based on the details and specifications for that alternative . The Department pays for change order work based on one or a combination of the following:
1.Bid item prices
2.Force account
3.Agreed price
4.Specialist billing If the Engineer chooses to pay for change order work based on an agreed price, but you and the Engineer cannot agree on the price, the Department pays by force account. If a portion of extra work is covered by bid items, the Department pays for this work as changed quantities in those items. The Department pays for the remaining portion of the extra work by force account or agreed price. The Department pays 10 percent annual interest for unpaid and undisputed:
1.Progress payments
2.After -acceptance payment except for claims For these payments, interest starts to accrue 30 days after the 1st working day following the 20th day of the month th at payment is due. For an approved change order bill that was submitted after the 15th day of a month, interest starts to accrue 30 days after the 1st working day following the 20th day of the subsequent month. The Department pays 6 percent annual interest for unpaid and undisputed claims. Interest starts to accrue 61 days after the Department accepts a claim statement. The Department pays 6 percent annual interest for awards in arbitration (Civ Code § 3289). If the amount of a deduction or withhold exceeds the final payment, the Department invoices you for the difference, to be paid upon receipt. Pay your subcontractors within 7 days of receipt of each progress payment under Pub Cont Code §§ 10262 and 10262.5. SECTION 9 PAYMENT
9-1.04 Force Account
9-1.04A General
For work paid by force account , the Engineer compares the Department's records to your daily force - account work report. When you and the Engineer agree on the contents of the daily force -account work reports, the E ngineer accepts the report and the Department pays for the work. If the records differ, the Department pays for the work based only on the information shown on the Department's records. The Tentative Daily Extra Work Agreement form is used to identify the labor, materials, and equipment used on change order work paid at force account. Signatures on this form do not constitute final agreement regarding payment. If a subcontractor performs work at force account, accept an additional 10 percent markup to the t otal cost of that work paid at force account, including markups specified in section 9 -1.04, as reimbursement for additional administrative costs. The markups specified for labor, materials, and equipment include compensation for all delay costs, overhead costs, and profit. If an item's unit price is adjusted for work -character changes, the Department excludes your cost of determining the adjustment. Payment for owner -operated labor and equipment is made at the market -priced invoice submitted. For nonsubcon tracted work paid by force account for a contract with a TRO bid item, the markups are those shown in the following table instead of those specified in sections 9 -1.04B –D: Cost Percent markup Labor 30 Materials 10 Equipment rental 10
9-1.04B Labor
Labor payment is full compensation for the cost of labor used in the direct performance of the work plus a 35 percent markup. Force -account labor payment consists of:
1.Employer payment to the worker for: 1.1. Basic hourl y wage 1.2. Health and welfare 1.3. Pension 1.4. Vacation 1.5. Training 1.6. Other State -and federal -recognized fringe benefit payments
2.Labor surcharge percentage in Labor Surcharge and Equipment Rental Rates current during the work paid at force accou nt for: 2.1. Workers' compensation insurance 2.2. Social security 2.3. Medicare 2.4. Federal unemployment insurance 2.5. State unemployment insurance 2.6. State training taxes
3.Subsistence and travel allowances paid to the workers
4.Employer payment to supervisors if authorized The 35 percent markup consists of payment for all overhead costs related to labor but not designated as costs of the labor used in the direct performance of the work, including:
1.Home office overhead
2.Field office overhead
3.Bond costs
4.Profit SECTION 9 PAYMENT
5.Labor liability insurance
6.Other fixed or administrative costs that are not costs of the labor used in the direct performance of the work
9-1.04C Materials
Material payment is full comp ensation for materials you furnish and use in the work. The Engineer determines the cost based on the material purchase price, including delivery charges, except:
1.15 percent markup is added
2.Supplier discounts are subtracted whether you took them or n ot
3.If the Engineer believes the material purchase prices are excessive, the Department pays the lowest current wholesale price for a similar material quantity
4.If you procured the materials from a source you wholly or partially own, the determined cos t is based on the lower of the: 4.1. Price paid by the purchaser for similar materials from that source on Contract items 4.2. Current wholesale price for those materials
5.If you do not submit a material cost record within 30 days of billing, the determi ned cost is based on the lowest wholesale price: 5.1. During that period 5.2. In the quantities used
9-1.04D Equipment Rental
9-1.04D(1) General
Equipment rental payment is full compensation for:
1.Rental equipment costs, including moving the equipment to and from the change order work site using its own power.
2.Transport equipment costs for rental equipment that cannot be transported economically using its own power. No payment is made during transport for the transported equipment.
