109MEASUREMENT AND PAYMENT

109.01Measurement of Quantities

All measurements of work completed under the contract will be according to the English System unless otherwise specified.

109.01

The standard measures shown in this publication are primarily in the English System of Units such as feet and inches, pounds, gallons, and acres. Any metric 10 equivalents, shown in parentheses, are intended only for those contracts in which they are specified, or to maintain consistency with industry standards. No guarantee is provided, explicit or implicit, that the units are accurate conversions.

The method of measurement and computations to be used in determination of quantities of material furnished and of work performed under the contract will be those methods generally recognized as conforming to good engineering practice. Results are to be determined using the standard “5” up procedures as defined in General Note 9 on Page vi herein. When the quantities to be measured are shown in English System units, and the Contractor uses equipment or materials that were originally developed 20 to be used in performing work in the International System measure, there will be no allowance if the International System dimensions exceed the English System measurements. When the quantities to be measured are shown in International System measure, and the Contractor uses equipm ent or materials that were originally developed to be used in performing work in the English System units, there will be no allowance if the International System dimensions exceed the English System measurements.

Unless otherwise specified, longitudinal measurements for base, surface, and shoulder area computations will be made along the centerline of the actual surface of 30 the roadway. No deduction will be made for individual fixtures having an area of 10 sq ft or less. Unless otherwise specified, transverse measurements for area computations will be the neat line dimensions shown on the plans or ordered in writing.

Structures will be measured according to neat lines shown on the plans or as altered to fit field conditions.

When a complete structure or structural un it, in effect lump sum work, is specified as the unit of measurement, the unit will be construed to include all necessary fittings and accessories. 40

All work which is measured by the linear foot will be measured parallel to the base or foundation upon which such work is placed, unless otherwise specified.

A station when used as a definition or term of measurement in the English System will be 100 linear feet. A station when used as a definition or term of measurement in the International System will be l km.

When metric dimensioned materials are sp ecified, the Contractor shall convert to metric all weigh tickets, delivery receipts, or other material documentation before 50 submitting the documentation.

The term gauge, when used in connection with the measurement of metal plates or sheets, will mean the U.S. Standard Gauge except when the referenced AASHTO, 109.01

ASTM, or other specification fo r a material specifies that it be ordered and measured in terms of thickness.

When the term gauge refers to the measurement of wire, it will mean the U.S. Steel Wire Gauge except when the reference AASHTO, ASTM, or other specification for the wire specifies that it be ordered and measured in terms of wire size number or 60 diameter.

The term ton will mean the short ton co nsisting of 2,000 pounds avoirdupois. The term megagram will mean 1,000,000 g or 1,000 kg. All materials which are measured or proportioned by weight (mass) shall be weighed on accurate approved scales which are in accordance with all requirements and specifications adopted by the Indiana State Board of Health, Division of Weights and Measures. The weighing shall be accomplished by competent qualified perso nnel at designated locations. Materials specified according to metric unit weights may be weighed on a scale that uses English system units and then converted to the metric equivalent using the conversion factors 70 shown elsewhere in the specifications.

All materials for which measurements are obtained by weight (mass) shall be weighed on approved scales which, except as hereinafter provided for out-of-state scales, shall be tested and sealed by the Indiana State Board of Health, Division of Weight and Measures. This inspection shall have been made within a period of not more than one year prior to the date of use for weighing material. A scale which has been tested and approved within this one year period and which has been repaired or dismantled or moved to another location, sh all again be tested and approved before it 80 is eligible for weighing. All interested parties, such as the Department, the Contractor, or the owner of the scales, may request an inspection of the scales in question. The latest inspection shall take precedence over all previous inspections.

A motor-truck scale shall have a suitable undercarriage of such construction that shall safely carry and weigh an amount equal to 80% of the rated capacity of the scale on either end of the scale platform. When so loaded, the stresses in the lever system shall not exceed the stresses allowable un der AREA specifications. The load carried per 1 in. of knife-edged bearing shall not exceed 5,000 lb.

The scale platform shall be of such length and width as to conveniently accommodate all trucks containi ng materials which need to be weighed. The entire truck load shall rest on the scale platform and shall be weighed as one draft.

If material is weighed on truck scales, weigh tickets showing the net weight of each load of material delivered shall be supplied for use in computing quantities. The tickets shall contain the ticket serial number, date, contract number, source of supply, material designation such as size or type, DMF or JMF number for HMA, truck number, time weighed, gross weight direct reading if scale is of the direct reading type, tare, net weight, and moisture content if applicable. Space shall be provided on each 100 109.01

ticket for the signature of a representative of the Engineer.

A duplicate ticket may be furnished by the Contractor for its records. The original, and duplicate if furnished, tickets will be signed at the point of incorporation into the work. No additional payment will be made for furnishing, maintaining, and operating scales.

The weight of materials weighed outside the State and intended for use on the contract may be determined on scales tested and approved by the proper governmental unit having authority where the scales are lo cated. In such case, the Department shall 110 be furnished with a certified copy of such inspection and approval which, to be acceptable, shall have been made within one year to the time of such weighing. Out- of-state truck scales used shall be in acco rdance with all pertinent provisions as they apply to truck scales accepted within the St ate of Indiana. They shall be subject to approval and inspection by the Department and to the requirements applicable to such scales located within the State.

