attachment-6-rfb-dmavs-2026-06.docx

PRICE AND PAYMENT PROCEDURES

1. REQUISITION FOR PAYMENT

A. Submit one copy of each application on the AIA Application and Certificate for Payment G702 and Continuation sheet G703 or another document/form that has been previously approved by the Department.

B. Content and Format: Items on the Requisition for Payment shall be consistent with the items on the Proposal Form. Utilize the Schedule of Values as documentation for payment items.

C. Submit updated construction schedule with each Requisition for Payment.

D. Payment Period: Submit at intervals stipulated in the General Conditions.

E. Submit with transmittal letter to the attention of the project Architect/Engineer for review and approval.

F. Substantiating Data: When the Department requires substantiating information, submit data justifying dollar amounts in question.

2. SCHEDULE OF VALUES

A. Submit printed schedule on AlA Form G703 - Continuation Sheet for G702 or approved equal. (See item 1.A above) B. Submit Schedule of Values within 15 days after date of issuance of Notice to Proceed. Failure to submit within specified time period will constitute Default of Contract.

C. Format: Utilize Table of Contents of these specifications. Identify each line item with number and title of major specification section. Identify bonds, insurance, general conditions, allowances etc.

D. Include a separate line item for closeout to include record drawings, owner’s manuals and other pertinent information due to the Department.

E. Include a separate line item for the amount of each Allowance and Alternates specified in this section. For unit cost Allowances, identify quantities taken from Contract Documents multiplied by unit cost to achieve total for each item.

F. Revise schedule to list approved Change Orders, with each Requisition or Payment.

3. UNIT PRICES

A. Authority: Measurement methods are delineated in individual specification sections.

B. Measurement methods delineated in individual specification sections complement criteria of this section. In event of conflict, requirements of individual specification section govern, C. Take measurements and compute quantities. Architect/Unit Quantities: Quantities and measurements indicated in Bid Form are for contract purposes only. Quantities and measurements supplied or placed in the Work shall determine payment

i. When actual Work requires more or fewer quantities than those quantities indicated, provide required quantities at unit sum/prices contracted.

D. Payment Includes: Full compensation for required labor, products, tools, equipment, plant and facilities, transportation, services, and incidentals; erection, application or installation of item of the Work; overhead and profit, E. Final payment for Work governed by unit prices will be made on basis of actual measurements and quantities accepted by Architect/Engineer multiplied by unit sum/price for Work incorporated in or made necessary by the Work.

F. Measurement of Quantities: Measurement by Weight: Concrete reinforcing steel, rolled or formed steel or other metal shapes will be measured by handbook weights. Welded assemblies will be measured by handbook or scale weight.

G. Measurement by Volume: Measured by cubic dimension using mean length, width and height or thickness.

H. Measurement by Area: Measured by square dimension using mean length and width or radius.

I. Linear Measurement: Measured by linear dimension, at item centerline or mean chord.

J. Stipulated Sum/Price Measurement: Items measured by weight, volume, area, or linear means or combination, as appropriate, as completed item or unit of the Work.

4. CHANGE PROCEDURES

A. Submittals: Submit name of individual authorized to receive change documents and be responsible for informing others in Contractor's employ or Subcontractors of changes to the Work.

B. The Department will advise of minor changes in the Work not involving adjustment to Contract Sum/Price or Contract Time, or that may be necessary to carry out the work included in the Contract, by issuing Supplemental Instructions.

C. The Department may issue a Proposal Request including a detailed description of proposed changes with supplementary or revised Drawings and specifications, with or without a change in Contract Time for executing the change. The Contractor will prepare and submit estimate within ten days.

D. Contractor may propose changes by submitting a request for change(s) to the Department, describing proposed change and its full effect on the Work. Each request shall be a separate item and sequentially numbered. Include a statement describing reason for the change, and effect on Contract Sum/Price and Contract Time with full documentation and a statement describing effect on Work by separate or other Contractors.

E. Stipulated Sum/Price Change Order: Based on Proposal Request and Contractor's fixed price quotation or Contractor's request for Change Order as approved by the Department. Submit the breakdown of the following items on a Department Change Order Form for review and approval by the Department:

i. The Contractor shall include the following indirect costs for work performed by the General Contractor as part of the Contractors' price:

1. Worker's Compensation and Employee Liability.

1. Unemployment and Social Security Taxes.

ii. In addition to the above indirect costs the General Contractor shall be allowed the following markups:

1. Twenty percent (20%). Said twenty percent (20%) shall be all inclusive for overhead, supervision, and profit for Work performed by the General Contractor.

1. Ten percent (10%) on that part of work performed by all Subcontractors.

iii. On any change that involves a net credit to the State, no allowance for overhead, supervision and profit shall be figured.

iv. Contractor shall provide back-up information for all change order pricing.

v. Extension of Contract Time: State any requests for extension of Contract Time with justification for such a request.

