Article 1 — Measurement of Quantities
The Engineer will measure all completed work using United States standard measures, unless otherwise specified.
1.1 Linear Measurement . Unless otherwise specified, all longitudinal measurements for surface areas will be
made along the actual surface of the roadway and not horizontally. No deduction will be made for structures in the roadway with an area of 9 sq. ft. or less. For all transverse measurements for areas of base courses, surface courses, and pavements, the dimensions to be used in calculating the pay areas will be the neat dimensions and will not exceed those shown on the plans, unless otherwise directed.
1.2 Volume Measurement . Transport materials measured for payment by volume in approved hauling vehicles.
Display a unique identification mark on each vehicle. Furnish information necessary to calculate the volume capacity of each vehicle. The Engineer may require verification of volume through weight measurement. Use body shapes that allow the capacity to be verified. Load and level the load to the equipment’s approved capacity. Loads not hauled in approved vehicles may be rejected.
1.3 Weight Measurement . Transport materials measured for payment by weight or truck measure in approved
hauling vehicles. Furnish certified measurements, tare weights, and legal gross weight calculations for all haul units. Affix a permanent, legible number on the truck and on the trailer to correspond with the certified information. Furnish certified weights of loaded haul units transporting material if requested. The material will be measured at the point of delivery. The cost of supplying these volume and weight capacities is subsidiary to the pertinent Item. For measurement by the ton, in the field, provide measurements in accordance with Item 520, “Weighing and Measuring Equipment,” except for Items where ton measurements are measured by standard tables. The Engineer may reject loads and suspend hauling operations for overloading.
1.3.1 Hauling on Routes Accessible to the Traveling Public . For payment purposes on haul routes accessible
to the traveling public: If the gross vehicle weight is less than the maximum allowed by state law, including applicable yearly weight tolerance permit, the net weight of the load will be determined by deducting the tare weight of the vehicle from the gross weight. If the gross vehicle weight is more than the maximum allowed by state law, including applicable yearly weight tolerance permit, the net weight of the load will be determined by deducting the tare weight of the vehicle from the maximum gross weight allowed.
1.3.2 Hauling on Routes Not Accessible to the Traveling Public . For payment purposes on haul routes that are
not accessible to the traveling public where advance permission is obtained in writing from the Engineer : If the gross vehicle weight is less than the maximum allowed by the Engineer, including applicable yearly weight tolerance permit, the net weight of the load will be determined by deducting the tare weight of the vehicle from the gross weight. If the gross vehicle weight is more than the maximum allowed by the Engineer, the net weight of the load will be determined by deducting the tare weight of the vehicle from the maximum gross weight allowed. 69 2. PLANS QUANTITY MEASUREMENT Plans quantities may or may not represent the exact quantity of work performed or material moved, handled, or placed during the execution of the Contract. The estimated bid quantities are designated as final payment quantities, unless revised by the governing specifications or this Article. If the quantity measured as outlined under “Measurement” varies by more than 5% (or as stipulated under “Measurement” for specific Items) from the total estimated quantity for an individual Item originally shown in the Contract, an adjustment may be made to the quantity of authorized work done for payment purposes . When quantities are revised by a change in design approved by the Department, by change order, or to correct an error on the plans, the plans quantity will be increased or decreased by the amount involved in the change, and the 5% variance will apply to the new plans quantity. If the total Contract quantity multiplied by the unit bid price for an individual Item is less than $250 and the Item is not originally a plans quantity Item, then the Item may be paid as a plans quantity Item if the Engineer and Contractor agree in writing to fix the final quantity as a plans quantity. For Contracts with callout work and work orders, plans quantity measurement requirements are not applicable.
Article 3 — Adjustment of Quantities
The party to the Contract requesting the adjustment will provide field measurements and calculations showing the revised quantity. When approved, this revised quantity will constitute the final quantity for which payment will be made. Payment for revised quantity will be made at the unit price bid for that Item, except as provided for in Article 4.4., “ Changes in the Work.”
