TERMS AND CONDITIONS TC-7.01 MEASUREMENT OF QUANTITIES For all items of work, other than those to be paid by lump sum, after the work is completed and before final payment is made, the Engineer will make final measurements to determine the quantities of various items of work performed as the basis for final settlement. The Contractor in case of unit price items will be paid for the actual amount of work performed and for the actual amount of materials in place in conformance with the Specifications and final measurements. All work completed under the Contract will be measured by the Engineer in conformance with the United States Standard Measure. All longitudinal measurements for area will be made along the actual surface and not horizontally, and no deductions will be made for individual fixtures having an area of 9 ft 2or less. For all transverse measurements for area of base course and pavements, the dimensions to be used in calculating the pay area will be the neat dimensions shown on the Plans or directed in writing by the Engineer. Structure measurements shall conform to the neat lines shown on the Plans or as directed in writing, unless otherwise provided for elsewhere in the Contract Documents. Volumes of excavation, tamped fill, and borrow pits will be calculated per cubic yard from the cross section and the use of average end area formulas. Volumes of other work such as masonry, removal of masonry, etc. will be calculated using arithmetical formulas. Where the volume is bounded by varying dimensions and there are no simple volumetric formulas applicable, frequent cross sections will be taken and the cubic yard volume computed from average end area formulas. Cement will be measured by weight. All items that are measured by the linear foot such as pipe culverts, traffic barrier, underdrains, etc., will be measured parallel to the base or foundation upon which such structures are placed unless otherwise specified in the Contract Documents. The term gauge when used in connection with the measurement of uncoated steel sheet and light plates shall mean the U.S. Standard Gauge, except that when reference is made to the measurement of galvanized or aluminum sheets used in the manufacture of corrugated metal pipe, metal plate pipe culverts and arches, and metal cribbing, the term gauge shall mean that specified in M 36, M 167, M 196, or M 197. When the term gauge refers to the measurement of wire, it shall mean the Washburn & Moen wire gauge as referenced in the New Departure Handbook. A tolerance of plus or minus 0.003 in. shall apply. 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS The term ton shall mean the short ton consisting of 2000 pounds avoirdupois. All materials that are specified by the ton shall be weighed on accurate, approved scales conforming to the requirements of the National Bureau of Standards Handbook 44. A digital recorder and printout shall be required on all truck scales. The digital recorder shall produce a printed record of the gross, tare, net weights, the time, date, truck identification, and Contract Number. Provisions shall be made so that the scales may not be manually manipulated during the process. The system shall be interlocked to allow printing only when the scale has come to rest. Except for computer operated scales, all weights shall be certified by a bonded weigh person supplied by the Contractor, producer, or supplier. The security bond shall be $100 000. If the material is shipped by rail, the car weight shall be accepted but the payment will be limited to the actual weight of material. Car weight will not be acceptable for material to be passed through mixing plants. All materials for which measurements are obtained by the cubic yard shall be hauled in approved vehicles and measured at the point of delivery. No allowance will be made for the settlement of material in transit. Approved vehicles for this purpose shall be of any size or type acceptable to the Engineer, provided that the body is of such shape that the actual contents may be readily and accurately determined. Unless all approved vehicles are of uniform capacity, each approved vehicle shall bear a plainly legible identification mark indicating the specific approved capacity. All vehicles shall be loaded to at least their water level capacity, and all loads shall be leveled when the vehicles arrive at the point of delivery. When requested by the Contractor and approved by the Engineer in writing, material specified to be measured by the cubic yard may be weighed, and the weight will be converted to cubic yard for payment purposes. Factors for conversion from weight measurement to volume measurement will be determined by the Laboratory and shall be agreed to by the Contractor before the method of measurement of pay quantities will be approved by the Engineer. Liquid asphalt material delivered for the project will be measured by volume in each railroad tank car, tank truck, distributor tank, or drums in which it is delivered. The measurements will be taken when the asphalt material is of a uniform temperature and free from air bubbles. The temperature of the material will be recorded. The volumetric measurement of the asphalt material will be based upon a temperature of 60 F. Reference is made to D1250, Petroleum Measurement Tables. Only the quantity of asphalt material actually placed in the work and accepted will be considered in determining the amount due the Contractor. Timber will be measured by the thousand board foot measurement (MBM) actually incorporated in the structure. Measurement will be based on nominal widths and thicknesses and the extreme length of each piece. The term lump sum when used as an item of payment will mean complete payment for the unit of work described. When complete structure or structural unit (in effect, lump sum work) is specified as the unit measurement, the unit will be construed to include all necessary fittings and accessories. Rental of equipment will be measured in hours of actual working time, moving in and moving out costs, if any, and necessary traveling time of the equipment within the limits of the project, except when special conditions make some other method of measurement desirable. TC-7.02 PAYMENT ALLOWANCES FOR STORED MATERIAL When the Contractor requests payment allowance for materials, the following terms and conditions shall apply:
a.For superstructure members delivered to the project or in storage at an approved site, an allowance of 100 percent of the material cost plus freight charges as invoiced may be made provided the cost does not exceed 90 percent of the Contract price of the applicable Contract item. The allowance will be based upon validated invoices or bills for material including freight charges, and a copy thereof shall be made a part of the documented records for the project.
