00197.01 141 Section 00197 - Payment for Force Account Work Force Account Work
00197.00 Scope - The Materials, Equipment and labor rates and procedures established in this
Section apply to Extra Work ordered by the Engineer to be performed as Force Account Work. With the exceptions identified in 00197.01(b), these rates and procedures also apply to other Work when according to other Sections this Section 00197 applies, including, without limitation , the following: • 00140.70 - Cost Reduction Proposals • 00195.20 - Changes to Plans or Character of Work • 00195.30 - Differing Site Conditions • 00199.30(b) - Claims Requirements
00197.01 General :
a.Extra Work on a Force Account Basis - Before ordering Force Account Work, the Engineer will discuss the proposed work with the Contractor, and will seek the Contractor's comments and advice concerning the formulation of Force Account Work specifications. The Engineer is not bound by the Contractor's comments and advice, and has final authority to: • Determine and direct the Materi als, Equipment and labor to be used on the approved Force Account Work; and • Determine the time of the Contractor's performance of the ordered Force Account Work. If the Engineer orders the performance of Extra Work as Force Account Work, the Engineer will record, on a daily basis, the Materials, Equipment, labor, and Special Services used for the Force Account Work during that D ay. The Engineer and the Contractor shall sign the record daily to indicate agreement on the Materials, Equipment, labor, and Special Services used for the Force Account Work performed on that Day. The following shall be reflected on the daily record: • Materials used in the Force Account Work as directed by the Engineer, except those furnished and paid under rental rates for use of Equipment; • Equipment that the Engineer considers necessary to perform the Force Account Work. Equipment hours will be recorded to the nearest quarter hour; • Labor costs, including that of Equipment operators and supervisors in direct charge of the specifi c operations while engaged in the Force Account Work; • Special Services; and • The Engineer's and Contractor's signatures confirming its accuracy.
b.Other Work - When according to other Sections this Section 00197 applies, the following exceptions apply t o the Work under those other Sections, except for Extra Work ordered by the Engineer to be performed as Force Account Work. • 00197.01(a) does not apply. • Cost Efficiency - The Agency will not be responsible for additional costs that are a direct or indirect result of the Contractor's inefficient means and methods or that reasonably could have been avoided if the Materials, Equipment, labor or services had been obtained at a more commercially reasonable cost. 00197.10 142 • Standby Time - Equipment that is necessary for the Work but is not being operated to progress the Work will be considered to be on standby and will be limited to the standby rates and hour limitations in 00197.20(e). Equipment costs will be limited to a combination of operating time and standby time of n ot more than 8 hours in a 24 hour period or 40 hours in a 1 week period. The Equipment must be onsite and available for use to be eligible for standby time. For a period of 7 or fewer Calendar Days: If a continuous period of standby time for a piece of Equipment does not exceed 7 Calendar Days, the accumulated standby cost for that continuous period of standby time shall be limited to the standby rates and hour limitations in 00197.20(e). For a period of more than 7 Calendar Days: Unless the Engineer ha s otherwise agreed in advance in writing, if a continuous period of standby time for a piece of Equipment exceeds 7 Calendar Days, the accumulated standby cost shall be limited to: • For the first 7 Calendar Days, the standby rates and hour limitations in 00197.20(e), and • For the portion of the continuous period of standby time after the first 7 Calendar Days, the lesser of: • The standby rates and hour limitations in 00197.20(e); or • The cost for moving that piece of Equipment to and from the Project Site according to 00197.20(d).
