Locally Administered Projects Construction Administration Training

Welcome Divisions 10 & 12

Locally Administered Projects Construction Administration

Training

Jackie McSwain

Division 12 Project Manager

‘Logistics’ • Restrooms • Place phones on

vibrate • Hold all questions until each

presenter finishes • Handouts • Presentation will be made available

to you

Training Goal • Administrative practices • Process/Procedures • Roles • Requirements • Where to find certain items • Put a face with a name • WE ARE HERE TO HELP!

http://www.ncdot.gov/doh/safety/sppm/WSM.pdf


Guidelines/Roles

Please invite NCDOT and FHWA to the preconstruction conference, all monthly meetings and any other meetings to discuss the

administration of the project

QUESTIONS?

Donald Pearson, Jr., EI, CPESC

NCDOT’S Roadside Environmental Unit Field Operations Section

THE ENVIRONMENT

Expectations • Appropriate planning

– Erosion Control Plan approval through DENR • Zahid Khan- Regional Engineer with Land Quality Section 704-663-1699

• DENR (Land Quality/Water Quality) Inspection – Five Mandatory Standards of Sedimentation Pollution Control Act – NPDES

• NCG01 rules *UPDATED*

• 401/404 Adherence – Understand your permit(s)

• Appropriate Commitment to Erosion and Sedimentation Control throughout project life – Inspector/contractor relationship

DENR

Water Quality Authority • 401 Permit

• Read Conditions • Understand Permit Impacts

Land Quality Authority • Plan Review and Approval • Project Inspection

• What are they looking for?

NPDES • NCG01

• Basic Rules • Updated Rules (August 2, 2011)

• Outlet Basins • Groundcover • Waste/Stock Piles • EC plan Notations

• Storm water Discharge Outfalls • Monitoring Requirements

http://cfpub.epa.gov/npdes/stormwater/const.cfm

US Army Corp of Engineers 404 Permit

Read Permit Conditions • Restrictions on grass species, matting types, pre

construction notification, etc… Understand Permit Impacts • Mechanized Clearing • Hand Clearing • Excavation in Wetland • Fill in Wetland • Temporary Surface Water impact

Commitment to Erosion and Sedimentation Control

• Pre Construction Planning • Communication between foreman and inspector • Commitment to doing it right

NCDOT Erosion/Sediment Control Special Provisions

http://www.ncdot.gov/doh/operations/dp_chief_eng/roadside/soil_water/special_provisions/

http://www.ncdot.gov/doh/operations/dp_chief_eng/roadside/soil_water/special_provisions/

Certification Opportunity for Inspectors and Contractors

BMP Installers and Inspector

Crew Foreman/ Superintendent and project Manager/Engineer

Erosion Control Plan Designer and approving Engineer

Reclamation Plan Designer and approving Engineer

http://www.bae.ncsu.edu/workshops/dot/index.html

QUESTIONS?

Subcontracting

Kellie Crump Construction Staff Engineer

Division 10

What is Subcontracting?

Purpose of Subcontract Agreements

• Compliance with Article 108-6 of the SSRS, Subletting of Contract – Approval of Prime Contractor to sublet work to

Subcontractor – Approval of Subcontractor to sublet work to 2nd

Tier Subcontractor – Tracking performance of Prime Contractor

• 40% of Original Contract Amount • 35% including Specialty Items and items sublet to DBE

Subcontract Approval Form (SAF)

Subcontractor Qualification/Certification

https://partner.ncdot.gov/VendorDirectory/default.html


Percent By Prime / Threshold Check (1) Total Original Contract Amount (2) Total Specialty Items Sublet (3) Non-Spec. Items Sublet to DBE/MB/WB (4)Total Sublet (Grand Total) (5) Difference {1-(2+3)} (6) Percent by Prime {(1-4)/5} > 40% (7) Threshold Check {(1-4)/(1-2)} > 35%

Certified Payroll

• Weekly submissions by Prime Contractor required for all Federal-Aid contracts.

• Should include Employees Name, Address, Employee ID #, Classification, Hourly Wages Paid, Hours Worked, Deductions made and Actual Wages Paid.

• Payrolls should be compared to Daily Inspection Reports for reasonable accuracy.

Wage Rate Interviews

• Minimum of one interview required per calendar quarter.

• Must conduct at least one interview with Prime Contractor and all Subcontractors utilized throughout the life of the project.

• Compare Interview with Certified Payrolls to ensure consistency.

Tracking DBE Utilization

• Participation recorded on DBE-IS form and submitted with each request for payment.

• Non-committed DBE participation should be recorded.

• If no work was performed by DBE’s during a monthly period, the DBE-IS Form should still be submitted indicating “None” or “0”.

http://www.ncdot.org/doh/forms/files/DBE-IS.xls


DBE Replacement • DBE’s may be replaced for performance related

issues, not for Contractor convenience. • Prime Contractor should attempt to replace

DBE with another DBE. • Good Faith Effort • Prime Contractor should make efforts to

recoup any lost participation due to replacement elsewhere on the project.

http://www.ncdot.org/doh/operations/dp_chief_eng/constructionunit/formsmanuals/rf-1.pdf



QUESTIONS?

Inspector’s Daily Report

Brian Skeens, PE Roadway Construction

Engineer – Divs. 10 & 12


No Work? Indicate the reason! Be sure to document work was available.


If the contractor is a DBE, be sure to indicate.


List items tested or checked. Actual results? Pass? Fail? Per Specifications and Contract?