b.For reinforcement steel, piling, pipe, traffic barrier, signs and sign assemblies, form lumber, falsework, temporary structures, and other nonperishable material delivered to the project or in storage at an approved site, excluding aggregates, cement, seed, plants, fertilizer, or other perishable items, an allowance of 100 percent of the invoiced cost of the material plus freight charges to the Contractor may be made provided the cost does not exceed 90 percent of the Contract price of the applicable Contract item. Such material shall be delivered and stock-piled at the project site or an approved location (TC-7.02(d)) after being tested by the Administration and found to have conformed to the Specifications, if applicable, or to have been accepted under an approved certification program prior to the allowance.
c.No allowance will be made for fuels or other materials that will not structurally assist the construction of a finished work item. No payment for stored material will be made if it is anticipated that the material will be incorporated into the work within 30 days of the written request.
d.Material for which an allowance is requested shall be stored in an approved manner in areas within the State of Maryland where damage is not likely to occur. If any of the stored materials are lost or become damaged in any manner, the Contractor shall be responsible for repairing or replacing the damaged materials. The value of the lost or damaged material will be deducted from the Contractor's subsequent estimates until replacement has been accomplished. The request for allowances for any materials stored on private property within the State of Maryland shall be accompanied by a 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS release from the owner and/or tenant of such property agreeing to permit the removal of the materials from the property at no cost to the Administration. The material shall be clearly marked with the Administration’s Contract Number on individual units. If the material is normally shipped to the project in bundles or other forms of packaging, the Administration’s Contract Number shall be clearly marked or affixed to the package. When the material is not stored at the actual project site, the material shall be physically separated by fencing or equivalent barrier from other materials stored at the same site. The material shall be accessible to the Administration at all times. When it is considered impractical to store materials on the actual project, the Engineer may approve storage areas in the vicinity of the actual project, which will be considered at the project site. When storage of the materials within the State of Maryland is not practical, approval shall be obtained from the District Engineer for storage elsewhere. Storage of materials outside the State of Maryland will be subject to the conditions set forth in this provision and limited to materials exceeding $25 000, which are designed and fabricated exclusively for use on a specific project.
e.Material for which payment has been made, either wholly or partially, shall not be removed from the approved location until such time that it is to be incorporated into the work unless authorized by the Engineer.
f.The Contractor shall submit a written request for payment to the District Engineer at least two weeks prior to the estimate cutoff date established by the District Engineer. The following items shall accompany the written request for payment:
1.Consent of surety specifying the material type and the items in which the material is to be used.
2.Validated invoices with the signature of an officer of the company supplying the material showing actual cost.
3.A notarized statement attesting that the invoices as submitted do not include charges or fees for placing, handling, erecting, or any other charges or markups other than the actual material cost, sales tax if applicable, and freight charges.
4.Bills of lading showing delivery of the material. The request for allowances for any materials stored on property outside the State of Maryland shall be accompanied by a release from the owner or tenant of such property agreeing to permit verification by the Inspector that the material is stored at the approved location, and to permit the removal of the materials from the property at no cost to the Administration. 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS
5.Inspection test reports, certifications and/or a written statement from the Inspector attesting to the inspection and approval of the material.
6.A statement explaining why the material cannot be stored on the project, if the Contractor is requesting to store material at a location other than the project site. The statement shall include the methods of storage, separation, and identification to be used by the Contractor. The Contractor shall provide a method of inventory control and withdrawal satisfactory to the Administration, which shall be used by the Contractor to monitor materials not stored on the project.
