Administrative Procedures 2023 DMVA.docx

ADMINISTRATIVE PROCEDURES

FOR

DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

CONSTRUCTION CONTRACTS

FORT INDIANTOWN GAP, PENNSYLVANIA

2023 EDITION

DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

ADMINISTRATIVE PROCEDURES

ADMINISTRATIVE PROCEDURE NO. 1

Orientation Meeting

ADMINISTRATIVE PROCEDURE NO. 2

Job Conferences

ADMINISTRATIVE PROCEDURE NO. 3

Schedule of Values

ADMINISTRATIVE PROCEDURE NO. 4

ADMINISTRATIVE PROCEDURE NO. 5

Manufacturers’ High Voltage Cable Test (Birth Certificate)

ADMINISTRATIVE PROCEDURE NO. 6

Submittals

ADMINISTRATIVE PROCEDURE NO. 7

ADMINISTRATIVE PROCEDURE NO. 8

Changes in Contract Work (Field Orders/Change Orders)

ADMINISTRATIVE PROCEDURE NO. 9

Request for Extension of Time Change Order

ADMINISTRATIVE PROCEDURE NO. 10

ADMINISTRATIVE PROCEDURE NO. 11

ADMINISTRATIVE PROCEDURE NO. 12

Utilization/Occupancy Inspection Occupancy/Utilization Final Inspection Conclusion of Final Inspection

ADMINISTRATIVE PROCEDURE NO. 13

Small Diverse Business and Veteran Business Enterprise Participation

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ADMINISTRATIVE PROCEDURE NO. 1

ORIENTATION MEETING

A. Scheduling of Orientation Meeting-Optional

Within ten (10) days of the Effective Date of the Contract, (or earlier if authorized in a Letter of Intent) the DMVA Contracting Officer will contact the Contractor(s) to schedule an Orientation Meeting to familiarize the Contractor(s) with Departmental procedures and processes, where the DMVA Construction Project Manager deems an orientation meeting is necessary.

At DMVA discretion, Contractors are required to attend the scheduled Orientation Meeting. Notification of the meeting date, time and place will be confirmed by email. Personnel from the Contractor’s office that will be associated with the Project, such as the principal of the firm, project manager and project superintendent must attend the meeting.

B. Agenda for Orientation Meeting

1. Introduction of personnel by Construction Contracting Officer/Project Manager

2. Explanation of Administrative Procedures and DMVA processes and forms in e-Marketplace.

3. Question and answer period.

Administrative Procedures 2022 Edition

ADMINISTRATIVE PROCEDURE NO. 2

JOB CONFERENCES

A. General Information Concerning Job Conferences

1. The following representatives must attend Initial, Regular and Special Job Conferences**:

a. All Prime Contractors (i.e., assigned Project Manager and approved Superintendent)

b. Professional Representative

c. DMVA Construction Project Manager ** Special Job Conferences are scheduled by the DMVA Construction Project Manager or designee.

2. Unless DMVA direct otherwise, the following representatives may attend any Job Conference, but are not required to be present:

a. Client Entity

b. Facility personnel

c. Testing Laboratory Technicians

d. Other representatives, as appropriate (determined by DMVA)

3. The standard agenda for the Job Conference will be as follows:

a. Submittals (Discuss current status, overdue submittals, submittals returned for correction, submittal approvals required for long lead items, Work being conducted without approved submittals, etc.)

b. Open Processes / Forms (Change Orders submitted and being processed, Requests for Information status, non-compliance / non-conformance / deficiency issues, etc.)

c. Project Schedule

d. Two (2) week look ahead (what Work will be accomplished by next Job Conference)

e. Milestones (track significant events listed on the schedule)

f. Long Lead Items (review status, anticipated delivery dates, etc.)

g. Required Inspections (in accordance with the DMVA inspection requirements)

h. Project Delays (Contractors will be specifically asked if they were delayed since the last Job Conference – if response is “Yes”, Contractors will be asked to provide details of circumstances causing the delay for DMVA review and response).

i. Project Disputes (Contractors will be specifically asked if they have any disputes. If “Yes”, the Dispute Resolution Process outlined in the General Conditions will be followed).

j. Project Summary (Elapsed Time in % and # days; Job Completion based on approved payment applications and physical inspection)

4. The DMVA Construction Project Manager or designee shall appoint a person to take the minutes of the Job Conferences.

5. Failure to attend any Job Conference is a violation of the Contract as indicated in the General Conditions of Contract. Any Contractor who does not attend the Job Conference is subject to termination, unless absence is excused by the Bureau. The Department may issue a credit change order to any Prime Contractor who does not attend and is not excused from any Job Conference.

B. Initial Job Conference

1. The DMVA Construction Project Manager or designee will set the time, date and place for the Initial Job Conference, which will be no later than the thirty (30) days following the Effective Date of the Contract.

2. The Notice initiating the Conference shall be distributed to all parties.

3. The date of the Initial Job Conference will signify the Contract Start Date for purposes of calculating the Contract Completion Date.

a. If a Letter of Intent was issued on the project, Contractors are required to proceed with the off-site scope of Work set forth in the letter. On-site Work may start only when the contract is fully executed.

b. Contractors are required to commence on-site work within ten (10) days after the Initial Job Conference.