3.15 percent markup. If you want to return the equipment to a location other than its original location, the payment to move the equipment must not exceed the cost of returning th e equipment to its original location. If you use the equipment for work other than work paid by force account, the transportation cost is included in the other work. Before moving or loading the equipment, obtain authorization for the equipment rental's or iginal location. The Engineer determines rental costs:
1.Using the rates in Labor Surcharge and Equipment Rental Rates : 1.1. By classifying equipment using manufacturer's ratings and manufacturer -approved changes . 1.2. Current during the work paid by forc e account. 1.3. Regardless of equipment ownership; but the Department uses the rental document rates or minimum rental cost terms if: 1.3.1. Rented from an equipment business you do not own. 1.3.2. Hourly rate in Labor Surcharge and Equipment Rental Rates is $10.00 per hour or less.
2.Using the rates established by the Engineer for equipment not listed in Labor Surcharge and Equipment Rental Rates . You may submit cost information that helps the Engineer establish the rental rate; but the Department uses th e rental document rates or minimum rental cost terms if: 2.1. Rented from an equipment business you do not own. 2.2. The Engineer establishes a rate of $10.00 per hour or less.
3.Using rates for transport equipment not exceeding the hourly rates charged b y established haulers. Equipment rental rates include the cost of: SECTION 9 PAYMENT
1.Fuel 7. Repairs and maintenance
2.Oil 8. Depreciation
3.Lubrication 9. Storage
4.Supplies 10. Insurance
5.Small tools that are not consumed by use 11. Incidentals
6.Necessary attachments The Department pays for small tools consumed by use. The Engineer determines the payment for small tools consumed by use based on Contractor -submitted invoices. The Engineer may authorize rates in excess of those in the Labor Surch arge and Equipment Rental Rates if:
1.You submit a request to use rented equipment
2.Equipment is not available from your normal sources or from one of your subcontractors
3.Rented equipment is from an independent rental company
4.Proposed equipment rental rate is reasonable
5.The Engineer authorizes the equipment source and the rental rate before you use the equipment The Department pays for fuel consumed during the operation of rented equipment not included in the invoiced rental rates.
9-1.04D(2) Equipment On the Job Site
For equipment on the job site at the time required to perform work paid by force account, the time paid is the time:
1.To move the equipment to the location of work paid by force account plus an equal amount of time t o move the equipment to another location on the job site when the work paid by force account is completed
2.To load and unload equipment
3.Equipment is operated to perform work paid by force account and: 3.1. Hourly rates are paid in 1/2 -hour increments 3.2. Daily rates are paid in 1/2 -day increments
9-1.04D(3) Equipment Not On the Job Site and Not Required for Original -Contract Work
For equipment not on the job site at the time required to perform work paid by force account and not required for the ori ginal Contract work, the time paid is the time the equipment is operated to perform work paid by force account and the time to return the equipment to its source when the work paid by force account is completed. The minimum total time paid is:
1.1 day if daily rates are paid
2.8 hours if hourly rates are paid If daily rates are recorded, equipment:
1.Idled is paid as 1/2 day
2.Operated less than 4 hours is paid as 1/2 day
3.Operated 4 hours or more is paid as 1 day If the minimum total time exceeds 8 hours and if hourly rates are listed, the Department rounds up hours operated to the nearest 1/2 -hour increment and pays based on the hours shown the following table. The table does not apply when equipment is not operated due to breakdowns, in which case rental hours are the hours the equipment was operated. Equipment Rental Hours Hours operated Hours paid 0.0 4.00 0.5 4.25 SECTION 9 PAYMENT 1.0 4.50 1.5 4.75 2.0 5.00 2.5 5.25 3.0 5.50 3.5 5.75 4.0 6.00 4.5 6.25 5.0 6.50 5.5 6.75 6.0 7.00 6.5 7.25 7.0 7.50 7.5 7.75 ≥ 8.0 hours used
9-1.04D(4) Equipment Not On the Job Site and Required for Original -Contract Work
For equipment not on the job site at the time required to perform work paid by force account and required for the original Contract work, the time paid is the time:
1.To move the equipment to the location of work paid by force account plus an equal amount of time to move the equipment to a location on the job site or its source when the work paid by force account is completed
2.Equip ment is operated to perform work paid by force account
9-1.04D(5) Non -Owner-Operated Dump Truck Rental
Submit the rental rate for a non -owner -operated dump truck. The Engineer determines the payment rate. Payment for the rental of a non-owner -operated dump truck is for the cost of renting a dump truck, including its driver. For the purpose of markup payment only, the non -owner -operated dump truck is rental equipment and the owner is a subcontractor.
9-1.05 Extra Work Performed By Spe Cialists
If the Engineer determines that you or your subcontractors are not capable of performing specialty extra work , a specialist may be used. Itemize the labor, material, and equipment rental costs unless it is not the special service industry's established practice to provide itemization, in which case, the Engineer accepts current market -priced invoices for the work. The Engineer may accept an invoice as a specialist billing for work performed at an off –job site manufacturing plant or machine shop. The Engineer determines the cost based on the specialist invoice price minus any available or offered discounts plus a 10 percent markup.
