CONSTRUCTION CONTRACT ADMINISTRATION

PRIMARY ROLES & RESPONSIBILITIES

PRIMARY TASK OBTAINING PREQUALIFIED CONTRACTOR C Contract Administration Pre-Award Meeting

ODOT

LPA

DCE/CM/LPA Coord./ DEC/REA

CPE/DPE/LPA

C C C

Bid Opening Award Preconstruction Conference LPA Coord. DCE/CM/LPA Coord./ DEC/REA

CPE/DPE/LPA CPE/DPE/LPA CPE/DPE/LPA/ Contractor/ Utilities/ Railroads/ Testing Consultant/Other affected LPAs

ACTIVE PROJECT ADMINISTRATION C Daily Field Engineering and Inspection CM CPE

MATERIALS MANAGEMENT, TESTING AND CERTIFICATION C C C C Asphalt, Concrete & Aggregate Producer/Supplier Monitoring Asphalt, Concrete & Aggregate Field Testing Field Inspection of Materials from ODOT Certified Sources Monitoring and Documentation of Materials Management Process CM/DET DET, Testing Staff

CPE CPE

CPE CPE

(Continued on next page)

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PRIMARY TASK (continued) PROJECT DOCUMENTATION C C C Daily Diaries Documentation of Quantities, Completed & Accepted Monitoring of Project Documentation

ODOT

LPA CPE CPE CPE

CM

ACTIVE PROJECT MANAGEMENT C C Progress Meetings Schedule Tracking and Updates CM CM CPE, Contractor CPE, Contractor

PAYMENT & REIMBURSEMENTS C C C C Contractor Payment Summary of Progressive Payment Invoice and Reimbursement Preparation Review and Approval of Reimbursement Request CM/DCE CPE, LPA CPE CPE

CONTRACT CHANGES C C Negotiation and Preparation of Change Orders Review of Change Orders for Reimbursement CM/DCE/LPA Coord.

CPE CPE

CLAIMS MANAGEMENT C C C Claims Negotiation and Approval of Resolution Approval of Funding for Resolution Monitoring and Documentation of Claims Management Process CM/DCE DCE/LPA Coord. CM/DCE CPE

(Continued on next page)

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PRIMARY TASK (continued) PREVAILING WAGE COMPLIANCE C C C Wage Interviews, Payroll Reviews Resolution of Underpaid Wages Monitoring and Documentation of Prevailing Wage Compliance Process

ODOT

LPA LPA LPA CPE, LPA

Prevailing Wage Coord.

EEO AND DBE CONTRACT COMPLIANCE C C C C C EEO/DBE Contract Requirements Bulletin Board Monitoring Review and Approval of Contractor DBE Waivers Commercially Useful Function Reviews Monitoring and Documentation of LPAs EEO and DBE Compliance Process EEO Contract Compliance Coord./Officer Office of Contracts LPA LPA LPA

PROJECT FINALIZATION C C C C C C C C Final Inspection CM, District Final Inspector CPE, LPA

Resolution of Punchlist Items Agreement of Final Quantities, Payment Final Payment to Contractor, Release of Responsibility Preparation of Project Closeout Documents Review and Approval of Finalization Documents Final Reimbursement Completion of LPA Contract Administration Evaluation CM/DCE DCE CM/DCE

CPE CPE, Contractor CPE CPE

DCE: CM: DEC: REA: DET:

District Construction Engineer Construction Monitor District Environmental Coordinator District Real Estate Administrator District Engineer of Tests

CPE: DPE:

Construction Project Engineer Design Project Engineer

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CONSTRUCTION CONTRACT ADMINISTRATION

INTRODUCTION This chapter covers the topics related to the construction administration of locally-let construction contracts. The administration of these projects relating to construction supervision, project documentation, change orders, materials, disputed work and claims will comply with the policies, requirements and procedures set forth in Federal-Aid Policy Guide (FAPG), Parts 635 and 637. Construction contract administration is the responsibility of the LPA through its Construction Project Engineer (CPE). The CPE and its staff will perform detailed inspections. FAPG Part 635A requires inspections with a frequency appropriate for the work being performed. Detailed inspections include verification that the materials are as specified in the contract documents, the project is built in accordance with approved plans and specifications, and that quantities are documented sufficiently to make payments for completed work. The CPE is designated by the LPA to serve as the main contact for the contractor, ODOT, FHWA and any other agencies having an interest in the project. LPA responsibilities for construction administration include but are not limited to the following: Furnish qualified and experienced engineering and inspection staff for the duration of the project. Staff supplied for the project shall be as proposed and approved by ODOT prior to the beginning of construction and as proposed in the LPAs request to administer the project. Secure contract required workmanship by the contractor. This requires monitoring by the CPEs project staff of operations for compliance with all construction contract documents. When the contractor files a contract complaint, dispute or claim, decisions must be made in a thoughtful and timely manner with due consideration of all facts involved according to the projects approved Claims Management Process. The LPA must obtain approval of the District Construction Engineer (DCE) or designee when the resolution of the complaint, dispute or claim extends the contract time frame and/or adds to project costs. Make all project decisions in a timely manner to avoid undue delay. Promptly pay the contractor for completed work and railroads for completed force account work and flagger services. Every attempt should be made to pay the contractor and railroads within 30 days per the Ohio Revised Code Section 126.30.

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In a format acceptable to ODOT, prepare reimbursement requests for the contractor, the LPAs project staff and/or consultants. After written approval by the CPE and if required, the authorized LPA official per the ODOT/LPA agreement, submit reimbursements request to the CM for review and DCE, or designee for approval. When unforseen conditions, plan errors or other events occur that require the consideration of contract change orders for the contractor, the LPA will follow the approved Change Order Review Process. The LPA must obtain approval of the DCE or designee for all change orders of significance. The LPAs review and determination shall be timely and not unduly burden the contractor nor add unnecessary costs to the project. The level at which this process requires ODOT approval, shall be established by all parties prior to contract award as part of the Change Order Review Process. If the project has Disadvantaged Business Enterprise (DBE) requirements, any contractor requests for waivers will be reviewed and approved by ODOTs Office of Contracts. The Office of Contracts decision on the waiver is final. Monitor and require compliance by the contractor with contract provisions such as prevailing wage, equal employment opportunity and disadvantaged business enterprise legal requirements. Notify ODOT promptly of noncompliance with any of these programs for guidance and assistance.

Review daily and promptly require maintenance and/or adjustment of the contractors maintenance of traffic work zones to ensure the public can pass safely with least the amount of interference. Provide railroads with official notice to proceed for flagging services, track work, temporary train rerouting, etc. immediately after contract award. When the contractor requires temporary railroad crossings, they are to be established by the contractor and paid through the construction contract. Respond to any complaints or questions by the public in a timely manner. Provide for and ensure that all materials incorporated in the project are tested, sampled and/or certified according to the projects approved Materials Management Process and plan specifications. See the section on Materials Quality Control/Quality Assurance for testing, sampling and certification requirements.

