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.
g.Adjustments to Contract Time For approved formal CRI proposals the Department will adjust the applicable 570 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.
h.Method of Measurement The work, as revised by the formal CRI proposal, will be measured as complete and in place and in accordance with the change order.
i.Basis of Payment The work, as revised by the formal CRI pr oposal, will be paid for as complete and 580 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:
1.The Contractor’s Reasonable Design Cost for the CRI proposal will be paid for after approving the formal CRI proposal with the change order.
2.Upon completion of all items of work included in the change order, the total net savings will be calculated, and the Contractor 590 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
3.A cost savings of not less than $5,000.00 shall be guaranteed to 600 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 final 610 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 repres ent 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 in 620 Section 108.08 or as otherwise provided in the contract. Redesign engineering, in accordance with th is section, is defined as 50% of the contractor’s reasonable design costs incurr ed 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 th e final proposal is rejected. Payment will be made under: Pay Item Pay Unit Symbol 630 Contractor’s Reasonable Design Cost for CRI Proposal No. ____ ................................................. LS Cost Reduction Incentive Proposal No. ____ ............................ LS Redesign Engineering, CRI Proposal No. ____ ........................ LS
109.05 Payment 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 circumst ances and shall include unit prices or lump 640
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
a.Agreed Price 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:
1.A detailed explanation of unique circumstances of the extra work.
2.The effect of the circumstances on the requested price.
3.A breakdown of the estimated costs for the categories of labor, 660 equipment, and materials in sufficient detail to enable the Engineer to determine the basis and amount of the requested price.
b.Force Account 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 force 670 account will be documented on an approved change order and will be compensated in the following manner: 1 . L a b o r C o s t s 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 by 680 reasons of subsistence and travel allo wances, 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 rate s 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 2. Bond and Insurance 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. 3. Materials 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. 4. Equipment 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 be 710 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 design ate 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-s ite, and necessary for force account work, but is idle due to conditions beyond the cont rol of the Contractor, a standby rate will 720 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 Blue 730 Book rental rate for each piece of equipm ent. 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
5.Miscellaneous No additional allowance will be made for general superintendence or other costs for which no specific allowance is herein provided. 740
6.Subcontracting 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.
7.Compensation 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
8.Statements 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:
a.name, classification, date, daily hours, total hours, rate, and extension for each laborer and foreman;
b.designation, dates, daily hours, total hours, rental rate, and 760 extension for each unit of machinery and equipment;
c.quantities of materials, prices, and extensions; d. transportation of materials; e. cost of property damage, liability and worker’s compensation insurance premiums, unemployment insurance contributions, and social security tax. 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 transpor tation 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 the 780 Contractor’s failure or refusal is eliminated. 109.05 119 109.05.1 Quality Adjustments Quality adjustments are those adjustments in the payment for work done or materials furnished and incorporated into th e 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. Payment will be made under: Pay Item Pay Unit Symbol Quality Adjustments, _____ .............................................. DOL type The dollars shown shall be the amount of the quality adjustment s for the following types and may consist of plus or minus adjustments. 800
a.HMA Quality adjustments with respect to mixture, density, and smoothness for mixture produced will be computed in accordance with 401.19.
b.PCCP Quality adjustments will be calculated in accordance with 501.28 or 502.21(c) as appropriate.
c.Temporary Traffic Control Devices and Markings, TTCD 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. (d) Failed Materials, FM 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 that 820 committee. (e) Pavement Traffic Markings, PTM Quality adjustments will be calculated in accordance with 808.07.
f.Stormwater Management Quality adjustments will be calculated in accordance with 205.08. 109.05.1 120 109.05.2 Delay Costs When the Engineer determin es that an excusable, comp ensable delay has occurred 830 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 th e Contractor’s current accepted progress schedule, as required by 108.04, indicates work on the controlling operation or critical path during this period. 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.
a.Allowable Delay Costs 1 . L a b o r 850 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. 2 . I n s u r a n c e 860 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. 3 . E q u i p m e n t 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 cal culated 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 and 870 remobilize it at the end of the delay. 4. Field Office Costs Payment will be made for the cost to maintain a Contractor’s field office, if determined necessary by the Engineer, during the delay period. 109.05.2 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
5.Escalation Costs 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.
a.Labor Escalation 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.
b.Materials Escalation or Storage 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 separate 900 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.
c.Equipment Escalation 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 was 910 planned. No markup will be paid for equipment escalation costs.
b.Blank
109.05.3 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 applied 920 to the contract. PG asphalt binder material cost adjustments will not be added to the 109.05.3 122 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 alte rnate 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 duri ng 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 Adjustme nt, 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. 109.05.3 Pb = Percent of virgin asphalt binder from the DMF, in the adjustment period, or JMF for the HMA mixture, entered to 970 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 the 980 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 th e 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 pay 990 quantities will be in units of dollars. Payment will be made under: Pay Item Pay Unit Symbol Payment Adjustment, PG Asphalt Binder ......................... DOL
109.06 Eliminated Pay Items
If pay items contained in the Schedule of Pay Items are found unnecessary for the 1000 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 purch ased at the actual cost including freight to the Contractor, plus 12%. 109.07 Partial Payments The contract may contain more than one project. Partial payments may be made once each month as the work progresses or tw ice each month if it is determined that 1010 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 th e 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 perf ormed 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 paymen t 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 am ount originally retain ed. The final quantity 1040 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 No allowance will be made for materials received which have not been incorporated into th e work except in accordance with 111.
109.08 Final Payment When the work has been completed in acco rdance 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 final 1060 estimate and payment. Except as otherwise provided herein, fina l 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 a 1070 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.
Source: Indiana Standard Specifications, 2024 Edition. Pages 130–141 of 1,248.