9-1.06 Changed Quantity Payment Adjustments
9-1.06A General
The unit price s specified in section 9 -1.06 are adjusted under section 9 -1.04.
9-1.06B Increases of More Than 25 Percent
If the total bid item quantity exceeds 125 percent of the quantity shown on the Bid Item List and if no approved Change Order addresses payment for the quantity exceeding 125 percent, the Engineer may adjust the unit price for the excess quantity under section 9 -1.04 or the following:
1.The adjustment is the difference between the unit price and the unit cost of the total item pay quantity.
2.In determining the unit cost, the Engineer excludes the item's fixed costs. You have recovered the fixed costs in the payment for 125 percent show n on the Bid Item List.
3.After excluding fixed costs, the Engineer determines the item unit cost under section 9 -1.04. SECTION 9 PAYMENT If the payment for the number of units of a bid item in excess of 125 percent of the Bid Item List is less than $15,000 at the unit pr ice, the Engineer may not adjust the unit price unless you request it.
9-1.06C Decreases of More Than 25 Percent
If the total item pay quantity is less than 75 percent of the quantity shown on the Bid Item List and if no approved Change Order addresses payment for the quantity less than 75 percent, you may request a unit price adjustment. The Engineer may adjust the unit price for the decreased quantity under section 9 -1.04 or the followin g:
1.The adjustment is the difference between the unit price and the unit cost of the total pay quantity.
2.In determining the unit cost, the Engineer includes the item's fixed costs.
3.After including fixed costs, the Engineer determines the item unit cost under section 9 -1.04. The Department does not pay more than 75 percent of the item total in the Bid Item List.
9-1.06D Eliminated Items
If the Engineer eliminates an item , the Engineer notifies you and the Department pays your costs incurred before the notification date. If you order authorized material for an eliminated item before the notification date and the order cannot be canceled, either of the following occurs:
1.If the material is returnable to the vendor, the Engineer orders you to return the material and the Department pays your handling costs and vendor charges.
2.The Department pays your cost for the material and its handling and becomes the material owner. The Engineer determines the payment f or the eliminated bid item under section 9 -1.04.
9-1.07 Payment Adjustments for Price Index Fluctuations
9-1.07A General
Section 9 -1.07 applies to asphalt contained in materials for pavement structures and pavement surface treatments such as HMA, tack co at, asphaltic emulsions, bituminous seals, asphalt binders, and modified asphalt binders placed in the work . Section 9-1.07 does not apply if you opted out of payment adjustments for price index fluctuations at the time of bid. The Engineer adjusts payment whenever the California statewide crude oil price index for the month the material is placed is more than 5 percent higher or lower than the price index at the time of bid. The Department determines the California statewid e crude oil price index each month on or about t he 1st business day of the month using the average of the posted prices in effect for the previous month as posted by Chevron, ExxonMobil, and ConocoPhillips for the Buena Vista and Midway Sunset fields. If a company discontinues posting its prices for a field, the Department determines the index from the remaining posted prices. The Department may include additional fields to determine the index. For the California statewide crude oil price index, go to the D epartment's Division of Construction website . If the adjustment is a decrease in payment, the Department deducts the amount from the monthly progress payment. The Department makes payment adjustments due to price index fluctuations for changed quantities u nder section 9 -1.06. If you do not complete the work within the Contract time , payment adjustments during the overrun period are determined using the California statewide crude oil price index in effect for the month in which the overrun period began. If the price index at the time of placement increases:
1.50 percent or more over the price index at bid opening, notify the Engineer.
2.100 percent or more over the price index at bid opening, do not furnish material containing asphalt until the Engineer authorizes you to proceed with that work. The Department may decrease bid item quantities, eliminate bid items, or terminate the Contract. SECTION 9 PAYMENT Before placing material containing asphalt, submit the current sales and use tax rate in effect i n the tax jurisdiction where the material is to be placed. Submit a public weighmaster's certificate for HMA, tack coat, asphaltic emulsions, and modified asphalt binders, including those materials not paid for by weight. For slurry seals, submit a separat e public weighmaster's certificate for the asphaltic emulsion.
