01 29 00 Payment Procedures.pdf

Vaults 60, 87 & ET Structural Repair and Grating Replacement

3930 PAYMENT PROCEDURES

REVISED 07/24/24 01 29 00 - 1

SECTION 01 29 00

PAYMENT PROCEDURES

PART 1 – GENERAL

1.01 SUMMARY

A. Section Includes: Administrative and procedural requirements necessary to prepare and process Applications for Payment.

B. Related Requirements:

1. Document 00 52 13, Agreement

2. Document 00 62 76, Application for Payment

3. Document 00 72 13, General Conditions – Construction Contract

4. Document 00 73 13, Supplementary Conditions – Construction Contract

5. Section 01 22 00, Unit Prices

6. Section 01 77 00, Closeout Procedures

1.02 DEFINITIONS

A. Application for Payment: A form approved by Owner which provides certification by the Contractor for payment.

B. Schedule of Values: A statement furnished by Contractor allocating portions of the Contract Sum to various portions of the Work and used as the basis for reviewing Contractor’s Applications for Payment

1.03 SCHEDULE OF VALUES

A. Coordination: Coordinate preparation of the Schedule of Values with preparation of Contractor’s Construction Schedule

1. Correlate line items in the schedule of values with other required administrative forms and schedules, including the following:

a. Application for Payment forms with continuation sheets.

b. Submittal schedule.

c. Items required to be indicated as separate activities in Contractor’s construction schedule.

2. Submit the schedule of values to Engineer at earliest possible date but no later than as directed by the General and Supplementary Conditions of the Contract.

3. For Unit Price Work the schedule of values shall match the line items as bid by the Contractor as indicated in the supplement to the Agreement unless a Change Order is approved.

4. Subschedules for Phased Work: Where the Work is separated into phases requiring separately phased payments, provide subschedules showing values coordinated with each phase of payment.

5. Schedule Updating: Update and resubmit the schedule of values before the next Applications for Payment when Change Orders or Work Change Directives result in a change in the Contract Sum.

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1.04 APPLICATIONS FOR PAYMENT

A. Each Application for Payment shall be consistent with previous applications and payments as approved by Owner and paid for by the Owner.

1. Initial Application for Payment, Application for Payment at time of Substantial Completion, and final Application for Payment involve additional requirements.

B. Payment Application Times: The date for each progress payment shall be the 1st day of the next month.

For example, Application for Payment may be submitted on May 25 with date on document of June 1.

The period of construction work covered by each Application for Payment is the period indicated in the Agreement. Reference Document 00 72 13, General Conditions – Construction Contract Article 15 – Payments to Contractor” for additional conditions and requirements.

C. Application for Payment Forms: Applications for Payment shall be on a form acceptable to Owner. If Contractor wishes, Owner can supply Document 00 62 76, Application for Payment. To ensure form meets with Owner’s approval, submit draft copy of first Application for Payment seven (7) days prior to due date for review by Engineer/Owner.

D. Application Preparation: Complete every entry on form. Notarize and execute by a person authorized to sign legal documents on behalf of Contractor. Owner will return incomplete applications without action.

1. Entries shall match data on the schedule of values and Contractor’s construction schedule. Use updated schedules if revisions were made.

2. Include amounts for work completed following previous Applications for Payment, whether or not payment has been received. Include only amounts for work completed at time of Application for Payment

3. Include amounts of Change Orders and Work Change Directives issued before last day of construction period covered by application.

4. Indicate separate amounts for work being carried out under Owner-requested project acceleration.

E. Attach to each Application for Payment any other documents which quantify and substantiate the amount required by Contractor. Such documents could validate changes to the Contract Price, percentage of Work completed, etc. Applications for Payment will not be considered unless all supporting information and required schedules are attached.

F. Stored Materials: No Applications for Payment will be processed by Owner which include amounts for stored materials. Owner shall not pay Contractor for stored materials.

1. For unit price contracts or components, Contractor’s Application for Payment shall be based upon installed units identified in the Schedule of Values.

2. For lump sum price contracts or components, Contractor’s Application for Payment shall be based upon approved Schedule of Values.

G. Transmittal: Submit one electronic copy of Application for Payment along with all other documentation to RPR or Engineer by a method ensuring receipt within twenty-four (24) hours. Contractor should

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include a transmittal form listing attachments and recording appropriate information about application.

Engineer will review and make recommendations to Owner.

H. Payment by Owner:

1. Owner has ten (10) days of receipt of certified Application for Payment to agree to and certify for payment or to reject Application for Payment. If Owner rejects the Application for Payment, Owner will return the Application to Contractor, within the ten (10) day period, indicating in writing the reasons for refusing recommendation for payment.

2. Upon approval and certification of Contractor’s Application for Payment, Owner will make payment NET thirty (30) days from the date of Owner’s certification.

I. Initial Application for Payment: Administrative actions and submittals that must precede or coincide with submittal of first Application for Payment include the following:

1. List of Subcontractors

2. Schedule of Values

3. Contractor’s construction schedule (preliminary if not final)

4. Products list (preliminary if not final)

5. Submittal schedule (preliminary if not final)

6. Copies of authorizations and licenses from authorities having jurisdiction (AHJ) for performance of the Work.

7. Initial progress report.

8. Report of preconstruction conference

J. Application for Payment at Substantial Completion: After Engineer issues the Certificate of Substantial Completion, submit an Application for Payment showing 100 percent completion for portion of the Work claimed as substantially complete. Other procedures concerning this application are shown in the Agreement.

1. Include documentation supporting claim that Work is substantially complete and a statement showing an accounting of changes to the Contract Sum.

2. This application shall reflect Certificate(s) of Substantial Completion issued previously for Owner’s occupancy of designated portions of the Work.

K. Final Payment Application: After completing Project closeout requirements, submit final Application for Payment with releases and supporting documentation not previously submitted and accepted, including but not limited to the following:

1. Evidence of completion of Project closeout requirements.

2. Insurance certificates for products and completed operations where required and proof that taxes, fees, and similar obligations were paid.

3. Updated final statement, accounting for final changes to the Contract Sum.

4. Consent of Surety to Final Payment

5. Evidence claims have been settled.

6. Final liquidated damages settlement statement.

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L. No payments for more than 90-percent of the Contract Price will be approved until copies of draft project close-out documents such as O&M manuals, redline drawings, etc. are submitted for the RPR and Owner’s review and comment.

M. No further Applications for Payment will be processed after the expiration of the Contract Time until the date of Substantial Completion as described in these Contract Documents.

PART 2 – PRODUCTS (NOT USED)

PART 3 – EXECUTION (NOT USED)

END OF SECTION