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Construction Contract Administration

ODOT responsibilities for construction contract administration will be the responsibility of each Districts Construction Department and include, but are not limited to the following:
C

The DCE shall appoint a Construction Monitor (CM) with prior experience in construction contract administration of similar ODOT let projects to provide guidance and ensure compliance with the ODOT/LPA agreement for the duration of the project. The DCE and or designee shall review the qualifications and experience of engineers and inspectors assigned to the project by the LPA and or its consultant to ensure compliance with the ODOT/LPA agreement. Any substitution of key personnel by the LPA and or its consultant must be made with prior approval by the DCE or designee. The CM shall regularly monitor the LPAs agreed to construction contract administration practices, discuss any concerns with the LPAs Construction Project Engineer (CPE) and report any unresolved issues to the DCE and/or designee. This monitoring will include, but is not limited to field visits, attendance at the pre-award meeting, preconstruction conference, progress meetings, etc. The amount of and level of involvement will be driven by the size, complexity and experience of the LPA and its staff and/or consultant. The CM shall be a resource to the LPAs CPE on technical and or administrative issues unique or not expected by the LPA. In this role, the CM will communicate and support the CPE and not direct the contractor. The DCE or designee and CM shall be a resource to the LPA for the prompt resolution of contractor complaints, disputes and claims. The CM shall monitor the LPAs claims process to ensure that it follows the approved Claims Resolution Process. The DCE or designee will grant approval to the resolution of complaints, disputes or claims that extend the project construction time frame and/or increase project costs. The CM shall review and the DCE or designee will approve, all appropriate requests by the LPA for reimbursement for federal and/or state funds. Requests for reimbursement must be signed and recommended by the CPE and if required, the authorized LPA official as noted in the ODOT/LPA agreement. When unforseen conditions, plan errors or other events occur that require the consideration of contract change orders for the contractor, ODOT will follow the approved Change Order Review Process. ODOTs review and approval shall be timely and not unduly burden the LPA or the contractor. Every attempt will be made to process the LPAs reimbursement request within 14 days of receipt.

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Construction Contract Administration

The District Equal Employment Opportunity Contract Compliance Coordinator/Officer and Prevailing Wage Coordinator will monitor and provide guidance on Federal and State contract provisions in the areas of Equal Employment Opportunity (EEO), Disadvantaged Business Enterprise (DBE) and Prevailing Wage Compliance. Should activities not be in compliance, the LPA will be formally notified and a recommendation made to the DCE that reimbursements be reduced or halted until the project is brought back into compliance. Where a project has a specific DBE goal, ODOTs Office of Contracts, will review and approve contractor requests for waivers of all or part of the goal. Ensure that the LPA is in compliance with the projects approved Materials Management Process. Be a resource to the LPA in the areas of testing, certification and ODOTs materials management processes. Require the contractor maintain traffic in accordance with the plan specified maintenance of traffic plan, notes and the Ohio Manual of Uniform Traffic Control Devices (OMUTCD).

Contractor responsibilities for construction administration include but are not limited to the following: The contractor shall designate one individual as the main contact for the LPA. The designated person should have the authority to speak on behalf of the contractor. This individual should be capable of reading and thoroughly understanding the plans and specifications and be experienced in the types of work being performed. This individual should have full authority to execute instructions of the CPE and should be in charge of all construction operations regardless of who performs the work. The contractor must notify the LPA of the project starting date and keep the LPA informed of the proposed schedule of operations. This allows the LPA to anticipate engineering and inspection needs and therefore efficiently manage staff. The contractor shall provide a list of material suppliers and subcontractors. The LPA will review the proposed lists of material suppliers and subcontractors; obtain required samples along with supporting documentation/certifications and work experience and references of subcontractors. The lists should be submitted early to avoid delays associated with sampling and testing and checking of experience and references of subcontractors. Unless otherwise approved as part of the projects Materials Management Process, the contractor shall utilize ODOT certified material suppliers and established Job Mix Formulas (JMFs).

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Construction Contract Administration

The contractor shall notify affected railroads and utilities of a start date for construction on and/or adjacent to its facilities. The contractor must carry out the work in a diligent manner utilizing adequate labor that is trained, experienced and with appropriate, functional equipment as shown on his accepted progress schedule. The contractor must be knowledgeable of all Federal, State, and Local laws that apply. Many of the legal requirements of the contract are addressed in the proposal, additionally the contractor must also be aware of other regulations such as safety, which may not be thoroughly detailed in the LPAs specifications, but are extremely important. The contractor is required to protect and indemnify the LPA and ODOT from all claims and liability resulting from negligence or willful violations. The contractor must provide railroad liability insurance and proof of this insurance to the LPA prior to the start of any work on or adjacent to railroad facilities. The contractor must maintain the project in order to permit the public to move safely through. This includes using clean, readable signs, and traffic control devices, as well as maintaining the project free of debris. The contractor must respond quickly to correct a problem once notified. This is extremely important when the situation involves public safety. The contractor must promptly notify the LPA of any changed site conditions so they can be resolved in a timely manner. It is the contractors responsibility to mitigate any delays caused by changed conditions.

CONSTRUCTABILITY REVIEW Avoiding claims and reducing bidder risk and uncertainty can be accomplished by removing or lessening the factors that contribute to claims and higher than estimated bids. A Constructability Review is one way to help avoid claims and provide for competitive bids within the engineers estimate. Usually, the Design Project Engineer (DPE) and the CPE review the Final Design Plans with the assistance of a knowledgeable third party when appropriate. When conducting a Constructability Review the team should: Review General Notes and Special Provisions;

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Construction Contract Administration

Review any Subsurface Investigations; Field Review the Project paying particular attention to:
< Right of Way Encroachments or Obstructions, existing or impacted by the construction activity; < Utilities, to remain and/or be relocated, accuracy of location both horizontally and vertically; < Drainage systems/appurtenances, maintained or reconstructed, as part of project area,

detoured area or adjacent facilities;

< Pavement or Bridge Condition (i.e. heaving, cracking, deterioration) of existing facility and area

over which traffic is shifted and/or detoured, further deterioration since last quantity estimate;
< Stream & Stream Diversions, Sediment and Erosion Problems and Other Geological Features,

maintained, reconstructed, and storm water management plan, if required;

< Railings & Signs, existing and proposed meet current standards; < Railroads, adequate force account funds for flaggers, time for plan reviews, approval of

permits, need for temporary crossings;

< Maintenance of Traffic, phasing, impact on adjacent facilities, detours ; < Impact on Signals, within project limits, detoured area or adjacent facilities; and < Quantities, basis of estimates, time since last estimate, magnitude of contingencies.

The focus of the review should be very practical. The team should look for the obvious discrepancies in location, missing information, obstructions, conditions or quantities.

PRE-BID MEETING During the bidding period, a Pre-Bid meeting may be held including prospective bidders, the LPA and its DPE and CPE at a minimum. ODOT will attend if requested to do so by the LPA. The purpose of this meeting is to encourage face to face discussion regarding plan intent and any areas of concern prior to bid opening. This meeting is strongly recommended for complex, large and high impact projects.
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Often, this meeting will result in plan addendum that could have resulted in change orders and/or claims after the project has been bid. For those reasons, the time and effort required for a Pre-Bid meeting is valuable to both contractors and the LPA.