If materials are shipped by rail, the car weight may be accepted provided payment is made for only the actual weight of the materials. Car weights will not be acceptable for material to be passed through mixing plants. Trucks used to haul material being 120 paid for by weight shall be weighed empty daily at such times as directed. Each truck shall bear a plainly legible identification mark.

Materials to be measured by volume in the hauling vehicle shall be hauled in approved vehicles and measured therein at the point of delivery. Vehicles for this purpose may be of the size or acceptable type provided the body is of such shape that the actual contents may be determined read ily and accurately. All vehicles shall be loaded to at least their water level capacity. All loads shall be leveled when directed, after the vehicles arrive at the point of delivery. 130

When requested and approved in writing, material specified to be measured by the cubic yard may be weighed. Such wei ghts will be converted to cubic yards for payment purposes. Factors for conversion from weight measurement to volume measurement will be determined and shall be agreed to by the Contractor before such method of measurement of pay quantities is used.

In computing volumes of excavation, the average end area method or other acceptable methods will be used.

If excavation is measured by cross-sections, the following will apply:

the cross-sections will be considered as located at the surface of the sod.

109.01

for a pay item of work, the final sections will be taken at the finished surface of the work.

payment for a pay item of work, the final sections will be taken at the limits of the authorized excavation.

Unauthorized wastage of material will be deducted. Only such quantities as are actually incorporated into the completed work will be included in the final estimate.

If an asphalt material is to be paid for directly, it will, except as hereinafter provided, be weighed and paid for by the ton. If the Engineer decides that weighing is 160 not feasible, the asphalt material may be measured by volume and converted to tons. The conversion will be based on the unit weight as determined in the laboratory.

If asphalt material is to be measured by volume, it will be measured by the gallon in tank cars, distributor tanks, tanks, or drums. Certified calibration of tank cars, distributor tanks, tanks, and certified quantities in drums in which asphalt materials are delivered or stored shall be furnished.

If asphalt material is furnished in drums, the amount in each drum shall be stenciled plainly on the drumhead by the producer. The amount so indicated will be 170 accepted as the quantity furnished. However, the amount in each drum may be checked in accordance with the requirements set out herein.

Tank car deliveries will be measured by volume and converted to tons.

Volumes will be measured at 60°F or will be corrected to the volume at 60°F in accordance with ASTM D1250 for asphalts or ASTM D633 for tars.

Net certified scale weights or weights based on certified volumes in the case of rail shipments will be used as a basis of measurement, subject to correction when 180 asphalt material has been lost from the car or the distributor, is wasted, or is otherwise not incorporated into the work.

For design and production, PCC will be measured by the cubic yard. The relative yield will be determined in accordance w ith 505.01. Payment for PCC will be in the unit designated for the specified use.

Unless otherwise provided, all aggregates for which measurements are obtained 190 by the cubic yard will be measured at the truck loading point in truck beds that have been measured, stenciled, and approved. They may be weighed and converted to cubic 109.01

yards by a conversion factor computed at sufficient intervals to ensure correct measurement.

Free water in all aggregates for which payment is made as a separate pay item on a weight basis shall be drained prior to weighing and selection of samples. Samples for determination of moisture content shall be taken immediately prior to the time the material is to be weighed. The number of moisture tests will be governed by moisture

conditions. Moisture contents shall be determined on the basis of oven dry weight by200

drying samples to constant weight at 230 ±9°F. However, if ovens are not available

for drying samples, other methods which give equivalent results may be used.

Moisture content shall be computed to the nearest 0.5% in accordance with the formula

as follows:

Percent of Moisture (M) = Wet weight of sample-Dry weight of sample

Dry weight of sample x 100

The percent of moisture shall be noted on each weight ticket.

The wet weight will be used for the basis of payment, if210

with AASHTO T 99, whichever is greater, for size No. 53 or

No. 73 aggregates or modifications thereof when specified, or

If the percent of moisture exceeds the limitations set out above, the weight to be220

paid for will be the gross weight of aggregate minus the weight of the excess moisture

computed as follows:

Weight to be paid for = G x (100 + m)

(100 + M)

in which:

G = Gross weight of material.

M = Percent of moisture in the aggregate to the nearest

0.5% based on oven dry weight.

m = Percent of moisture allowed in the wet aggregate to

be paid for based on oven dry weight.230

Timber or lumber will be measured by the thousand feet board measure or MFBM

actually incorporated into the work. Measurement will be based on nominal widths

and thicknesses and the extreme length of each piece.

109.01

107

Rental of equipment will be measured in hours of actual working time and

necessary traveling time of the equipment within the project limits. If special

equipment has been ordered in connection with force account work, travel time and240

transportation costs to the project site will be recorded. If equipment has been ordered

and held on the project site on a standby basis, full time rates for such equipment will

be paid.

If standard manufactured materials are specified such as fence, wire, plates, rolled

shapes, pipe, or conduit, and such materials are identified by gauge, unit weight, or

section dimensions, such identification will be considered to be nominal weights or

dimensions. Unless more stringently controlled by tolerances in cited specifications,

manufacturing tolerances established by the industries involved will be accepted.250

Nearly equivalent metric dimensioned manufactured items will be accepted in lieu of

English dimensioned items, provided they are within the specified tolerances, when

English sizes are specified. Nearly equivalent English dimensioned manufactured

items will be accepted in lieu of metric dimensioned items, provided they are within

the specified tolerances, when metric sizes are specified.

