012900 Payment Procedures R3.pdf

PPPL Payment Procedures August 2023

PAYMENT PROCEDURES 012900 - 1

SECTION 012900 - PAYMENT PROCEDURES

PART 1 - GENERAL

1.1 SUMMARY

A. This Section specifies administrative and procedural requirements necessary to prepare and process Applications for Payment. These procedures include project-specific requirements that are supplementary to the requirements of the PPPL General Provisions for Non-Commercial Subcontracts Part G - Provisions & Conditions for Fixed Price Construction Subcontracts

B. See Division 01 Section 013200 "Construction Progress Documentation" for submitting the construction schedule.

1.2 SCHEDULE OF VALUES

A. The schedule of values shall be prepared in conjunction with the development of the performance schedule. Installed components of work and their associated tasks listed in the Schedule of Values shall match the activities in the construction schedule. Once approved the activity values listed in the Schedule of Values shall not be changed without PPPL’s approval of the change.

B. Format & Content:

1. Arrange the Schedule of Values in tabular form with separate columns to indicate the following for each activity listed. The Subcontractor shall provide a MS Excel Spreadsheet electronic file.

a. ID number – The identification or activity number shall match the identification used on the performance schedule.

b. Activity Description – The activity description shall match the description used on the performance schedule.

c. Number of Units

d. Units – The units identified for an activity shall be suitable to determine the activity’s percent complete on a monthly basis.

e. Unit Value for each activity

f. Total Value for each activity

2. Round amounts to the nearest whole dollar; total shall equal the Subcontract Sum.

3. 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.

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4. Each item in the Schedule of Values and Application for Payment shall be complete. Include total cost and proportionate share of indirect costs and profit for each item.

a. Temporary facilities and other major cost items that are not direct cost of actual work-in-place may not be shown as separate line items in the Schedule of Values. Distribute the cost as indirect costs expense across actual work-in-place activities.

b. The amount of premiums paid for performance and payment bonds may be a line item of the Schedule of Values.

c. Mobilization line items are acceptable provided there is an equal value demobilization line item.

d. Items indicated as lump sum for the unit will be paid only when the Item is 100% complete.

5. Allowances: Provide a separate line item in the schedule of values for each allowance. Show line-item value of allowances, as a product of the unit cost, multiplied by measured quantity. Use information indicated in the Subcontract Documents to determine quantities.

6. Closeout Costs. Include separate line items for the subcontractor and lower-tier subcontractor (if applicable) for Project closeout requirements.

7. Updating: Update and resubmit the Schedule of Values before the next Application for Payment when Subcontract Modifications change the Subcontract Sum.

C. Submit a draft of the Schedule of Values to Princeton Technical Representative (PTR) at earliest possible date. No Applications for Payment will be accepted until after the PTR has approved the Schedule of Values. Applications for Payment shall be submitted to the Procurement Specialist.

D. Schedule of Values will not be approved without an approved construction schedule.

1.3 PAYMENT FOR STORED MATERIALS

A. Typically, PPPL doesn’t pay for material received but not installed. Upon the Subcontractor’s request and the PTR’s concurrence, the Procurement Specialist may consider payment for materials received but not installed. The authorized payment for stored material will be based on the lesser of the following: (1) The total value of all invoices submitted for the activity or (2) the material value listed in the Schedule of Values.

1. Material invoices shall be legible and clearly document the type, quantity, and cost of the materials covered in the Application for Payment.

2. Material invoiced must include accompanying Bill of sale, certificate of insurance for bonded storage facility, and photos of materials in storage location.

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PART 2 - PRODUCTS (Not Used)

PART 3 - EXECUTION

3.1 APPLICATIONS FOR PAYMENT

A. Applications for Payment may be submitted no more than monthly, 8 working days prior to the end of the month or as agreed by PPPL. Each Application for Payment shall be consistent with previous applications and payments as certified by the Procurement Specialist and paid for by PPPL.

B. Prior to preparation and submission of an Application for Payment, the Subcontractor’s representative and the PTR shall review work complete to reflect a previous agreed upon scheduled milestone.

C. Application Preparation: All Applications for Payment shall be submitted electronically. Submit a signed Application for Payment to the Procurement Specialist. Incomplete applications will be returned without action. With each application, submit the following items:

1. Application for Payment Form (in conformance with the standard AIA G702)

2. Monthly voucher identifying the work complete.

3. The Monthly Voucher shall be validated by percent or milestone complete on the performance schedule.

4. Copies of stored material invoices.

5. Certified payroll for all subcontractor labor.

6. Technical Submittals up-to-date. Work without approved submittals will not be paid.

7. Quality Control documentation demonstrating up to date record keeping and compliance with the project’s approved quality control plan.

8. As-Builts up-to-date.

9. Waste Reduction Progress Reports up-to-date.

10. Daily Reports up-to-date.

11. Quality Control Report up-to-date.

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

1. List of Lower-tier Subcontractors

2. Approved Schedule of Values including updates.

3. Performance Schedule.

4. Technical Submittals up-to-date. Work without approved submittals will not be paid.

5. Satisfactory Inspection and Test Reports for work billed to 100%

6. As-Builts up-to-date.

7. Waste Reduction Progress Reports up-to-date.

8. Daily Reports up-to-date.

9. Payroll submissions up-to-date.

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E. Certification: Each Application for Payment shall be certified in accordance with the requirements of the PPPL Subcontract General Provisions and Special Terms and Conditions for Construction Subcontracts.

1. The amounts requested are only for performance in accordance with the specifications, terms, and conditions of the subcontract;

2. All payments due to subcontractors and suppliers from previous payments received under the subcontract have been made, and timely payments will be made from the proceeds of the payment covered by this certification

3. Request for progress payments does not include any amounts which the subcontractor intends to withhold or retain from a lower-tier subcontractor or supplier.

3.2 SUBCONTRACT MODIFICATIONS

A. Each subcontract modification shall be added to the end of the approved Schedule of Values. The modification shall be broken into a sufficient number of activities to adequately identify the percent complete of each activity. Activities shall be reflected in an updated schedule to monitor completion of added work.

END OF SECTION 012900