TCP devices checked? Were there any lane closures, detours, or traffic shifts? Per

standards?


ORM section is to provide documentation of risks for the Inspection Employee and is not intended for Contractor’s employees.

Project Diary

Engineer’s Weekly Summary

QUESTIONS?

Dennis Cloud, PE RK&K

Source Documents for Payment

Getting Paid

• Source Documents for Payment • Partial Payments (Monthly Estimates) • Final Estimate • As-built Plans

Source Documents for Payment

• There will be a source document for each pay item included in a contract.

• All entries pertaining to pay items should be originally entered in a bound book (pay record book), ticket book, or on a specified form.

• Entries should be made when measurements are taken and not copied from scratch notes to a bound book at a later date.

Pay Record Book Example

Pay Record Books

Pay Record Books • All entries & computations are to include sufficient

detail so they can be identified, checked, and verified by others.

• There should be no erasures. • The date & initials of the individual making an

entry should be shown for each entry. Entries are made on the date work was performed so it can be cross-referenced with the diary.

• Index of pay items & numbered pages required. • All computations will be checked & initialed.

Pay Record Books • A list of names & initials of each individual

who enters information or initials entries should be placed in the front of each book.

• A “REMARKS” section should be used to provide additional information for the entry.

• Each page should have a “Page Total”. • Each line item should have a “Project Total”. • Document when a line item isn’t used.

Pay Record Books • If a spreadsheet is being used, changes should

be tracked and not just deleted / corrected. – Save both spreadsheets so changes are easily

identifiable OR note changes in the spreadsheet.

• Significant figures are critical.

– Ex. Clearing & Grubbing has a $40,000 Unit Price for 0.5 acres. 0.15 ac C&G = $6,000. If rounded to 0.2 ac, you would pay $8,000. Difference = $2,000

Pay Record Books

Note the difference in the number of pages allocated to each line item.

Pay Record Books

Pay Record Books

Don’t place Page or Project Totals in same column.

Pay Record Books

Pay Record Books

Don’t place Page or Project Totals in same column.

186.5 12/1/07 RCC Pay App. No. 6 Paid

Paid Pay App. No. 7 2,840.0 1/4/08 RCC

Pay Record Books

Check performed by someone other than the person making entries.

There are numerous pages for Line Code #25, so Project Total is shown on the last page used for Line Code #25. This is why it is important not to put Page Total in the same column.

Weight Tickets • Used when material is to be paid for on a

weight basis. • Scales are to be certified by NC Dept. of Ag. • Scales must be operated by a NC Public

Weighmaster & a certified weight certificate must be issued in the form of a ticket.

• Tickets for each day should be bound separately with the total for the day shown on the front cover for each line item.

• Periodically send truck to other certified scales.

Weight Tickets • Upon receipt, inspector should make sure the

ticket is legible and the following information has been listed on the ticket: – Project number, the date & time the ticket is

issued, the type of material, the gross weight of the vehicle, the tare weight of the vehicle, the net weight of the material, the location of the quarry / plant, the name of the Contractor, the stamp or number of the weighmaster, and the signature or initials of the public weighmaster in ink.

Weight Tickets

Partial Payments (Monthly Estimates) • Based on estimates prepared by the Owner. • Approximate only & will be subject to

correction on the final estimate payment. However, every effort should be made to ensure accuracy.

• All quantities shall be completely supported by documentation.

Partial Payment APPLICATION FOR PAYMENTTown of Anywhere

XGreenway August 2011John Doe Contracting

ITEM NO DESCRIPTION OF ITEMS UNIT UNIT PRICE

BID QUANTITIES

CURRENT QUANTITY

TOTAL QUANTITY TO DATE

CONTRACT AMOUNT

CURRENT AMOUNT

TOTAL EARNED TO

DATE

OVERRUN / UNDERRUN

1 Mobilization LS $16,000.00 1.00 0.11 0.42 $16,000.00 $1,760.00 $6,720.00

2 Construction Surveying LS $2,500.00 1.00 0.35 $2,500.00 $0.00 $875.00

3 Clearing and Grubbing AC $15,000.00 0.50 0.37 $7,500.00 $0.00 $5,550.00

4 Unclassified Excavation & Embankment LS $12,500.00 1.00 0.25 0.25 $12,500.00 $3,125.00 $3,125.00

5 Undercut Replace with Select Fill CY $35.00 50.00 20.00 20.00 $1,750.00 $700.00 $700.00

6 Undercut Replace with ABC CY $50.00 25.00 7.50 7.50 $1,250.00 $375.00 $375.00

7 Aggregate Base Course (6") TN $12.75 740.00 0.00 $9,435.00 $0.00 $0.00

8Asphalt Concrete Surface Course, Type SF9.5A (2") SY

$11.55 1,500.00 0.00 $17,325.00 $0.00 $0.00

9Greenway Pavement Repair Patch (8" ABC) TN

$32.00 750.00 0.00 $24,000.00 $0.00 $0.00

10 Removal of Existing Pavement SY $9.65 154.00 0.00 $1,486.10 $0.00 $0.00

11 2'-6" Curb and Gutter LF $12.21 45.00 0.00 $549.45 $0.00 $0.00

12 5' Wide Concrete Sidewalk (4" Depth) LF $18.24 85.00 0.00 $1,550.40 $0.00 $0.00