4. During the Initial Job Conference, the DMVA Contracting Officer or DMVA Construction Project Manager or designee shall conduct the order of business and discuss specific requirements and particulars of project construction.

5. Distribution of the Initial Job Conference Report will be made through email distribution.

6. Agenda for the Initial Job Conference

a. Introduction of attendees.

b. Review of Special Requirements, which may include all, some, or none of these examples:

(1) Protection of the Environment

(2) Asbestos

(3) Parking

(4) Office for Contractor(s)

(5) Field Office

(6) Temporary Heat

(7) Existing Utilities

(8) Working Hours

(9) Operation and Maintenance Instructions/Manuals

(10) Small Diverse Business and Veteran Business Enterprise Programs

(11) Contractor Integrity Provision

(12) Debarment, Suspension and Other Responsibilities

(13) Excavation

(14) Roof Deck

(15) Product Discrimination

(16) Mobilization

(17) Steel Products Procurement Act

(18) Insurance Coverage

(19) Privity of Contract

(20) Public Works Employment Verification Act

(21) Other

c. General Remarks

(1) Safety

(2) Discrepancies

(3) Coordination

d. General Information

(1) Project Sign

(2) Roof Bond/Warranties

(3) Concrete

(4) As-Built Record Drawings

(5) Project Supervision

(6) Miscellaneous

e. Permits, Fees, Notices

f. Establishment of date, time and location of the first Regular Job Conference

g. Review of General Conditions

h. General Comments

C. Regular Job Conference

1. Job Conferences may be held as often as necessary, however, in no case less than bi-weekly.

2. The DMVA Construction Project Manager, or designee, shall conduct bi-weekly Job Conferences. These bi-weekly Job Conferences shall be attended by those described at the beginning of this Administrative Procedure.

3. The agenda of a Regular Job Conference shall include, at a minimum, the following:

a. General Review of Previous Report

i. Unsatisfactory conditions and/or workmanship, as noted on previous Job Conference Reports, must be noted when corrected by the Contractor in the minutes of the first report following the correction. The manner in which the correction was made should also be noted in the minutes. The unsatisfactory item will be included as an item in each report until the issue is corrected.

b. General discussion of Job Conditions

c. Review of past due Shop Drawings

d. Review of outstanding Change Orders

e. Review of Progress Schedule

i. Special attention will be given to items that are behind schedule.

f. Projected work for the next bi-weekly period

g. Delays

i. Each Prime Contractor should pay special attention to ensure that delays are documented on the Job Conference Reports since the Department will review the minutes of the Job Conferences in reviewing the Contractor’s request for any Extension of Time.

h. General Information will be inserted onto the written Job Conference Reports, such as, percentage of elapsed time for project, percentage of payment for project, percentage of job completion for project (based upon physical inspection), date, time and place of next job conference and name of person who prepared the Report.

4. Job Conference Reports will be distributed electronically.

D. Special Job Conferences

1. The DMVA Construction Project Manager or other DMVA representative may call a Special Job Conference to consider any emergency or unusual job condition. Only the subject(s) mentioned in the request for the Special Job Conference shall be discussed.

Administrative Procedures

ADMINISTRATIVE PROCEDURE NO. 3

SCHEDULE OF VALUES

A. The Schedule of Values shall be prepared and submitted by each Contractor electronically for the Department’s and the Professional’s approval within 45 days of the Effective Date of the Contract and prior to the first Invoice, unless required to be submitted earlier in a Letter of Intent issued by DMVA.

B. The DMVA Construction Project Manager and the Professional will review and provide comments. Contractors are advised that a minimum of 10 work days after the receipt of the submission will be required by the Department for review and approval of the Schedule of Values or Supplemental Schedule of Values.

C. No invoice will be approved by the DMVA Construction Project Manager until the Schedule of Values has been approved.

D. The Schedule of Values, when approved by the Department, will be utilized as the basis for the Contractor’s Invoices. The Schedule of Values may also be used by the Department to determine the debit or credit to the Department resulting from changes in the work.

E. General Information

1. Items must be listed according to building or area.

2. Temporary services and/or equipment furnished at the Contractor’s cost that are not an integral part of the Project may not be shown on the Schedule of Values. The cost of these items (with the exception of temporary heat) must be prorated throughout the items of Work, material and/or equipment to which it pertains.

3. Contract Bond shall be shown as an item. The bond may not exceed the Contractor’s percent/amount of their bond receipt. The receipt for the bond must be submitted with the original Schedule of Values.

4. The Roof Bond/Guaranty must be a separate item, when applicable.

5. The Contractor may include in its Schedule of Values a single line item for Mobilization. Mobilization costs shall be limited to include only those items listed in the Mobilization Paragraph of the General Conditions of Contract. For contracts equal to or less than $6,000,000, the Contractor may include on the cost breakdown a line item for mobilization costs listed at 1.5 percent of the contract award amount, not to exceed $90,000. For contracts exceeding $6,000,000, mobilization costs in excess of $90,000 will be determined by negotiation prior to submission of the breakdown.