9-1.07B Asphalt Quantities
9-1.07B(1) General
Reserved
9-1.07B(2) Hot Mix Asphalt
The Engineer calculates the quantity of asphalt in HMA using the following formula: Qh = HMATT x Xa where: Qh = quantity in tons of asphalt used in HMA HMATT = HMA, total tons placed Xa = theoretical asphalt content from the job mix formula, expressed as a percentage of the total weight of HMA
9-1.07B(3) Rubberized Hot Mix Asphalt
The Engineer calculat es the quantity of asphalt in RHMA using the following formula: Qrh = RHMATT x 0.80 x Xarb where: Qrh = quantity in tons of asphalt in asphalt rubber binder used in RHMA RHMATT = RHMA, total tons placed Xarb = theoretical asphalt rubber binder content fro m the job mix formula, expressed as a percentage of the total weight of rubberized HMA
9-1.07B(4) Hot Mix Asphalt with Modified Asphalt Binder
The Engineer calculates the quantity of asphalt in HMA with modified asphalt binder using the following formula : Qmh = MHMATT x [(100 − Xam)/100] x Xmab where: Qmh = quantity in tons of asphalt in modified asphalt binder used in HMA MHMATT = modified asphalt binder HMA, total tons placed Xam = specified percentage of asphalt modifier Xmab = theoretical modified asphalt binder content from the job mix formula, expressed as a percentage of the total weight of HMA
9-1.07B(5) Hot Mix Asphalt Containing Reclaimed Asphalt Pavement
The Engineer ca lculates the quantity of asphalt in HMA containing RAP using the following formula: Qrap = HMARTT x Xaa where: Xaa = Xta – [(Xrap x Xra x(Xta – 100))/(100 x (Xra – 100))] and: Qrap = quantity in tons of asphalt used in HMA containing RAP HMARTT = HMA containing RAP, total tons placed Xaa = asphalt content of HMA containing RAP adjusted to exclude the asphalt content in RAP, expressed as a percentage of the total weight of HMA contai ning RAP SECTION 9 PAYMENT Xta = total theoretical asphalt content in HMA containing RAP from the job mix formula, expressed as a percentage of the total weight of HMA containing RAP Xrap = RAP percentage in HMA containing RAP from the job mix formula, expressed as a percen tage of the total dry weight of aggregate in HMA containing RAP Xra = average asphalt content of RAP from the job mix formula, expressed as percentage of total weight of RAP
9-1.07B(6) Tack Coat
The Engineer calculates the quantity of asphalt in tack coa t (Qtc) as either of the following:
1.Asphalt binder using the asphalt binder total tons placed as tack coat
2.Asphaltic emulsion by applying the formula in section 9 -1.07B(7) to the asphaltic emulsion total tons placed as tack coat
9-1.07B(7) Asphalti c Emulsion
The Engineer calculates the quantity of asphalt in asphaltic emulsions, including fog seals and tack coat, using the following formula: Qe = AETT x (Xe/100) where: Qe = quantity in tons of asphalt used in asphaltic emulsions AETT = undiluted as phaltic emulsions, total tons placed Xe = minimum percent residue specified in section 94 based on the type of emulsion used You may determine Xe by submitting daily test results for asphalt residue for the asphaltic emulsion used. If you choose this option, you must:
1.Take 1 sample for every 200 tons but not less than 1 sample per day in the presence of the Engineer from the delivery truck, at m idload from a sampling tap or thief, and as follows: 1.1. Draw and discard the 1st gallon . 1.2. Take 2 separate 1/2 gal samples .
2.Submit the 1st sample at the time of sampling .
3.Furnish the 2nd sample within 3 business days of sampling to an authorized laboratory that participates in the AASHTO Proficiency Sample Program .
4.Submit test results from the laboratory within 10 business days of the sample date .
9-1.07B(8) Slurry Seal
The Engineer calculates the quantity of asphalt in slurry seal s (Qss) by applying the formula in section 9 - 1.07B(7) to the quantity of asphaltic emulsion used in producing the slurry seal mix.
9-1.07B(9) Modified Asphalt Binder
The Engineer calculates the quantity of asphalt in modified asphalt binder using the foll owing formula: Qmab = MAB TT x [(100 − Xam)/100] where: Qmab = quantity in tons of asphalt used in modified asphalt binder MABTT = modified asphalt binder, total tons placed Xam = specified percentage of asphalt modifier The quantity of extender oil is in cluded in the quantity of asphalt.
9-1.07B(10) Other Materials
For materials containing asphalt not covered in sections 9 -1.07B(1) through 9 -1.07B(9), the Engineer determines the method for calculating the quantity of asphalt ( Qo).
9-1.07C Payment Adjust ments
The Engineer includes payment adjustments for price index fluctuations in progress estimates. If material containing asphalt is placed within 2 months during 1 estimate period, the Engineer calculates 2 separate SECTION 9 PAYMENT adjustments. Each adjustment is calcul ated using the price index for the month in which the quantity of material containing asphalt subject to adjustment is placed in the work. The sum of the 2 adjustments is used for increasing or decreasing payment in the progress estimate. The Engineer calc ulates each payment adjustment using the following formula: PA = Qt x A where: PA = payment adjustment in dollars for asphalt contained in materials placed in the work for a given month Qt = sum of all quantities of asphalt ( Qh + Qrh + Qmh + Qrap + Qtc + Qe + Qss + Qmab + Qo) A = adjustment in dollars per ton of asphalt used to produce materials placed in the work rounded to the nearest $0.01 where: A = [(Iu/Ib) − 1.05] x Ib x [1 + ( T/100)] for an increase in the crude oil price index exceeding 5 percent A = [(Iu/Ib) − 0.95] x Ib x [1 + ( T/100)] for a decrease in the crude oil price index exceeding 5 percent and: Iu = California statewide crude oil price index for the month in which the quantity of asphalt subject to adjustment was placed in the work Ib = California statewide crude oil price index for the month in which the bid opening for the project occurred T = Sales and use tax rate expressed as a percent currently in effect in the tax jurisdiction where the material is placed. If the tax rate information is not submitted timely, the statewide sales and use tax rate is used in the payment adjustment calculations until the tax rate information is submitted.