13 Tree Protection / Warning Fence LF $1.65 1,150.00 1,331.00 $1,897.50 $0.00 $2,196.15 $298.65

14 Silt Fence LF $1.24 1,435.00 1,283.00 $1,779.40 $0.00 $1,590.92

15 Class II Rip Rap TN $33.00 80.00 0.00 $2,640.00 $0.00 $0.00

16Non Lawn Seeding & Mulching (Temporary) AC

$4,250.00 0.30 0.00 $1,275.00 $0.00 $0.00

17 Permanent Lawn Seeding and Mulching AC $5,600.00 0.30 0.00 $1,680.00 $0.00 $0.00

18 Permanent Soil Reinforcement Matting SY $11.57 75.00 0.00 $867.75 $0.00 $0.00

TOTALS: $105,985.60 $5,960.00 $ 21,132.07 $298.65

TOTAL EARNED TO DATE: $21,132.07TOTAL PAID TO DATE: $15,172.07

RETAINAGE (0%):OTHER REDUCTIONS:

$5,960.00

PAYMENT NO. PROJECT PERIOD CONTRACTOR

AMOUNT DUE THIS ESTIMATE:

Final Estimate • All source documents used for payment, pay

adjustments, and the As-built Plans submitted to the Department for checking.

• The Department will perform a 100% check of every calculation of quantities.

• The Department will advise the Owner of any changes that are required prior to payment of the Final Estimate due to the Department’s check.

As-built Plans • A set of plans should be designated for

recording construction changes and completion of items of work.

• Plan changes should be kept up to date & the information can be transferred to a “clean set” to be submitted with Final Estimate.

• Examples: actual pipe lengths, additional drainage structures, actual pile lengths, actual tip elevation for drilled shafts, final footing dimensions, etc.

Link to the Records & Reports Section of the Construction

Manual http://www.ncdot.gov/doh/operations/dp_chief_eng/constructionunit/formsmanuals/construction/rr6.pdf

http://www.ncdot.gov/doh/operations/dp_chief_eng/constructionunit/formsmanuals/construction/rr6.pdf


QUESTIONS?

LUNCH BREAK

Materials Received Reports

Chad Hinnant Resident Engineer -

District Drive Revised 2/15 by Pam

Carriker

Materials Received Reports

• What Items Are Received?

• Supporting Documentation For the Item That you Receive by: Certification, Pretest, Acceptance sampling or testing.

• Filling Out A Material Received Report

• Common Errors

What Items Are Received • The Material Received Report (MRR) (M&T

Form 251) should be completed when any material received on the project is to be incorporated into the construction on a temporary or permanent basis.

• Exceptions- Material items that are delivered and accompanied by a ticket with a Weigh Master stamp, such as Quarried Materials and Asphalt. These tickets will be placed in a Ticket Book as the source documentation for the product.

• The Minimum Sampling Guide (MSG) lists materials that are accepted on certifications and the type of certification required. The MSG also lists materials that are pretested, materials sampled by project personnel and materials accepted on Field Inspection Reports (FIR).

• The MSG can be accessed via: https://apps.dot.state.nc.us/vendor/approvedproducts/MinimumSamplingGuide.aspx

https://apps.dot.state.nc.us/vendor/approvedproducts/MinimumSamplingGuide.aspx


Supporting Documentation

• Most material items that are delivered to the project will be accompanied by a Bill of Lading, Invoice, or a Packing Slip. This documentation should clearly identify the item as well as the quantity that was received.

• This documentation should indicate the actual producer or manufacturer of the material being delivered.

Certifications

• For materials accepted on certification, the Contractor is responsible for supplying the proper type of documentation required

• The types of material certifications can be found in Section 106-3 of the NCDOT Standard Specifications for Roads and Standards

106-3 CONTRACTOR FURNISHED CERTIFICATION

The Contractor shall furnish the Department material certifications obtained from the producer, supplier, or an approved independent testing laboratory for the following types of materials, unless otherwise directed by the Engineer. (A) Materials required to meet criteria documented by tests that are normally performed during the production process. (B) Materials that are required to meet specifications other than those published by AASHTO, ASTM, or the Division of Highways. (C) Materials produced at locations that are not within routine travel distance for Department representatives. (D) Materials required to meet criteria documented by tests involving special equipment not readily available to Department representatives. (E) Any other special material when so directed by the Engineer. (F) Material certifications of one of the following types shall be furnished for pre-tested materials. The specific type of material certification for each material shall be in accordance with the schedule maintained by the Materials and Tests Unit. Copies of this schedule may be obtained from the Materials and Tests Unit.

Type 1 - Certified Mill Test Report A certified mill test report shall be a certified report of tests conducted by the manufacturer on samples taken from the same heat or lot number as the material actually shipped to the project. The report shall identify the heat or lot number.

Type 2 - Typical Certified Mill Test Report A typical certified mill test report shall be a certified report of tests conducted by the manufacturer on samples taken from a lot which is typical of the material actually shipped to the project, but which may or may not be from the lot shipped.

Type 3 - Manufacturer's Certification A manufacturer's certification shall be a certified statement that the material actually shipped to the project was manufactured by production processes which are periodically and routinely inspected to assure conformance to specification requirements.

Type 4 - Certified Test Reports A certified test report shall be a certified report of test conducted by an approved independent testing laboratory on samples taken from same heat or lot number as the material actually shipped to the project. The report shall identify the heat or lot number.

Type 5 - Typical Certified Test Reports A certified test report shall be a certified report of tests conducted by an approved independent testing laboratory on samples taken from a lot which is typical of the material actually shipped to the project, but which may or may not be from the lot shipped.