PRE-AWARD MEETING After the Plans, Specifications & Estimate package (PS&E) has been submitted and preferably before the biding period and contract award, the LPA and ODOT shall conduct a Pre-Award Meeting. For projects with over $500,000 in Federal and/or State funds, the meeting shall be held in person, for under $500,000, a conference call is sufficient. The purpose of this meeting is to reach final agreement on all construction contract administration responsibilities and procedures in advance of the Pre-con meeting and any contract work taking place. In attendance for the LPA shall be its CPE, DPE, Prevailing Wage Compliance Officer, Equal Employment Opportunity (EEO) Officer and Contract Officer, if appropriate. For ODOT, the DCE or designee, the CM, and the LPA Coordinator shall attend at a minimum. Other participates, as appropriate, will include the District Environmental Coordinator (DEC), District Real Estate Administrator (REA), Prevailing Wage Coordinator, EEO Contract Compliance Coordinator/Officer and Utility and Railroad Coordinator. It is anticipated that the preliminary agreement on construction contract administration responsibilities and procedures was made as part of the LPAs request to administer the project and the accompanying prequalifications. At a minimum, the following shall be discussed:
C C C C C C C C C

Names, qualifications, roles of engineering, inspection and other staff; Award process and determination; Pre-construction meeting; Environmental commitments; ODOT support and involvement; Contractor and railroad force account payment and LPA reimbursement; Change Order Review Process; Maintenance of traffic requirements; Railroad force accounts, temporary crossings, flagger services;

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Construction Contract Administration

C C C C C C C C

Utility relocations; Construction schedule tracking, time extensions, liquidated damages; Claims Management Process; Materials Management Process; Prevailing Wage, EEO and DBE Compliance requirements; Documentation Process; Public relations, damage claims resolution; and Final Inspection, acceptance, project closeout procedures.

After the conclusion of this meeting or conference call, the LPA shall prepare and distribute minutes for all attendees to refer to as the project progresses. Any action items agreed to in the meeting shall be promptly resolved. PRECONSTRUCTION CONFERENCE A Preconstruction Conference (Pre-con) shall be held for the project prior to the beginning of construction. Note that the contract may be signed at the Pre-con. The CPE should be familiar with all project documents and terms of the contract prior to the Pre-con meeting. Special attention should be given to the following items:
C

Project staffing list including normal business and emergency contact phone numbers for key staff members of the CPE and LPA, contractor, subcontractors, ODOT CM and DCE or designee; List of material suppliers, Materials Management Process; Plan Notes; Completion Date; Interim Completion Dates; Special Uses of As Per Plan Reference Items;
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C C

Construction Contract Administration

Proposal Notes; Phasing Requirements; Special Provisions; Addenda; Change Order Review and Claims Resolution Processes; Status of utility relocations, especially those that need to be addressed immediately to avoid delays with the project; Status of railroad review of contractors permits, demolition, false work, track protection, temporary crossings, erection plans, flagger services and associated force account(s); Prevailing wage requirements and procedures; EEO responsibilities, nondiscriminatory hiring requirements, and requirements under the on-the-job training program; DBE goals and procedures; and Protection and restoration of property.

The purpose of the Pre-con meeting is to discuss details on the constructing of the project, bid proposal, specifications, plans, method of payment, and contractors Progress Schedule. Other items that should be discussed are the necessary utility adjustments, railroad permits and requirements, availability of right of way, maintenance of traffic, special provisions and responsibilities of the LPA, CPE, DPE, ODOT and the contractor. At this meeting, the involved parties must express any and all concerns regarding the construction project. The CPE should facilitate the Pre-con as well as prepare and distribute minutes and an attendance signin sheet to those who attend the meeting. The attendees at the Pre-con meeting should include the CPE, the contractor, ODOT (CM, DCE or designee, LPA Coordinator at a minimum and DEC, REA, District Prevailing Wage Coordinator and EEO Contract Compliance Coordinator/Officer as needed) and any other agencies that have involvement in the project (utilities, railroad, etc.). The CPE should obtain a list of contacts for all parties involved with the project prior to the Pre-con meeting. This list is
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Construction Contract Administration

useful in the future for timely resolution of problems which surface during the project construction. The contractor shall provide a progress schedule, list of material sources, list of subcontractors, and a list of haul roads and designated local detours. The contractor needs to request permission from the LPA for both the use of local roadways to be used for hauling materials and equipment to and from the project, and designated local detours.

MONITORING PROGRESS Progress Meetings Regularly scheduled Progress Meetings are a very productive tool for monitoring the status of a project. They enhance communications, and help solve problems before they turn larger and more costly. Attendance at Progress Meetings is required for the contractors Superintendent, CPE, CM and others as the point in progress dictates including representatives of subcontractors, suppliers, utilities, railroads, DEC, REA, etc. The main tool for monitoring a project is the Progress Schedule. The Progress Schedule must be updated periodically to ensure an accurate measure of the progress of the work and to maintain the status of the project with respect to time. The Progress Schedule may be used in any assessment of liquidated damages or incentives/disincentives, and a consideration with respect to any termination action. The Progress Schedule shall be reviewed with the CPE and the contractor at different intervals of the project as follows: At the start of the project to detect if the contractor began as scheduled; Every two weeks or monthly, depending on the complexity of the project; Following the completion of a major item of work; Following the completion of a phase or sub phase of work; and Before, during and after any type of delay to determine whether or not the delay was owner caused, contractor caused or both

The situations and decisions that pertain to the project should be recorded in a diary. It is very important to keep a daily diary of activities of the project. The diary entry should list the reasons the contractor cannot proceed with certain portions of the work. Accuracy and details in the daily diary concerning delays will protect the LPA against potential contractor claims.

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Construction Contract Administration

Behind Schedule When the project progression is fifteen days behind the original Progress Schedule, the CPE on behalf of the LPA should send the contractor a letter requesting a revised Progress Schedule and reason for the delay. Once the contractor gives the CPE a revised Progress Schedule including the reason for the delays, the CPE should review the revised Progress Schedule and check the daily diary to see if the reason for the projects delay agrees with the contractors explanation. If delays are due to inexpediency or incompetence of the contractor or subcontractor, the CPE can request the removal of the individual(s) or subcontractors involved. When a delay in the project has occurred, the contractor must request a time extension in writing. Time Extension And Waiver Of Liquidated Damages The CPE shall have adequate written procedures for the determination of contract time as described in Chapter 9 (Ref: FAPG 635.120(c)). Contract time extensions submitted by the contractor shall be subject to the concurrence of the CPE. Contract time extensions submitted for approval to the CPE must be fully justified and adequately documented by the contractor (Ref: FAPG 635.120(c)). The CPE shall notify the CM of the need for a contract time extension, which may require a change in the LPA agreement. The CM will review the proposed request for a contract time extension with the DCE or designee and LPA Coordinator and determine if a change in the LPA agreement is necessary. The DCE or designee will coordinate with the LPA so that any agreement change is completed promptly. If a contractor fails to complete the work by the contract completion date, the contractor shall submit to the LPA a written request to continue the contract work. In the written request, there shall be a plan for completion of the work. The contractor must include a detailed explanation that will justify the granting of the extra time. Certain plan notes may require interim dates for phase completion and include special liquidated damages. The LPA may grant a time extension or wavier of liquidated damages for excusable delays. If the contractor causes the delay, the LPA may consider liquidated damages or disincentives. Liquidated damages shall be applied in accordance with the requirements of the contract. Progress Schedule The Progress Schedule must show the contractors plan to carry out the different work types, including the procurement of materials and equipment, ordering of special manufactured articles, working drawings, required permits and the planned dates of critical project milestones. The CPE must review the Progress Schedule to see if the schedule is acceptable. The following items are to be used in determining an acceptable schedule:
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Construction Contract Administration