Article 4 — Scope of Payment
Payment of the Contract unit price is full compensation for all materials, equipment, labor, tools, and supplies necessary to complete the Item of work under the Contract. Until final acceptance in accordance with Article 5.12., “Final Acceptance,” assume liability for completing the work according to the plans and specifications and any loss or damage arising from the performance of the work or from the action of the elements, infringement of patent, trademark, or copyright, except as provided elsewhere in the Contract. The Department will only pay for material incorporated into the work in accordance with the Contract. Payment of progress estimates will in no way affect the Contractor’s obligation under the Contract to repair or replace any defective parts in the construction or to replace any defective materials used in the construction and to be responsible for all damages due to defects if the defects and damages are discovered on or before final inspection and acceptance of the work.
Article 5 — Progress Payments
The Engineer will prepare a monthly estimate of the amount of work performed, including materials in place. Incomplete items of work may be paid at an agreed upon percentage approved by the Engineer. Payment of the monthly estimate is determined at the Contract i tem prices less any withholdings or deductions in accordance with the Contract. Progress payments may be withheld for failure to comply with the Contract. It is the Department’s intent to pay a Contractor for work through the last working day of the month; however, the use of early cut -off dates for monthly estimates and MOH is a project management practice to manage workload at the Area Office level. Approval for using early cut -off da tes is at the District’s discretion. The earliest cut -off date for estimates is the 25th of the month. 70 6. PAYMENT FOR MATERIAL ON HAND (MOH) If payment for MOH is desired, request compensation for the invoice cost of acceptable nonperishable materials that have not been used in the work before the request, and that have been delivered to the work location or are in acceptable storage places. Nonperishable materials are those that do not have a shelf life or whose characteristics do not materially change when exposed to the elements. Include only materials that have been sampled, tested, approved, or certified, and are ready for incorporation into the work. Only materials that are completely constructed or fabricated on the Contractor’s order for a specific Contract and are so marked and on which an approved test report has been issued are eligible. Payment for MOH may include the following types of items: concrete traffic barrier, precast concrete box culverts, concrete piling, reinforced concrete pipe, and illumination poles. Any repairs required after fabricated materials have been approved for storage will require the Engineer’s approval before being made and will be made at the Contractor’s expense. Include only those materials and products, when cumulated under an individual item or similar bid items, that have an invoice cost of at least $1,000 in the request for MOH payment. (E.g., for MOH e ligibility, various sizes of conductor are considered similar bid items and may be cumulated to meet the threshold; for small roadside signs, the sign supports, mounting bolts, and the sign face are considered one bid item or similar bid items for more than one pay item for sign supports.) Requests for MOH are to be submitted at least 2 days before but not later than the estimate cut -off date unless otherwise agreed. If there is a need to request MOH after the established cut -off date, the District can make accommodation as the need arises. This needed accommodation is to be the exception, though, and not the rule. For Contracts with callout work and work orders, payment for MOH will only be made for materials authorized for purchase by the work order or by written approval of the Engineer. If the request is acceptable, the Engineer will include payment for MOH in a progress payment. Payment for MOH does not constitute acceptance of the materials. Payment will not exceed the actual cost of the material as established by invoice, or the total cost for the associated i tem less reasonable placement costs, whichever is less. Materials for which the Contractor does not have a paid invoice within 60 days will not be eligible for payment and will be removed from the estimate. Payment may be limited to a portion of the invoice cost or unit price if shown elsewhere in the Contract. Payment for precast products fabricated or constructed by the Contractor for which invoices or freight bills are not available may be made based on statements of actual cost. Submit the request on forms provided by the Department. These forms may be electronically reproduced, provided they are in the same format and contain all the required information and certifications. Continue to submit monthly MOH forms until the total value of MOH is $0. By submitting a request for MOH payment, the Contractor expressly authorizes the Department to audit MOH records and to perform process reviews of the record-keeping system. If the Department determines noncompliance with any of the requirements of this provision, the Department may exclude payment for any or all MOH for the duration of the Contract. Maintain all records relating to MOH payment until final acceptance. Provide these records to the Engineer upon request.
