Section_109_Measurement_and_Payment.doc

Section 109

Section 109

Section 109. — MEASUREMENT AND PAYMENT

109.01 Measurement of Work. Take and record measurements and perform calculations to determine pay quantities for invoicing for work performed. Take or convert all measurements of work according to United States customary measure.

Unless otherwise specified, measure when the work is in place, complete, and accepted. Measure the actual work performed, except do not measure work outside the design limits or other adjusted or specified limits (staked limits). Measure structures to the lines shown on the plans or to approved lines adjusted to fit field conditions.

Take measurements as described in Subsection 109.02 unless otherwise modified by the Measurement Subsection of the Section controlling the work being performed.

Remeasure quantities if it has been determined that any portion of the work is acceptable but has not been completed to the lines, grades, and dimensions shown on the plans or established by the CO.

Submit measurement notes to the CO within 24 hours of completing the work. For on-going work, submit measurement notes weekly. When work is not complete, identify the measurement as being an interim measurement. Submit the final measurement when the installation is completed. Measurement notes form the basis of the Government’s receiving report (see Subsection 109.08(d)). For lump sum items, submit documentation to support invoiced progress payment on a monthly basis.

Use an acceptable format for measurement records. As a minimum, include the following information in all records of measurement:

(a) Project name and number;

(b) Contract item number;

(c) Date the work was performed;

(d) Location of the work;

(e) Measured quantity;

(f) Calculations made to arrive at the quantity;

(g) Supporting sketch and details as needed to clearly define the work performed and the quantity measured;

(h) Names of persons measuring the work;

(i) Identification as to whether the measurement is interim or final; and

(j) Signed certification statement by the persons taking the measurements, performing the calculations, and submitting them for payment that the measurement and calculations are correct to the best of their knowledge and that the quantity being measured is subject to direct payment for the identified item under the contract.

109.02 Measurement Terms and Definitions. Unless otherwise specified, the following terms are defined as follows:

(a) Acre. 43,560 square feet. Make longitudinal and transverse measurements for area computations horizontally unless specified on the ground surface. Do not make deductions from the area computation for individual fixtures having an area of 500 square feet or less.

(b) Contract quantity. The quantity to be paid is the quantity shown in the bid schedule. The contract quantity will be adjusted for authorized changes that affect the quantity or for errors made in computing this quantity. If there is evidence that a quantity specified as a contract quantity is incorrect, submit calculations, drawings, or other evidence indicating why the quantity is in error and request, in writing, that the quantity be adjusted.

(b) Cubic yard.

(1) Cubic yard in place. Measure solid volumes by a method approved by the CO or by the average end area method as follows:

(a) Take cross-sections of the original ground and use with design or staked templates or take other comparable measurements to determine the end areas. Do not measure work outside of the established lines or slopes.

(b) If any portion of the work is acceptable but is not completed to the established lines and slopes, retake cross-sections or comparable measurements of that portion of the work. Deduct any quantity outside the designated or staked limits. Use these measurements to calculate new end areas.

(c) Compute the quantity using the average end areas multiplied by the horizontal distance along a centerline or reference line between the end areas. Deduct any quantity outside the designed or staked limits.

(2) Cubic yard in the hauling vehicle. Measure the cubic yard volume in the hauling vehicle using three-dimensional measurements at the point of delivery. Use vehicles bearing a legible identification mark with the body shaped so the actual contents may be readily and accurately determined. Before use, mutually agree in writing on the volume of material to be hauled by each vehicle. Vehicles carrying less than the agreed volume may be rejected or accepted at the reduced volume.

Level selected loads. If leveling reveals the vehicle was hauling less than the approved volume, reduce the quantity of all material received since the last leveled load by the same ratio as the current leveled load volume is to the agreed volume. Payment will not be made for material in excess of the agreed volume.

Material measured in the hauling vehicle may be weighed and converted to cubic yards for payment purposes if the conversion factors are mutually agreed to in writing.

(3) Cubic yard in the structure. Measure according to the lines of the structure as shown on the plans except as altered by the CO to fit field conditions. Make no deduction for the volume occupied by reinforcing steel, anchors, weep holes, piling, or pipes less than 8 inches in diameter.