109.02Scope of Payment

Compensation provided for in the contract shall be received and accepted as full

payment for furnishing all materials and for performing all work specified in the

contract in a complete and acceptable manner. This shall also be payment in full for260

all risk, loss, damage, or expense of whatever character arising out of the nature of the

work or the prosecution thereof, in accordance with 107.23.

If the basis of payment clause in the specifications relating to a unit price in the

Schedule of Pay Items requires that said unit price cover and be considered

compensation for certain work or material essential to the pay item, this same work or

material will not also be measured or paid for under another pay item which may

appear elsewhere in the specifications.

The term lump sum when used as a unit of payment will mean complete payment270

for the pay items of work described in the contract.

The payment of a current estimate before final acceptance of the work shall not

affect the obligation of the Contractor to repair or renew any defective parts of the

construction. The responsibility for all damages due to such defects will be determined

in accordance with 107.19.

If it is agreed in writing that the quantities of certain items or portions of items of

work, as set forth in the contract, are in substantial agreement with actual quantities of

work performed, compensation therefore will be based on the quantities set forth in280

the contract without measurement thereof upon completion of the work. Compensation

based on contract quantities as agreed shall be accepted as full payment for such items

109.02

108

or portions of items.

If the Contractor has previously agreed in writing to accept photogrammetric

methods of measurement for common excavation and borrow, the Department may

utilize such methods of measurement as the basis of payment. Computation of volumes

shall be in accordance with 203.

109.03Compensation for Altered Quantities290

If the accepted quantities of work vary from the quantities shown in the Schedule

of Pay Items, the Contractor shall accept as payment in full, so far as contract items

are concerned, payment at the original contract unit prices for the accepted quantities

of work done. No allowance, except as provided in 104.02, will be made for increased

expense, loss of expected reimbursement, or loss of anticipated profits suffered or

claimed by the Contractor resulting either directly from such alterations or indirectly

from unbalanced allocation among the contract items of overhead expense on the part

of the bidder and subsequent loss of expected reimbursement therefore, or from any

other cause.

300

If an increase or decrease in a contract item is in accordance with 104.02, the

contract unit price will be the rate of payment unless an adjusted price is agreed to by

the parties to the contract. The contract unit price for a minor item may be adjusted if

agreed to by parties for only that portion of the item which exceeds 6% of the total bid

amount of the contract. A loss or gain of overhead costs will not be a consideration for

adjusting the unit prices.

If such alteration directly causes the loss of any work or materials already

furnished under the terms of the original contract, the actual cost of such work or of

salvaging such materials will be reimbursed. All such materials may, at the option of310

the Department, be purchased at the actual cost including freight to the Contractor,

plus 12%.

109.04Cost Reduction Incentive, CRI

The Contractor may submit a written proposal for modifying the Contract

Documents for the purpose of reducing construction costs or contract time. The

proposal shall produce a savings without impairing essential functions, characteristics,

and timing of the project including, but not limited to, safety, service life, economy of

operations, the traveling public, ease of maintenance, desired appearance, design

standards and construction schedules.320

The Contractor shall initially submit five copies of a brief proposal to the

Department to illustrate the concept or idea. At a minimum, the Contractor shall

submit the following:

109.03

109

describe the concept.330

changes for performing the work including a discussion of the

comparative advantages and disadvantages for each and how

the proposal meets the original intent of the design.

the existing contract and under the proposed change.

associated with the proposed change.

on Department costs other than those in the contract such as

future construction, design, right-of-way, utilities, maintenance,

and operations costs.

proposal.

350

an agreement adopting the proposal to obtain the maximum cost

reduction during the remainder of the contract time, the date the

work must begin in order to not delay the contract, and the

reasoning for this time schedule.

the time for completion of the contract, including development

of the formal proposal, review by the Department and

implementation.360

contractor proposes to use and corresponding applicable

specifications.370

The Department will notify the Contractor in writing within five business days

after receipt of the proposal that the proposal has been rejected, accepted, or that a

meeting needs to be arranged to discuss the proposed conceptual CRI. If the

109.04

110

Department fails to respond within five business days, the proposal will be deemed

rejected. If a meeting is requested, the Contractor shall arrange a meeting involving

any professional engineer that will be used in development of the proposal, the

engineer who designed the original plans or review engineer designated by the

Department, contractor personnel, and Department personnel as determined by the

Engineer. This meeting shall be held within 10 business days of receipt of the written380

notification, unless the Engineer approves additional time. At least two business days

prior to the meeting, the Contractor shall provide a copy of its conceptual CRI to all

persons invited to the meeting. Within 10 business days or a mutually agreed upon

time after this meeting, the Department will notify the Contractor in writing as to

whether a complete CRI may be developed.