6. Excavation and backfill must be shown as separate items. If hand excavation is required, it must also be separately listed. All excavation and backfill quantities shall be indicated in cubic yard units. If there is no backfill, an explanation must be provided.

7. Concrete for structures is to be indicated in cubic yard units. Concrete sidewalk and concrete paving may be indicated as square yard units. All unit prices for concrete work are to include forming. Forming may not be indicated as a separate line item.

8. Painting must be listed as a separate item in square feet. Lump sum costs will not be accepted.

9. “Furnish” or “Install” are not to be used as part of the description of a line item. Procurement and installation costs must be included in the line item of work. The only exception shall be in cases where materials or equipment are furnished by the owner or using agency for installation by the contractor.

10. “Demolition” is to be followed in parenthesis indicating the item to be demolished.

11. Scaffolding is not to be shown as a separate line item, but is to be included in the item with which it is associated.

12. Site surveying, as a line item, is permitted only for the General Contractor.

13. Engineering of plans is not permitted as a line item.

14. The HVAC Contractor may show sheet metal work as two items, i.e., (a) Sheet metal shop drawings; and, (b) Sheet metal fabrication and installation. Shop drawings must be shown at actual cost and as one lump sum/line-item. Shop drawings must be approved prior to being invoiced on an Invoice. When the Contractor requests payment for shop drawings, a copy of the subcontractor’s invoice, if a subcontractor is used for that item, must be attached to the Invoice electronically.

15. When balancing of heating and ventilating systems is required by the specifications, it shall be shown as a separate item.

16. Costs retained for Commissioning, as described in the General Conditions, must appear as a separate line item in the amount described in the Contract Documents.

17. Lump Sum items cannot be paid until the item is completely finished, inspected, and accepted by the Department, except on unit price projects, where lump sum items can be paid based upon the percentage completed.

18. Operation and Maintenance Manuals shall be indicated as one line item. The value shall be not less than ten percent (10%) of the amount included for mobilization. The amount included is subject to the approval of the Director of Construction.

19. Record Drawings shall be indicated as one line item. The value shall be not less than ten percent (10%) of the amount included for mobilization. The amount included is subject to the approval of the Director of Construction.

20. Site work shall be identified for each applicable line item. Site work includes, but is not limited to, site preparation, erosion and sediment controls, earth work, grading, excavation, landscaping, seeding, concrete or bituminous paving, sidewalks, and any site utility (e.g., water, gas, sewer, etc.) work.

21. A supplemental Schedule of Values for those items listed as Lump Sum on the original approved Schedule of Values may be submitted at a later date, indicating quantity, unit price and extensions for all items to be furnished and installed under each Lump Sum item. Lump Sum items should be kept to a minimum. Supplemental breakdowns cannot be submitted on items where partial payment has been made.

a. Items to be subcontracted must be designated by the word “subcontractor.”

b. Descriptions shall be clear and concise for each item of work, material or equipment, using the same designation as the specifications. All items (examples: concrete masonry units, conduit, pipe fittings, wire, cable, etc.) must be listed by type and size to be installed.

c. Temporary heat, if required by the Contract Documents, must be shown on the breakdown as a separate line item. This item will be shown as the last item on the Schedule of Values and must include the number of days specified in the Special Requirements, the Unit Price per twenty-four hour day, and the extension of the figures. Any adjustment to the number of days of temporary heat, used or not, will be based on the Unit Price shown on the breakdown.

d. Items listed in the index of the specifications must be included, in chronological order, on the breakdown. Additional items may be listed at the Contractor’s discretion. Do not utilize alpha-numeric numbering except in cases where supplemental breakdowns are submitted.

e. Unit price proposals are an exception to the above procedures. Unit price proposals must be reflected on the breakdown sheet in the same amount and in the same order as in the Contract.

Administrative Procedures 2022 Edition

ADMINISTRATIVE PROCEDURE NO. 4

PROJECT SCHEDULE

and

CRITICAL PATH METHOD (CPM) SCHEDULING

A. General Information on Project Scheduling

The Lead Contractor shall be responsible for coordinating the schedule among the Contractors, as described in detail in the General Conditions. The Project Schedule shall be a CPM Schedule developed, prepared and submitted electronically in accordance with the same requirements and time frames as required by the General Conditions of the Construction Contract and the requirements of this Administrative Procedure.

1. The CPM Scheduling system is to be implemented by the Lead Contractor, utilizing the services of a qualified subcontractor or its own in-house staff. The subcontractor or Contractor, if utilizing in-house staff, must provide evidence to the Department’s satisfaction, that the Contractor or subcontractor has computer hardware and software which is standard in the industry for CPM scheduling. The Contractor/subcontractor and must also provide evidence of at least five years scheduling experience with projects of the same size and nature.

2. In no event shall any activity indicated on the Schedule exceed a 20-day duration unless authorized by the Department.

3. Within seven (7) days of the Effective Date of the Contract (or earlier if authorized in a Letter of Intent), the Lead Contractor on the Project shall furnish each separate Prime Contractor a schedule of the proposed prosecution of the Work under that Prime Contractor’s Contract.

4. Within seven (7) days of receipt of the Lead Contractor's proposed progress schedule, each separate Prime Contractor shall submit to the Lead Contractor a schedule of the proposed prosecution of its Work, which shall be integrated with the Lead Contractor’s Work.