All major items of work are included; The contractors plan for the execution of the work is shown; Adherence to contract requirements is demonstrated; Critical or controlling work activities and material deliveries are identified; Start and finish dates for the specific activities of work required by the contract are furnished; Special provisions in the contract, including milestone dates and/or interim completion dates, are accounted for; Duration of activities is reasonable; Activities reflecting procurement of materials and equipment are identified; Special material requirements of the plans are included; Time for permit completion, review and approval by utilities, railroads, Ohio EPA, etc. is included; Maintenance of traffic requirements are provided; Sequence of operations is logical and clear relationships between activities is shown; Graphically depicts sequence of work; Appropriate consideration for progress during winter months; and The arrangement of project phases per the plan, if required.

The Progress Schedule is the responsibility of the contractor. However, the CPE should review and accept the Progress Schedule. If the schedule is not logical or is unreasonable, the CPE should ask for clarification. The Progress Schedule is the main tool with which the CPE shall monitor the progress of the contract. It is, therefore, very important that the CPE Project Engineer accurately review the schedule before accepting it. Monitoring the Progress Schedule can determine the responsible party for project delays. PROJECT DOCUMENTATION
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Construction Contract Administration

Record keeping is an integral part of contract administration and is especially important when considering any contract changes including, but not limited to, change orders and claims/dispute resolution. Adequate records must be maintained to document the need for changes and to establish pricing for extra work. The primary goal of project records is to ensure that documentation exists for the acceptance of materials and work items for both quality and quantity. The basis of acceptance for quality, the method of measurement and the basis of payment are established by the specifications. The records shall indicate that work was accomplished, what inspections and tests were made and the results. The CPE must ensure that each item in the contract is documented sufficiently to satisfy an audit. Documentation is also required for work performed by railroads or utilities that is to be paid on a force account basis. Documentation shall also demonstrate that the contract was administered in compliance with the general provisions of the contract and specs, e.g., wage rates, Equal Employment Opportunity, safety, etc. Project records shall always be available for inspection by ODOT and FHWA personnel. The CM, EEO Contract Compliance Coordinator/Officer and Prevailing Wage Coordinator will periodically review the level and completeness of project documentation, and the adequacy of the LPAs compliance processes. The minimum number of reviews is based on project dollar amount(s) and compliance area as follows: For the LPAs Prevailing Wage Compliance process, there shall be three reviews per season for projects less than $2 million and, monthly for projects equal to or greater than $2 million. For the LPAs EEO/DBE Compliance process, there shall be one review per season for projects equal to $500,000 to less than $1 million; two reviews per season for projects from $1 million to less than $2 million; and, monthly for projects $2 million or greater. Should the level of documentation not exist to the satisfaction of the CM, the DCE or designee will inform the CPE in writing the specific findings and required remedies. If within a specified period of time the documentation has not been improved, the DCE may request reimbursements to the LPA be withheld until such time as documentation improves. Additionally, the DCE may request that the LPA not be permitted to administer construction contracts in the future.

CONSTRUCTION CONTRACT REQUIREMENTS FOR EEO, DBE & PREVAILING WAGE COMPLIANCE At the Pre-con, ODOT, the LPA and the contractor will designate key personnel responsible for the following mandatory activities.

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EEO & DBE Requirements on Federally Funded Projects The District EEO Contract Compliance Coordinator/Officer shall monitor the LPA to ensure they are in compliance with the following DBE & EEO requirements, provide guidance when requested and to inform the DCE if corrective actions are required by the LPA. ODOT reserves the right to withhold reimbursement until such time that DBE and EEO requirements are being met and appropriately monitored. Projects with Disadvantaged Business Enterprise (DBE) Goals Any project with Federal funds and a dollar value greater than $500,000 is eligible for a DBE goal. The goal is assigned by the ODOT Central Office Goal Setting Committee. The Committee reviews each eligible project taking into consideration the size of the project, work types, location and available DBEs who are located within a reasonable proximity. Once the goal is set, the LPA will be notified by the ODOT Office of Local Projects. The LPA will then include the required goal in their bidding documents. The contractor must use DBE firms certified by ODOT. A listing of certified DBE firms is available on the Office of Contracts web page. The contractor shall identify how they will meet the DBE goal and in the event the contractor is unable to meet the goal, the ODOT waiver process must be followed. The prime contractor must contract with DBE subcontractors prior to the signing of the contract with the LPA. The waiver process is found on the ODOT Office of Contracts website. Commercially Useful Function The LPA is required to monitor DBE subcontractors to ensure they are performing a commercially useful function. A DBE is performing a Commercially Useful Function (CUF) when it is responsible for execution of the work of the contract and is carrying out its responsibilities by actually performing, managing, and supervising the work involved with the DBEs employees. The DBE must also be responsible, with respect to materials and supplies used on the contract, for negotiating price, determining quality and quantity, ordering the materials and installing (where applicable) and paying for the material itself. CFR 26.55 (c) (1). The LPAs EEO/DBE Compliance Officers minimum monitoring schedule is based on the dollar amount of the project as follows: From $500,000 up to $1 million, a CUF review shall be performed once per season per DBE goal C subcontractor per project; From $1 million up to $2 million, a CUF review shall be performed at least twice per season per C DBE goal subcontractor per project; and
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Construction Contract Administration C