9-1.08 9-1.10 Reserved
9-1.11 Time -Related Overhead
9-1.11A General
Section 9 -1.11 applies if a bid item for time -related overhead is incl uded in the Contract. If a bid item for time-related overhead is included, you must exclude the time -related overhead from every other bid item price.
9-1.11B Payment Quantity
The TRO quantity does not include the number of working days to complete plant establishment or permanent erosion control establishment work. For a contract with a TRO lump sum quantity on the Bid Item List, the Department pays you based on the following conversions:
1.LS unit of measure is replaced with WDAY .
2.Lump sum quantity i s replaced with the number of working days bid .
3.Lump sum unit price is replaced with the item total divided by the number of working days bid .
9-1.11C Payment Inclusions
Payment for the TRO bid item includes payment for time -related field -and home -office overhead for the time required to complete the work. The field office overhead includes time -related expenses associated with the normal and recurring construction activities not directly attributed to the work, including:
1.Salaries, benefits , and equipment costs of: 1.1. Project managers 1.2. Superintendents 1.3. Field office managers 1.4. Field office staff assigned to the project
2.Rent SECTION 9 PAYMENT
3.Utilities
4.Maintenance
5.Security
6.Supplies
7.Office equipment costs for the project's field of fice The home -office overhead includes the fixed general and administrative expenses for operating your business, including:
1.General administration
2.Insurance
3.Personnel and subcontract administration
4.Purchasing
5.Accounting
6.Project engineer ing and estimating Payment for the TRO bid item does not include payment for:
1.Home-office overhead expenses specifically related to : 1.1. Your other contracts or other businesses 1.2. Equipment coordination 1.3. Material deliveries 1.4. Consultant and legal fees
2.Non-time-related costs and expenses such as mobilization, licenses, permits, and other charges incurred once during the Contract
3.Additional overhead involved in incentive/disincentive provisions to satisfy an internal milest one or multiple calendar requirements
4.Additional overhead involved in performing additional work that is not a controlling activity
5.Overhead costs incurred by your subcontractors of any tier or suppliers
9-1.11D Payment Schedule
For progress paymen ts, the total work completed for the TRO bid item is the number of working days shown for the pay period on the Weekly Statement of Working Days form. For progress payments, the Department pays a unit price equal to the lesser of the following amounts:
1.Price per working day as bid or as converted under section 9 -1.11B
2.20 percent of the total bid divided by the number of original working days For a contract without plant establishment or permanent erosion control establishment work, the Department pay s you the balance due for the TRO item total as specified in section 9 -1.17B. For a contract with plant establishment or permanent erosion control establishment work, the Department pays you the balance due for the TRO item total in the 1st progress paymen t after all non–plant establishment or non–permanent erosion control establishment work is completed.
9-1.11E Payment Adjustments
The overhead adjustment specified in section 9 -1.17C does not apply. The Department does not adjust the unit price for an inc rease or decrease in the TRO quantity except as specified in section 9 -1.11E. Section 9 -1.17D(2)(b) does not apply to TRO except as specified for the audit report below. If the TRO bid item quantity exceeds 149 percent of the quantity shown on the Bid Item List or as converted under section 9 -1.11B, the Engineer may adjust or you may request an adjustment of the unit price for the excess quantity. For the adjustment, submit an audit report within 60 days of the Engineer's request. The report must be prepare d as specified for an audit report for an overhead claim in section 9 - 1.17D(2)(b). SECTION 9 PAYMENT Within 20 days of the Engineer's request, make your financial records available for an audit by the State for the purpose of verifying the actual rate of TRO described in yo ur audit. The actual rate of TRO described is subject to the Engineer's authorization. The Department pays the authorized actual rate for TRO in excess of 149 percent of the quantity shown on the Bid Item List or as converted under section 9 -1.11B. The Dep artment pays for 1/2 the cost of the report; the Contractor pays for the other 1/2. T he cost is determined under section 9 -1.05 except no markup is allowed.