If a concept is accepted by the Department, a formal proposal shall be submitted

with a statement identifying the proposal as a CRI and shall contain, at a minimum,

information as follows:390

the proposed change with a comparison of effects on safety,

service life, economy of operations, the traveling public, ease

of maintenance, desired appearance, design standards, and

construction schedules.

showing design changes shall be signed and bear the seal of a

Professional Engineer. Design changes shall be supported by400

design computations as necessary for a thorough and

expeditious evaluation.

change.

both as planned and as proposed.

to produce the savings indicated.

measures have been successfully used.

contract completion time.

redesign engineer, who prepared and sealed the plans for the420

109.04

111

CRI proposal, shall be submitted to the Department. The

contract shall provide for the following:

the professional quality, technical accuracy, and the

coordination of all designs, drawings, specifications, load

rating analysis, and other services furnished by the redesign

engineer under this contract. The redesign engineer shall

correct or revise any errors or omissions in its designs,

drawings, specifications, and other services. The430

Contractor’s redesign engineer shall indemnify, defend, and

hold harmless the State and its agents, officials, and

employees, from all claims and suits including court costs,

attorney’s fees, and other expenses caused by any acts,

errors, or omissions of the Contractor’s redesign engineer,

its agents, or employees, in connection with the CRI

proposal.

of the plans for the CRI shall be construed to operate as a440

waiver of rights under the contract or cause of action arising

out of the contract. The Contractor’s redesign engineer shall

be and shall remain liable to the Department for all damages

caused by the Contractor’s redesign engineer.

contract are in addition to all other rights and remedies

provided by law.

shall adversely affect the Department’s liability protection.

shall be submitted with full documentation.

Additional information shall be provided as required to properly evaluate the

proposed change. Failure to do so may result in rejection of the cost reduction incentive

proposal.

The Engineer will be the sole judge as to whether a formal CRI proposal qualifies

for consideration, evaluation, and approval. A proposal which requires excessive time

or cost for review, evaluation, or investigation, or which is not consistent with

Department design policies, may be rejected. A proposal may also be rejected if not

submitted within the time frame specified in the Contractor’s conceptual proposal,

unless the Engineer approves additional time. Proposed changes in pavement design

109.04

112

including materials or pavement type, changes in materials required to be installed by

a certified installer, or changes in right-of-way will not be approved. A proposal which

uses empirical design (AASHTO LRFD Bridge Design Specifications, Section 9.7.2)

of the concrete bridge deck will not be considered or approved. Only proposals which470

result in the Department’s portion of the estimated net savings being $10,000.00 or

more will be considered. Except as provided in 109.04(d), the Department will not be

liable for failure to accept or act upon a proposal submitted in accordance with the

requirements herein or for delays to the work attributable to such proposal, unless an

extension of time is provided as part of the agreed CRI proposal.

Original contract bid prices shall not be based on the anticipated approval of a

CRI proposal. If the proposal is rejected, the contract shall be completed at the original

contract prices. If a CRI proposal is not approved on or before the calendar date

submitted by the Contractor in the CRI shown on the proposal, such proposal will be480

deemed rejected. In determining the estimated net savings, the contract prices bid may

be disregarded if it is determined that such prices do not represent a fair measure of

the value of the work to be performed or deleted.

The CRI proposal will not be approved if equivalent options are already available

within the contract, or if the Department is already considering a change order to the

contract which includes the proposal revisions.

When a CRI proposal is received which changes superstructure type,

superstructure dimensions, or superstructure dead load, the Engineer will perform a490

load rating analysis on the proposed structure. The load rating analysis must yield an

inventory rating of 1.0 or greater for the design live load in order to be considered for

approval. If the inventory rating is less than 1.0, the proposed design shall be modified

so that the load rating analysis yields an inventory rating of 1.0 or greater for the design

live load before the CRI proposal is considered for approval.

If the CRI proposal is approved, it will be executed by means of a change order.

The change order will show the changes in the plans and specifications necessary to

enable the proposal to be put into effect and the net estimated savings will be set forth

on the change order.500

Upon approval, the Department will have the right to use, duplicate, and disclose

in whole or in part, all data necessary for the subsequent adoption of the proposal for

future projects.

The provisions of this specification will apply only to a contract awarded to the

lowest bidder in accordance with the Department’s competitive bidding requirements.

Except as provided elsewhere herein, if the Department rejects the formal CRI510

proposal, the Contractor will be reimbursed for 50% of the Contractor’s reasonable

design costs incurred after the Department’s acceptance of the CRI conceptual

109.04

113

proposal.

The Contractor will also be reimbursed for 50% of the Contractor’s reasonable

design costs of an approved CRI proposal if the Department determines that the

proposal is no longer feasible because of changes in field conditions or other

conditions beyond the control of the Contractor. If written approval was given to

proceed with the work, procure materials, begin fabrication, and rejection occurs, the

work and fabrication costs will be reimbursed in accordance with 109.05. The520

Contractor will be compensated for materials ordered which are unique to the project

based on the Contractor’s cost minus salvage value if the Contractor is unable to return

these items to the vendor. All such material may, at the option of the Department, be

purchased at its actual cost. There will be no reimbursement for costs incurred prior to

the acceptance of the conceptual CRI proposal. The Contractor will not be reimbursed

for design costs if a formal CRI proposal is rejected because it was not submitted

within the time frame specified in the Contractor’s conceptual proposal or additional

time approved by the Engineer, if the Contractor fails to submit additional information

requested by the Department, or if the design criteria used in the proposal does not

comply with the Department’s design standards.530

The Contractor shall continue to perform the work in accordance with the contract

requirements until a change order incorporating the CRI proposal has been approved.