(4) Cubic yard by metering. Use an approved metering system.

(d) Each. One entire unit. The quantity is the actual number of units completed and accepted.

(e) Gallon. The quantity may be measured by any of the following methods:

(1) Measured volume container.

(2) Metered volume. Use an approved metering system.

(3) Commercially-packaged volumes.

When asphalt material is measured by the gallon, measure the volume at 60 ºF or correct the volume to 60 ºF using recognized standard correction factors.

(f) Hour. Measure the actual number of hours ordered by the CO and performed by the Contractor.

(g) Linear foot. As applicable, measure the work along its length from end-to-end; parallel to the base or foundation; along the top; along the front face; or along the invert. Do not measure overlaps.

(h) Lump sum. Do not measure directly. The bid amount is complete payment for all work described in the contract and necessary to complete the work for that item. The quantity is designated as "All." Estimated quantities of lump sum work shown in the contract are approximate.

(i) M-gallon. 1,000 gallons. Measure according to (e) above.

(j) Mile. 5,280 linear feet. Measure horizontally along the centerline of each roadway, approach road, or ramp.

(k) Pound. Measure according to Subsection 109.03. If sacked or packaged material is furnished, the net weight as packed by the manufacturer may be used.

(l) Square foot. Measure on a plane parallel to the surface being measured.

(m) Square yard. 9 square feet. Longitudinal and transverse measurements for area computations will be made horizontally. No deductions from the area computation will be made for individual fixtures having area of 9 square feet or less.

(n) Station. 100 linear feet. Measure horizontally along centerline or reference line of each roadway, approach road, or ramp.

(o) Ton. 2,000 pounds avoirdupois. Measure according to Subsection 109.03.

No adjustment in a contract unit price will be made for variations in quantity due to differences in the specific gravity or moisture content.

Use net-certified scale masses, or masses based on certified volumes in the case of rail shipments as a basis of measurement subject to correction when asphalt material is lost from the car or the distributor, wasted, or otherwise not incorporated in the work. When asphalt material is shipped by truck or transport, net-certified masses, subject to correction for loss or foaming, may be used for computing quantities.

When emulsified asphalt is converted from volume to mass, use a factor of 240 gallons per ton regardless of temperature.

When asphalt binder for asphalt concrete pavement is stored in tanks devoted exclusively to the project, base quantities on invoices. When asphalt binder for asphalt concrete pavement is not stored in tanks devoted exclusively to the project, or when the validity of the quantity requested for payment is in question, base quantities on the asphalt content determined by testing.

109.03 Weighing Procedures and Devices. Batch masses may be acceptable for determination of pay quantities when an approved automatic weighing, cycling, and monitoring system is included as part of the batching equipment.

When a weighing device is determined to indicate less than true mass, no additional payment will be made for material previously weighed and recorded. When a weighing device is determined to indicate more than true mass, all material received after the last previously correct weighing accuracy test will be reduced by the percentage of error in excess of 0.5 percent.

When material is proportioned or measured and paid for by mass, provide one of the following:

(a) Commercial weighing system. Use permanently-installed and certified commercial scales.

(b) Invoices. If bulk material is shipped by truck or rail and is not passed through a mixing plant, furnish a supplier's invoice with net mass or volume converted to mass. Periodic check weighing may be required.

(c) Project weighing system. Furnish, erect, and maintain acceptable automatic digital scales. Provide scales that record mass at least to the nearest 100 pounds.. Maintain the scale accuracy to within 0.5 percent of the correct mass throughout the range of use.

Do not use spring balances.

Install and maintain platform scales with the platform level with rigid bulkheads at each end. Make the platform of sufficient length to permit simultaneous weighing of all axle loads of the hauling vehicle. Coupled vehicles may be weighed separately or together according to Section 2.20 paragraph UR 3.3 of NIST Handbook 44.

Install and maintain belt‑conveyor scales according to Section 2.21 of NIST Handbook 44.

Before production on the project, after relocation, and at least once per year, have the weighing portion of the system checked and certified by the State Bureau of Weights and Measures or a private scale service certified by the Bureau of Weights and Measures. Seal the system to prevent tampering or other adjustment after certification.