7.A breakdown of the Contract line item bid unit price showing the relationship of the cost of the stored material to the costs of all other materials, labor, and components of the work included in the Contract line item unit price bid by the Contractor. Upon receipt of the above by the District Engineer and verification by the Inspector that the material is stored at the approved location, the District Engineer will authorize payment. The Contractor shall pay the material provider the amount shown on the invoice within 10 days of receipt of payment from the Administration. Evidence of payment shall be provided to the Administration. Failure to make invoice payments as specified will be cause to deduct the monies from future estimates and/or deny future stored materials payment requests. Copies of all pertinent data shall be made by the Contractor and distributed to the Inspector for retention as part of the documented records for the project. TC-7.03 FORCE ACCOUNT WORK When the Contractor is required to perform work due to additions or changes to the Contract for which there are no applicable unit prices, the Administration and Contractor will make every effort to come to an agreed price for the performance of the work. If an agreement is not reached prior to the time that work must begin, the Administration will give written notification to the Contractor to proceed with the work on a force account basis while continuing to pursue a negotiated settlement. Failure to reach agreement prior to the completion of the work will necessitate that the work be completed and compensated in conformance with the following:
a.Labor. Before any force account work begins, the Engineer and the Contractor must agree on the hourly labor rates for all laborers and foremen to be engaged in the work. The number of laborers and foremen engaged in the work will be subject to regulation by the Engineer and shall not exceed the number the Engineer deems most practical and economical for the work. For all labor and foremen in direct charge of the force account work, excluding general superintendence, compensation will be as follows:
1.Certified Pay Rate. The Contractor shall receive the hourly pay rate shown on the Certified Payrolls for each hour that labor and foremen are actually engaged 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS in the work. Hourly pay rates that exceed those previously agreed upon must be authorized by the Engineer. Submit certified payrolls in conformance with the Contract Documents.
2.Fringe Benefits. The Contractor shall receive the direct cost for fringe benefits that are required by collective bargaining agreements or other employment Contracts and that are not included in the certified hourly pay rate.
3.Payroll Burden. The Contractor shall receive the following indirect costs at the applicable percentage of the certified hourly pay rate. Social Security Tax Medicare Tax Unemployment Taxes Worker’s Compensation Insurance Contractor’s Public Liability Insurance Contractor’s Property Damage Liability Insurance
4.Overhead and Profit on Labor. The Contractor shall receive an allowance of 18 percent of the sum total of (1), (2), and (3). To substantiate the cost for (2) and (3), the Contractor shall furnish the Engineer a certified itemized breakdown. Instead of submitting an itemization for (3), the Contractor may elect to receive for Payroll Burden an amount equal to 20 percent of the certified hourly pay rate.
b.Materials. For materials required to perform the work and accepted by the procurement officer, the Contractor shall receive the actual cost of the materials delivered on the work including tax and transportation charges paid by the Contractor (exclusive of machinery rentals as specified in (c) below). In addition, the Contractor will be allowed 18 percent of the actual cost of materials, tax, and applicable transportation charges. To substantiate materials and transportation cost, original receipted invoices shall be submitted. If the materials used in the force account work are not specifically purchased for the work but are taken from the Contractor’s stock, then in lieu of the original invoices the statements shall contain or be accompanied by an affidavit from the Contractor that shall certify that the materials were taken from the Contractor’s stock, that the quantity claimed was actually used, and that the price and transportation cost of the material as claimed represents the actual cost. The Administration reserves the right to furnish materials as it deems appropriate, and the Contractor shall have no claim for any costs, overhead, or profit on these materials. 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS
c.Equipment. For all equipment other than small tools, the Contractor shall receive rental rates as established herein and agreed to in writing before the work is begun for the actual time the equipment is in operation on force account work. Transportation costs directly attributable to force account work will be allowed. For the purpose of definition, equipment with a new cost of $1000 or less will be considered small tools.
1.Contractor Owned Equipment. For all equipment utilized on force account work, the hourly rate for each piece of equipment and attachments will be the Blue Book monthly rate for the make and model multiplied by the appropriate rate adjustment factor, divided by 176, plus the hourly operating costs. The Contractor shall furnish to the Engineer a complete description, including the serial numbers and year of manufacture, for all pieces of equipment used on force account work. The hourly rate for each piece of equipment will be the sum of the base machine rate, attachment rate, and operating rates established in the Rental Rate Blue Book for Construction Equipment current at the time the equipment is used.
2.Equipment Rented Exclusively for Force Account Work. In cases where a piece of equipment is rented or leased by the Contractor from a third party exclusively for force account work, the actual invoiced amount will be paid when the rates are reasonably in line with established rental rates for the equipment in question and are approved by the Engineer. In addition, the Contractor will be allowed 5 percent of the actual invoiced amount
3.Moving Equipment. When it is necessary to obtain equipment exclusively for force account work from sources beyond the project limits, the cost of transferring the equipment to the site of the work and return will be allowed as an additional expense. Where the move requires the use of a hauling unit, the move in allowance will be limited to the rental rate for the hauling unit, as computed in (c) (1) above, plus operator wages. When equipment is transferred under its own power, the moving allowance will be limited to half the hourly rental rate, as computed in (c) (1) above, plus operator’s wages. If the move out is to a different location, payment will in no instance exceed the amount of the move in. Move in allowance will not be made for equipment brought to the project for force account work if it is subsequently retained on the project and utilized for Contract items or related work.