However, no contract work that will be affected by a CRI proposal shall be performed

until the CRI proposal has been approved or rejected.

Prior to approval, the Engineer may modify a proposal with the concurrence of

the Contractor, to enhance it or make it acceptable. If any modification increases or

decreases the net savings resulting from the proposal, the Contractor’s 50% share will540

be determined upon the basis of the proposal as modified.

The Department reserves the right to include in the change order the conditions it

deems appropriate for consideration, approval, and implementation of the CRI

proposal. Acceptance of the change order by the Contractor shall constitute acceptance

of such conditions. As a condition for considering a Contractor’s CRI proposal, the

Department also reserves the right to require the Contractor to share in the

Department’s costs of investigating the proposal. If this condition is imposed, the

Contractor shall indicate acceptance in writing. Such acceptance shall constitute full

authority for the Department to deduct amounts for the investigation from moneys due550

the Contractor under the contract.

The Engineer may reject, in accordance with 105.03 and 105.11, all or any portion

of work performed under an approved CRI proposal.

The Contractor may submit a CRI proposal that reduces contract time by changing

phasing of the work, the traffic control plan, or design elements.

109.04

114

The Department will consider proposals that result in time savings and at the same560

time may increase the cost of the project. The Department will be the sole judge as to

whether the benefits of completing the project or a project phase before the scheduled

completion date or milestone offsets an increase to the cost of the project.

The submittals for time savings will be reviewed using the CRI proposal process.

The Contractor shall provide the Department sufficient information to enable the

Department to evaluate the cost benefit of the savings.

For approved formal CRI proposals the Department will adjust the applicable570

contract time as set out in the proposal. Any adjustment will be set forth in the change

order for the CRI proposal. Depending on the Contractor’s proposal, the adjustment

will be an increase or decrease in the appropriate completion date.

The work, as revised by the formal CRI proposal, will be measured as complete

and in place and in accordance with the change order.

The work, as revised by the formal CRI proposal, will be paid for as complete and580

in place and in accordance with the change order. In addition, the Contractor’s

Reasonable Design Cost and 50% of the total net savings of the CRI proposal will be

paid for separately as follows:

will be paid for after approving the formal CRI proposal with

the change order.

order, the total net savings will be calculated, and the Contractor590

will be paid 50% of the total net savings.

The total net savings resulting from the CRI will be calculated

as follows:

TNS = OCW – RCW – CRDC – DC

where:

TNS = total net savings

OCW = original cost of the work required by the original contract

RCW = revised cost of the work

CRDC = Contractor’s reasonable design cost for the CRI proposal

DC = Department’s cost for investigating, evaluating, and

implementing the CRI proposal.

109.04

115

the Department.

The actual formal CRI proposal net savings will be checked upon completion of

the contract and determination of final quantities to determine if any payment

adjustment is required.

Only those work items directly affected by the plan change will be considered in

making the determination of net cost savings. Subsequent plan changes affecting the

modified work items but not related to the CRI proposal will be excluded from such

determination. Upon completion of all work included in the CRI proposal, the final610

total net savings will be determined by comparing the cost of the work based on the

original contract quantities with the cost of the actual CRI proposal work performed.

In determining the savings, the Department reserves the right to consider other

factors in addition to the contract bid prices and proposed unit prices if, in the judgment

of the Department, such prices do not represent a fair measure of the value of the work

to be deleted from or added to the contract.

The net savings of a CRI proposal to reduce contract time will be determined by

multiplying the number of days saved by the daily liquidated damages as set forth in620

Section 108.08 or as otherwise provided in the contract.

Redesign engineering, in accordance with this section, is defined as 50% of the

contractor’s reasonable design costs incurred after the Department’s acceptance of the

CRI proposal. Redesign Engineering will be paid when a conceptual CRI has been

accepted by the Department, but the final proposal is rejected.

Payment will be made under:

Pay Item Pay Unit Symbol630

Contractor’s Reasonable Design Cost

for CRI Proposal No. ____ ................................................. LS

Cost Reduction Incentive Proposal No. ____ ............................ LS

Redesign Engineering, CRI Proposal No. ____ ........................ LS

109.05Payment for Extra Work

A Change Order Request form, available on the Department's website, shall be

submitted for review for all extra work prior to the Engineer drafting a change order.

The form shall describe any unique circumstances and shall include unit prices or lump640

sum prices utilizing standard Department pay items.

Extra work performed in accordance with 104.03 will be paid for by one of the

following methods:

109.05

116

Extra work will be paid for at agreed upon unit prices or lump sum prices as

documented on approved change orders. The Department will perform a cost analysis

of the Contractor's unit price or lump sum price indicated on the Change Order Request

form.650

Based on the results of the cost analysis, the Engineer may direct the Change

Order Request form to be amended to incorporate additional information, including:

work.

equipment, and materials in sufficient detail to enable the

Engineer to determine the basis and amount of the requested

price.

The Department may require the Contractor to perform extra work on a force

account basis when a price cannot be agreed upon in accordance with 109.05(a). The

Contractor shall, when directed, submit a written proposal for the extra work prior to

the start of the work. When directed, the proposal shall include the planned labor,

materials, equipment, and schedule for the work. Extra work performed by force670

account will be documented on an approved change order and will be compensated in

the following manner:

For all labor and foremen in direct charge of the specific operations, the

Contractor will receive the rate of wage, or scale, agreed upon in writing before

beginning work for each hour that said labor and foremen are actually engaged in such

work.

