012900 Applications for Payment_Single Prime.pdf

PARKING GARAGE PROJECT NUMBER 693-222

DEPARTMENT OF VETERANS AFFAIRS

WILKES-BARRE, PENNSYLVANIA

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SECTION 012900 - APPLICATIONS FOR PAYMENT

PART 1 - GENERAL

1.1 RELATED DOCUMENTS

A. Drawings and general provisions of the Contract, including General and Supplementary Conditions and other Division 1 Specification Sections, apply to this Section.

1.2 SUMMARY

A. This Section specifies administrative and procedural requirements governing the Contractor's Applications for Payment.

1. Coordinate the Schedule of Values and Applications for Payment with the Contractor's Construction Schedule, Submittal Schedule, and List of Subcontracts.

B. Related Sections: The following Sections contain requirements that relate to this Section.

1. Division 0 Section “Supplementary General Conditions” for requirements related to Payments and Completion.

2. Division 1 Section “Submittals” for the Contractor's Construction Schedule and the Submittal Schedule.

3. Division 1 Section “Unit Prices” for administrative requirements governing the use of unit prices.

4. Division 1 Section “Contract Modification Procedures” for administrative procedures for handling changes to the Contract.

C. Attachments: The following documents are attached to the end of this Section.

1. Partial Waiver and Release of Mechanics Lien Claims.

2. Initial Statement of Contract Value

3. Stipulation Against and Waiver of Liens.

1.3 SCHEDULE OF VALUES

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

1. Correlate line items in the Schedule of Values with other required administrative schedules and forms, including:

a. Contractor's Construction Schedule.

b. Application for Payment forms, including Continuation Sheets.

c. List of subcontractors.

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d. Schedule of alternates.

e. List of products.

f. List of principal suppliers and fabricators.

g. Schedule of submittals.

2. Submit the Schedule of Values to the Architect at the earliest possible date but no later than 7 days before the date scheduled for submittal of the initial Application for Payment.

3. Subschedules: Where Work is separated into phases requiring separately phased payments, provide subschedules showing values correlated with each phase of payment.

B. Format and Content: Use the Project Manual table of contents as a guide to establish the format for the Schedule of Values. Provide at least one line item for each specification section.

1. Identification: Include the following project identification on the Schedule of Values:

a. Project name and location.

b. Name of the Architect.

c. Project number.

d. Contractor's name and address.

e. Date of submittal.

2. Arrange the Schedule of Values in tabular form with separate columns to indicate the following for each item listed:

a. Related specification section and division.

b. Description of work.

c. Name of subcontractor.

d. Name of manufacturer or fabricator.

e. Name of supplier.

f. Change Orders (numbers) that affect value.

g. Dollar value.

1) Percentage of Contract Sum to nearest one-hundredth percent, adjusted to total 100 percent.

3. Provide a breakdown of the Contract Sum in sufficient detail to facilitate continued evaluation of Applications for Payment and progress reports. Coordinate with the Project Manual table of contents. Break principal subcontract amounts down into several line items.

4. Round amounts to nearest whole dollar; the total shall equal the Contract Sum.

5. Provide a separate line item in the Schedule of Values for each part of the Work where Applications for Payment may include materials or equipment, purchased or fabricated and stored, but not yet installed.

a. Differentiate between items stored on-site and items stored off-site (if permitted by Owner). Include requirements for insurance and bonded warehousing, if required.

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6. Provide separate line items on the Schedule of Values for initial cost of the materials, for each subsequent stage of completion, and for total installed value of that part of the Work.

7. Schedule Updating: Update and resubmit the Schedule of Values prior to the next Application for Payment when Change Orders or Construction Change Directives result in a change in the Contract Sum.

1.4 APPLICATIONS FOR PAYMENT

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

1. Each Application for Payment MUST include an attached, executed Partial Waiver and Release of Mechanics Lien Claims Form.

a. On the initial Application for Payment, note $0 on the Payment Amount line and N/A on the Payment Date line of the Partial Waiver and Release of Mechanics Lien Claims Form. For each subsequent Application for Payment, note the amount and date of the prior payment received.

b. The Contractor shall be responsible to have each subcontactor under their Contract, execute the attached Stipulation Against and Waiver of Liens prior to submittal of the initial Application for Payment.