Type 6 - Supplier's Certification A supplier's certification is a signed statement by the supplier that the material described in the certification is of the specification grade required and that the supplier has on hand Type 1, Type 2, or Type 3 material certifications to cover the material which is included in the Type 6 supplier's certification.

Type 7 - Contractor's Certification Contractor’s certification is a signed statement by a contractor that the used material described in the certification meets the requirements of the current specifications to the best of the contractor’s knowledge and that the contractor had in his possession at the time of purchase a Type 1, 2, or 3 materials certification to cover the material which is included in the Type 7 Contractor’s Certification.

Pretested

• Pretested materials should be clearly marked with an NCDOT Approved stamp/stencil and or an identifying alternate identification number or lot number.

• These items are typically inspected by NCDOT at the manufacturing facility and include materials like: prefabricated bridges, concrete pipe, precast drainage structures, & seed.

Pretested

Pretested

• Approved Seed

Sampled/Tested for Acceptance after Delivery

• Certain materials are sampled and tested for acceptance after delivery to the project. These materials include ready mixed concrete, corrugated metal pipe and guardrail.

• Ready mixed concrete is accepted based on meeting specifications for fresh concrete prior to placement and the results of 28 day compressive strength tests.

• Metal products such as corrugated pipe and guardrail are accepted based on field tests performed by the Materials & Tests Unit.

• Sufficient time should be allowed for the completion of tests prior to adding additional material that may be compromised by material not meeting specifications.

• The following Link will provide additional information and guidance for the various types of materials typically received on NCDOT projects

https://connect.ncdot.gov/projects/construction/Pages/Construction-Manual.aspx

….scroll to: ‘Construction Manual 10 Materials 2014. pdf’



Filling Out the Material Received Report

1. Enter the Project number. 2. Enter Report of Material Received (MRR) number. 3. Enter the date the material was received. 4. Enter the primary contractor. You may also enter the sub-contractor if All items are specific to his work. 5. List items by material name used in the line codes of the contract. Enter sizes, class, and type. 6. Enter line code number. If an item is incidental to another pay item, (i.e. steel offset blocks are incidental to the pay item steel beam guardrail ) list the master line code item. 7. List batch, lot, tag, or heat numbers, if applicable. 8. If : - An item is pre-tested and stamped approved for use, indicate so by entering “NCDOT” stamped here. - Plastic pipe: state if Schedule 40. - Posts/Blocks/Poles: state if Wood, Steel, or Plastic. If Wood, state AWW. - Reinforcing Steel: always attach a Certified Mill Test Report and M&T Form 913, to the MRR. The quantity on the Form 913 must match the quantity listed on the MRR. The heat numbers on the Form 913 must match the heat numbers on the Certified Mill Test Report. H-piles: heat numbers must be listed on the MRR. A Certified Mill Test Report must be attached to the MRR and the heat numbers must match. 9. List the quantity. English quantities or Metric quantities. 10. Enter the Producer, not the supplier, (i.e. Lowes, Silverman, etc. are suppliers). One exception: General Materials is OK to use if material is PVC pipe. 11. Note if all the required Certifications were received. 12. Any extra remarks that help to identify the item.

Common Errors

• Used Traffic Control Items – Drums – Arrow Panels – Changeable Message Signs

• A Type 7 Certification is required.

Common Errors

Common Errors

• Invoices for materials received from “middle man type” suppliers may not include adequate documentation or reference the actual producer or manufacturer.

• Request material certifications or test reports as supporting documentation.

QUESTIONS?

Supplemental Agreements and Claims

Scott Allen, PE Division 10 Construction

Engineer

Supplemental Agreements

• Establish new line item(s) and pricing for “extra work” (Article 104-7)

• Establish revised unit price for “altered work” (Article 104-3)

• Alter quantities of existing contract line items (plan revision, eliminated work, etc)

• Address time extensions related to the changes.

Process for Executing Supplemental Agreements

• Contact NCDOT representative to review the justification for the agreement.

• Request pricing from contractor. Pricing must include a full breakdown of labor, equipment, and materials. Perform thorough review of prices and negotiate accordingly.

• Provide draft agreement (Form 880-LG) to the Department for review in MS Word format.

• Once NCDOT has reviewed and made recommendations, have contractor sign agreement.

• Transmit original agreement to NCDOT recommending approval. • NCDOT will approve agreement and return the original. • Maintain original executed agreement for your files.

IMPORTANT!!

Do not approve a supplemental agreement or make any verbal agreements with a contractor regarding additional compensation and/or time extensions without following these established procedures. – NCDOT or FHWA may not concur with the need

for agreement, pricing, or other details. – Risk forfeiture of FHWA funding for not following

procedures.

In other words, don’t….

Form 880-LG Rev. 2-16-10

NORTH CAROLINA DEPARTMENT OF TRANSPORTATION SUPPLEMENTAL AGREEMENT or FORCE ACCOUNT DOCUMENTATION

SUPPLEMENTAL AGREEMENT NO: FORCE ACCOUNT DOCUMENTATION NO: PROJECT NO: FEDERAL AID NO: COUNTY: CONTRACT NO: CONTRACTOR:

1. Description, location, and justification for change: 2. Estimation of quantities of work resulting from change and the basis of payment:

Line Code Negotiated or Field Change Original Plan No. Description Unit Contract Price Quantity Amount Quantity Amount

Total Field Change Amount: Total Original Plan Amount:

Supplemental Agreement Net Underrun: Supplemental Agreement Net Overrun: 3. Extension of contract time (if applicable):

BASIS OF AGREEMENT BETWEEN THE NORTH CAROLINA DEPARTMENT OF TRANSPORTATION AND CONTRACTOR

1. The Contractor agrees to perform the work described in this Supplemental Agreement in consideration of the payment set

out herein. 2. The terms and conditions of said contract are hereby ratified and remain in full force and effect except as modified by such

Supplemental Agreement(s) as may heretofore have been entered into between the Department and the Contractor and as modified by this Supplemental Agreement.