Article 7 — Payment for Extra Work and Force Account Method
Payment for extra work directed, performed, and accepted will be made in accordance with Article 4.4., “Changes in the Work.” Payment for extra work may be established by agreed unit prices or by Force Account Method. Agreed unit prices are unit prices that include markups and are comparable to recent bid prices for the same character of work. These unit prices may be established without additional breakdown justification. When using Force Account Method, determine an estimated cost for the proposed work and establish labor and equipment rates and material costs. Maintain daily records of extra work and provide copies of these 71 records daily, signed by the Contractor’s representative, for the Depar tment’s verification. Request payment for the extra work no later than the 10th day of the month following the month in which the work was performed. Include copies of all applicable invoices. If the extra work to be performed has an estimated cost of less than $10,000, submit for approval and payment an invoice of actual cost for materials, equipment, labor, tools, and incidentals necessary to complete the extra work. When added work requires mobilization that is exclusive to the added work, mobilization m ay be added to the force account invoice for payment.
7.1 Markups. Payment for extra work may include markups as compensation for the use of small tools,
overhead expense, and profit.
7.1.1 Labor . Compensation will be made for payroll rates for each hour that the labor and foremen or others
approved by the Engineer are actually engaged in the work. In no case will the rate of wages be less than the minimum shown in the Contract for a particular category. An additional 25% of this sum will be paid as compensation for overhead, superintendence, profit, and small tools.
7.1.2 Insurance and Taxes. An additional 55% of the labor cost, excluding the 25% compensation provided in Section 9.7.1.1., “Labor,” will be paid as compensation for labor insurance and labor taxes including t he cost
of premiums on non- project -specific liability (excluding vehicular) insurance, workers compensation insurance, Social Security, unemployment insurance taxes, and fringe benefits.
7.1.3 Materials. Compensation will be made for materials associated with the work based on actual delivered
invoice costs, less any discount. An additional 25% of this sum will be paid as compensation for overhead and profit.
7.1.4 Equipment . Payment will be made for the established equipment hourly rates for each hour that the
equipment is involved in the work. An additional 15% of this sum will be paid as compensation for overhead and profit not included in the rates. Transportation cost for mobilizing equipment will be included if the equipment is mobilized from an offsite location. 7.1.4.1. Contractor -Owned Equipment . For Contractor -owned machinery, trucks, power tools, or other equipment, use the FHWA rental rates found in Equipment Watch multiplied by the regional adjustment factor and the rate adjustment factor to establish hourly rates. U se the rates in effect for each section of Equipment Watch at the time of use. If a rate has not been established for a particular piece of equipment in Equipment Watch, the Engineer will allow a reasonable hourly rate. This price will include operating co sts. Payment for equipment will be made for the actual hours used in the work. The Department reserves the right to withhold payment for low production or lack of progress. Payment will not be made for time lost for equipment breakdowns, time spent to repair equipment, or time after equipment is no longer needed. If equipment is used intermittently while dedicated solely to the work, payment will be made for the duration the equipment is assigned to the work but no more than 8 hr . will be paid during a 24- hr. day, nor more than 40 hr. per week, nor more than 176 hr. per month, except when time is computed using a 6 -day or 7-day workweek. When using a 6 -day workweek, no more than 8 hr. will be paid during a 24- hr. day, nor more than 48 hr. per week, nor more than 211 hr. per month. When using a 7 -day workweek, no more than 8 hr. will be paid during a 24- hr. day, nor more than 56 hr. per week, nor more than 246 hr. per month. 7.1.4.2. Equipment Not Owned by the Contractor . For equipment rented from a third party not owned by the Contractor, payment will be made at the invoice daily rental rate for each day the equipment is needed for the work. The Department reserves the right to limit the daily rate to comparable FHWA rental rates found in Equipment Watch multiplied by the regional adjustment factor and the rate adjustment factor. When the invoice specifies that the rental rate does not include fuel, lubricants, repairs, and servicing, the Equipment Watch hourly operating cos t for each hour the equipment is operated will be added. 