The Contractor will receive the actual costs paid to, or in behalf of, workmen by680

reasons of subsistence and travel allowances, worker’s compensation insurance

premiums, unemployment insurance contributions, social security taxes, health and

welfare benefits, pension fund benefits, or other benefits when such amounts are

required by collective bargaining agreement or other employment contract generally

applicable to the classes of labor employed on the work. The Contractor shall furnish

satisfactory evidence of the rate or rates paid for insurance premiums and tax.

An amount equal to 20% of the sum of the above items will also be paid to the

Contractor.

690

109.05

117

For bond premium and property damage and liability insurance premiums, the

Contractor will receive the actual cost, to which cost 10% will be added. The

Contractor shall furnish satisfactory evidence of the rate or rates paid for such bond

premium and insurance premiums.

For materials accepted and used, the Contractor will receive the actual cost of

such materials delivered on the work, including transportation charges paid by the

Contractor, exclusive of machinery rentals as hereinafter set forth, to which cost 12%700

will be added.

For Contractor owned machinery or special equipment other than small tools as

defined herein, the rates shall be not more than those listed in the current Rental Rate

Blue Book as published by EquipmentWatch®. The rate used shall be the FHWA

hourly rate which is the ownership cost rate plus the operating cost rate. Regardless of

the time used, the ownership cost rate shall be the hourly rate obtained by dividing the

monthly Blue Book rate by 176 with appropriate adjustments made for region and age.

Actual transportation costs may be added to the FHWA rate. Small tools will be710

defined as tools costing less than $500 each, or an aggregate total of $1,000 or less.

For machinery or special equipment not owned by the Contractor, the rate shall

be as shown on invoices. Actual fuel, lubricant and transportation costs may be added

to the rental cost. The Engineer may designate the use of the fuel percentage of the

Rental Rate Blue Book operating cost rate in lieu of actual fuel and lubricant costs. No

payment will be made for repairs to rented equipment.

For equipment that is operational, on-site, and necessary for force account work,

but is idle due to conditions beyond the control of the Contractor, a standby rate will720

apply. The standby rate will also apply during the period of transportation and on-site

assembly and disassembly of the equipment for transportation purposes. The standby

rate will be the published ownership cost rate reduced by 50%. Standby time will not

be paid for in excess of 8 hours per day minus the number of hours paid for at the

FHWA rate per day; or 40 hours per week minus the number of hours paid for at the

FHWA rate per week. If rented equipment necessary for force account work is idle,

the Department will pay the Contractor for the actual invoice rates for the duration of

the idle period.

The Contractor shall provide a list of all information needed to verify the Blue730

Book rental rate for each piece of equipment. The information shall include the

equipment type, manufacturer name, model number, year, any attachments used, and

any other information necessary to determine the proper rate.

The Contractor will receive payment for the total costs agreed upon to which sum

12% will be added.

109.05

118

No additional allowance will be made for general superintendence or other costs

for which no specific allowance is herein provided.740

For administration costs in connection with approved subcontract work, the

Contractor shall receive an amount equal to 7% of the total cost of such work computed

as set forth above.

The Contractor and the Engineer shall compare records of the cost of work done

as ordered on a force account basis at the end of each day. These records shall be made

in duplicate and signed by both. Each shall retain one copy.750

No payment will be made for work performed on a force account basis until the

Contractor has furnished triplicate itemized statements of the cost of such force

account work detailed as follows:

extension for each laborer and foreman;

extension for each unit of machinery and equipment;

compensation insurance premiums, unemployment

insurance contributions, and social security tax.

770

Statements shall be accompanied and supported by receipted invoices for all

materials used and for transportation charges. However, if materials used on the force

account work are not specifically purchased for such work but are taken from the

Contractor’s stock, then in lieu of the invoices the Contractor shall furnish an affidavit

certifying that such materials were taken from its stock, that the quantity claimed was

actually used, and that the price and transportation claimed represent the actual cost to

the Contractor.

If the Contractor fails or refuses to prosecute extra or force account work as

directed, the Department may withhold payment of all current estimates until the780

Contractor’s failure or refusal is eliminated.

109.05

119

.1 Quality Adjustments

Quality adjustments are those adjustments in the payment for work done or

materials furnished and incorporated into the work which either exceed or fall below

the standards established by the contract.

A change order will be prepared to reflect these adjustments. The unit price for

these adjustments will be $1.00 and the quantities will be in units of dollars.

790

Payment will be made under:

Pay Item Pay Unit Symbol

Quality Adjustments, _____ .............................................. DOL

type

The dollars shown shall be the amount of the quality adjustments for the following

types and may consist of plus or minus adjustments.

800

Quality adjustments with respect to mixture, density, and smoothness for mixture

produced will be computed in accordance with 401.19.

Quality adjustments will be calculated in accordance with 501.28 or 502.21(c) as

appropriate.

Quality adjustments will be assessed when the device is deemed to be in non-810

compliance in accordance with 801.03. Adjustments will be determined in accordance

with 105.14.

Adjustments for non-compliance of construction warning lights will be

determined in accordance with 801.14.