5. No later than thirty (30) days after the Effective Date of the Contract, the Lead Contractor shall (in accordance with the scheduling provisions of the General Conditions) submitted electronically the Integrated Progress Schedule signed by all Prime Contractors (indicating their approval of the contents of the Schedule).

6. Within seven (7) days of receipt of the Schedule from the Lead Contractor, the DMVA Construction Project Manager or designated representative and the Professional will review and accept/reject electronically.

7. The construction sequences, activity duration and logic utilized in the development and preparation of the Schedule shall result in an as-planned schedule that must meet the Contract Completion Date set forth in the Contract Documents.

8. Each Prime contractor shall be responsible for providing a daily report of all work performed each day on the project until project close-out. This report shall include, but is not limited to: the Prime Contractor’s numerated work force and related work activities performed, the Prime Contractor’s numerated sub-contractors’ workforce on site (of all tiers) and related work activities performed, equipment on site, testing performed, weather conditions (high and low temperatures, precipitation, etc.), material deliveries and L&I inspection activities. Each daily report shall be sent electronically within 24 hours of each work day. If no work is performed, a daily report shall be submitted stating no work was performed. Submission of this daily report shall not preclude or waive the need to address issues and activities that shall be addressed within the contract documents via required processes and/or forms. Failure of a Prime Contractor to submit timely, consistent and accurate daily reports shall be considered a non-conformance of the contract and shall be handled in a manner defined by the Contract Documents.

9. All Work is to be completed in accordance with the accepted Master Project Schedule. The Master Project Schedule will reflect the decisions of all Contractors as to sequence, duration, construction logic and all means and methods of construction.

10. The Department will only review and pay (if the application is otherwise acceptable) the Contractor’s first Invoice without a Master Project Schedule being submitted and accepted by the Department. No further Applications for Payment will be accepted from any Contractor until the Department has accepted the Master Project Schedule. Since it is the Contractors’ affirmative duty to coordinate the Work and prepare the Master Project Schedule, any delay to the Project due to not having an acceptable Master Project Schedule will be attributable to the Contractors.

11. Activity time delays shall not automatically mean that an extension of time is warranted or due any Prime Contractor. A contract modification or delay may result in only absorbing a part of the available total float that may exist within an activity or chain of activities, therefore, the modification or delay may not affect existing critical activities, interim milestone dates or cause non-critical activities to become critical.

12. The Department owns the float. No float shall be used by the Contractor without a written request and subsequent directive from the Department or its designee. Total float is defined as the amount of time between the early start date and the late start date, or the early finish date and the late finish date, for each and every activity in the Master Project Schedule. Extensions of time to interim milestone dates or the Contract Completion Date under the various contracts will be considered only to the extent that equitable time adjustments to the activity or activities affected by the contract modification or delay exceeds the total float of the affected or subsequent paths and extends any interim milestone date or the Contract Completion Date.

13. General Information

a. List items of construction as they will be installed. When more than one building, level or floor is included, each building, level or floor shall be listed separately. The Master Project Schedule must also include critical submittals, submissions of shop drawings for approval, approval of shop drawings, placing of orders for materials and delivery of materials.

b. Each Prime Contractor is responsible for assuring that any and all subcontract work as well as its own work is included in the schedule.

c. The Master Project Schedule shall reflect Early Start/Early Finish Dates, Late Start/Late Finish Dates and available Float or Slack time for each and every activity.

d. From the activities of the various contracts critical to the Scheduled Completion Date, the Lead Contractor shall identify and incorporate construction progress milestones for the Project into the Master Project schedule, in accordance with the General Conditions of Contract. Unless the Contract Documents state otherwise, the milestones are to signify the start date of a specific activity that is critical to the completion of the project on schedule. Each contractor must show at least one milestone in each month of the scheduled construction period.

e. The DMVA Construction Project Manager shall track all milestones and provide formal written notification to the DMVA Contracting Officer of any contractor that is in excess of fifteen days of meeting a milestone where the delay was caused by the Contractor. The DMVC Contracting Officer shall issue a written cure notice to the Contractor upon notification from the DMVA Construction Project Manager.

Administrative Procedures

ADMINISTRATIVE PROCEDURE NO. 5

MATERIALS TESTING (ALL ITEMS-GENERAL REQUIREMENTS)

LABORATORY SAMPLE OR FIELD TEST IDENTIFICATION

MATERIALS TESTING (SELECTION OF TESTING LABORATORY)

CONCRETE TESTING (APPROVAL OF MIX COMPUTATIONS)

CONCRETE MIX COMPUTATION

INVOICE AND BILLING FOR PROFESSIONALS AND TESTING

LABORATORIES

MANUFACTURERS’ HIGH VOLTAGE CABLE TEST (BIRTH CERTIFICATE)

FIELD HIGH VOLTAGE CABLE TEST

HVAC SYSTEMS BALANCING

A. Materials and Concrete Testing Performed by the Contractor (General Requirements)

The Contractor shall:

1. Give the Department and the Professional timely notice of its readiness and of the date arranged, so the Professional may observe such inspection or testing.