B. Payment-Application Times: Draft applications for progress payments shall be presented to the Architect no later than the 25th of each month. The Architect will comment and return to the Contractor for final submission no later than the first of the following month. The period of construction work covered by each Application for Payment is the period indicated in the Agreement.

C. Payment-Application Forms: Use AIA Document G702 and Continuation Sheets G703 as the form for Applications for Payment.

D. Application Preparation: Complete every entry on the form. Include notarization and execution by a person authorized to sign legal documents on behalf of the Contractor.

The Architect will return incomplete applications without action.

1. Entries shall match data on the Schedule of Values and the Contractor's Construction Schedule. Use updated schedules if revisions were made.

2. Include amounts of Change Orders and Construction Change Directives issued prior to the last day of the construction period covered by the application.

3. Include an updated, executed copy of the Partial Waiver and Release of Mechanics Lien Claims Form.

E. Transmittal: Submit 3 signed and notarized original copies of each Application for Payment to the Architect by a method ensuring receipt within 24 hours.

1. Transmit each copy with a transmittal form listing attachments and recording appropriate information related to the application, in a manner acceptable to the Architect.

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F. Initial Application for Payment: Administrative actions and/or submittals that must precede or coincide with submittal of the initial Application for Payment, include the following:

1. Secure a Stipulation Against and Waiver of Liens Form from each subcontractor.

2. Execute an Initial Statement of Contract Value.

3. List of subcontractors.

4. List of principal suppliers and fabricators.

5. Schedule of Values.

6. Contractor's Construction Schedule (preliminary if not final).

7. Schedule of principal products.

8. List of Contractor's staff assignments.

9. Copies of building permits.

G. Application for Payment at Substantial Completion: Following issuance of the Certificate of Substantial Completion, submit an Application for Payment.

1. This application shall reflect Certificates of Partial Substantial Completion issued previously for Owner occupancy of designated portions of the Work.

2. Administrative actions and/or submittals that shall precede or coincide with this application include:

a. Occupancy permits and similar approvals.

b. Warranties (guarantees) and maintenance agreements.

c. Test/adjust/balance records.

d. Maintenance instructions.

e. Startup performance reports.

f. Changeover information related to Owner's occupancy, use, operation, and maintenance.

g. Final cleaning.

h. Application for reduction of retainage and consent of surety.

i. Advice on shifting insurance coverages.

j. List of incomplete Work, recognized as exceptions to Architect's Certificate of Substantial Completion.

H. Final Payment Application: Administrative actions and/or submittals that must precede or coincide with submittal of the final Application for Payment include the following:

1. Execute a Contractor’s Affidavit of Release of Liens Form (AIA Document G706A).

2. Completion of Project closeout requirements.

3. Completion of items specified for completion after Substantial Completion.

4. Ensure that unsettled claims will be settled.

5. Ensure that incomplete Work is not accepted and will be completed without undue delay.

6. Transmittal of required Project construction records to the Owner.

7. Removal of temporary facilities and services.

8. Removal of surplus materials, rubbish, and similar elements.

9. Change of door locks to Owner's access.

END OF SECTION 012900

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PARTIAL WAIVER AND RELEASE

OF MECHANICS LIEN CLAIMS

(Must be executed and attached to Every Application for Payment)

OWNER: Veterans Affairs Medical Center

ARCHITECT: Quality Assurance Plus

Architecture & Engineering / Building Performance Consultants

CONTRACTOR: ______________________________________________________

PROJECT: Parking Garage (legal description attached hereto as Exhibit “A”)

PAYMENT AMOUNT: _________________________________________________

PAYMENT DATE: ____________________________________________________

ORIGINAL CONTRACT AMOUNT: ______________________________________

VALUE OF APPROVED CHANGE ORDERS: _______________________________

For and in consideration of the Payment cited above, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned Contractor does hereby waive, release, and relinquish any and all rights, claims, demands, liens, mechanics liens, claims for relief, causes of action and the like, whether arising at law, under a contract, in tort, in equity or otherwise, which the undersigned has now, may have had or may have in the future, arising out of any payment due or alleged to be due for any Contractor work, labor, or materials provided in connection with the Project, through the date hereof.