F. Unit Price Change Order: For contract unit prices and quantities, the Change Order will be executed on fixed unit price basis. For unit costs or quantities of units of work which are not pre-determined, execute Work under Construction Change Directive. Changes in Contract Sum/Price or Contract Time will be computed as specified for Time and Material Change Order.

G. Construction Change Directive: The Department may issue a directive instructing the Contractor to proceed with changes in the Work, for subsequent inclusion in a Change Order. Document will describe changes in the Work, and designate method of determining any change in Contract Sum/Price or Contract Time. Promptly execute change. Failure to comply will result in Default of Contract.

H. Time and Material Change Order: Submit itemized account and supporting data within 10 days of completion of change. The Department will determine change allowable in Contract Sum/Price and Contract Time as provided in Contract Documents.

i. Maintain detailed records of work done on Time and Material basis. Provide full information required for evaluation of proposed changes, and to substantiate costs for changes in the Work.

I. Execution of Change Orders: The Contractor is responsible for preparing and updating a spreadsheet log itemizing all Proposed Changes. A separate spreadsheet shall be completed for each Allowance Item. The spreadsheet shall include columns for Proposed Change Number, Description, Amount of Change, Status, and Approved Amounts. In addition, a current balance remaining shall be included. Change Orders will be processed per the following procedures:

i. The Department reviews cost for Change in Work. If needed the Department will request additional items, back-up information, and request any possible changes or clarifications.

ii. Contractor can proceed with Change Order Work with direction from the Department.

iii. Contractor shall not proceed with any work that will exceed the amount of Allowance remaining.

iv. Fully signed and executed Change Order is issued by the Department to the Consultant and Contractor.

J. Correlation Of Contractor Submittals:

i. Promptly revise Schedule of Values and Application for Payment forms to record each authorized Change Order as separate line item and adjust Contract Sum/Price.

ii. Promptly revise progress schedules to reflect change in Contract Time, revise sub-schedules to adjust times for other items of work affected by the change, and resubmit.

iii. Promptly enter changes in Project Record Documents.

5. DEFECT ASSESSMENT

A. Any work or materials found to be defective or not in compliance with the plans and specifications in the determination of the Department shall be handled in the following manner.

B. Replace the Work, or portions or the Work, not conforming to specified requirements.

C. If, in the opinion of the Department, it is not practical to remove and replace the Work, the Department will direct appropriate remedy or adjust payment.

D. The defective Work may remain, but unit sum/price will be adjusted to new sum/price at discretion of the Department.

E. Defective Work will be repaired to instructions of and acceptance by the Department and unit sum/price will be adjusted to new sum/price at discretion of the Department.

F. Authority of the Department to assess defects and identify payment adjustments, is final.

G. Non-Payment For Rejected Products: Payment will not be made for rejected products for any of the following:

i. Products wasted or disposed of in a manner that is not acceptable.

ii. Products determined as unacceptable before or after placement.

iii. Products not completely unloaded from transporting vehicle.

iv. Products placed beyond lines and levels of required Work.

v. Products remaining on hand after completion of the Work.

vi. Loading, hauling, and disposing of rejected products.

6. ALTERNATES

A. Alternates quoted on Proposal Forms will be reviewed and accepted or rejected at the Department’s discretion. Accepted Alternates will be identified in the Department -Contractor Agreement.

B. Coordinate related work and modify surrounding work.

7. ALLOWANCES

A. Allowances: If included in the Contract, a stipulated amount of funding for use only upon the Department’s instruction. An allowance will make money available for modifications and/or additions to contract items due to owner initiated changes, unforeseen conditions, for unknown, latent or differing existing conditions, for testing of hazardous materials or for the removal of hazardous materials, asbestos, lead, mercury, sealant etc. that are encountered by construction B. Contractor's costs for products, delivery, installation, labor, insurance, payroll, taxes, equipment rental, overhead and profit will be included in Change Orders authorizing expenditure of funds from an Allowance. The cost of the bond for the amount of Allowance shall be included as part of the lump sum base bid.

C. Funds will be drawn from an Allowance only by Change Order. Contractor can proceed with Change Order Work against Allowance with direction from the Department. The Contractor shall not proceed with any work that will exceed the amount of Allowance remaining.

D. Notwithstanding the Contractor's objection, the Department may at any time reduce the funds remaining in the Allowance by Change Order.

E. At Final Payment of the Contract, funds remaining in the Allowance will be credited to the Department.

8. TESTING AND INSPECTION

A. Testing and Inspecting: Cost to engage testing and inspecting agency; execution of tests and inspecting; and reporting results are to be paid by the Contractor.

B. Testing as required by plan and specification shall be performed by an independent certified testing agency that may not be a subsidiary or employee of the Contractor.

C. Contractor shall make all testing information readily available to the Department for review before proceeding to the next phase of any such tested work.

END OF SECTION

Rev: 9/6/2018