2. Bear all costs of such inspections and tests, unless otherwise provided. All expenses incurred in the collecting, packing and delivering of samples of materials or equipment to or from the site or laboratory will be paid by the Contractor, unless otherwise noted in the General Conditions, Specifications or Contract Drawings.

3. All testing information shall include all test reports and entering select data and information from the test reports electronically to the DMVA Contracting Officer, DMVA Project Manager, and Professional.

4. For all concrete testing, the test reports and the following information and/or data must be sent electronically:

a. Placement Date;

b. Design Strength;

c. Ambient temperature;

d. Slump;

e. Air Content percentage;

f. Temperature of Concrete;

g. Who took the test/sample;

h. Where are cylinders being cured;

i. Name of Approved testing laboratory;

j. 3 Day Break Strength;

k. 7 Day Break Strength;

l. 28 Day Break Strength; and

m. 56 Day Break Strength,

5. A Laboratory Sample or Field Test Identification shall accompany each sample to be tested.

6. When testing concrete cylinders, each cylinder shall be numbered consecutively and prefaced for design mix tests, precast concrete and pre-stressed concrete. The type of cylinder shall be noted on the form as follows:

DM - Design Mix PC - Precast Concrete PS – Pre-stressed Concrete

7. Cylinders for concrete other than the above will not be prefaced. Approved samples to be incorporated into the work shall be returned to the site by the Testing Laboratory.

The Professional shall:

1. Secure, review, and approve/reject all submitted testing information and data.

B. Materials Testing (Selection of Testing Laboratory)

A. When the Department is paying for the testing of materials, the DMVA Project Manager will notify the Professional to seek cost quotes to perform the required testing. The Professional will submit the name of the laboratory it has selected to the DMVA Project Manager. If the DMVA Project Manager approves the selection, they will authorize the Professional to contract with the laboratory selected. Contractors will be notified of this selection at the Initial Job Conference by the Professional.

B. When the Professional is providing testing, they shall follow the same process as noted above.

C. When the Contractor is responsible for testing, the Contractor will select an independent testing laboratory. The Contractor must notify all parties concerned of the selection at the Initial Job Conference.

C. Concrete Testing (Approval of Mix Computations)

1. The Contractor shall electronically submit the submittal process to enter all mix computation information.

D. Manufacturer’s High Voltage Cable Test Report (Birth Certificate)

1. The Contractor will ensure the Cable Test Report (Birth Certificate) is in compliance with the Contract Documents. The Contractor shall submit all testing information electronically. This shall include attaching all test reports and entering select data and information from the test reports.

2. The Professional will review and approve/reject the report for compliance with the Contract Documents.

3. High Voltage Cable may not be installed until the Manufacturer’s Cable Test Reports are approved by the Professional.

4. If the report is rejected by the Professional, the report will be returned to the Contractor with an explanation.

E. High Voltage Cable Field Test Report

1. The Contractor shall submit all testing information electronically. This shall include all test reports and entering select data and information from the test reports.

2. The Professional shall review the report for compliance and approve/reject the report.

3. Payment for High Voltage Cable will be made only after the Manufacturer’s Test Report is approved, cable is installed and the Field Test Report is approved by the Professional and reviewed by the Department.

4. If the report is rejected, the Professional shall return it to the Contractor electronically

F. HVAC Systems Balancing Report

1. The Contractor shall upload all testing and balancing information electronically. This shall include attaching the final balancing report and entering select data and information.

2. The Professional shall, upon receipt of the Balancing Report from the Contractor, review it for compliance with balancing procedures and the Contract Documents. The Professional will review the report for compliance and approve/reject.

3. If the report is rejected, the Professional shall return the report to the Contractor electronically with an explanation.

4. Payment for test and balancing will not be made until the report(s) are approved by the Professional.

Administrative Procedures

Administrative Procedures 2022 Edition

ADMINISTRATIVE PROCEDURE NO. 6

SUBMITTALS

A. Each Prime Contractor shall prepare and submit to the Lead Contractor a Draft Submittal Schedule showing all items requiring submission including, but not limited to the items listed on the Submittal Register. The Submittal Schedule shall be prepared in accordance with the Submittal Article of the General Conditions. All critical and long lead submittal items from the Submittal Schedule shall then be integrated by the Lead Contractor and tied to the logic of activities in the Master Project Schedule.

B. Each Prime Contractor’s draft Submittal Schedule (to be submitted to the Lead Contractor) shall include the following as a minimum:

1. Submittal breakdown by Specification Section number and division;

2. Scheduled date for initial submittal of item; and

3. Days required after return of an approved submittal to order, fabricate and deliver the specific item to the site.

C. If the development of the Submittal Schedule affects the construction sequencing, durations, logic or any other aspect of the Project Schedule, including established milestones, the Lead Contractor, in concert with the other Prime Contractors, shall make any necessary revisions to the Project Schedule. The contract completion date will not be adjusted as a result of these revisions. Review and acceptance of this revised integrated Progress Schedule, by the Department and Professional, shall follow the procedures established in Project Schedule Administrative Procedure. The Contractor shall also provide an explanation detailing the reasons for the revision and the activities affected in the letter of transmittal.