Greater than $2 million, a CUF review shall be performed at least monthly. In addition to this schedule, the Compliance Officer must track CUF review results, negative findings and DBE goal subcontractor payments for ODOTs process reviews. EEO Contract Compliance The LPA is required to monitor the contractor and subcontractors to ensure they are meeting the Required Contract Provisions in Federal-Aid Construction Contracts (Form FHWA 1273 - Rev. 493), Executive Order 11246, 23 CFR 230, 41 CFR 60-1.7(b) (1), 41 CFR 60-4, 41 CFR 604.3(a), Governors Executive Order (11-30-84). The goals and timetables for minority and female participation, expressed in percentage terms for the contractors aggregate workforce in each trade on all construction work in the covered area, are as follows: Economic area percentage goals for minority participation are established for the geographical area where the work is being performed; goals are identified in the economic area. The goal for female participation in each trade for Ohio is 6.9 percent. Goals by area are located at the end of this chapter. These goals are applicable to all the contractors construction work (whether or not it is Federal or Federally- assisted) performed in the covered area. If the contractor performs construction work in a geographical area located outside of the covered area, it shall apply the goals established for such geographical area where the work is actually performed. With regard to this second area, the contractor also is subject to the goals for both its Federally involved and non-federally involved construction. The contractors compliance with the Executive Order and the Regulations in 41 Code of Federal Regulations (CFR) 60-4 shall be based on its implementation of the Equal Opportunity Clause, specific affirmative action obligations required by the specifications set forth in 41 CFR 60-4.3(a), and its efforts to meet the goals. The hours of minority and female employment and training must be substantially uniform throughout the length of the contract, and in each trade, and the contractor shall make a good faith effort to employ minorities and women evenly on each of its projects. The transfer of minority or female employees or trainees from contractor to contractor or from project to project for the sole purpose of meeting the contractors goals shall be a violation of the contract, the Executive Order and regulations in 41 CFR 60-4. Compliance with the goals will be measured against the total work hours performed. State Only Funded Projects The hiring of employees for performance of work under a state funded contract shall be done in accordance with Sections 153.59 and 591, of the Ohio Revised Code, Governors amended Executive
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Order 84-9 of November 30, 1984. The contractor shall not discriminate against or intimidate any person hired for the performance of the work by reason of race, color, religion, national origin, ancestry, sex or handicap. For any violation the contractor shall suffer such penalties as provided for in Section 153.60 of the Ohio Revised Code. The LPA must ensure that the bidder also agrees that upon the award of this contract he shall incorporate this certification on all subcontracts on this project regardless of tier. An appendix item with minority utilization goals on state funded projects for each trade to be used by the contractor in a designated area is located at the end of this chapter. Designated areas are defined as Ohios Standard Metropolitan Statistical Areas (SMSA). They are Akron, Cincinnati, Cleveland, Columbus, Dayton, Toledo and Youngstown-Warren. In cases where the project is not located in a designated area, the contractor may adopt minority utilization goals of the nearest designated area. The LPA must ensure that the contractor submits Statewide Input 29 Forms monthly to the Ohio Department of Administrative Services. Prevailing Wage Requirements The ODOT District Prevailing Wage Compliance Officer shall monitor the LPA to ensure they are in compliance with the Prevailing Wage requirements and to provide guidance when requested. The LPAs Prevailing Wage Compliance Officers minimum monitoring schedule is based on the dollar amount of the project as follows: Less than $2 million, at least three wage interviews shall be conducted so that one each is C performed in the beginning, middle and end of the season; Greater than $2 million, wage interviews shall be conducted once a month; C There shall be a 30 percent spot check of payrolls performed three times per season so that one C each is performed at the beginning, middle and end of season; and Negative finding shall be tracked and resolution documented for each ODOT review. C When corrective actions are required by the LPA, the Prevailing Wage Compliance Officer shall inform the DCE. ODOT reserves the right to withhold reimbursement until such time that Prevailing Wage requirements are being met and appropriately monitored. The LPA is required to monitor the contractor and subcontractors to ensure prevailing wages are paid to all laborers and mechanics employed on the project. The prime contractor is responsible for all forms to be furnished to subcontractors along with wage rates or any other modification vital to the project. An Owner, Foremen and/or Supervisor performing any kind of work on the project must be added to payrolls. If an Owner, Foreman and/or Supervisor is working more than 20% in a given work week on the project, they are to be paid prevailing wage for the classification of work performed and listed on
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the payroll. If the Owner, Foreman and/or Supervisor are the sole worker(s) on the job, they are to be included on the payroll. The contractors and subcontractors shall submit to the LPA certified payrolls each week beginning three weeks after the start of work. The original payroll with an original signature must be submitted on the Statement of Compliance Form, WH-347, or equivalent and shall show the following: 1. 2. 3. 4. Employee name, address, social security number, classification, and hours worked; The basic hourly and overtime rate paid, total pay, and the manner in which fringe benefit payments have been irrevocably made; The project number and pay week dates; and Original signature of a company officer on the certification statement.

This form (located at the end of the chapter) must accompany each certified payroll. It is the LPAs responsibility to check every payroll to ensure those employees working in crafts covered by the prevailing wage laws are being paid the correct wage and fringe benefits for the craft they are performing. The prevailing wages must be supplied in the bidding documents. The District Prevailing Wage Coordinator will monitor the LPAs prevailing wage compliance efforts. All apprentices must be registered with the U. S. Department of Labor (USDOL), Bureau of Apprenticeship and Training (BAT) (BAT, Columbus Office 614-469-7375). A copy of the Apprentice Certification obtained from the USDOL, BAT, must accompany the first certified payroll submitted for all apprentices working on the project. The apprentice agreement from the union is not acceptable. Bulletin Board Requirements It is the LPAs responsibility to ensure the contractor has a bulletin board placed in a location easily accessible to both the employee and the public and should include, but not be limited to the following: 1. 2. 3. 4. 5. 6. 7. 8. 9. THE LAW; THE LAW (En Espanol); Ohio Fair Employment Practices Law; FHWA Notice (1022); Wage Rate Information (FHWA 1495); Wage Rate Information (FHWA 1495A) (En Espanol); Contractually required wage rates; Family & Medical Leave Act of 1993; Minor Labor Laws;

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10. 11. 12. 13.

Federal Minimum Wage; U.S. Department of Labor (1321); Contractors EEO Policy; and The company EEO Officers name and Telephone number.

If a bulletin board is not practical (e.g., no field office), the project superintendent may keep the bulletin board requirements in a notebook in his/her vehicle. It is required that the LPA check bulletin board compliance when performing Prevailing Wage Interviews and/or Commercially Useful Function Reviews.

MATERIALS QUALITY CONTROL/QUALITY ASSURANCE The quality of materials and workmanship on a project must conform to the contract specifications so that the public funds expended will have purchased a safe, economical, and fully functional transportation facility. The LPA must make arrangements to provide for and administer a Materials Management Process. Manufacturers, suppliers, contractors or ODOT certifications as sole documentation of acceptability are not always sufficient. The acceptability should be consistent with the specifications and may require independent assurance testing. The LPA through its CPE is responsible for material testing and inspection pursuant to the minimums listed below and as described in the projects approved Materials Management Process. The LPAs proposed Materials Management Process shall be submitted by the CPE to the DCE for review and approval prior to being finalized at the Pre-award meeting. Approval is contingent on meeting or exceeding the minimum standards listed below and the intent of the plans and specifications. In addition, the Materials Management Process should list the individuals responsible for testing and inspection, their certifications and those of an independent testing laboratory to be utilized. Only laboratories certified by AASHTO Materials Reference Laboratory (AMRL) for the materials to be tested are permitted. Reimbursement of Federal/State funds may be denied for materials incorporated into the work without or contrary to the accepted Materials Management Process and contract documents. FHWA does not require specific testing and inspection of materials off the NHS (National Highway System). However, ODOT does require testing and inspection of materials on all projects no matter the highway designation. This requirement is being passed to the LPA by accepting Federal and/or State funds. In order to protect the interest of public safety and to protect the LPA from receiving substandard materials, the following minimum standards are required. For all LPA administered projects that exceed $2 million of Federal and/or State funds, all ODOT materials testing and
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inspection standards and requirements are to be enforced. The District shall monitor conformance at least once a month. The minimum standards that follow apply only to those projects less than $2 million. For these projects, District monitoring of the materials management process is as follows: if the project is less than or equal to $500,000, monitoring shall occur twice per season; if greater than $500,000 up to $2M, monitoring shall occur four times per season. All materials not specifically listed below, must be supplied by certified ODOT suppliers. The contractor will notify the CPE and CM of the start date of the project, a minium of three days before actual work begins.
C C