00197.10 Materials:
a.General - The Contractor will be paid for Materials actually used in the Force Account Work as directed by the Engineer, except for those furnished and paid for under rental rates included with the use of Equipment. Payments will be at actual cost, including transportation costs to the specified location, from the Supplier to the purchaser, whether the purchaser is the Contractor, a Subcontractor, or other forces. All costs are subject to the provisions o f this Subsection.
b.Trade Discount - If a commercial trade discount is offered or available to the purchaser, it shall be credited to the Agency, even though the discount may not have actually been taken. The Agency will not take any discounts for pr ompt or early payment, whether or not offered or taken.
c.Not Directly Purchased From Supplier - If Materials cannot be obtained by direct purchase from and direct billing by the Supplier, the cost shall be considered to be the price billed to the purchaser less commercial trade discounts, as determined by the Engineer, but not more than the purchaser paid for the Materials. No markup other than actual handling costs will be permitted.
d.Purchaser -Owned Source - If Materials are obtained from a supply or source wholly or partly owned by the purchaser, the cost shall not exceed the price paid by the purchaser for similar Materials furnished from that source on Pay Items, or the current wholesale price for the Materials delivered to the Project Site, whichever is lower.
00197.20 Equipment :
a.General - Equipment approved by the Engineer to perform the Force Account Work will be eligible for payment at the established rates only during the hours it is operated or on standby if so ordered by the Engineer. Equipment hours will be recorded on the daily record to the nearest quarter hour. Except as modified by these provisions, Equipment use approved by the Engineer will be paid at the rental rates given in the most current edition of the Equipment Watch Cost Recovery (Blue Book) 00197.20 143 published by EquipmentWatch, a division of Penton Business Media, Inc., and available from EquipmentWatch (phone 1-800 -669-3282) (see 00110.05(e) for website).
b.Equipment Description - On the billing form for Equipment costs, the Contractor shall submit to the Engineer sufficient information for each piece of Equipment and its attachments to enable the Engineer to determine the proper rental rate from the Blue Book.
c.Rental Rates (without Operator):
1.Rental Rate Formula - Rental rates for Equipment will be paid on an hourly basis for Equipment and for attachments according to the following formula: Hourly Rate = + Hourly Operating Rate Some attachments are considered "standard Equipment" and are already included in the monthly base rate for the Equipment. That information can be obtained from Equipment Watch.
2.Monthly Base Rate - The monthly base rate used above for the machinery and for attachments represents the major costs of Equipment ownership, such as depreciation, interest, taxes, insurance, storage, and major repairs.
3.Rate Adjustment F actor - The rate adjustment factor used above will be determined by applying only the Model Year Adjustment to the Blue Book Rates . The Regional and User Defined Ownership/Operating Adjustments shall not apply.
4.Hourly Operating Rate - The hourly operating rate used above for the machinery and for attachments represents the major costs of Equipment operations, such as fuel and oil, lubrications, field repairs, tires or ground engaging components, and expendable parts.
5.Limitations - If multiple attachments are included with the rental Equipment, and are not considered "standard Equipment", only the attachment having the higher rental rate will be eligible for payment, provided the attachment has been approved by the Engineer as necessary to the Force Account Work. Rental will not be allowed for small tools that have a daily rental rate of less than $5, or for unlisted Equipment that has a fair market value of $400 or less. The above rates apply to approved Equipment in good working condition. Equipment not in good working condition, or larger than required to efficiently perform the work, may be rejected by the Engineer or accepted and paid for at reduced rates.
d.Moving Equipment - If it is necessary to transport Equipment located beyond the Project Site exclusively for Force Account Work, the actual cost to transport the Equipment to, and return it from, its On -Site Work location will be allowed as an additional item of expense. However, the return cost will not exceed the ori ginal delivery cost. These costs will not be allowed for Equipment that is brought to the Project Site for Force Account Work if the Equipment is also used on Pay Item or related Work. If transportation of such Equipment is by common carrier, payment wil l be made in the amount paid for the freight. No markups will be allowed on common carrier transportation costs. If the Equipment is hauled with the Contractor's own forces, transportation costs will include the rental rate of the hauling unit and the hauling unit operator's wage. If Equipment is transferred under its own power, the rental rate allowed for transportation time will be 75% of the appropriate hourly rate for the Equipment, without attachments, plus the Equipment operator's wage. h hours/mont 176Factor t AdjustmenRate x Rate Base Monthly 00197.30
e.Stand by Time - If ordered by the Engineer, standby time will be paid at 40% of the hourly rental rate calculated according to this Subsection, excluding the hourly operating rate. Rates for standby time that are calculated at less than $1 per hour will not be paid. Payment will be limited to not more than 8 hours in a 24-hour period or 40 hours in a 1 week period.