4.Standby Time. Standby rates shall apply when a piece of equipment is required to remain on the project on standby status when authorized by the Engineer. When a unit works for a portion of a day and is on standby for a portion, the total time allowed shall not exceed 8 hours for that day. Standby rates shall be 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS half of the normal hourly base rates without the operating expenses. Standby rates shall not exceed 8 hours per day and will be allowed for working days only. Equipment that is required to be on the project for transporting personnel or materials will be paid at the hourly rental rate for the actual hours per day it is utilized, with the remainder being standby time as computed above. No compensation will be allowed for equipment that is inoperable due to breakdown.
d.Subcontracting. The Contractor shall receive the cost of work performed by a subcontractor as determined in (a), (b), and (c). In addition, the Contractor will be allowed an allowance of $500 or 8 percent of the total combination of (a), (b), and (c), whichever sum is greater.
e.Compensation. The compensation as specified in (a) through (e) above shall be received by the Contractor as payment for work done on a force account basis, which shall be full compensation for all costs associated with the force account including overhead and profit for the work performed.
f.Force Account Daily Report. At the end of each day’s work on any Force Account, the Engineer and Contractor’s representative must complete a Daily Force Account Report. This report must be signed by both the Engineer and the Contractor’s representative on a daily basis. Daily Force Account Reports for work performed and signed by a subcontractor, must also be signed by the Contractor. Each party shall retain a copy as substantiation of all labor, equipment, and materials used in the performance of the Force Account work.
g.Partial Payment. The Contractor may request partial payment for force account work prior to submitting final documentation. Partial payment will be limited to 50 percent of the estimated amount for the work accomplished until all documentation has been received and approved.
h.Final Payment. The final force account payment request from the Contractor will be subject to audit as specified in GP-7.36 Retention of Records. TC-7.04 SCOPE OF PAYMENT Payment to the Contractor will be made from the actual quantities of Contract items performed in conformance with the Plans and Specifications. If, upon completion of the construction, these actual quantities show either an increase or decrease from the quantities given in the bid schedule, the Contract unit prices will still prevail, except as provided in GP-4.04 (Variations in Estimated Quantities). The payment of any partial estimate or of any retained percentage except by and under the approved final estimate and voucher shall in no way affect the obligation of the Contractor to repair or renew any defective parts of the construction or to be responsible for all damages due to such defects. When requested in writing by the Contractor and approved by the procurement officer, payment allowance will be made for nonperishable material to be incorporated in the work delivered and stockpiled at the work site or other approved site in conformance with TC-7.02. Payment to the Contractor under this section for materials on hand shall not be construed in any way as acceptance by the Administration of title to the material. Title shall remain with the Contractor until the project has been completed and accepted in conformance with GP-5.13 (Acceptance for Maintenance). The Contractor Federal Tax Identification or Social Security Number shall be included on the face of each invoice billed to the State. On Contracts in excess of $25 000, the Contractor and any subcontractor with a lower tier subcontract, prior to receiving a progress or final payment under this Contract, shall first certify in writing that he has made payment from proceeds of prior payments, and that he will make timely payments from the proceeds of the progress or final payment then due him, to his subcontractors and suppliers in conformance with his contractual arrangement with them. The Contractor shall also obtain from each subcontractor a certification that payment from proceeds of prior payments have been made to any lower tier subcontractors and that timely payments will be made to the lower tier subcontractors and suppliers in conformance with contractual arrangements with them. This certification is not required from subcontractors who have no lower tier subcontracts. These certifications may be required by the procurement officer for Contracts of $25 000 or less. In addition to any other remedies provided by law or this Contract, any Contractor or subcontractor of any tier who fails to make payment as required by the certifications set forth in the above paragraph within 30 days from the date such payment is due shall be obligated to include with such payments interest at the rate of 10 percent per annum from the date the payment was due to the date the payment was actually made to the subcontractor or lower tier subcontractor. 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS TC-7.05 PROGRESS PAYMENTS
a.Current Estimate.
1.Lump Sum Contracts. The Contractor shall furnish an acceptable breakdown of the lump sum Contract price showing the amount included therein for each principal category of the work. Said breakdown shall be in such detail so as to provide a basis for estimating monthly progress payments.
2.Monthly Estimates. Each month the Administration will pay the Contractor for the Contract value of the authorized work satisfactorily performed during the preceding calendar month, less variable retainage specified in (3) Variable Retainage. Retainage will not be released until final payment (unless partially released in a semifinal payment or released to a subcontractor as per TC-7.05(a)(3)(F)). Current estimates will be based upon the procurement officer’s estimate of satisfactorily performed work (including materials and/or equipment complete in place). In the instance of lump sum items and each items, the procurement officer’s estimate will either be the percentage of the item satisfactorily performed during the preceding month or as specified in contract documents. All quantities, estimates, and fractions will be reasonably accurate approximations and are subject to corrections: (a) in subsequent current estimates; (b) in any semi final estimate; and (c) in final payment. Any or all partial payments may be withheld in the event the Contractor has not complied with current requirements of the Specifications. Should either the procurement officer or the Contractor be of the opinion that any estimates, quantities, or fractions (either as to an individual current estimate or accumulations thereof) do not represent a reasonably accurate approximation of actual work, then the details questioned will be reviewed. Any necessary corrections and adjustments will be made in the next current estimate.