9-1.12 9-1.14 Reserved
9-1.15 Work -Character Changes
The Departmen t adjusts a bid item unit price based on the difference between the cost to perform the work as planned and the cost to perform the work as changed. The Engineer determines the payment adjustment under section 9 -1.04. The Department adjusts payment for onl y the work portion that changed in character.
9-1.16 Progress Payments
9-1.16A General
The Department pays you based on Engineer -prepared monthly progress estimates . Each estimate reflects:
1.Total work completed during the pay period
2.Change order bills if: 2.1. Submitted by the 15th day of a month 2.2. Approved by the 20th day of a month
3.Amount for materials on hand
4.Amount earned for mobilization
5.Deductions
6.Withholds
7.Resolved potential claims
8.Payment adj ustments
9-1.16B Schedule of Values
Section 9 -1.16B applies to a lump sum bid item for which a schedule of values is specified to be submitted. The sum of the amounts for the work units listed in the schedule of values must equ al the lump sum price bid for the bid item. Obtain authorization for a schedule of values before you perform work shown on the schedule. The Department does not process a progress payment for the bid item without an authorized schedule of values. Accept pr ogress payments for overhead, profit, bond costs, and other fixed or administrative costs as distributed proportionally among the items listed except that for a contract with a bid item for mobilization, accept progress payments for bond costs as included in the mobilization bid item. For changed quantities of the work units listed, the Department adjusts payments in the same manner as specified for changed quantities of bid items under section 9 -1.06.
9-1.16C Materials On Hand
A material on hand but not incorporated into the work is eligible for a progress payment if:
1.Compliant with other Contract parts
2.Material cost exceeds either of the following: 2.1. $50,000 2.2. $25,000 if the requestor is certified as one or more of the following: 2.2.1. DVBE 2.2.2. DBE SECTION 9 PAYMENT 2.2.3. Small business as certified by Department of General Services, Office of Small Business and Disabled Veteran Business Enterprise Services
3.Purchased
4.Invoice is submitted
5.Stored within the State and you submit evidence that the stored material is subject to the Department 's control
6.Protected from weather and contamination
7.Water pollution control measures are established and maintained
8.Requested on the Department -furnished form
9-1.16D Mobilizat ion
9-1.16D(1) General
Section 9 -1.16D applies if a bid item for mobilization is shown on the Bid Item List. Payments for mobilization made under section 9 -1.16D are in addition to the partial payments made under Pub Cont Code § 10261. Section 9 -1.16D(2) applies unless the Contract includes a special provision for section 9 -1.16D(1) that specifies section 9 -1.16D(3) applies.
9-1.16D(2) Mobilization for Projects Except for Those Over Water Requiring Marine Access
The Department makes partial payments for m obilization under Pub Cont Code § 10264(a) except the amount of work completed does not include the amount earned for mobilization. The partial payment amount is reduced by a prorated amount bid in excess of the maximum allowed under Pub Cont Code § 10264( a)(5). The Department pays the item total for mobilization in excess of the maximum allowed under Pub Cont Code § 10264(a)(5) in the 1st payment after Contract acceptance.
9-1.16D(3) Mobilization for Projects Over Water Requiring Marine Access
The Departm ent makes partial payments for mobilization under Pub Cont Code § 10264(b) except the amount of work completed does not include the amount earned for mobilization. The partial payment amount is reduced by a prorated amount bid in excess of the maximum allo wed under Pub Cont Code § 10264(b)(6). The Department pays the item total for mobilization in excess of the maximum allowed under Pub Cont Code § 10264(b)(6) in the 1st payment after Contract acceptance.
9-1.16E Withholds
9-1.16E(1) General
The Departmen t may withhold payment for noncompliance . The Department returns the noncompliance withhold in the progress payment following the correction of noncompliance except as specified in section 9 -1.16E(3). Withholds are not retentions under Pu b Cont Code § 7107 and do not accrue interest under Pub Cont Code § 10261.5. Withholds are cumulative and independent of deductions. Section 9 -1.16E does not include all withholds that may be taken; the Department may withhold other payments as specified.
9-1.16E(2) Progress Withholds
The Department withholds 10 percent of a progress payment for noncompliant progress. Noncompliant progress occurs when:
1.Total days to date exceed 75 percent of the working days
2.Percent of the working days ela psed exceeds the percent of value of the work completed by more than 15 percent SECTION 9 PAYMENT The Engineer determines the percent of the working days elapsed by dividing the total days to date by the revised Contract working days and converting the quotient to a percen tage. The Engineer determines the percent value of the work completed by summing payments made to date and the amount due on the current progress estimate, dividing this sum by the current total estimated value of the work, and converting the quotient to a percentage. These amounts are shown on the Progress Payment Voucher form. When the percent of the working days elapsed minus the percent value of work completed is less than or equal to 15 percent, the Department returns the withhold in the next progress payment.