Aggregate, to be provided by a certified ODOT supplier. Asphalt Concrete production and testing will be performed according to ODOT Supplement 1056. Simply stated, all asphalt concrete specified in plans will be ODOT item 448. All asphalt concrete supplied will be from ODOT approved Job Mix Formulas (JMFs). As part of ODOTs Quality Assurance procedures, ODOT will perform periodical plant testing and monitoring of asphalt concrete production. Forty-eight (48) hours before significant asphalt concrete production is to begin, the CPE shall notify the CM so that plant monitors are available and aware of the JMF to be used. Portland Cement Concrete for paving will be batched from an ODOT approved concrete plant, delivered to the project site in an ODOT inspected mixer, from an ODOT approved Job Mix Formula (JMF) and according to ODOT Supplemental Specification 899. For each days pour, air, slump, temperature and yield tests shall be taken for each 50-100 yards of delivered concrete. A beam tensile test shall be performed to represent that days production. Further testing and quality control requirements are found in the ODOT Manual of Procedures for Concrete. The individual performing the tests shall be ACI Level I Field Technician certified. Forty-eight (48) hours before significant concrete production is to begin, the CPE shall notify the CM so that plant monitors are available and aware of the JMF to be used. Miscellaneous Portland Cement Concrete, concrete will be batched from an ODOT approved concrete plant, delivered to the project site in an ODOT inspected mixer, from an ODOT approved Job Mix Formula (JMF) and according to ODOT Supplemental Specification 899. Each 50 yards of delivered concrete, or fraction thereof, air, slump, temperature and yield tests shall be taken and one set of cylinders made according to the ODOT Manual of Procedures for Concrete. Miscellaneous Materials, such as guardrail, pipe, catch basins, manholes, signs, posts, lighting fixtures, etc. shall be provided by a certified ODOT supplier and field inspected for defects prior to incorporation into the project.

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Small Quantities, with the written approval of the CPE, non-tested portland cement concrete and asphalt concrete materials may be incorporated into the project, from ODOT certified suppliers provided the quantity is less than 50 cubic yards. Structures, minimum requirements are as follows:
< Two test cylinders, made of the concrete incorporated in each day of work, will be made from

each 200 cy (150 m) or fraction thereof, on structures over 20 ft clear span (6.1 m), as per Section 511 of the Construction & Material Specifications (C&MS).
< Two test cylinders, made of the concrete incorporated in each day of work, will be made from

each 50 cy (35 m) or fraction thereof, on structures 20 ft clear span (6.1 m) or less, as per Section 511 of the C&MS.
< When necessary to permit early removal of false work or to permit backfilling, a concrete test

beam shall be made and tested in accordance with Supplement 1023, as per Specification 511 of the C&MS.
< Air, slump and yield tests shall be performed on the first several loads of each days production

of concrete to ensure the concrete meets the required specifications and to ensure the proper adjustments have been made to bring the concrete into the required specifications, as per Section 704.1.2 of the Manual of Procedures for Structures.
< After the initial testing, concrete for substructures shall have air, slump and yield tests performed

as often as necessary to assure the required specifications are met as per the Manual of Procedures for Structures.
< After the initial testing, concrete for superstructures shall have an air test completed on each

load of concrete. Slump and yield tests shall be performed as often as necessary to assure the required specifications are met as per the Manual of Procedures for Structures.
< Each time test cylinders or test beams are made, an air, slump and yield test shall also be

performed.
< For structural members, steel members, pre-stressed concrete box and I-beams shall be from

ODOT certified producers. For any materials not listed above nor available from ODOT certified suppliers, the appropriate testing, sampling and inspection requirements will be as submitted and approved in the Materials Management
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Process.

CHANGE ORDERS Change orders amend the contract by adding or deleting work, making reimbursement for additional costs incurred, making material substitutions, and changing specifications. Only work necessary to complete the project as originally intended may be added by change order. All significant change orders must be approved by the DCE or designee prior to the contractor performing the work. Should the LPA direct the contractor to perform added work prior to approval by ODOT, reimbursement maybe denied. Prior to contract award, the LPA will submit for ODOT approval a Change Order Review Process. It is ODOTs intent to only review contract changes of significance, not simple quantity adjustments. ODOTs level of review will be a function of contract size, complexity, the LPAs experience prior construction contract administration experience and the LPAs ability to fund the project should the cap be exceeded. Contract changes that establish new items of work will receive more review than extensions of existing as bid work items. Generally, there will be a required ODOT review for any contract changes that are for the lesser of $25,000 or 5 percent of the total bid contract. This review will apply whether the change is for an extension of bid prices, the establishment of new bid prices, or force account work. When the LPA through its CPE is satisfied with the proposed change order, the CPE will forward the change order to the CM for review and DCE or designee for approval. The DCE or designee will confer with the LPA Coordinator, if necessary, to assure the applicability of FHWA and/or State funding is for the change order. A change order is prepared and processed for any of the following reasons: An increase or decrease in any of the contract pay items; Changes in the work which were not originally delineated in the contract such as revised design considerations; The addition of a new or modified pay item required to complete the work in accordance with the contract; Changes caused by outside agencies such as utilities, railroads, etc.;

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Payment adjustments due to contract provisions; Quantity changes to meet field conditions; Plan errors; Suspension of Work; Final measurements/calculations; and Settlement of a dispute or claim resulting from any of the above reasons.