72 When the invoice specifies equipment operators as a component of the equipment rental, payment will be made at the invoice rate for each operator for each day the equipment is needed for the work. 7.1.4.3. Standby Equipment Costs . Payment for standby equipment will be made in accordance with Section 9.7.1.4., “Equipment .” The 15% markup will be paid when standby is associated with extra work but will not be paid when standby is associated with damages. 7.1.4.3.1. Contractor -Owned Equipment . For Contractor -owned equipment: Standby will be paid at 50% of the monthly Equipment Watch rate after the regional and age adjustment factors have been applied. Operating costs will not be allowed. Calculate the standby rate as follows. Standby rate = (FHWA hourly rate – operating costs) × 50% If an hourly rate is needed, divide the monthly Equipment Watch rate by 176. No more than 8 hr. of standby will be paid during a 24- hr. day period, nor more than 40 hr. per week. Standby costs will not be allowed during periods when the equipment would have otherwise been idle. 7.1.4.3.2. Equipment Not Owned by the Contractor . For equipment rented from a third party not owned by the Contractor: Standby will be paid at the invoice daily rental rate, excluding operating cost, which includes fuel, lubricants, repairs, and servicing. The Department reserves the right to limit the daily standby rate to comparable FHWA rental rates found in Equipment Watch multiplied by the regional adjustment factor and the rate adjustment factor. Standby will be paid for equipment operators when included on the invoice and equipment operators are actually on standby. Standby costs will not be allowed during periods when the equipment would have otherwise been idle.
7.1.5 Subcontra cting . An additional 5% of the actual invoice cost will be paid to the Contractor as compensation
for administrative cost and profit.
7.1.6 Law Enforcement Personnel . An additional 5% of the actual invoice cost will be paid as compensation for
adminis trative costs and profit.
7.1.7 Railroad Flaggers . An additional 5% of the actual invoice cost will be paid as compensation for
administrative cost and profit.
7.1.8 Bond Cost . An additional 1% of the total compensation provided in Article 9.7., “Payment for Extra Work and
Force Account Method,” will be paid for the increase in bond.
Article 8 — Retainage
The Department will not withhold retainage on the Contractor. The Contractor may withhold retainage on subcontractors in accordance with state and federal regulations.
Article 9 — Payment Pr Ovisions for Subcontractors
For the purposes of this Article only, the term subcontractor includes suppliers , and the term work includes materials provided by suppliers at a location approved by the Department . These requirements apply to all tiers of subcontractors. Incorporate the provisions of this Article into all subcontract or material purchase agreements . Pay subcontractors for work performed within 10 days after receiving payment from the Department. 73 Pay any retainage on a subcontractor’s work within 10 days after satisfactory completion of all the subcontractor’s work. Completed subcontractor work includes vegetative establishment, test, maintenance, performance, and other similar periods that are the responsibility of the subcontractor. For the purpose of this Section, satisfactory completion is accomplished when: the subcontractor has fulfilled the Contract requirements of both the Department and the subcontract for the subcontracted work, including the submittal of all information required by the Contract and the Department , and the work done by the subcontractor has been inspected, approved, and paid by the Department. Provide a certification of prompt payment to certify that all subcontractors and suppliers were paid from the previous month’s payments and retainage was released for those whose work is complete. Submit the certification in the manner prescribed by the Department each month and the month following the month when final acceptance occurred. The inspection and approval of a subcontractor’s work does not eliminate the Contractor’s responsibilities for the work as defined in Article 7.17., “Contractor’s Responsibility for Work.”
Article 10 — Final Payment
When the Contract has been completed, all work has been approved, final acceptance has been made in accordance with Article 5.12., “Final Acceptance,” and Contractor submittals have been received, the Engineer will prepare a final estimate for payment showing the total quantity of work completed and the money owed the Contractor. The final payment will reflect the entire sum due, less any sums previously paid.