3.Variable Retainage. The Contract will be subject to a variable retainage. Any variation in retainage (increase or decrease) will be at the discretion of the Administration and the District Engineer. Those meeting the minimum qualifications may have retainage reduced upon request of the Contractor with consent of surety. This request shall be processed through the District Engineer. If, in the opinion of the District Engineer at any time during the performance of the work, the evaluation of the contract or Contractor changes, retainage reduction may be reconsidered. Minimum Qualifications are as follows: After 50 percent project completion and upon request, Contractors with 'A' evaluations for the last two years may be reduced from 5 percent to 1 percent. Project completion percentage will be based upon actual work completed (excluding monies paid for stored materials). An interim evaluation of the current project would need to be completed and would need to be an 'A'. 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS At 50 percent project completion and upon request, Contractors with 'B' evaluations or any combination of 'A' and 'B' evaluations for the last two years may be reduced from 5 percent to 2.5 percent, and remain at that level until released upon final payment. Project completion percentage will be based upon actual work completed (excluding monies paid for stored materials). An interim evaluation of the current project would need to be completed and would need to be an 'A' or 'B'. Contractors with 'C' evaluations or any combination of 'C' and 'D' evaluation for the past two years will begin and remain at 5 percent for the life of the project. Contractors with a 'D' evaluation for the last two years will begin at 5 percent. Project performance will be evaluated monthly with the retainage being raised to 10 percent for continued 'D' performance. New Bidders. Contractors who have not been previously rated by the Administration may be eligible for a reduction in retainage. To be eligible, their past performance on highway and bridge work shall be documented by the government agency with whom they had a contract and their performance shall be documented on Administration forms. Contractors who do not fit into the above criteria would require a 5 percent retainage throughout the life of the Contract. Subcontractors.
A.Sections A-F apply if the contractor has furnished 100 percent payment security and 100 percent performance security.
B.The contractor may not retain from any payment due a subcontractor a percent of the payment greater than the percent for retainage specified above.
C.A subcontractor at any tier may not retain from any payment due a lower tier subcontractor a percent of the payment greater than the percent of payments retained from the subcontractor.
D.A contractor and a subcontractor are not prohibited, by §§A and B, from withholding an amount in addition to retainage if the contractor or subcontractor determines that a subcontractor's performance under the subcontract provides reasonable grounds for withholding the additional amount.
E.The contractor and each subcontractor at any tier shall include, in all of their subcontracts for work called for by this contract, wording that incorporates the provisions of §§B—E. 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS
F.A subcontractor may submit written notification to the Contractor requesting to have their portion of the retainage released if the following requirements are met.
1.All tasks assigned to the subcontractor within the subcontractor agreement are satisfied.
2.All related pay items associated with the subcontractor’s responsibility have had all required documentation for those items submitted and approved by the Administration.
3.The Contractor has notified the Administration that the subcontractor has fulfilled its contractual obligations, including submitting all required documentation, and has requested that the Administration conduct an Interim Subcontractor Final Inspection.
4.The Administration has performed the said Interim Subcontractor Final Inspection. The Administration will verify that all Contract requirements have been satisfied during the Subcontractor Final Inspection, and issue in writing a Subcontractor Accepted for Maintenance letter. Subcontractor Accepted for Maintenance letter does not relieve the Contractor of the responsibility to perform the work to specifications or remedy its latent defects.
5.All issues, including punch list items, and claims related to the subcontractor’s work are resolved. When (1)-(5) are met, the Contractor shall verify that the subcontractor’s requested retainage is accurate and then submit, in writing, the subcontractor’s request to release the subcontractor’s portion of the retainage held by the Administration. The Assistant District Engineer-Construction (ADE-C) or department head shall then perform a subcontractor final inspection to determine if a Subcontractor Final Acceptance for Maintenance is warranted, if the acceptance is approved then the retainage request will be processed as per this specification. If the Subcontractor Final Acceptance for Maintenance is not granted, a list of outstanding responsibilities shall be provided to the contractor by the Administration for the subcontractor to complete in order to request another follow up Final Subcontractor Inspection. Once the request is approved by the Administration, the Administration will submit to the Contractor “Subcontractor’s Final Quantities” within 60 days of the approval. The tabulation shall be accompanied by a statement setting forth: 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS
a.The eliminated work, changed work and additional work performed under change orders and/or supplemental agreements by the subcontractor;
b.The authorized extension or adjustments of time;
c.The number of days that have been charged to date of the subcontractor’s early retainage request;
d.Any deductions, charges, or liquidated damages that have been made or imposed to date of the subcontractor’s early retainage request. The Contractor shall have a period of 30 days from the date of receiving the aforementioned tabulations from the Administration, in which:
1.To decide whether or not to accept the subcontractor’s final tabulation of final quantities, and
2.To notify the Administration, in writing, of the decision. The Contractor may request an additional period of 30 days in which to notify the Administration of their decision. In the event the Contractor notifies the Administration that the Contractor or subcontractor protests the final quantities on such basis, the notification shall outline the reasons for said protest. After all parties have agreed upon the Subcontractor’s Final Quantities, the Administration will begin the process of releasing the subcontractor’s portion of the retainage. Once the Subcontractor Final Quantities are agreed upon, those items cannot be disputed at a future date and these items are considered finalized unless further work has been performed due to a partial item status or other contractual responsibilities of the Contractor in which further work had to be completed for said item. The Contractor will have a period of 10 days to submit payment of the released retainage to the requesting subcontractor, after the Contractor has received said payment from the Administration for the subcontractor’s portion of the remaining retainage held. The Contractor cannot hold additional retainage from the subcontractor after the subcontractor’s final portion of retainage is released.