3. All terms and conditions of this Supplemental Agreement are herein set out and there are no agreements relating thereto

not expressed herein. 4. This Supplemental Agreement shall not constitute a release or waiver of any lawful claims that the Contractor has or may

have against the Department under said contract pursuant to G.S. 136-29 except for the matters specifically covered herein. In witness whereof, the Department and the Contractor have caused this Supplemental Agreement to be executed by their duty authorized representatives.

APPROVAL RECOMMENDED: CONTRACTOR: BY: BY: LOCAL GOVERNMENT AGENCY OFFICIAL AUTHORIZED REPRESENTATIVE DATE: DATE: APPROVAL RECOMMENDED: APPROVAL GRANTED:

BY: BY:

NCDOT ENGINEER NCDOT ENGINEER

DATE: DATE:

FORCE ACCOUNT DOCUMENTATION Documentation of the authorized Force Account work shall be completed for all state and federally-funded projects.

APPROVAL GRANTED: APPROVAL GRANTED:

BY: BY:

RESIDENT ENGINEER DIVISION ENGINEER

DATE: DATE:

FOR CONSTRUCTION AND MATERIALS BRANCH USE ONLY

Approval of the Federal Highway Administration is is not requested. APPROVED with the understanding that Federal participation in this work, the cost of which cannot be met from Federal aid funds provided for under the now effective project agreement, will be contingent upon additional Federal aid funds being made available for the project by a modified project agreement, to be executed prior to or at the final voucher stage. APPROVED: FEDERAL HIGHWAY ADMINISTRATION REVIEWED: CONSTRUCTION UNIT

BY: BY: DATE: DATE: COMMENTS ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Description, Location, and Justification for Change

Description should include the following:

• Article of the Specification that the agreement is written in accordance with (i.e. 104-7)

• Details about work to be performed (Type/scope of work, location, etc.)

• Reference to the applicable specification, provision, or detail of construction. What governs the work being performed.

• Establish new line items covering the work and establish basis of payment.

Sample Description

Supplemental Agreement Number One is written in accordance with Article 104-7 of the 2006 Standard Specifications for Roads and Structures and provides compensation for the work associated with installing and maintaining Silt Fence at various locations throughout the project. Silt Fence is required to contain disturbed areas adjacent to Richland Creek as well as to contain stockpiled soil excavated from the site.

All work shall be performed in accordance with the contract, plans, and Article 1605 of the 2006 Standard Specifications for Roads and Structures.

Compensation for “Temporary Silt Fence” will be made at the per liner foot price established herein.

Extensions of Contract Time • Time considerations must be addressed in the agreement. • Discuss all time issues with an NCDOT representative. Pro Rata- Provides time extensions as provided in Article

108-10(B)1. A specific number of days may be negotiated and granted

in the agreement. Time extension may be considered upon completion of

the work. This would be specified in the agreement.

Standard Language for Time Considerations

• The contract completion date is extended only as allowed for overruns in accordance with Article 108-10(B)1 of the standard specifications in consideration for performance of the extra work.

• The contract completion date is extended ___ days in consideration for performance of the extra work.

• Consideration for any additional contract time will be made upon receipt of the contractor’s written request after completion of the affected work.

Claims

Claims • Typically initiated by the Contractor seeking

additional compensation or contract time. • Contractor claims for additional compensation

must be made in accordance with Article 104-8(B) for consideration.

• Contractor claims for additional contract time must be made in accordance with Article 108-10(B)3 or 108-10(B)4.

Process for Claim Resolution • Notify NCDOT engineer to discuss claim issues. • Contractor submits claim on Contractor Claim

Submittal Form(Form CCSF). • Municipality reviews claim and makes

recommendation on Claim Resolution Forms(ACRF-2 ARRA).

• NCDOT will process and make final recommendation.

• Notify the contractor of decision.

Important Items to Consider • It is the contractor’s responsibility to

document his claim thoroughly and provide justification for his request.

• When reviewing a claim, your project diaries and other records must support your recommendation.

• Time considerations are only made if there is a legitimate delay to the controlling operation on the project that is outside the contractor’s control.

Additional Items to Consider • The Municipality may not grant time,

additional compensation, or waive liquidated damages without following established procedures.

• Awarding additional contract time and or waiving LD’s without justification creates an unfair bid advantage to the contractor and is the same as giving them money.

• Risk forfeiture of FHWA funding for not following procedures.

Questions?