D. The Professional will review and approve/reject/other all submittals electronically and place its appropriately worded stamp on the submittal. Accepted language is Approved, Approved as Noted, For Record Only, Not Approved, and Revise and Resubmit.

E. The Contractor shall make any corrections required by the Professional and shall resubmit shop drawings or new samples until approved. The resubmission shall be acted upon by the Professional within ten (10) days of its receipt, unless a different period of time is approved by the Department. The resubmission of submittals by the Contractor and subsequent review by the Professional shall be in accordance with the General Conditions of Contract.

F. Any work commenced by the Contractor prior to final approval of the submittals by the Professional is performed by the Contractor at its own risk.

6-1 Administrative Procedures 2017 Edition

Administrative Procedures

ADMINISTRATIVE PROCEDURE NO. 7

CONTRACTOR’S INVOICE

PREVAILING MINIMUM WAGE CERTIFICATE (DAVIS-BACON ACT)

INVOICE OF LABOR, MATERIALS/EQUIPMENT

PAYROLL AFFIDAVIT, CONTRACTOR’S CERTIFICATE AND

STATEMENTOF SURETY, POWER OF ATTORNEY

STORED MATERIALS

A. General Information

1. Contractor’s Invoices shall be created and submitted and processed in accordance with the Payment Article of the General Conditions and this Administrative Procedure.

2. No Invoice will be processed until the Schedule of Values, has been approved.

3. An Invoice will not be processed unless the SDB/VBE Utilization Report (See AP 13) has been submitted within 30 days prior to the Invoice.

4. When an Invoice is received, the DMVA Project Manager shall process the invoice. The DMVA Project Manager has five calendar days, from this date, to review and take action.

5. In accordance with the Prompt Payment Schedule (62 Pa. C.S. §3931-§3939) the Department shall make payment within forty-five (45) calendars days of the date the Invoice is received in a complete and acceptable format. The time does not start until the invoice is accepted by the Department. For purposes of calculating the forty-five calendar days, the start date will be the day on which the DMVA Project Manager accepts the Invoice.

B. Prevailing Minimum Wage Certificate or Davis-Bacon WH-347

A. The Prevailing Minimum Wage Certificate must be completed, by the Contractor, and attached to each Invoice to certify compliance with the payment of Prevailing Minimum Wages as required by the Contract Documents.

B. All Prime Contractors are required to submit electronically the Form LLC-25 (or Form WH-347 if Davis-Bacon Wage Act applies to the contract) for themselves and all subcontractors of every tier on a weekly basis. The Contractor shall provide ONLY the information required on the form and shall not include any employee personal information (i.e., social security numbers, home addresses, phone numbers, etc.). If the Contractor intends to provide forms with employee personal information, the Contractor shall redact it prior to submitting the forms and attachments.

C. Invoice for Work Completed

1. The Contractor must provide a true and correct list of the work performed for each pay period.

2. An approved change order may be paid on a percentage basis as the work is completed.

D. Stored Materials

1. Stored Materials may be invoiced by a Contractor when materials are ordered in advance and stored at an appropriate facility or the site until installation will occur. Material that is scheduled for installation in less than forty-five days from the date of procurement is not eligible for payment as stored material.

2. A completed Stored Materials Form must be submitted with the Invoice.

3. Prior approval to store materials is not required by the Department.

4. It is not necessary for the Project Manager to visit the warehouse where materials are stored off-site. By executing the Stored Materials Form and submitting photographs, the Contractor will be attesting to the fact that the materials are properly stored. The Contractor is responsible for proper storage of the materials at the project site. Materials must be stored off the ground and properly protected from the elements.

5. Only one supplier may be submitted on each Stored Materials Form.

6. The description of line items on the vendor’s invoice should be identical to the description on the Stored Materials Form and the Schedule of Values. If an item description on the vendor’s invoice is not identical, the Contractor must clearly describe, either on the invoice or an attachment, the invoiced item(s) as related to the items on the Stored Materials and Schedule of Values.

7. The vendor’s invoice must also show the Unit Wholesale Price and the Extended Unit Wholesale Price. It is permissible for the Contractor to add information to the vendor’s invoice for the purpose of clarity.

8. If items that are being submitted as stored material are intermixed with other items on a vendor’s invoice, the claimed items must be highlighted or underlined.

9. Requests for payment may not exceed eighty-five percent (85%) of the price of the item as indicated on the approved Schedule of Values.

10. When a vendor’s invoice lists two or more separate items that are component parts of a single line item previously submitted on the Schedule of Values, a “Supplemental Schedule of Values Sheet” must be submitted and approved prior to payment for the individual items. Line items with differing unit prices must be shown as separate items on the Supplemental Cost Breakdown Sheet. Each component part must be shown as an individual item.

11. The completed Stored Materials Form, submitted with the Invoice, must also have the following documents attached:

a. Vendor’s Invoice

b. Photographs of material and its location

c. Fire and theft insurance policy rider for the materials

d. Evidence of payment, or when payment has not been made, a letter on the contractor’s letterhead authorizing payment to be made jointly to the contractor and the supplier.

e. Power of Attorney (from bonding company)

1. A Final Invoice must be accompanied by a completed Payroll Affidavit, Contractor’s Affidavit and Statement of Surety Company / Power of Attorney. If this Form is not submitted with the Final Invoice, the sum of $500 will be withheld until the form is submitted.