CONTRACTOR ACKNOWLEDGES THAT ANY CLAIM CONTRACTOR HAS HEREAFTER

RELATING TO PAYMENT OR DEMANDS FOR PAYMENT SHALL BE LIMITED TO THE

DIFFERENCE BETWEEN THE ORIGINAL CONTRACT AMOUNT AS MODIFIED BY THE

VALUE OF APPROVED CHANGE ORDERS LESS THE AMOUNT PAID TO CONTRACTOR

THROUGH THE DATE OF ANY SUCH CLAIM.

The Contractor warrants that it has not and will not assign any claims for payment or right to perfect any lien against Owner or Project and further warrants that it has the right to execute this waiver and release. Furthermore, Contractor hereby agrees to defend, indemnify and hold harmless Owner from and against all damages and costs that arise from any other entity or person claiming entitlement through the Contractor through the Payment Date.

In order to induce Owner to make the Payment referenced herein, the Contractor also warrants and certifies that it has made full payment of any amounts due or claimed to be due through the Payment Date to any person or entity who has supplied materials or labor in connection with the Project.

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The undersigned agrees that the Owner of the Project, any lender, any title insurer, and any surety may rely upon this waiver.

The undersigned further agrees that the making and receipt of payment and execution of this Waiver and Release shall in no way release the undersigned from its continuing obligations with respect to the completion of any work remaining undone, punch list work, warranty and guaranty work, and any other obligations of the undersigned to the Owner.

IN WITNESS WHEREOF, on behalf of the undersigned, the Contractor executes this Partial Waiver and Release of Mechanics Liens on the date first written above.

CONTRACTOR:_________________________________

By:____________________________________________

Title: _______________________________

Sworn to and subscribed before me this ____ day of _____________, 20____.

My commission expires:____________________

Notary Public

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INITIAL STATEMENT OF CONTRACT VALUE

(To be executed by the Contractor and submitted to the Architect for filing)

OWNER: Veterans Affairs Medical Center

In the Court of Common Pleas Luzerne County, Pennsylvania

Plaintiffs :

v. : No._________________________

CONTRACTOR: _____________________________________________

Defendant :

CONTRACTOR: _____________________________________________

Plaintiff :

v. :

OWNER: Veterans Affairs Medical Center

Defendant :

NOTICE PURSUANT TO 49 P.S. §1405

1. Owner is the legal or equitable owner of certain real estate known as 1111 East End Blvd Wilkes-Barre, PA 18702 by deed dated ________________, and recorded _______________, in the Office of the Recorder of Deeds of County, Pennsylvania, in Book _____, page _____ (hereinafter the “Property”).

2. Contractor, is the “Contractor” as defined in 49 P.S. §1201, Pennsylvania Mechanics’ Lien Law of 1963.

3. Owner and Contractor have entered into a contract for the construction of a building on the Property (hereinafter the “Contract”) in which Owner is the Owner as defined in 49 P.S. §1201, Pennsylvania Mechanics’ Lien Law of 1963, and Contractor is the Contractor.

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4. For the specific purpose of limiting the potential mechanics lien claims of Owner’s or Contractor’s subcontractors as against the Owner to any such subcontractor’s/claimant’s pro-rata share of the unpaid balance of the contract price set forth in the Contract, the parties hereto file this Notice.

5. The Contract is dated _________________________ by and between the Owner and the Contractor.

6. The Contract contemplates the construction of a building containing approximately 1,652 square feet to be constructed on the Property.

7. The total price of the Contract, as modified hereafter by any material change orders, is

8. Any claim by any subcontractor/claimant shall be limited to its pro-rata share of the contract price remaining unpaid at the time notice of intention to file any such claim is first given to the Owner.