Quality adjustments for materials which are deemed below the standards

established, but which are allowed to remain in place by the Department’s Failed

Materials Committee in accordance with 105.03, will be as determined by that820

committee.

Quality adjustments will be calculated in accordance with 808.07.

Quality adjustments will be calculated in accordance with 205.08.

120

.2 Delay Costs

When the Engineer determines that an excusable, compensable delay has occurred830

as defined in 108.08(b), the Department will pay for the costs incurred by the

Contractor as a result of the delay. The Department will not pay for unrecoverable

costs as defined in 104.02(d) and will not make duplicate payment for compensation

made in accordance with 109.05.

The Department will not make payment for delays that occur during the period

from December 1 through March 31 unless the Contractor’s current accepted progress

schedule, as required by 108.04, indicates work on the controlling operation or critical

path during this period.

840

The Contractor shall provide satisfactory documentation to support payment for

delay costs. The Department will not make any payment for delay costs until the

documentation is submitted.

Payments made under this specification shall constitute full compensation for all

delay costs and associated costs, including overhead.

Payment will be made for all necessary salaried and non-salaried personnel that

must remain on the project, as approved by the Engineer, during the delay period and

cannot be assigned to unaffected work. Necessary personnel will include field

superintendents, assistants, watchmen, clerical and other field support staff, and those

persons required for maintenance within the project limits, including maintenance of

traffic control devices, maintenance of erosion and sediment control measures and

similar activities as approved by the Engineer. Payment for labor costs will be

calculated in accordance with 109.05(b)1.

Payment will be made for the increased cost of insurance resulting directly from

the delay and will be calculated in accordance with 109.05(b)2.

Payment will be made for idle equipment that must remain on the project, as

approved by the Engineer, during the delay period and cannot be used for active work.

Payment for idle equipment will be calculated in accordance with 109.05(b)4.

If the Engineer determines that idle equipment should not remain on the project,

the Department will pay for the cost to demobilize the equipment during the delay and870

remobilize it at the end of the delay.

Payment will be made for the cost to maintain a Contractor’s field office, if

determined necessary by the Engineer, during the delay period.

121

Field office costs include, but are not limited to, the Contractor’s field office

facilities, tool trailers, office equipment rental, temporary toilets, incidental supplies,

and utility expenses. Payment will be made only for the actual costs incurred during

the delay period as documented on paid invoices.880

Payment for escalation costs due to an excusable, compensable delay will be

limited to the escalated cost of labor, materials, and equipment on that portion of the

work which is delayed beyond an original intermediate completion date or the contract

completion date and is caused to be performed during a period when the costs were

higher than when the work was planned to be performed as shown on the accepted

schedule prior to the delay. The Contractor shall submit satisfactory documentation of

escalation costs in a format approved by the Department.

890

Payment for escalated labor costs will be calculated as the difference in labor cost

between the time the work was performed and the time the work was planned. Labor

costs will be calculated in accordance with 109.05(b)1 except that no markup will be

paid for labor escalation.

Payment for escalated material costs will be calculated as the difference in the

material cost between the time the work was performed and the time the work was

planned. No material escalation cost will be paid for any item covered by a separate900

escalation or indexing clause under the contract.

The Department will pay for storage of materials, as approved by the Engineer,

due to the delay. Only the actual cost of storing the materials will be paid. No markup

will be paid for materials storage.

Payment for equipment escalation costs will be calculated as the difference

between the Rental Rate Blue Book FHWA hourly rate at the time the work was

performed and the Rental Rate Blue Book FHWA hourly rate at the time the work was910

planned. No markup will be paid for equipment escalation costs.

.3 PG Asphalt Binder Material Cost Adjustments

The Contractor shall elect at the time the bid proposal is submitted, in a manner

determined by the Department, whether or not to enact PG asphalt binder material cost

adjustments. If the Contractor elects not to enact such adjustments, there will be no

adjusted payment made to the Contractor for changes in the cost of PG asphalt binder

materials used on the project and the provisions of this specification will not be applied920

to the contract. PG asphalt binder material cost adjustments will not be added to the

122

contract at any time after the Contractor has elected not to enact such adjustments with

submittal of the bid proposal. PG asphalt binder material cost adjustments will not be

applied to alternate bid pavement items, but may be applied to the common items on

contracts containing alternate bid pavement items.

When the Contractor elects to enact PG asphalt binder material cost adjustments

at the time the bid proposal is submitted, the Department will adjust payment to the

Contractor due to an increase or decrease in the cost of PG asphalt binder material

used on the project to produce HMA mixtures that are paid in accordance with 304,930

401, 402, 410, 414, 610, or 718. Payment will be adjusted when an increase or decrease

in the PG asphalt binder index for the contract is greater than or equal to 10.01%.

Payment will only be adjusted when the total original or revised quantity of at least

one HMA pay item exceeds 2,000 tons.

For contracts without any original HMA pay item quantity equal to or greater than

2,000 tons, adjusted payment will not be made until the revised quantity of at least one

HMA pay item meets the quantity criteria.