2. The Payroll Affidavit section of the form need not be completed, if the prevailing minimum wage scale does not apply. However, a statement must be made by the Contractor on the reverse side of the Payroll Affidavit, indicating that the prevailing minimum wage scale does not apply.

3. A copy of this form should be retained by the Contractor, and an original and two copies must be forwarded with the Invoice. A copy of the Power of Attorney must be attached to each Statement of Surety Company section.

F. Small Diverse Business and Veteran Business Enterprise Utilization Report

1. A Small Diverse Business and Veteran Business Enterprise Utilization Report must be submitted within 30 calendar days prior to submitting an invoice. If this Report is not submitted as noted, you will not be able to submit an Invoice. Time for payment does not start until such time as an acceptable invoice is submitted to the Department.

G. For Each Invoice

1. Contractor shall update the invoice based upon work completed since last invoice. Prior to submission of the Invoice by the Contractor, the following documents shall be included as attached documents in in this order:

a. Prevailing Minimum Wage Certificate or WH-347

b. Small Diverse Business and Veteran Business Enterprise Utilization Report – This is submitted prior to an invoice and is a check box when starting an invoice process. If a SDBVBEUR form has not been submitted within 30 days of an invoice process, the invoice will not be accepted by the Department and time for payment will not start until the Contractor submits the SDBVBEUR form.

c. Stored materials information (if applicable)

1. Power of Attorney (from bonding company)

2. Vendor’s Invoice

3. Photographs of material and its location

4. Fire and theft insurance policy rider

5. Evidence of payment, or when payment has not been made a letter on Contractor’s letterhead authorizing payment to be made jointly to the contractor and the supplier

d. Payroll Affidavit, Contractor’s Affidavit and Statement of Surety Company / Power of Attorney (if Final Invoice)

e. Notarized LLC-25 for Commonwealth funded projects or WH-347 for federal funded projects (if Final Invoice)

2. Upon Final Inspection, the monetary amount to be retained shall be adjusted to reflect the actual amounts retained, as set out in the various sections of the General Conditions of Contract. The pertinent pages of the punch list, including the Professional’s Certificate detailing the uncompleted items and value, pending credit change orders, liquidated damages, claims, etc., must be attached to the Invoice. The items indicated on the punch list shall not be paid until completed in their entirety. As the paperwork items are completed, change orders and extensions of time are approved, claims resolved, the retained amount may be reduced accordingly. The pertinent pages of punch list shall be attached with a strikethrough the items acceptably completed and/or approved. The adjusted retained amount should then be calculated, inserted and highlighted on the copies of the punch list attached to the Invoice. The adjusted retained amount must equal the amount shown on the schedule of values.

Administrative Procedures

Administrative Procedures

ADMINISTRATIVE PROCEDURE NO. 8

CHANGES IN CONTRACT WORK

(FIELD ORDERS/CHANGE ORDERS)

A. Any change to Project Contract must be documented by issuance of a Change Order. All Change Orders are to be started and processed. All information and required fields for the Change Order process shall be completed by the initiator prior to submitting it.

B. A Change Order may be commenced by the Professional, DMVA Personnel, and under limited circumstances, the Contractor.

C. The Contractor’s SDB and VBE participation percentages will apply to Change Orders if the work that is the subject of the Change Order is the type of work being performed by an SDB or VBE on the Contract.

D. DMVA reserves the right to require SDB or VBE participation on change orders for additional work not already subject to an SDB or VBE commitment.

E. The Professional is required to provide an opinion as to the reason that the Change Order is required. The Professional must select one of the causes and provide detailed explanation supporting that choice.

F. The Professional’s cause choice is the opinion of the Professional and may or may not represent the views of DMVA. DMVA will review the Change Order and make a final determination on cause based upon on all applicable factors including input provided by the Professional.

G. Professional’s Cost Guesstimate

1. The Professional must provide their best estimate of the cost to perform the subject Change order work. DMVA secures Project Funds based on the Professional’s Guesstimate amount, so the Professional should use whatever means are necessary to provide the most accurate Guesstimate possible.

2. In the event the Professional disagrees with the need or legitimacy of the subject Change Order, they are still required to provide a Guesstimate cost to perform that work. That Guesstimate shall be based solely on the cost value of the work. The legitimacy of the Change Order request shall have no bearing on this Guesstimate cost figure. DMVA reserves the right to secure funds at the Contractor’s cost breakdown figure in lieu of the Professional’s Guesstimate cost figure for any Contractor originated Change Order request disputed by the Professional.

H. A detailed cost breakdown shall be attached to the Change Order by the Contractor for any changes to the Prime Contractor’s scope of Work utilizing the format established by the sample change order included in this Administrative Procedure.