4.Escrow Accounts For Retained Funds. The Contractor may elect to have retained funds paid to an escrow agent who may invest the funds in an approved interest bearing account which, upon completion of the Contract, will be paid to the Contractor to the extent to which the Contractor is entitled. The Contractor’s election to use the escrow account procedure shall be indicated on the Contract Documents, and the escrow agreement shall be in a form and under terms approved by the Administration. The Contractor shall forfeit the right to the use of the escrow account for refusal or failure to indicate an election prior 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS to execution of the Contract. Note: This shall not apply if it conflicts with any Federal grant or regulation affecting the Contract.
b.Semi-Final Estimate Payments.
1.Upon completion of the project and the acceptance by the Administration for maintenance, the Administration, at the Contractor’s request and with the consent of surety, will initiate a Memorandum of Action by the Director, Office of Construction, Department of Transportation State Highway Administration, authorizing semi final payment. Such a semi final estimate payment will be based upon: (a) quantities the Administration has computed and set up as proposed final quantities, and (b) a reasonably accurate estimate for those quantities for which the Administration has not yet completed computations. The quantities that the Administration sets forth as proposed final quantities shall be so designated. To arrive at the amount of the semi final estimate, the following will be deducted from the apparent estimated value of the Contract: (a) total of all amounts previously paid to the Contractor as current estimates, and (b) sums deemed chargeable against the Contractor including liquidated damages, and as a retainage, a sum not less than 1 percent of the total value of the Contract.
2.In cases where there has been substantial completion of the project and there are remaining only inconsequential or minor work items such as painting, seeding, mulching, or planting to be completed and such items cannot be completed for an extended period of time because of seasonal or weather conditions, a semi final inspection will be made. If the work completed is found to be satisfactory, then there is deemed to be a partial acceptance on the entire project except for the uncompleted work items. Upon the above referred to partial acceptance, the Administration, within 30 days from such partial acceptance, upon request of the Contractor and with consent of surety, shall pay to the Contractor, what is hereby known as a partial semi final estimate payment. Such a semi final estimate will be based upon: (a) quantities the Administration has computed and set up as proposed final quantities, and (b) a reasonably accurate estimate for those quantities for which the Administration has not yet completed computations. The quantities that the Administration sets forth as proposed final quantities shall be so designated. To arrive at the amount of the semi final payment, the following will be deducted from the apparent estimated value of the Contract: (a) total of all amounts previously paid to the Contractor as current estimates; and (b) sums deemed chargeable against the Contractor including liquidated damages, and as a retainage, a sum equal to 1 percent of the total value of the Contract or $2000 whichever is greater.
3.If all retained funds have not been paid to an escrow agent, as provided for in (a)(4), the Administration shall, upon payment of the semi final estimate, place the remaining retainage in an interest bearing escrow account, as designated and on such terms and conditions as specified by the procurement officer. At the 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS time of the final payment, any retainage due, and any interest accrued on the retainage due from the time of payment of the semi final estimate, shall be paid to the Contractor. TC-7.06 FINAL ACCEPTANCE AND FINAL PAYMENT
a.When the Contractor has completed a Contract, and it has been accepted for maintenance in conformance with the provisions of GP-5.13 (Acceptance for Maintenance), the Administration will promptly proceed:
1.To make any necessary final surveys;
2.To complete any necessary computations of quantities; and (3) To submit to the Contractor for consideration, within 60 days after final completion and acceptance for maintenance by the procurement officer, a tabulation of the proposed final quantities, and a list of deficiencies required to be corrected prior to issuing a materials clearance. This tabulation shall be accompanied by a statement setting forth: (a) the additional work performed under change orders and/or supplemental agreements; (b) the authorized extension of time; (c) the number of days that have been charged to complete the Contract; and (d) any deductions, charges, or liquidated damages that have been made or imposed.