The initial 2,000 tons of HMA will not be eligible for a payment adjustment.940

The Department will determine a PG asphalt binder index from one or more

commercial services that provide regional indices. The PG asphalt binder index will

be maintained by the Department’s Division of Materials and Tests and posted on the

Department’s website. The posting will include an explanation of how the index is

determined. A monthly payment adjustment will be calculated for each HMA pay item

placed on the contract during that month. The total PG asphalt binder adjustment

applied to the contract each month will be the sum of the calculations for each HMA

pay item. The payment adjustment for each HMA pay item will be calculated as

follows:950

For a price increase:

MPA = (Q x Pb)/100 x LI x [(BI-LI)/LI - 0.10]

For a price decrease:

MPA = (Q x Pb)/100 x LI x [(BI-LI)/LI + 0.10]

where:960

MPA = Mixture Payment Adjustment, in dollars, calculated to the

nearest 0.01 dollar for each HMA pay item.

Q = Quantity of a HMA pay item placed, in tons, entered to the

actual 0.01 unit placed. The quantity will be calculated prior to

calculation of any other quantity adjustment.

123

Pb = Percent of virgin asphalt binder from the DMF, in the

adjustment period, or JMF for the HMA mixture, entered to970

the nearest 0.1.

BI = PG asphalt binder index for the month the HMA pay item is

placed, reported to the nearest whole dollar.

LI = PG asphalt binder index for the contract. The LI for all original

contract HMA pay items equals the BI for the month

immediately prior to the month of letting for the contract. The

LI for any HMA extra work pay item will be the BI for the

month the unit price for the pay item is submitted by the980

Contractor.

The calculation of (BI-LI)/LI will be rounded to the nearest 0.001. Payment will

only be adjusted when the absolute value of (BI-LI)/LI is equal to or greater than 0.101.

If HMA pay items are placed beyond the specified contract completion date for

the contract, the Department will calculate pay adjustments on the BI for the month of

the specified completion date or the month of placement, whichever result is less.

The unit price of PG asphalt binder payment adjustment will be $1.00 and the pay990

quantities will be in units of dollars.

Payment will be made under:

Pay Item Pay Unit Symbol

Payment Adjustment, PG Asphalt Binder ......................... DOL

109.06Eliminated Pay Items

If pay items contained in the Schedule of Pay Items are found unnecessary for the1000

proper completion of the work, they may be eliminated from the contract as a change

order. Such action shall not invalidate the contract. When notified of the elimination

of pay items, the Contractor will be reimbursed for actual work done and all costs

incurred, including mobilization of materials prior to said notification. This material

may, at the option of the Department, be purchased at the actual cost including freight

to the Contractor, plus 12%.

109.07Partial Payments

The contract may contain more than one project. Partial payments may be made

once each month as the work progresses or twice each month if it is determined that1010

the amount of work performed is sufficient to warrant such payment. These payments

will be based on estimates, prepared by the Engineer, of the value of the work

performed and materials complete in place in accordance with the contract. No partial

109.07

124

payment will be made or estimates submitted when the total value of the work

performed since the last estimate amounts to less than $500.

Except as set out in 105 IAC 11-3-8 of the Rules for Prequalification of

Contractors and Bidding, the balance, less all previous payments and less amounts

claimed which are required to be held by the Department in accordance with IC 8-23-

9-26 through 8-23-9-39, will be certified for payment.1020

Within 10 business days of receipt of payment for any such estimate, the

Contractor shall make payment to all subcontractors, including lessors and material

suppliers, for the value of their work performed and materials complete in place in

accordance with the contract. Failure to comply with this clause shall constitute a

material breach of the contract and may result in sanctions under the contract.

Any delay or postponement of payment among the parties may take place only

for good cause, with the Department’s written approval. The explanation from the

Contractor shall be made in writing to the Department.1030

Upon receipt of a claim under IC 8-23-9-26, the Department will retain out of the

amount due the Contractor the amount of the claim. The amount to be retained will be

withheld from partial payment estimates until the total amount of the claim has been

retained.

In order to retain an amount when required by IC 8-23-9-26, the Engineer will

apply a negative quantity to the contract liens pay item for the actual dollar amount of

the claim. Upon resolution of the claim, the Engineer will post a positive quantity to

the contract liens pay item equal to the amount originally retained. The final quantity1040

of the contract liens pay item will be zero prior to final payment.

The contract unit price for contract liens will be $1.00.

Payment will be made under:

Pay Item Pay Unit Symbol

Contract Liens ................................................................... DOL

1050

No allowance will be made for materials received which have not been

incorporated into the work except in accordance with 111.

109.08Final Payment

When the work has been completed in accordance with the terms of the contract,

a final estimate will be prepared for the work done and a copy will be furnished to the

Contractor. Final payment will not be made to the Contractor until allowed by IC 8-

23-9-26 through IC 8-23-9-39.

109.08

125

All prior partial estimates and payments will be subject to correction in the final1060

estimate and payment.

Except as otherwise provided herein, final payment will be made within 180 days

after acceptance of the project. Acceptance shall be considered as the date the

Contractor is relieved of further maintenance as provided in 107.19 and as set out in

the final acceptance letter. However, final payment shall not be made on an amount

which is in dispute or the subject of a pending claim. However, final payment may be

made on that portion of the contract or those amounts which are not in dispute or

subject of a pending claim. Such partial payment shall not constitute a bar, admission,

estoppel, or have any other effect as to those payments in dispute or the subject of a1070

pending claim. For the purpose of this section, a dispute exists when the Contractor

makes a claim for increase or decrease to any part of the contract or seeks additional

compensation for any reason.