f.Blue Book Omissions - If a rental rate has not been established in the Blue Book, the Contractor may: • If approved by the Engineer, use the rate of the most similar model found in the Blue Book, considering such characteristics as manufacturer, capacity, horsepower, age and fuel type; • Request EquipmentWatch to furnish a written response for a rental rate on the Equipment, which shall be presented to the Engineer for approval; or • Request that the Engineer establish a rental rate.
g.Outside Rental Equipment - If Contractor -owned or Subcontractor -owned Equipment is not available, and Equipment is rented from outside sources, payment will be based on the actual paid invoice. If the invoice specifies that rental rate does not include fuel, lubricants, field repairs, and servicing, an amount equal to the Blue Book hourly operating cost may be added for those items that were excluded. The Agency may reduce the payment when the invoice amount plus allowance is higher than the amount authorized under (c) through (f) of this Subsection. The provisions of 00180.20(c) apply to owner -operated Equipment.
00197.30 Labor - The Contractor will be paid for all labor engaged directly on Force Account Work,
including Equipment operators and supervisors in direct charge of the specific force account operations, as follows:
a.Wages - The actual wages paid to laborers and supervisors, if those wages are paid at rates not more than those for comparable labor currently employed on the Project, or at the recognized, current, prevailing rates in the locality of the Project.
b.Required Contributions - The actual cost of industrial accident insurance, unemployment compensation contributions, payroll transit district taxes, and social security for old age assistance contributions incurred or required under statutory law and these Specifications. The actual cost of industrial accident insurance is the National Council on Compensation Insurance (NCCI) rate for the assigned risk pool for the appropriate work class multiplied by the experience modification factor for the Contractor.
c.Required Benefits - The actual amount paid to, or on behalf of, workers as per diem and travel allowances, health and welfare benefits, pension fund benefits, or other benefits when such other benefits are required by a collective bargaining agreement or other employment contract generally applicable to the classes of labor employed on the Project.
00197.40 Invoices for Special Services - Invoices for Special Services that reflect current market
pricing may be accepted without complete itemization of Materials, Equipment, and labor costs, if the itemization is impractical or not customary. The invoice for Special Services shall show credit for commercial trade discounts offered or available. No percentage markup will be allowed other than that specified in 00197.80. 00197.90
00197.80 Percentage Allowances - To the Contractor's actual costs incurred, as limited in this
Section 00197, amounts equal to a percentage markup of such costs will be allowed and paid to the Contractor as follows: Subsection Percent
00197.10 Materials 17
00197.20 Equipment 17
00197.30 Labor 22
00197.40 Special Services 17
When a Subcontractor performs ordered Force Account Work, the Contractor will be allowed a supplemental markup of 8% on each Force Account Work order. These allowances made to the Contractor will constitute complete compensation for overhead, general and administrative expense, profit, and all other Force Account Work costs that were incurred by the Contractor, or by other forces that the Contractor furnished. No other reimbursement, compensation, or payment will be made.
00197.90 Billings - Billings for Force Account Work by the Contractor shall be submitted for the
Engineer's approval on forms provided by the Agency or approved by the Engineer. Billings for Materials (other than Incidental items out of the inventory of the Contractor or Subcontractors), rental Equipment from sources other than the Contractor or Subcontractors, and Special Services, shall be accompanied by copies of invoices for the goods and services. The invoices shall be fully itemized showing dates, quantities, unit prices, and complete descriptions of goods and services provided. Invoices for amounts of $10 or less per invoice are not required, unless requested by the Engineer. Costs included on the billings shall comply with 00197.01(a) and 00197.10 through 00197.40. When a billing for Force Account Work has been paid at the Project level, no further corrections will be made because of further review if those corrections amount to less than $10. 00199.00
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Source: Oregon Standard Specifications for Construction, 2024 Edition. Pages 207–211 of 1,268. View official source ↗