The change order must provide sufficient explanation to ascertain that the work is necessary, consistent with specifications, within the scope and intent of the LPA agreement and approved by the DCE or designee. If the change order is approved by ODOT and FHWA and /or State funds are available above current ODOT project encumbrances, but under the project capped amount, funding may be permitted. Funding of change orders not approved or for which no remaining FHWA and/or State funds remain, is the sole responsibility of the LPA. The processing of change orders usually begins with the recognition of a need for a change order at the project level. There is usually communication between the contractor and the CPE. If all parties agree that a change order should be generated, a decision is made as to the type of change order that is needed. Note that the performance of extra work or additional quantities of work may warrant an extension of contract time. Extensions of contract time may involve additional direct project overhead cost. Once the need to perform extra work on a project has been identified, a basis of payment for this work must be established. The two types of pricing for extra work are usually Agreed Unit Price or Force Account Price. Agreed Unit Price is used when the extra work can be broken down into measurable units. The number of units necessary to perform the work is estimated and a unit price determined and agreed upon. The agreed upon unit price should be a unit price already established in the contract or comparative pricing may be used. The CPE may reference ODOTs website of average bid prices to assist with this effort. Force Account Price is used when the work cannot be broken into measurable units or when a unit price cannot be agreed upon. This method reimburses the contractor the actual costs of labor, equipment and materials incurred in the performance of the work including allowable overhead and
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markup. This method requires a significant amount of record keeping. The records required for force account pricing of extra work must accurately depict all labor, equipment and materials used by the contractor to perform the work. The Blue Book for heavy Highway Equipment costs with the ODOT procedure for establishing appropriate equipment costs shall be utilized as per the 2002 ODOT C&MS, Section 109.05. The items that are necessary to record are shown below:
C C C C C C

Description of Work Contractors Work Force Employee Name Classification Hours Worked - Regular and Overtime Contractor Equipment
< Type < Model < Age < Capacity < Hours Worked < Hours Idle

Materials
< Description < Quantity

Invoices

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Quantity Measurements The CPE shall record the measurements of the quantities of work in the units prescribed by the plan actually performed by the contractor. Change orders must be prepared to make adjustments for any differences between contract quantities and the quantities actually performed. Issues of efficiency or other similar factors may arise that may impact unit costs when the quantities actually performed differ significantly from those shown in the plan. For these occurrences the quantity records shall be thorough enough to determine actual production rates and other such items.

CLAIMS The LPA is subject to claims by the contractor who performs the work. The terms of the project between the LPA and the contractor exist in the contract, the specifications and the plans. There are certain terms that are not stated in the contract documents. These are known as implied terms. For instance there is an implied warranty that the plans and specifications are free from defects and, unless stated otherwise, that there will be safe and continuous access to all areas within the projects boundaries. Claims arise from both stated and implied terms. The LPAs Claims Management Process must meet the general framework and intent of ODOTs Proposal Note 25, Dispute Resolution and Claims Process. This proposal note has formalized a Claims Management Process at ODOT that requires progressive administrative reviews of a contractors claim prior to a filing in the Court of Claims. By requiring administrative reviews beginning at the project level, construction contract claims have been reduced. Likewise, a process for the fair hearing of a claim or dispute reduces a contractors risk and ultimately results in more competitive bids. It is required that the LPA formalize a claims management process that includes progressive administrative reviews prior to formal legal action by the contractor or the LPA. The LPAs Claims Management Process must be prepared and approved by ODOT prior to contract award. Preferably, the Claims Management Process would be included in the LPAs bid documents. Resolution of all claims must be according to the projects approved Claims Management Process and approved the DCE or designee if the resolution affects the contract completion date and/or increases project costs.

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Who Can Make A Claim? The only entity that may assert a claim against the LPA is the legal contractor of record. If the project is being performed by a joint venture, then only the joint venture may assert a claim. A single party to the venture cannot assert a claim. Likewise, a subcontractor may not assert a claim against the LPA, but may make a claim against the Prime contractor who, in turn, may assert a claim against the LPA for damages incurred by the subcontractor. Elements Of A Claim Every claim has two distinct elements, entitlement and damages. Entitlement is the theory under which the contractor asserts the claim. The contractor must prove entitlement. Examples are work not shown on plans, conflict between plans and specifications, third party delays, and unforeseen conditions. Damages are the cost impacts incurred by the contractor which are over and above normal costs and which are caused by the claim event. Each claim must have both of these elements. If a contractor encounters a situation where there would be an entitlement but incurs no monetary impact, there is no claim. Likewise, a contractor may state that he has incurred additional costs but cannot establish an entitlement, then there is no claim. Types Of Claims The contractor shall make a reasonable effort to mitigate damages. Mitigation might include resequencing, reducing, re-mobilizing or changing manpower. The contractor is entitled to recover the costs of mitigation. Certain types of disputes by their nature may result in a claim. Claims may be due to plan discrepancies or omissions, allowable costs in calculating change orders, unforeseen site conditions, quantity variations, interferences, and delays. Delays require careful analysis to determine who is responsible. The contractor must demonstrate that the delay was critical. It should be demonstrated that the delay in question affected the overall project schedule and was a controlling operation with respect to project completion. Delays that are unforeseeable and beyond the control of the contractor are excusable delays. Excusable delays may be either compensable or non-compensable. Delays caused by the LPA, such as lack of site access, late approval of shop drawing, and redesign, may be compensable. Delays caused by third parties outside the contractors control, such as area-wide labor disputes, floods, transportation industry delays, fire and vandalism may be non-compensable. Non-excusable delays are always non-compensable. These delays, such as subcontractor delay, late mobilization, production longer than scheduled, and equipment breakdowns are caused by the contractor or under his control. Very often delays may occur from various sources at the same time. These delays are known as
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concurrent delays. The LPA caused compensable delay occurring at the same time as an excusable delay that is non-compensable should result in a time extension but no recovery of costs. The LPA caused delay occurring at the same time as a contractor delay should result in a time extension but no recovery of costs. Both cases relieve the contractor from liquidated damages for the time in question. The contractor is entitled to plan and pursue the work in order to finish ahead of the contract completion date. If the LPA delays the contractor, the contractor may be entitled to impact costs. Proof Of Claim Proof of entitlement and proof that additional costs were incurred rests solely with the contractor. The contractor should put the LPA through the CPE on notice of each instance where the contractor intends to file a claim (Section 104.02 of the Ohio Department of Transportation C& MS). This notice requirement allows the LPA the opportunity to mitigate the claim situation and to begin to keep careful and specific records of the contractors activities, manpower, equipment and materials that are related to the claim. Analyzing A Claim To analyze a claim the following steps should be taken: 1. Determine the element of Entitlement
< Was the claim filed timely and was the LPA given the required notice? < Identify the contractors position. < What does the contract plans and specifications say about it? < What do the contract documents say? < Determine the actual conditions giving rise to the claim. < Identify each specific claim issue. What is the position of both sides on each issue? < Identify responsibility. If delay related, is it excusable vs non-excusable, compensable or is

there an issue of concurrent delay?

< Was there actually an impact?
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At this point of the analysis if there is no entitlement, then there is no claim. If there is entitlement then continue on. 2. Determine the element of Damages
< Review the contractors cost < Compare with the LPA records < Analyze the damages

Claim Avoidance The avoidance of claims is best affected by proper contract management practices. The LPA can help prevent claims by practicing the following activities:
< C C C C C

Constructability Reviews; Prequalification of Contractors; Proper Scheduling; Prompt Resolution of Change Orders; Pre-bid and Pre-con Meetings; and Partnering.