Audit Process

Tim Canup Transportation Engineer,

Campo & Assoc. [email protected]

Project Visits/ Reviews • Resident Engineer Review (Monthly) • RCE/BCE Review (Quarterly) • Spot Check of Project Requirements

– Attend Monthly Construction Meetings – Progress Schedule – Claim Issues – Review Erosion Control Measures – Documentation

• Review Pay Record Books • Daily Inspection Reports (Diaries) • DBE Utilization • Technician Certifications are Active • Materials Received • Minimum Sampling

– Is project being constructed in a reasonable method

Monthly Review vs. In Depth Audit

• Review a Full Partial Pay Estimate – Check to see justification for

payment line by line – Check to see materials

received for quantities paid Review Project Diaries

• Review Supplemental Agreements

• Confirm Technician Certifications

• Review DBE participation

• Review Project Diaries • Review Supplemental

Agreements • Spot Check a Few Pay Items

– Spot Check Materials Received

• Review DBE participation

Pitfalls from Last Year • Technicians performing tests did not have proper certifications

– Just because Engineering Firm is on Approved list does not mean individual technicians are qualified (certified)

– 4yr. College Degree, FE (EIT) or PE does not qualify – NCDOT certifications required

• Pay Record Books were not used, only Diaries – Need to have a traceable system – Had to find quantities in diaries to justify the payments

• Using Pay Record Books provides a single reference and avoids potential duplication of payment

• Testing was not performed adequately

– Additional testing necessary by Independent lab – Swiss hammer, petrographical analysis, etc. – Easier to test at appropriate time, than after the fact.

Pitfalls from Last Year • Supplemental Agreements executed without NCDOT/ FHWA concurrence • Just because Engineering Firm is on prequalified list, doesn’t mean

inspection staff is certified.

• No Records (Pay Record Books or a reasonable method to justify payment) resulted in loss of Federal and State participation.

QUESTIONS?

Materials & Tests Unit Project Certification

Why your project needs to be certified?

• Federal Fund Reimbursements • State Fund Management • Quality Construction/Quality Product • Efficiency

Items needed to get your project materials certified:

• Copy of the contract scope of work • The bid agreement • Invoice of all documentation related to materials

used on the project, including ticket books • Testing information (sampling, certification

requirements, etc.) • Approved materials (mix designs, approved sources,

etc.) • Buy America Documentation

• Summary sheet of materials • Table of values to include:

– Description of line item – Unit of measure – Unit cost – Installed cost – Bid quantity – Installed quantity – Total bid – Over/under amount

***NCDOT requires all original documentation on materials received***

Buy America Documentation • All steel or iron used on the project must be

melted/manufactured/coated in the United States • See Code of Federal Regulations Title 23-635.410 Buy

America Requirements (attached in handout) • Documentation/Verification: -Contractor’s responsibility (Agency must verify) -Agency responsibility (by certification letter) • Check Invoices on: piles, rebar, guardrail, fence, etc. • Review at ALL preconstruction meetings

Materials Sampling and Testing • All sampling and testing on site should be done

by a NCDOT Certified Technician • Documentation of all test results/information

must be recorded on approved forms (i.e. 903s, 250s, 913s, quantity tickets, daily reports, etc.)

• Any precast or prestressed concrete items must be approved/stamped by NCDOT Materials and Tests Unit

• All consultant documentation must be turned over to NCDOT at project completion

• Follow the Minimum Sampling Guide

Types of Certifications

Type 1— Certified Mill Test Report

• A CMTR shall be a certified report of tests conducted by the manufacturer on samples taken from the same heat or lot number as the material actually shipped to the project

• Report has to identify the heat or lot number • Examples: Reinforcing steel (plain & epoxy),

engineering fabric, fertilizer

Type 2— Typical Certified Mill Test Report

• A TCMTR shall be a certified report of tests conducted by the manufacturer on samples taken from a lot which is typical of the material actually shipped to the project, but which may or may not be from the lot shipped

• Examples: engineering fabric, subgrade stabilizers, pavement markings, etc.

Type 3— Manufacturer’s Certification

• A MC shall be a certified statement that the material actually shipped to the project was manufactured by the production processes which are periodically and routinely inspected to assure conformance to specification requirements

• Examples: glass beads, paint markings, junction box, fiber optic cable, inductive loop

Type 4— Certified Test Reports

• A Certified Test Report shall be a certified report of tests conducted by an approved independent testing laboratory on samples taken from the same heat or lot number as the material actually shipped to the project

• Report shall identify the heat or lot number • Examples: timber piles, pavement markings,

glass beads

Type 5— Typical Certificated Test Report

• A CTR shall be a certified report of tests conducted by an approved independent testing laboratory on samples taken from a lot which is typical of the material actually shipped to the project, but which may or may not be from the lot shipped

• Example: emulsified asphalt, lighting and electrical material

Type 6— Supplier’s Certification

• A Supplier’s Certification is a signed statement by the supplier that the material described in the certification is of the specification grade required and that the supplier has on hand a Type 1, 2 or 3 materials certification to cover the material which is included in the Type 6 Supplier’s Certification

• Example: planting & landscape materials

Type 7— Contractor’s Certification

• Contractor’s certification is a signed statement by the contractor that the used material described in the certification meets the requirements of the current specifications to the best of the contractor’s knowledge and that the contractor has in his possession at the time of purchase a Type 1, 2, or 3 materials certification to cover the material which is included in the Type 7

• Example: traffic control barricades & barriers

Other Types of Certifications

• Dept. of Agriculture License Certificate -License from the year project was

completed -Required from each certified nursery that was utilized

• Qualified Products List (QPL) -If utilized on project, documentation must be provided item was listed on QPL -If bid item was listed on QPL but not utilized on the project, a certification for that item must be provided

• Catalog Cuts

Independent Assurance Testing

• Required by FHWA • Performed by Materials and Tests Unit or their

representative

• See minimum sampling guide for materials which require IA testing

• Prior to construction contact Area Materials Engineer for assistance

Area Materials Engineer Contact Information

Henry Traywick (Division 1, 2, 3, & 6) -Office: 910-485-7196

Darrell Lumley (Division 4, 5, & 7) -Office: 919-329-4201

Pam Carriker (Division 8, 9, & 10) -Office: 704-798-4332

Ken Hamby (Division 11, 12, 13, & 14) -Office: 336-903-9107

• For more information regarding certifications see following websites:

