What is Stockpile Material?

Defined: Stockpile material can be any material stored by the

contractor prior to its installation on a project.
Bid items can have multiple material components stockpiled.
There could be a 1 to many relationship.
Material can be stored in a unit of measure that differs from the pay
item
As more of an existing material arrives a stockpile increases.

Synonyms: Materials on Hand, Stored Materials

Purpose: Stockpile Material provides the contractor money for material

invoices in advance of actually installing or incorporating the item.

Example:
Bid Item is 100 LF of 24 DI Water Main @ $295 per LF. (Installed price)
Invoiced is 100 LF of 24 DI Water Main @ $67 per LF. (Stockpile
price)

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 Stockpile Requirements
Stockpiles should:
not exceed supporting bid value

not exceed specification threshold (raw material 85%)

meet material testing specifications

be stored in a secure environment (on site in most cases)

be easily identified, well marked

have quantity and condition verified

have valid and complete invoices

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 Stockpile Entries
Before data entry can begin, you must know your contract. The Contractor may not be
aware of the information you need for stockpile entry.

Contract : Guardrail Replacement Richmond County

Project A: Route 97
Line Item: 0070 Item code: 04520 DESC: GR-8 QTY:100 LF
Material: Guiderail
Posts
Project B: Route 104
Line Item 0050 Item Code: 04520 DESC: GR-8 QTY:200 LF
Material: Guiderail
Posts

Total Contract proposal Quantity is 300 LF

Issue: An invoice arrives with a quantity of 200LF. Which pay item (Line Item) does the
inspector create a stockpile against? (talk to the contractor)
Options: Split the item (100 each) , prorate the item ( 50, 150) or assign all 200 to
Project B.

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 Stockpiled Materials Initial Entry A-B-Cs

A. DOT will not use Matl Code Leave field

blank.
B. Enter a description of the Stockpiled
Materials. Suggest Item (spec. number)
and the material being stockpiled (i.e.
606.32-posts).
C. Enter the Invoice Date and the Invoice
Number.
D. Enter the Units. The drop down arrow in
the Unit field can be used to select Unit.
Make this match the contract bid unit .
A B
E. Enter the Unit Price based on the invoice.

C D E Remember not to exceed 85% of the bid

price (2 decimal places)
F. Enter the Conversion Factor for what is
F G being to stockpiled.
G. The Initial Invoice Payment must be
entered. Tip: Whatever is entered here is
the $ amount that will initially be paid on
the Estimate. Click SAVE when done.

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Stockpile Data Entry Example
and Service Options

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 Replenish
Stockpile of the same material can have
different unit costs, but same unit of measure.
Removal of quantity and deduction of payment
will be based on First in First Out (FIFO)
Each subsequent invoice is entered as its own
stockpile using replenish option
Note: After estimate is
= 6 on hand generated, Stockpile A
+ is automatically closed,
Stockpile B is
Invoice A + Invoice B reduced to 3 remaining.
STMI STMA
Invoice A is 1 each at $10 If a DWR reports a placed qty of 3,
Invoice B is 5 each at $12 $34 dollars will be taken back.
Total Invoiced is 6 for $70 1@$10 and 2@$12=$34
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Stockpile Conversion
Example

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 Different Material
Components
Stockpile with different material should not
be replenished
Each Material is treated as its own stockpile
Materials will be drawn down simultaneously
Note: After estimate is
Conversion factor sets ratio between item generated, Stockpile A
and material ex. 5 to1=5 for conversion and B are automatically
closed.
+ + =
STMA
Invoice A: Guardrail + Invoice B: Posts If a DWR reports a placed qty
STMI of 20LF, $160 will be taken
Invoice A is 1 20LF at $100 back.
Invoice B is 5 each at $12 1 20LF @$100 and
Total Invoiced is for $160 5 posts @ $12=$160
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 What to do when items are eliminated and Stockpile has been paid?
Buy Back
We have to pay the contractor by specification.
Close stockpile, create new item via Change order for expenses incurred.

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