b.The Contractor shall then have a period of 30 days from the date of receiving the aforementioned tabulation from the Administration, in which:
1.To decide whether or not to accept final payment upon such a basis, and
2.To notify the Administration, in writing, of the decision. The Contractor may request an additional period up to 30 days in which to notify the Administration of the decision. In the event the Contractor notifies the Administration that the Contractor protests final payment on such a basis, that notification shall outline the reasons for said protest.
c.Upon receipt of a notification of acceptance as provided for in paragraph (b) above, final acceptance of the completed Contract will be contingent upon the Administration’s authorized materials clearance. Within 20 days after the above conditions are met, the Administration will prepare the final estimate and final payment forms and submit them to the Contractor. These forms will show all data noted in paragraph (a) above, together with deductions for all prior payments. Within 30 days from the date these forms are received, the Contractor shall execute them and return them to the Administration for execution and payment. If such signed forms are not received by the Administration within the specified time, the Administration will prepare duplicate forms for execution and payment. Such action by the Administration shall be deemed to constitute acceptance and final payment. 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS
d.If under the provisions of paragraph (b) above, the Contractor notifies the Administration of the Contractor’s protest and nonacceptance of the data submitted to the Contractor, the Administration shall pay the Contractor a semi final estimate, or an additional semi final estimate in the event a semi final estimate has already been paid based upon the data noted in paragraph (a) above, with deductions for all prior payments. A retainage equal to 1 percent of the total value of the Contract will be withheld by the Administration. The acceptance of such semi final estimate, or additional semi final estimate, shall not be considered a waiver on the part of the Contractor of its right to pursue the Contractor’s protest and press for acceptance and final payment.
e.In the event the Contractor does not accept the data submitted to the Contractor as described in paragraph (a) above and/or has outstanding a claim filed in conformance with GP-5.14 (Filing of Claim by Contractor), the procurement officer and the Contractor shall confer at mutually convenient times and endeavor to reconcile all points of disagreement expeditiously. If such reconciliation is accomplished, the Administration will promptly proceed with acceptance and final payment on the reconciled basis and in conformance with the provisions of paragraph (c) above. If reconciliation is not accomplished within 30 days, the decision of the procurement officer shall be reviewed by the Administrator and appropriate legal counsel. After review by the Administrator, the decision of the procurement officer is deemed to be the final action. The procurement officer shall furnish a copy of the final decision to the Contractor by certified mail, return receipt requested. This decision may be appealed by the Contractor to the Maryland State Board of Contract Appeals. This shall be done by filing a written notice of appeal to the Appeals Board within 30 days from the date of the final decision. Failure to provide timely notification to the procurement officer shall constitute a waiver by the Contractor of its right under GP-5.15 (Disputes), and final payment may be made by the Administration based on the procurement officer’s recommendation.
f.All prior partial estimates and payments shall be subject to correction at the time of acceptance and final payment. If the Contractor has been previously overpaid, the amount of such overpayment shall be set forth in the Final Payment forms and the Contractor hereby agrees that the Contractor will reimburse the Administration for such overpayment within 180 days of receipt of such advice, and the Contractor’s surety will not be granted release from obligation under the terms of the Contract until reimbursement has been made in full.
g.Within 10 days after the provisions of (a) through (f) have been fulfilled, the procurement officer shall notify the Contractor that final acceptance of the project has been made. This notice will initiate the processing of the Memorandum of Action by the Administration’s Chief Engineer, authorizing final payment. Final Payment will be due and payable within 30 days of the Chief Engineer’s Memorandum of Action. As a condition precedent to Final Payment, the Contractor shall be required to execute a general release of all claims against the Administration arising out of, or in any way connected with the Contract. 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS
h.In conformance with subsection 7-222 of the State Finance and Procurement Article of the Annotated Code of Maryland, certification must be obtained from the Comptroller of the Treasury, and the Employment Security Administration, that all State taxes have been paid prior to the release of final payment on a construction Contract. The check will be processed and mailed only after notification is received from both departments that no State tax is owed. TC-7.07 LATE PAYMENTS
a.Payments for semi final estimates shall be made within 30 days of the date when the amount becomes due and payable as evidenced by the Director’s Memorandum of Action. Payments for final estimates shall be made within 30 days of the date when the Contract amount becomes due and payable as evidenced by the Chief Engineer’s Memorandum of Action. Charges for late payments of invoices, other than as described by Title 15, Subtitle 1, of the State Finance and Procurement Article, Annotated Code of Maryland, or by the Public Service Commission of Maryland with respect to regulated public utilities, as applicable, are prohibited.