-Materials and Tests Webpage http://www.ncdot.org/doh/operations/materials/ -Minimum Sampling Guide https://apps.dot.state.nc.us/vendor/approvedprodu

cts/MinimumSamplingGuide.aspx -Qualified Products List https://apps.dot.state.nc.us/products/qpl/ -NCDOT Standard Specifications for Roads and

Structures http://ncdot.gov/doh/preconstruct/ps/specifications

/specifications_provisions.html

http://www.ncdot.org/doh/operations/materials/



https://apps.dot.state.nc.us/products/qpl/

http://ncdot.gov/doh/preconstruct/ps/specifications/specifications_provisions.html


Materials and Tests Unit Contact Information

Randy Pace, PE Materials Operation Manager

919-329-4220 [email protected]

mailto:[email protected]

Ritchie Hearne, PE Division 10 Project Manager

REIMBURSEMENTS

• Reimbursement is the standard method of payment for Federal-Aid Projects.

• LGA pays for services.

• NCDOT reimburses LGA.

• FHWA reimburses NCDOT.

• Reimbursement requests may be submitted to NCDOT throughout the progression of the project. NCDOT reimburses the percentage of eligible costs up to amount in agreement.

• Final reimbursement will not occur until project is complete, accepted by NCDOT, and all reporting and other requirements have been accomplished. Final reimbursement request should occur within six months of NCDOT acceptance of project.

FUNDING TABLE

Fund Source Federal Funds Amount

Reimbursement Rate

Non-Federal Match $

Non-Federal Match Rate

Congestion Mitigation and Air Quality

$2,000,000 80 % $500,000 20 %

Total Estimated Cost $2,500,000

REIMBURSEMENT REQUESTS – the procedure (See LPM handbook for complete procedure) 1. Cover letter to NCDOT: Basic project information Amounts paid by project work phase (separate PE, ROW, and Construction) Bills paid by LGA (summary of invoices) Phase-specific items (e.g., Construction materials testing – QA & QC reports) Sales Tax Reports 2. Actual pay applications and invoices from consultants/contractors 3. DBE Subcontractor payment report on DBE-IS form 4. Evidence of LGA’s payments to consultants and contractors Copy of cancelled checks, or Copy of bank statement showing where checks have cleared, or A certified EBT (Electronic Benefits Transfer) statement

SALES TAX DEDUCTION • LGA’s are eligible for Sales Tax Refund under General Statute 105-164.14

(b) or (c). • Contractor should submit Sales Tax Certification Form with every pay

application. • LGA pays the entire amount due the Contractor as part of the contract

payment. • LGA requests reimbursement from NCDOT for contract payments less the

sales tax amount. • LGA may request reimbursement of the sales tax from NCDOR on an

annual or quarterly basis in accordance with G. S. 105-164.14 (b) or (c).

Invoice # Payment Date

Amount Sales Tax Amount – Sales Tax

80% Allowable Costs

3 10/15/14 $78,243.19 $1,689.42 $76,553.77 $ 61,243.02

4 11/15/14 $52,436.20 $ 456.18 $51,980.02 $ 41,581.02

Total Due $102,824.04

• Sales Tax is reimbursed by the Department of Revenue, not NCDOT, so you MUST deduct it prior to taking your percentage. – Example:

SALES TAX EXAMPLE

Contractor submits Pay Application $500,000 Contractor submits Sales Tax Paid $ 20,000 LGA pays Contractor $500,000 Eligible Expenses for Reimbursement $480,000 LGA requests 80% reimbursement from NCDOT $384,000 LGA pays 20% non-federal match $ 96,000 LGA requests sales tax from NCDOR $ 20,000

WORK PERFORMED BY NCDOT • If an agreement specified that NCDOT will perform either Pre-

Construction or Construction activities, then NCDOT will charge 100% of its cost to the project funds.

• At the conclusion of the project, the LGA will be billed for its share of

NCDOT’s expenses that have been charged to the project. • All costs over the Federal/State funding amount and local match will be

the responsibility of the LGA.

QUESTIONS?

FHWA Perspective

Tammy Richards

Background

• A few years ago, FHWA’s OIG conducted LPA audits in several states across the country. NC was one of them. Because of the audit findings, the LPA Program was considered a high risk area (We were 1 of 13 “Red” States).

• FHWA HQ’s required each Division to do LPA Reviews of their program.

• After our review, a few major findings were noted which resulted in credit reimbursements.

Review Findings

• Projects were being done by Force Account (LPA using their own forces to do the work)

• Little or no project documentation to verify quantities or invoices

• Not enough oversight by FHWA and/or NCDOT

Lessons Learned/Reminders Competitive Bid Process – • Use a competitive bid process that includes adequate

publicity of the advertisements . Documentation Requirements - • Make sure you know what is required to be kept and

documented for the project (be familiar with your Municipal Agreement, the NCDOT Construction Manual, NCDOT M&T’s Minimum Sampling Guide, NCDOT’s Local Programs Manual, etc.)