TERMINATION There are two types of termination: Termination for Convenience and Termination by Default. Termination for Convenience means the LPA can terminate the contract at anytime. This usually occurs when project plans have huge errors or the project is severely affected by other projects or emergencies outside the control of the LPA. Termination by Default means the LPA can terminate the contract for the following reasons: Contractor fails to commence his work within a reasonable time;

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Contractor does not perform with reasonable progress; Contractor abandons, fails or refuses to complete work; Contractor improperly performs the work; or Contractor goes out of business or files bankruptcy.

Termination by Default is not an immediate event. This type of default requires a series of events to occur over a period of time, all of which must be documented by the LPA. The use of a Daily Diary is a very critical aspect of this termination.

METHOD OF MEASUREMENT In determining the proper method of measurement for a particular item of work encountered on a project, several sources of information exist. The ODOT Construction and Material Specifications Manual (C&MS) Section 109.01 provides general information for the determination of various units of measurement. These include items measured by weight, area and volume. For items of work not covered in the C&MS other sources can be utilized to determine the proper method of measurement.

BILLING The CPE shall have the responsibility to make sure the contractor receives prompt payment for all completed and accepted items of work. After an item of work is completed, but before payment is made, a detailed inspection is necessary to determine the quantities of the various items of work performed. The basis of payment for any item of work details that the unit bid price is full compensation for certain work and/or materials essential to that item. As such, this work and/or material will not be measured or paid for under any other item of work. The CPE shall approve all invoices prior to payment and before requesting reimbursement by ODOT. The payment should be made to the contractor within thirty (30) days of receiving the Contractors invoice after the completion of the work per the Ohio Revised Code Section 126.30. To assure prompt payment, the measurement of quantities and the recording for payment should be performed on a daily basis as the items of work are completed and accepted. The CPE is responsible for preparing documentation to support payment for work performed by the contractor by measurement of completed and accepted quantities of work. The documentation shall
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provide validation that the quantity for payment has been determined in accordance with contract requirements with necessary measurements, calculations, weight tickets, etc., and that the work was done in close conformity to the plans and specifications. The LPA can access project specific payment information made by ODOT through accessing ODOTs website at www.dot.state.oh.us. (Directions are located at the end of the chapter.) This information can also aid the LPA in audit reporting under Office of Management and Budget (OMB) Circular A-133, Subpart B.

PROJECT CLOSEOUT After the completion of the physical work, it is time to closeout the project. This process ultimately leads to the final payment and release of the contractor from further responsibility for the project. This process includes gaining acceptance of the project from all participating agencies, determination of and agreement on the final value of the contract, and the completion of all remaining contract requirements. Final Inspection When work on a project has been completed to the satisfaction of the CPE, a final inspection is conducted. It is required that ODOT lead and perform the Final Inspection in accordance with Policy 27-001(P) and Standard Procedure 510-007(SP). The final inspection team shall include the CPE, the CM, the contractor and representatives of other agencies, utilities, railroads and other ODOT and LPA representatives as required. The team should determine the need for any corrective or additional work and create the Punch List detailing this work. The CPE shall provide the Punch List to the contractor in writing along with specified time frame or specified date for completion of the prescribed work. It is the responsibility of the CPE to do any necessary follow up to assure that the contractor completes the punch list work in a timely manner. Upon completion of all physical work, including Punch List work, the CPE shall forward to the DCE or designee the LPAs written acceptance and final project certification. The Districts Final Inspector will then complete the Report of Final Inspection (C-85). Determination Of Final Contract Value A key element of the project closeout is the determination of the final dollar value of the construction project. This is accomplished by determining the final number of units to be paid for each item of the contract and by processing all necessary change orders including a final change order and/or another document noting agreement by all parties to the final contract value.
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Prepare And Audit Contract Quantities The CPE is responsible for determining and preparing support documentation for the final quantity to be paid for every item of work contained in the construction contract. Ideally, this is accomplished progressively as the items are completed during the course of construction of the project. Once the physical work has been completed for the project, the CPE shall audit all project records. Upon completion of the audit, a list of approved final quantities is prepared and is forwarded to the contractor for concurrence. Once agreement with final quantities has been obtained a final change order and/or other document is prepared to make any necessary adjustments between the final and original contract quantities and signify agreement by all parties to the final quantities and value. Final Material Acceptance All materials incorporated into construction projects must be approved by the CPE for use. Once the work is completed for the project an audit should be performed to ensure that sufficient quantities of materials have been approved for each reported final quantity. As the final quantity audit is being performed and final quantities are approved, the quantities are reported for testing purposes. The CPE shall review the project testing and acceptance records to ensure that sufficient materials are approved for the final quantity for every contract item. Resolution of material deficiencies are the responsibility of the CPE. Once the CPE has resolved all material deficiency issues, final project certification may proceed. Final Payment And Release The final report shall be certified by the CPE stating that the project was developed and delivered in compliance with the terms, conditions and requirements of the project agreement with his/her Professional Engineers seal and signature. Once submitted, the final package is audited and approved for payment. Items that should be provided in the final report are as followed:
C C C C C C

Final invoice which reconciles payment to final quantities; Final Inspection Report (C-85); Waiver of Liens; Certification of Payroll Affidavit; Affidavit as to Non-Specification Materials (when applicable); Receiving ticket for Salvaged Materials (when applicable);
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FHWA Form 47; and

Affidavit of Subcontractor Payment. The LPA shall issue final payment and release the contractor from further responsibility.

MAINTENANCE After completion of the project and in accordance with 23 United States Code (USC) 116 and applicable provisions of the Ohio Revised Code, the LPA shall provide adequate maintenance activities for the project, unless otherwise agreed. If the project is not being adequately maintained, the LPA shall be notified of deficiencies and if the maintenance deficiencies are not corrected the LPA will be ineligible for future participation in the local-let process. The LPA is responsible to maintain the project to design standards after completion. A Maintenance Quality Survey (MQS) or similar process is recommended to ensure the integrity of the maintenance program for this project. Details pertinent to instituting an MQS are available from the Office of Maintenance Administration, Ohio Department of Transportation.

If you would like further details on any of the topics discussed in this chapter, please refer to
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the ODOT C&MS, Manuals of Procedures, Policies and Standard Procedures.

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REFERENCES 23, 41 and 49 Code of Federal Regulations Title VI of the 1964 Civil Rights Act Governors Executive Order 11-30-84 ODOT Consultant Contract Administration Manual ODOT Construction and Material Specifications Manual (C&MS) ODOT Sampling and Testing Program Manual Related ODOT Policies, Standard Procedures, Manuals of Procedures and Proposal Notes

APPENDIX Sample Pre-Construction Meeting Agenda with Notification Letter Federal Equal Employment Opportunity Goals Ohio EEO Bid Conditions - Minority Manpower Utilization Goals Payroll, Form WH-347 Local-let Summary & Payable Invoice with Guidance Directions for Accessing LPA Payment Information Report of Final Inspection, C-85 ODOT LPA Final Report Affidavit of Compliance (Certification of Payroll Affidavit) Affidavit of Subcontractor Payment

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