b.Contracts that specify invoicing required - Unless a payment is unauthorized, deferred, delayed, or set-off under COMAR 21.02.07, Payments to the Contractor pursuant to this Contract shall be made no later than 30 days after the State’s receipt of a proper invoice from the Contractor. The Contractor may be eligible to receive late payment interest at the rate of 9 percent per annum if:
1.The Contractor submits an invoice for the late payment interest within 30 days after the date of the State’s payment of the amount on which the interest accrued; and
2.A contract claim has not been filed under State Finance and Procurement Article, Title 15, Subtitle 2, Annotated Code of Maryland. The State is not liable for interest:
1.Accruing more than one year after the 31st day after the agency receives the proper invoice; or
2.On any amount representing unpaid interest. Charges for late payment of invoices are authorized only as prescribed by Title 15, Subtitle 1, of the State Finance and Procurement Article, Annotated Code of Maryland, or by the Public Service Commission of Maryland with respect to regulated public utilities, as applicable.
c.A proper invoice shall include: a description of the items or services provided; the date the goods were received or the inclusive dates the services were rendered; the Contract 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS prices; retention, if any; the basis for the billing; the Contract or purchase order number; the Contractor’s Federal Tax Identification Number or Social Security Number; and the name and address of the proper invoice recipient.
d.In order to receive payment of interest, the Contractor must submit a proper invoice for accrued interest within 30 days after the payment date of the amount on which the interest is claimed to have accrued. Interest may not be claimed for more than one year following the 31st day after the date that a proper invoice was received, or on amounts representing unpaid interest, or on an amount due under a Contract remaining unpaid for any period prior to July 1, 1983, or if a claim has been filed under State Finance and Procurement Article, Title 15 of subtitle 2 of the Code.
e.For the purposes of this Contract an amount will not be deemed due and payable if:
1.The amount invoiced is inconsistent with the Contract
2.The proper invoice has not been received by the person or office specified in the Contract.
3.The invoice or performance under the Contract is in dispute or the Contractor has failed to otherwise comply with the provisions of the Contract.
4.The items or services have not been accepted. (5) The quantity of items delivered is less than the quantity invoiced. (6) The items or services do not meet the quality requirements of the Contract. (7) The Contract provides for progress payments, but the proper invoice for the progress payment has not been submitted pursuant to the schedule contained in the agreement.
8.The invoice is for the retainage, but not all stipulated conditions for release of the retainage have been met.
9.The Contractor has not submitted satisfactory documentation or other evidence reasonably required by the procurement officer or by the Contract concerning performance under the Contract and compliance with its provisions. TC-7.08 ELIMINATED ITEMS In addition to the provisions of GP-4.04 Variations in Estimated Quantities, the following shall apply to Administration Contracts. Should any Contract items contained in the Invitation for Bids be found unnecessary for the proper completion of the work contracted, the Engineer may, upon written order to the Contractor, 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS eliminate such Contract items from the Contract and no allowance will be made for items so eliminated in making final payment to the Contractor except for material costs incurred prior to notification of the elimination of the items. 101 — CLEARING AND GRUBBING 2025 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND MATERIALS CATEGORY 100 PRELIMINARY SECTION 101 — CLEARING AND GRUBBING
101.01 Description
Clear and grub within the specified limits.
101.01.01 Definitions.
a.Clearing. The removal and disposal of trees, fallen timber and rotten wood, brush, shrubs, vegetation, rubbish, fences, and structures not specified in the Contract Documents for removal and disposal. Unless otherwise specified, clearing outside the LOD includes the removal of rubbish only.
b.Grubbing. An earth-disturbing activity, which includes the removing from the ground and disposing of all stumps, roots and stubs, brush, and debris.
c.Limits of Disturbance (LOD). The maximum allowable limit of earth disturbance as delineated in the Contract Documents. When not delineated in the Contract Documents, the LOD will be 10 ft beyond the top of cut, toe of slope, or limit of ditch excavation. Do not perform earth-disturbing activities beyond the LOD without authorization.
d.Limits. Clearing and grubbing is confined to the LOD and authorized modifications to the LOD. When indicated in the Contract Documents, the limit of clearing may include the area between the LOD and the right-of-way or easement lines.
e.Grading Unit. A contiguous area of erodible material exposed at one time, not to exceed 20 acres.
f.Disturbed Area. An area where erodible material is exposed by construction activities.
g.Stabilization Measures. Activities that prevent erosion. These activities include the placement of temporary mulch, temporary seed, permanent seeding such as turfgrass establishment, soil stabilization matting, riprap, stone aggregate, and asphalt or concrete paving. The placement of one or more of these temporary or permanent stabilization measures to the satisfaction of the Engineer will meet the requirements for proceeding to the next grading unit or operation.
101.02 Materials
Not applicable.
Source: Maryland Standard Specifications for Construction and Materials, 2025 Edition. Pages 118–136 of 1,113.