Attach an automatic printer to the scale that is programmed or otherwise equipped to prevent manual override of all mass information. For weighed pay quantities, program the printer to provide the following information for each weighing:

(1) Project number;

(2) Item number and description;

(3) Date;

(4) Time;

(5) Ticket number;

(6) Haul unit number;

(7) Net mass in load at least to the nearest 100 pounds;

(8) Subtotal net mass for each haul unit since the beginning of the shift; and

(9) Accumulated total net mass for all haul units since the beginning of the shift.

If a printer malfunctions or breaks down, the Contractor may manually weigh and record masses for up to 48 hours provided the method of weighing meets all other contract requirements.

Furnish competent scale operators to operate the system.

When platform scales are used, randomly weigh the empty haul units at least twice per shift.

Use an approved format for the mass records. Furnish the original record(s) and a written certification as to the accuracy of the masses at the end of each shift.

109.04 Receiving Procedures. When the method of measurement requires weighing or volume measurement in the hauling vehicle, furnish a person to direct the spreading and distribution of material and to record the location and placement of the material on the project. During the placement, maintain a record of each delivery and document it in an acceptable manner. Include the following information as applicable:

(a) ADVANCE \r 0Project identification;

(b) Contract pay item number and description;

(c) Location where placed;

(d) Date;

(e) Load number;

(f) Truck identification;

(g) ADVANCE \r 0Time of arrival;

(h) Mass or volume; and

(i) Spread person's signature.

Use an approved format for the delivery record(s). Furnish the original record(s) and a written certification of the delivery of the material at the end of each shift.

109.05 Scope of Payment. Payment for all contract work is provided, either directly or indirectly, under the pay items shown in the bid schedule.

(a) Direct payment. Payment is provided directly under a pay item shown in the bid schedule when one of the following applies:

(1) The work is measured in the Measurement Subsection of the Section ordering the work, and the bid schedule contains a pay item for the work from the Section ordering the work.

(2) The Measurement Subsection, of the Section ordering the work, references another Section for measuring the work and the bid schedule contains a pay item for the work from the referenced Section.

(b) Indirect payment. Work for which direct payment is not provided is a subsidiary obligation of the Contractor. Payment for such work is indirectly included under other pay items shown in the bid schedule. This includes instances when the Section ordering the work references another Section for performing the work and the work is not referenced in the Measurement Subsection of the Section ordering the work.

Compensation provided by the pay items included in the contract bid schedule is full payment for performing all contract work in a complete and acceptable manner. All risk, loss, damage, or expense arising out of the nature or prosecution of the work is included in the compensation provided by the contract pay items.

Work measured and paid for under one pay item will not be paid for under any other pay item.

The quantities shown in the bid schedule are approximate unless designated as a contract quantity. Limit pay quantities to the quantities staked, ordered, or otherwise authorized before performing the work. Payment will be made for the actual quantities of work performed and accepted or material furnished according to the contract. No payment will be made for work performed in excess of that staked, ordered, or otherwise authorized.

109.06 Pricing of Adjustments. Determine all costs according to the contract cost principles and procedures of FAR Part 31. Follow the requirements of all FAR clauses providing for an equitable price adjustment.

If agreement on price cannot be reached, the CO may determine the price unilaterally.

If the work will delay contract completion, request a time extension according to Subsection 108.03.

(a) Proposal.

(1) General. Submit a written proposal for each line item of the work or a lump sum for the total work. Identify the major elements of the work, the quantity of the element, and its contribution to the proposed price. Provide further breakdowns if requested by the CO.

When price is based on actual costs (e.g., cost-plus-fixed-fee), profit is based on the estimated cost of the work and may not exceed the statutory limit of 10 percent of the total cost. Due to the limited risk in this type of pricing arrangement, a lower profit percentage may be indicated.

(2) Data. Submit information as requested by the CO to the extent necessary to permit the CO to determine the reasonableness of the proposed price.

(3) Cost or pricing data. When the contract modification exceeds the amount indicated in FAR Clause 52.214-27 Price Reduction for Defective Cost or Pricing Data - Modifications - Sealed Bidding, or FAR Clause 52.215-11 Price Reduction for Defective Cost or Pricing Data - Modifications, submit cost or pricing data.