By: Owner

By: ____________________________ Authorized Officer

By: Contractor

By: ____________________________ Authorized Officer

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STIPULATION AGAINST AND WAIVER OF LIENS

(Executed by the Contractor and each subcontractor prior to submittal of the INITIAL Application for Payment) (The Contractor shall attain and file this Stipulation for each of their respective subcontractors)

This instrument is executed this ____ day of ___________________, 20____, by and between

________________________________________________________________________ and (''Contractor'')

___________________________________________________________________ in favor of (''Subcontractor'')

Veterans Affairs Medical Center (“Owner”)

WITNESSETH:

1. Contractor is a Contractor within the meaning of the Mechanics Lien Law of 1963.

2. Owner and Contractor have entered into a certain contract (herein “Contract”) in connection with the construction of Parking Garage

1111 East End Blvd Wilkes-Barre, PA 18702, Pennsylvania (herein “Project”).

3. Contractor and Subcontractor have entered into a certain agreement by which Subcontractor will provide labor or materials to Contractor or Owner in connection with the construction of the Project.

4. Pursuant to 49 P.S. §1401(b)(2), Contractor has posted a bond guaranteeing payment for labor and materials provided by Subcontractor, and Subcontractor, for itself, its owners, shareholders, members, employees, partners, successors, and assigns, intends by this document to waive its right to file any claim whatsoever against the Project.

5. Subcontractor agrees that to the fullest extent permitted by law, no mechanics' or materialmen's liens shall be filed or maintained against the estate or title of Owner of the Project or any part thereof, or the appurtenances thereto, either by itself or anyone else acting or claiming through or under it, including subcontractors of Subcontractor, for or on account of any work, labor or materials supplied in the performance of the work under the Contract or under any supplemental contract or for extra work.

6. Subcontractor agrees that this agreement shall be an independent covenant and shall operate and be effective with respect to work done and materials furnished under any

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7. Subcontractor agrees that it will indemnify, defend, and hold harmless Contractor and Owner from it against any claims, including mechanics' lien claims raised by any subcontractor, supplier, or materialman of Subcontractor, including, without limitation, any subcontractor as that term is defined in the Pennsylvania Mechanics' Lien Law of 1963, as amended.

8. Subcontractor agrees that in the event it violates any provision of this Stipulation Against and Waiver of Liens, Subcontractor shall be liable to Contractor and Owner for all expenses and costs incurred in the defense of or payment of any claim brought by any person, to the extent the Subcontractor has indemnified Contractor and Owner against such a claim, including without limitation, attorneys fees and court costs.

9. To give Owner full power and authority to protect itself, the Project, the estate, or title of Owner therein, and the appurtenances thereto, against any and all liens filed by anyone acting under or through Subcontractor in violation of the terms of this agreement, Subcontractor hereby irrevocably authorizes and empowers any attorney of any Court of Common Pleas of the Commonwealth of Pennsylvania (i) to appear as attorney for it in any such Court, and in its name or names, to the extent permitted by law, mark satisfied of record at the cost and expense of Subcontractor any and all lien or liens filed in violation of the foregoing covenant, or (ii) to cause to be filed and served in connection with such lien or liens any pleading or instrument, or any amendment to any pleading or instrument previously filed by it, and to incorporate therein, as part of the record, the waiver contained in this instrument; and for such act or acts this instrument shall be good and sufficient warrant and authority. A reference to the court, term and number in which and where this agreement shall have been filed shall be conclusive evidence of the authority herein to warrant such action, and Subcontractor hereby remises, releases and quitclaims all rights and all manner of errors, defects and imperfections whatsoever in entering such satisfaction or in filing such pleading, instrument or amendment, or in any way concerning them.

10. Contractor must attach a copy of the Legal Description of Project property to this form prior to submittal to the Architect.

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IN WITNESS WHEREOF, Contractor has executed this instrument as of the day and year first above written.

CONTRACTOR: ____________________________________________________________

By:_____________________________________

Its:_____________________________________

SUBCONTRACTOR: _________________________________________________________

By:_____________________________________

Its:_____________________________________