FHWA Authorization Date - • Any work that’s done before FHWA’s Project Authorization

has been signed is ineligible for reimbursement • Make sure you have a Notice To Proceed letter from NCDOT

before beginning work

Inactive Projects & Inactive Projects List – • FHWA-HQ’s Office does quarterly reviews on

Inactive Projects • LPA must invoice NCDOT at least once every

six (6) months to keep the project active • Seeing a problem with projects being

Authorized and then no activity since the Authorization

• If your project appears on the Inactive List, I will be contacting NCDOT (who will in turn contact you) to get an invoice or justification

Project Closeout Process – • Costs over the Authorized amount will be billed

to the Municipality (read your Municipal Agreement)

• LPA’s should notify NCDOT when they are ready for a Final Inspection of the project (records & walkthrough)

• After Final Inspection, NCDOT should notify the Materials & Test Unit (FHWA-1446B) that a Material Certification is needed

• After Certification, M&T will notify Fiscal that the project can be closed and it will then be sent to FHWA for a Final Voucher to be signed

• The FHWA Final Voucher date starts your records retention period

Records Retention – • NCDOT will notify the LPA of the FHWA Final

Voucher date beginning the records retention period

• Records are to be kept for three (3) years after the FHWA Final Voucher date (State rules require 5 years)

• After the retention period is met, the LPA may destroy the records

Reviews For This Year – 25 Records Reviews

– 14 Completed – The Checklist I use to conduct reviews is provided

for you. Having said that…

Contact Information

Your first line of communication is to your NCDOT partners. However, if there is a need to contact me, I can be reached at:

Tammy Richards

Transportation Specialist (Local Programs Manager)

(919) 747-7004 [email protected]

“Public servants are paid to serve the American people. Do it well.” - Donald Rumsfeld

mailto:[email protected]

What happens after a project is finished?

Post-Construction • NCDOT will issue a concurrence in

acceptance letter • Closeout conference, if necessary • NCDOT will review the final estimate • Form 1446B • LGA will be billed by NCDOT for any

charges to the project per agreement

Thank you for your attendance, attention and

participation

QUESTIONS?

Safety Manual: http://www.ncdot.gov/doh/safety/sppm/WSM.pdf

Erosion and Sediment Control Special Provisions: http://www.ncdot.gov/doh/operations/dp_chief_eng/roadside/soil_water/special_provisions Construction NPDES Stormwater Information: http://portal.ncdenr.org/web/wq/ws/su/construction NCDOT Roadside Environmental Unit: http://www.ncdot.gov/doh/operations/dp_chief_eng/roadside/ NCSU Erosion & Sediment Control/Stormwater Certification for NCDOT Projects http://www.bae.ncsu.edu/workshops/dot/index.html

Construction Manual: http://www.ncdot.org/doh/operations/dp_chief_eng/constructionunit/formsmanuals/construction/

National Pollutant Discharge Elimination System (NPDES) - Stormwater Discharges From Construction Activities: http://cfpub.epa.gov/npdes/stormwater/const.cfm


http://www.ncdot.gov/doh/operations/dp_chief_eng/roadside/soil_water/special_provisions

http://www.ncdot.gov/doh/operations/dp_chief_eng/roadside/soil_water/special_provisions

http://portal.ncdenr.org/web/wq/ws/su/construction

http://www.ncdot.gov/doh/operations/dp_chief_eng/roadside/

http://www.bae.ncsu.edu/workshops/dot/index.html

http://www.ncdot.org/doh/operations/dp_chief_eng/constructionunit/formsmanuals/construction/

http://www.ncdot.org/doh/operations/dp_chief_eng/constructionunit/formsmanuals/construction/

http://cfpub.epa.gov/npdes/stormwater/const.cfm

NCDOT Standard Specifications for Roads and Structures: http://ncdot.gov/doh/preconstruct/ps/specifications/specifications_provisions.html

Records & Reports Section of the Construction Manual: http://www.ncdot.gov/doh/operations/dp_chief_eng/constructionunit/formsmanuals/construction/rr6.pdf

Materials Section of the Construction Manual: http://www.ncdot.org/doh/operations/dp_chief_eng/constructionunit/formsmanuals/construction/Div10.pdf

Minimum Sampling Guide: https://apps.dot.state.nc.us/vendor/approvedproducts/MinimumSamplingGuide.aspx

Materials and Tests Webpage: http://www.ncdot.org/doh/operations/materials/

DCDENR – Raleigh Regional Office http://portal.ncdenr.org/web/raleigh-regional-office/





http://www.ncdot.org/doh/operations/dp_chief_eng/constructionunit/formsmanuals/construction/Div10.pdf

http://www.ncdot.org/doh/operations/dp_chief_eng/constructionunit/formsmanuals/construction/Div10.pdf



http://www.ncdot.org/doh/operations/materials/

http://portal.ncdenr.org/web/raleigh-regional-office/

DBE MBE WBE Replacement Request Form (located in the Construction Manual): http://www.ncdot.org/doh/operations/dp_chief_eng/constructionunit/formsmanuals/rf-1.pdf

Form DBE-IS: http://www.ncdot.org/doh/forms/files/DBE-IS.xls

Vendor Directory: https://partner.ncdot.gov/VendorDirectory/default.html

Vendor Approved Products: https://apps.dot.state.nc.us/vendor/approvedproducts/ Vendor Approved Products - Seeds: https://apps.dot.state.nc.us/vendor/approvedproducts/Seed.aspx

Qualified Products List: https://apps.dot.state.nc.us/products/qpl/





https://apps.dot.state.nc.us/vendor/approvedproducts

https://apps.dot.state.nc.us/vendor/approvedproducts/Seed.aspx

https://apps.dot.state.nc.us/products/qpl/

Locally Administered Projects Construction Administration Training

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