Provide cost or pricing data, broken down by individual work item, for the Contractor and each major subcontractor. Include the information required by (b)(1) and (b)(2) below. When cost or pricing data is submitted before all or most of the work is performed, submit material and subcontractor quotes, anticipated labor and equipment usage, and anticipated production rates. Provide data for all proposed increases or decreases to the contract price.

Submit with the cost or pricing data a written proposal for pricing the work according to (1) above. See Table 15-2 following FAR Subpart 15.4 for guidance.

Upon completion of negotiations, certify the cost or pricing data as being accurate, complete, and current as of the date the agreement was reached.

(b) Postwork pricing. When negotiating the price of additional or changed work after all or most of the work has been performed, furnish the following:

(1) Direct costs.

(a) Material. Furnish invoices showing the cost of material delivered to the work.

(b) Labor. Show basic hourly wage rates, fringe benefits, applicable payroll costs (i.e., FICA, FUTA, worker's compensation, insurance, and tax levies), paid subsistence, and travel costs for each labor classification and foreman employed in the adjusted work.

(c) Equipment. Provide a complete descriptive listing of equipment including make, model, and year of manufacture. Support rented or leased equipment costs with invoices. Determine allowable ownership and operating costs for Contractor- and subcontractor-owned equipment as follows:

(1) Use actual equipment cost data when such data can be acceptably determined from the Contractor's or subcontractor's ownership and operating cost records.

(2) When actual costs cannot be determined, use the rates shown in Construction Equipment Ownership and Operating Expense Schedules (CEOOES) published by the U.S. Army Corps of Engineers for the area where costs are incurred. This document is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402-9325. Adjust the rates for used equipment and for other variable parameters used in the schedules.

(3) Compute proposed standby costs from acceptable ownership records or when actual costs cannot be determined, according to CEOOES. Do not exceed 8 hours in any 24-hour period or 40 hours in any calendar week. Do not include standby for periods when the equipment would have otherwise been in an idle status or for equipment that was not in operational condition.

(d) Other direct costs. Furnish documentation or invoices to support any other direct costs incurred that are not included above (e.g., bonds, mobilization, demobilization, permits, royalties, etc).

(e) Production rates. Provide actual hours of performance, on a daily basis, for each labor classification and for each piece of equipment.

(f) Subcontract costs. Provide supporting data as required above.

(2) Overhead. Identify overhead rate(s) and provide supporting data, which justifies the rate(s). List the types of costs, which are included in overhead. Identify the cost pool(s) to which overhead is applied. Apply the overhead to the appropriate pool.

Limit Contractor overhead applied to subcontractor payments to 5 percent of such payments unless a higher percentage is justified.

(3) Profit. Except when precluded by the FAR, include a reasonable profit reflecting the efficiency and economy of the Contractor and subcontractors in performing the work, the contract risk type, the work difficulty, and management effectiveness and diversity.

For work priced after all or most of the work is performed, profit is limited by statute to 10 percent of the total cost. Due to the limited risk in post-work pricing, a lower profit percentage may be indicated.

109.07 Eliminated Work. Follow the requirements of FAR Clause 52.243-4 Changes.

Work may be eliminated from the contract without invalidating the contract. The Contractor is entitled to compensation for all direct costs incurred before the date of elimination of work plus profit and overhead on the direct incurred costs. Anticipated profit and overhead expense on the eliminated work will not be compensated.

109.08 Progress Payments. Follow the requirements of FAR Clauses 52.232-5 Payments under Fixed-Price Construction Contracts and 52.232-27 — Prompt Payment for Construction Contracts.

(a) General. Only invoice payments will be made under this contract. Invoice payments include progress payments made monthly as work is accomplished and the final payment made upon final acceptance. Only one progress payment will be made each month. No progress payment will be made in a month in which the work accomplished results in a net payment of less than $1,000. Full or partial progress payment will be withheld until a construction schedule or schedule update is submitted to, and accepted by, the CO.

(b) Closing date and invoice submittal date. The closing date for progress payments will be designated by the CO. Include work performed after the closing date in the following month’s invoice. Submit invoices to the designated billing office.