1. Material Costs - The Cost Breakdown shall list, as a minimum for each material item used, the material description, the unit, (U) used to detail quantity, the quantity, (Q) showing the total amount of that unit, the unit cost, (MU) and the individual cost total, (Q x MU). The Cost Breakdown shall then include the total of all the individual cost totals which is defined as the pre-mark-up cost total. The Contractor may optionally provide (but is not required to provide) the applicable labor hours per material unit (HU) and the respective labor extension for that unit (Q x HU). If the Contractor chooses to provide unit labor information in the material section, the total hours of labor shown must match the total labor hours shown under the LABOR section of the cost breakdown. The total material cost will be the sum of the pre-mark-up material cost total plus the sales tax mark-up plus the overhead, general support and profit mark-up.

i. DMVA will not acknowledge or honor any separate line items in the Cost Breakdown for such freight charges.

ii. The Contractor is entitled to and may claim the following mark-up for material listed on the Cost Breakdown:

a. state and local sales tax equal to the applicable sales tax rate times the pre-mark-up material cost total listed;

b. mark-up material cost total plus the sales tax mark-up, overhead, general support and profit equal to 10% times the sum of the pre-markup material costs.

2. Labor Costs - The Cost Breakdown shall include for each labor classification listed, the number of workers, duration of work for each worker, the total labor hours (H), the classification description, the hourly base wage rate paid (BR), the total hourly wage rate paid (WR), the base rate individual cost (H x BR) and the wage rate individual cost (H x WR). The Cost Breakdown shall then include the total of all the individual base rate costs (TBR) and the total of all the individual wage rate costs. (TWR) The hourly base wage rate (BR) is defined as the rate of wages paid by the employer directly to the employee. The total hourly wage rate (WR) is defined as the total rate of wages paid by the employer including wages paid directly to the employee (BR) plus any employer participation or contribution to employee benefits paid on behalf of the employee. DMVA acknowledges that for certain Contractors the base rate (BR) and the wage rate (WR) are equivalent. The total labor cost will be the sum of the total wage rate cost (TWR) plus the total mandated burden mark-up (TMB) plus the overhead, general support and profit mark-up.

i. DMVA will not accept or reimburse line items for travel, lodging and per-diem. Exceptions may be made on a case-by-case basis for instances including use of a specialty out-of-state, or non-local Sub-Contractor for Change Order Work, or in the event that the Change Order Work is being issued after Project Final Completion and the Prime Contractor claims travel and lodging costs in lieu of remobilization costs.

ii. The Contractor is entitled to and may claim the following mark-up for labor listed on the cost breakdown:

a. mark-up for mandatory labor burden costs including (and limited to) social security, federal and state unemployment taxes, workmen’s compensation insurance and public liability insurance. The allowable mark-up for each is equal to the applicable social security, unemployment compensation tax, workmen’s comp. insurance, or public liability insurance rate times the total base rate cost (TBR) not the total wage rate (TWR). DMVA will disallow any excessive burden mark-up calculated as a percentage of the TWR (excepting those instances where the TBR and TWR are identical). DMVA will also not honor any mark-up for types of labor burden additional to those listed;

b. mark-up for overhead, general support and profit equal to 15% times the sum of the total wage rate cost (TWR) plus the total mandated burden mark-up (TMB). The total mandated burden mark-up is defined as the total of all the allowable individual burden costs for social security, unemployment compensation tax, workmen’s compensation insurance and public liability insurance.

3. Equipment Costs The Cost Breakdown shall include for each piece of equipment used to perform the subject work, the description of the piece of equipment used, the quantity of that particular piece used, the duration the piece of equipment was used, the rental rate for the duration used and the total rental cost. DMVA expects the Contractor to procure/provide the most economical rental rate available over the duration of the work performed. For example, if the piece of equipment was used over a four week period, DMVA will expect a monthly rate in lieu of a daily or weekly rate, if the monthly rate is more economical than the other two rates.

i. DMVA will not pay equipment costs for any piece of equipment not specifically identified, or for any tools such as hand tools used in the everyday performance of contract work.

ii. The Contractor may claim sales tax paid for any piece of equipment rented from an outside (non-Contractor owned) rental agency provided that a receipt showing the sales tax paid amount accompanies the cost breakdown. DMVA will disallow sales tax for any rental item without such proper verification.

iii. The Contractor may claim mark-up for overhead, general support and profit equal to 10% times the sum of the total rental costs plus the total applicable sales tax. The total rental costs are the sum of all the individual rental costs. The total applicable sales tax is the sum of all the individual verified sales taxes

4. Subcontractors – A detailed cost breakdown or acceptable alternate quote from the Subcontractor is required for any detailed cost breakdown from the Prime Contractor showing that any or all of the Change Order work is being performed by the Subcontractor. An acceptable alternate quote is defined as a lump sum cost quotation provided by the Sub-Contractor on Sub-Contractor letterhead paper which details the exact scope of work to be done by the Contractor including detailed information of quantities and description of material items installed. DMVA will consider the lump sum cost to be inclusive of all material, labor and equipment costs including all applicable markups for overhead, profit, general support, total mandated burden, taxes and bond adjustment to which the Sub-Contractor is entitled as defined within this manual section. For breakdowns containing work performed by one or more Sub-Contractors and the Prime Contractor, the Prime is responsible for clarifying somewhere in the breakdown, the exact scope of work being performed by the Prime and each Sub-Contractor.