9-1.16E(3) Performance Failure Withholds
During each estimate period you fail to comply with a Contract part, including the submittal of a document as specified, such as QC plans, schedules, traffic control plans and water pollution control submi ttals, the Department withholds a part of the progress payment except as specified below for the failure to submit a document during the last estimate period. For 1 performance failure, the Department withholds 25 percent of the progress payment but does not withhold more than 10 percent of the total bid. For multiple performance failures, the Department withholds 100 percent of the progress payment but does not withhold more than 10 percent of the total bid. During the last estimate period, if you fa il to submit a document as specified, the Department withholds $10,000 for each document. The Department returns the withhold within 30 days after receipt of the document.
9-1.16E(4) Stop Notice Withholds
The Department withhold s payments to cover claims filed under Civ Code § 9000 et seq. Stop notice information may be obtained from the Division of Accounting, Office of External Accounts Payable.
9-1.16E(5) Penalty Withholds
Penalties include fines and damages that are proposed, assessed, or levied again st you or the Department by a governmental agency or private lawsuit. Penalties are also payments made or costs incurred in settling alleged violations of federal, State, or local laws, regulations, requirements, or PLACs. The cost incurred may include the amount spent for mitigation or correcting a violation. If the Department is assessed a penalty, the Department may withhold the penalty amount until the penalty disposition has been resolved. The Department may withhold penalty amounts without notifying you. Instead of the withhold, you may provide a bond equal to the highest estimated liability for any disputed penalties proposed except you may not provide a bond for withholds related to labor compliance violations.
9-1.16E(6) 9-1.16E(10) Reserved
9-1.16F Retentions
The Department does not retain moneys from progress payments due to the Contractor for work performed.
9-1.16G 9-1.16M Reserved
9-1.17 Payment After Contract Acceptance
9-1.17A General
Reserved
9-1.17B Payment Before Final Estimate
After Contract acceptance, the Department pays you based on the Engineer -prepared estimate that includes withholds and the balance due after the deduction of previous payments. SECTION 9 PAYMENT
9-1.17C Proposed Final Estimate
The Engineer estimates the amount of work completed and shows the amount payable in a proposed final estimate based on:
1.Contract items
2.Payment adjustments
3.Work paid by force account or agreed price
4.Extra work
5.Deductions Submit either a written acceptance of the proposed final estimate or a claim statement that is postmarked , hand delivered , or electronically delivered, before the 31st day after receiving the proposed final estimate. If you claim that the total for work completed, excluding deductions, in the proposed final esti mate is less than 90 percent of your total bid, the Department adjusts the final payment to cover your overhead. The adjustment in the final estimate is 10 percent of the difference between 90 percent of your total bid and the total for work completed, exc luding deductions. The Department does not make this adjustment on a terminated contract.
9-1.17D Final Payment and Claims
9-1.17D(1) General
If you accept the proposed final estimate or do not submit a claim statement within 30 days of receiving the est imate, the Engineer provides you the final estimate and the Department pays the amount due within 30 days. This final estimate and payment is conclusive except as specified in sections 5 -1.27, 5 - 1.47, and 9 -1.21. If you submit a claim statement within 30 d ays of receiving the Engineer's proposed final estimate, the Engineer provides you a semifinal estimate and the Department pays the amount due within 30 days. The semifinal estimate is conclusive as to the amount of work completed and the amount payable ex cept as affected by any claims or as specified in sections 5 -1.27, 5 -1.47, and 9 -1.21.
9-1.17D(2) Claim Statement
9-1.17D(2)(a) General
For each claim, submit a claim statement showing only the identification number that corresponds to the Full and Final Potential Claim Record form and the final amount of the additional payment requested except:
1.If the final amount of the requested payment differs from the amount requested in the Full and Final Potential Claim Record form
2.For a claim for quantities, withholds, deductions, liquidated damages, or change order bills
3.For an overhead claim If the final amount of the requested payment differs from the amount requested in the Full and Final Potential Claim Record form, submit:
1.Identification number that corresponds to the Full and Final Potential Claim Record form
2.Final amount of additional payment requested
3.Basis for the changed amount
4.Contract documentation that supports the changed amount
5.Statement of the reasons the Contract documentation supports the claim The Engineer notifies you of an omission of or a disparity in the exclusive identification number. Within 15 days of the notification, correct the omission or disparity. If the omission or disparity is not res olved after 15 days, the Engineer assigns a new number. For a claim for quantities, withholds, deductions, or change order bills submit:
1.Final amount of the additional payment requested
2.Enough detail to enable the Engineer to determine the basis and amounts of the additional payment requested SECTION 9 PAYMENT
9-1.17D(2)(b) Overhead Claims
9-1.17D(2)(b)(i) General
The Department deducts an amount for field and home office overhead paid on added work from any claim for overhead. The home office overhead deduction equals 5 percent of the added work. The field office overhead deduction equals 5 -1/2 percent of the added work.