(c) Invoice requirements. Submit the invoice to the Government’s designated billing office. Include the following items in the invoice:

(1) The information required in FAR Clause 52.232-27(a)(2)(i) through (a)(2)(xi).

(2) A tabulation of total quantities and unit prices of work accomplished or completed on each pay item as of the monthly closing date. Do not include any quantities unless field note documentation for those quantities was submitted by the closing date. Do not include quantities of work involving material for which test reports required under Sections 153 or 154 or certifications required by Subsection 106.03 are, or will be, past due as of the closing date.

(3) The certification required by FAR Clause 52.232-5(c) and, if applicable, the notice required by FAR Clause 52.232-5(d). Provide an original signature on the certification. Facsimiles are not acceptable.

(4) If applicable, a copy of the notices that are required by FAR Clause 52.232‑27(e)(5) and (g).

(5) The amount included for work performed by each subcontractor under the contract.

(6) The total amount of each subcontract under the contract.

(7) The amounts previously paid to each subcontractor under the contract.

(8) Adjustments to the proposed total payment that relate to the quantity and quality of individual items of work. Adjustments for the following may be made by the Government after validation of the invoice:

(a) Retent resulting from a failure to maintain acceptable progress;

(b) Retent resulting from violations of the labor provisions;

(c) Retent pending completion of incomplete work, other "no pay" work, and verification of final quantities;

(d) Obligations to the Government such as excess testing cost or the cost of corrective work pursuant to FAR Clause 52.246-12(g); or

(e) Liquidated damages for failure to complete work on time.

(d) Government’s receiving report. The Government’s receiving report will be developed using the measurement notes received by the CO and determined acceptable. Within 7 days after the closing date, the CO will be available by appointment at the Government’s designated billing office to advise the Contractor of quantities and unit prices appearing on the Government’s receiving report.

(e) Processing progress payment requests. No payment will be made for work unless field note documentation for the work was provided by the closing date.

(1) Proper invoices. If the invoice meets the requirements of Subsection 109.08(c), and the quantities and unit prices shown on the Contractor’s invoice agree with the corresponding quantities and unit prices shown on the Government’s receiving report, the invoice will be paid.

(2) Defective invoices. If the invoice does not meet the requirements of Subsection 109.08(c), or if any of the quantities or unit prices shown on the Contractor’s invoice exceed the corresponding quantities and unit prices shown on the Government’s receiving report, the invoice is defective, and the Contractor will be notified according to FAR Clause 52.232-27(a)(2). Defective invoices will be returned to the Contractor within 7 days after receipt by the Government’s designated billing office. Correct and resubmit returned invoices. If the defects are minor, the Contractor may elect, in writing, to accept the quantities and unit prices shown on the Government’s receiving report for payment.

(f) Partial payments. Progress payments may include partial payment for material to be incorporated in the work, provided the material meets the requirements of the contract and is delivered on, or in the vicinity of, the project site or stored in acceptable storage places.

Partial payment for material does not constitute acceptance of such material for use in completing items of work. Partial payments will not be made for living or perishable material until incorporated into the project.

Partial payments for material will not exceed the lesser of:

(1) 80 percent of the contract bid price for the item; or

(2) 100 percent of amount supported by copies of invoices submitted.

The quantity paid will not exceed the corresponding quantity estimated in the contract.

109.09 Final Payment. Follow the requirements of FAR Clause 52.232-5 Payment under Fixed-Price Construction Contracts and FAR Clause 52.232-27 Prompt Payment for Construction.

Upon final acceptance and verification of final pay records, the Government will send, by certified mail, a final voucher (SF 1034) and a release of claims document. Execute both the voucher and the release of claims, and return the documents to the Government for payment. The date of approval by the Government of the final voucher for payment constitutes the date of final settlement of the contract.

If unresolved claims exist or claims are proposed, reserve the right to the claims by listing a description of each claim and the amount being claimed on the release of claims document.

Failure to execute and return the voucher and release of claims document within 90 days after receipt shall constitute and be deemed execution of the documents and the release of all claims against the Government arising by virtue of the contract. In this event, the day after 90 days from receipt constitutes the date of final settlement of the contract.