9-25-728 Article 10 Budget.pdf

Article 10: Budget 4-22

ARTICLE 10: BUDGET

10.1 Preconstruction

The GC/CM shall review design drawings as previously described and produce an estimate of probable cost at each design phase, starting with the Design Development phase. The GC/CM shall participate and provide input and advice where cost efficiencies can be realized to maintain budget within the desired scope. The estimate at 90% complete construction document will be the basis of establishing a negotiated MACC that is fair, reasonable, and within the available funds.

The GC/CM shall invoice monthly for pre-construction services and for construction in an amount proportionate to the total work completed. All invoices shall be on the state A-19 invoice form which can be found at:

https://des.wa.gov/services/public-works/formsreference-documents

10.2 Construction

Budget Control

The MACC is finalized at Notice to Proceed (NTP) for construction after negotiating the MACC. Once established, the MACC does not change unless an Owner requested change order (CO) is approved.

The GC/CM shall update the current budget on an on-going basis and deliver a formal update monthly to the DES Project Manager. Obligations represent fiscal commitments known to the PM. The current budget reflects modifications to the MACC on an item-for-item basis. Change order summaries shall tie to budget control sheets for each project.

A master budget sheet for each bid package shall identify the status of categories for each line-item entry. The GC/CM shall list, vertically on the sheet, a breakdown of the information by bid package and by identifiable pieces of the project. The breakdown shall include:

Original MACC Specified General Conditions charges Negotiated Support Services Buy-out savings GC/CM Fee Allowances Current budget Obligations Expenditures (paid to date) Remaining balances

GC/CM Cost Accounting

To ensure efficiency and accountability, a regular reporting and back-up system has been created. Through monthly submittals of budget control sheets by the GC/CM, the State Contracting Officer can provide checks and balances of the work.

The GC/CM is required to provide a cost accounting of the MACC on a monthly basis in a format acceptable to Department of Enterprise Services protocol. As a minimum each major element of work shall be tracked (i.e.: seismic repairs; site work, etc.).

https://des.wa.gov/services/public-works/formsreference-documents

Reviewing the GC/CM's monthly cost report and outstanding TCMs will enable the PM to assess actual and potential savings within the MACC.

The GC/CM will provide with the monthly invoice, a monthly report to the Project Manager for review of expenditures, tracking of subcontractors, and contract changes. The report shall, at a minimum, track the following using a spreadsheet format:

Budget - This column shall reflect the amounts agreed to between the PM and the GC/CM. It shall reflect the amount shown on the contract for the MACC.

Bid Packages - This column shall show the amounts encumbered less change orders or team change memos for each bid package.

Contract Change Log:

• Change Order Proposals: Change log shall track all potential COP, pending COP, and executed COP to date. Each entry shall show either an estimated or actual value for each COP entry.

• Field Authorizations: Change log shall track all potential FA’s, pending FA’s, executed FA’s to date. Each entry shall show either an estimated or actual value for each COP entry.

• Team Change Memos – Change log shall track approved and pending team change memo amounts. The log shall show beginning balance for risk contingency and buyout savings as well as the balance in each category after the TCM is approved.

• Change Orders - This column shall reflect the amounts of addition or deletion from the contract amount.

Variance - This column shall show the budget less the sub-contract, change orders, and team change memos

Expended to Date - This column shall show the amounts paid the GC/CM

Paid To Date - This column shall show that amount recorded on the last monthly report shown as "Paid To Date"

Earned To Date - This column shall show the amount "Earned To Date"

Percent of Budget – This column shall show that amount of the negotiated budget expended

Anticipated Additional Needed To Completion - This column shall show that amount the GC/CM feels may be needed to complete the project. The amount should typically account for anticipated team change memos.

Payment Summary

Monthly invoices shall be broken into the following major categories.

Payment of the GC/CM Fee: The GC/CM's fee shall be paid in an amount proportionate to the total work completed.

Negotiated Support Services Work: The PM shall verify that all such billings are appropriate, including work that falls under the category of Specified General Conditions work.

Payment of the Cost of the Work: Payments are made based on actual work in progress. In order to assess the actual work completed, the PM will require copies of all contracts between the sub-contractors. Each bid package shall have a schedule of values as described in the General Conditions for Construction, Section 6.02. The information regarding subcontractor payment shall be in a location accessible to the state, on request, for periodic audit. The GC/CM shall invoice on actual work progress.

Bid package costs shall reflect actual bid schedule of values plus any PM approved change orders or team change memos, based on actual work in place and accepted, or on materials stored on site or in a PM approved facility.

Allowances: The GC/CM may carry allowances for items approved by the PM at the time the MACC is negotiated. The PM shall verify that payments within these categories shall not exceed the agreed upon allowance limit without a PM approved change order. These allowances will be identified in the project budget and are subject to audit at the completion of the project.

All payment requests must have the signed and dated recommendation of the Architect.

The PM determines the appropriateness of the billing and forwards invoice to the Owner for payment.

10.3 Diverse Businesses Reporting

The State of Washington encourages participation in all of its contracts by Diverse Businesses as found in RCW Chapters 39, 43, and WAC 326.

The voluntary Diverse Business goal of 26%, which is an aggregate of:

10% Minority Business Enterprises (MBE) 6% Women Business Enterprises (WBE) 5% Veteran-owned Business 5% Washington Small Businesses self-identified in the Washington Electronic

Business Solution (WEBS) DES reserves the right to adjust these voluntary participation goals.

GC/CM and all subcontractors are encouraged to meet or exceed the project goals in the advertisement by any level of participation, regardless of category. Businesses are encouraged to register in WEBS, as well as registering as a state certified M/WBE/Veteran Business. Please reference Attachment 6 for required Diverse Business inclusion Plan.

For reporting and recording progress in meeting these goals, GC/CM is required to register and create an account in the DES Public Works Diversity Tracking & Management System powered by B2GNow. Every month for the duration of your contract, and while your contract is active in the DES Public Works Diversity Tracking & Management System, submit and accurately maintain the following information:

1. Payments received by the prime contractor from the Agency

2. Payments paid to each first tier subcontractor

3. Payments paid to each first tier supplier

You must also ensure the following information is reported in the DES Public Works Diversity Tracking & Management System by your first tier subcontractors and suppliers for the duration of your contract:

1. Confirmation of payments from the prime contractor to the first tier subcontractor

2. Confirmation of payments from the prime contractor to first tier suppliers

10.4 Apprentice Utilization

In accordance with RCW 39.04.320, for all public works estimated to cost one million dollars or more, the State of Washington requires no less than 15% of the labor hours be performed by apprentices. The GC/CM or any subcontractor may not be required to exceed the 15% requirement. On applicable bid packages, the GC/CM’s bid advertisement and Bid Form for subcontractor bid packages shall establish a minimum required percentage of apprentice labor hours compared to the total labor hours. The GC/CM shall report Apprenticeship Utilization compared to the GC/CM Apprenticeship Utilization Plan on file with each monthly invoice. Please reference Article 7 for additional apprenticeship requirements.

https://apps.leg.wa.gov/RCW/default.aspx?cite=39.04.320