9-1.17D(2)(b)(ii) Definitions
actual daily overhead rates : The home office over head and field office overhead rates expressed per business day for the contract performance period. The home office overhead rate is calculated using the Eichleay Formula and is based on overhead cost pools and all allocation bases from Contract and compa ny revenues . added work: Equals the value of the work completed minus the total bid. contract performance period: The period from Contract approval to Contract acceptance.
9-1.17D(2)(b)(iii) Submittals
Submit the following for an overhead claim:
1.Final amount of additional payment requested.
2.Specific identification of each claim and dates associated with each claim for which you seek reimbursement for specific overhead costs.
3.Audit report prepared by an independent CPA for the contract performance period identifying the actual daily overhead rates, supporting calculations and documentation for both field and home office overhead excluding a profit markup. Field office overhead costs from which the actual daily overhead rate is calculated must be:
1.Allowable under 48 CFR 31
2.Supported by reliable records
3.Related solely to the project
4.Incurred during the contract performance period
5.Comprised of only time -related field office overhead costs
6.Not a direct cost Home -office overhead c osts from which the actual daily overhead rate is calculated must be:
1.Allowable under 48 CFR 31
2.Supported by reliable records
3.Incurred during the contract performance period
4.Comprised of only fixed home -office overhead costs
5.Not a direct cos t Failure to submit the audit report for an overhead claim with the claim statement is a waiver of the overhead claim and operates as a bar to arbitration on the claim (Pub Cont Code § 10240.2). The CPA's audit must be performed as an examination -level engagement under the attestation engagements in the Government Auditing Standards published by the Comptroller General of the United States. The CPA's audit report must express an opinion of whether or not your calculations of your actual field and home office overhead daily rates comply with section 9 -1.17D(2)(b). The attest documentation prepared by the CPA in connection with the audit must be submitted for review with the audit report. Within 20 days of the Engineer's request, make your financial records available for an audit by the State for verifying the actual daily overhead rates in your audit report. The actual rate of time -related overhead is subject to authorization by the Engineer. The Department pays for 1/2 the cost of the rep ort unless otherwise specified. The cost is determined under section 9 -1.05 except no markup is allowed. SECTION 9 PAYMENT
9-1.17D(2)(c) Declaration
Submit a declaration that includes the following language with the claim statement: I declare under penalty of perjury, acc ording to the laws of the State of California, that the foregoing claims, with specific reference to the California False Claims Act (Govt Code § 12650 et seq.) and to the extent the project contains federal funding, the US False Claims Act (31 USC § 3729 et seq.), are true and correct, and that this declaration was signed on ______(date)_______, 20__ at _________________, California.
9-1.17D(2)(d) Waiver
A claim is waived if:
1.Claim does not have a corresponding Full and Final Potential Claim Record fo rm identification number
2.Claim does not have the same nature, circumstances, and basis of the claim as the corresponding Full and Final Potential Claim Record form
3.Claim is not included in the claim statement
4.You do not comply with the claim procedures
5.You do not submit the declaration specified in section 9 -1.17D(2)(c)
9-1.17D(3) Final Determination of Claims
Failure to allow timely access to the supporting data for a claim when requested waives the claim. The Department's costs in revie wing or auditing a claim not supported by the Contractor's accounting or other records are damages incurred by the State within the meaning of the California False Claims Act. If the Engineer determines that a claim requires additional analysis, the Engine er schedules a Department management meeting. Meet with Department management and make a presentation supporting the claim. After the Engineer or Department management finishes reviewing the claim, the Department makes the final determination of claims and provides it to you. This final determination of claims is the final written decision by the Department on the claims under Pub Cont Code § 10240.1. The Engineer provides you a final estimate and the Department pays the amount due within 30 days. The final estimate is conclusive as to the amount of work completed and the amount payable except as specified in sections 5 -1.27, 5 -1.47, and 9 -1.21. Your failure to comply with the claim procedures is a bar to arbitration under Pub Cont C ode § 10240.2.
9-1.18 9-1.20 Reserved
9-1.21 Clerical Errors
For 3 years after Contract acceptance, estimates and payments are open to correction and adjustment for clerical errors. Either you or the Department pays to the other the amount due except for clerical errors resulting in an adjustment less than $200, in which case, no payment is made.
9-1.22 Arbitration
Pub Cont Code § 10240 through 10240.13 provides for the resolution of contract claims by arbitration . Start arbitration by filing a complaint with the Office of Administrative Hearings in Sacramento (1 CA Code Regs § 1350). File the arbitration complaint no later than 90 days after receiving the Department's final written decision on a claim (Pub Cont Code § 10240.1). The Department's final written decision on a claim is the final determination of claims as specified in section 9 -1.17D(3).
Source: California Standard Specifications, 2024 Edition. Pages 131–148 of 1,372.