012900 - PAYMENT PROCEDURES.DOC

UNIT TRAINING EQUIPMENT SITE ADD/ALT

Copyright 2010 by The American Institute of Architects (AIA)

Exclusively published and distributed by Architectural Computer Services, Inc. (ARCOM) for the AIA

SECTION 012900 - PAYMENT PROCEDURES

PART 1 - GENERAL

1.1 RELATED DOCUMENTS

A. Drawings and general provisions of the Contract, including General and Supplementary Conditions and other Division 1 Specification Sections, apply to this Section.

1.2 SUMMARY

A. This Section specifies administrative and procedural requirements necessary to prepare an process Applications for Payment. Related Sections include the following:.

B. Division 1 Section 013200 "Construction Progress Documentation" for administrative requirements governing preparation and submittal of Contractor's Construction Schedule and Submittals Schedule.

1.3 DEFINITIONS

A. Schedule of Values: A statement furnished by Contractor allocating portions of the Contract Sum to various portions of the Work and used as the basis for reviewing Contractor's Applications for Payment.

1.4 SCHEDULE OF VALUES

A. Coordination: Coordinate preparation of the Schedule of Values with preparation of Contractor's Construction Schedule

1. Correlate line items in the Schedule of Values with other required administrative forms and schedules, including the following:

a. Application for Payment forms with Continuation Sheets.

b. Submittals Schedule.

c. Contractor's Construction Schedule.

2. Submit the Schedule of Values to the Government at earliest possible date but no later than 30 days before the date scheduled for submittal of initial Applications for Payment.

3. Format and Content: Use the Project Manual table of contents as a guide to establish line items for the Schedule of Values. Provide at least one line item for each Specification Section.

4. Identification: Include the following Project identification on the Schedule of Values:

a. Project name and location.

b. Government's Contract number.

c. Contractor's name and address.

d. Date of submittal.

5. Use Air Force Form 3065

6. Insert the required information for each item listed:

a. Related Specification Section or Division.

b. Description of the Work.

c. Name of subcontractor.

d. Change Orders (numbers) that affect value.

e. Dollar value.

f. Percentage of the Contract Sum to nearest one-hundredth percent, adjusted to total 100 percent.

7. Provide a breakdown of the Contract Sum in enough detail to facilitate continued evaluation of Applications for Payment and progress reports. Coordinate with the Project Manual table of contents. Provide several line items for principal subcontract amounts, where appropriate. Include separate line items under required principal subcontracts for operation and maintenance manuals, punch list activities, Project Record Documents, and demonstration and training in the amount of 4 percent of the Contract Sum.

8. Round amounts to nearest whole dollar; total shall equal the Contract Sum.

9. Provide a separate line item in the Schedule of Values for each part of the Work where Applications for Payment may include materials or equipment purchased or fabricated and stored on site, but not yet installed.

a. Each item in the Schedule of Values and Applications for Payment shall be complete and include total cost and proportionate share of general overhead and profit for each item.

b. Temporary facilities and other major cost items that are not direct cost of actual work-in-place may be shown either as separate line items in the Schedule of Values or distributed as general overhead expense, at Contractor's option.

c. Schedule Updating: Update and resubmit the Schedule of Values before the next Applications for Payment when Change Orders or Construction Change Directives result in a change in the Contract Sum.

1.5 APPLICATIONS FOR PAYMENT

A. Each Application for Payment shall be consistent with previous applications and payments as certified by the Contracting Officer's Representative and paid for by the Government.

B. Payment Application Times: Progress payments shall be submitted to the Contracting Officer the 1st day of the month following the work period. The period covered by each Application for Payment is one month, ending on the last day of the previous month.

C. Payment Application Forms: Use forms provided by Owner for Applications for Payment. Sample copies are included at end of this Section.

D. Application Preparation: Complete every entry on form. Execute by a person authorized to sign legal documents on behalf of Contractor. The Contracting Officer will return incomplete or inaccurate applications without action.

E. Entries shall match data on the Schedule of Values and Contractor's Construction Schedule. Use updated schedules if revisions were made.

F. Include amounts of Change Orders and Construction Change Directives issued before last day of construction period covered by application.

G. Transmittal: Submit (2) two signed original copies of each Application for Payment to the Contracting Officer.

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

1. List of subcontractors.

2. Schedule of Values.

3. Contractor's Construction Schedule (preliminary if not final).

4. Submittals Schedule (preliminary if not final).

5. List of Contractor's staff assignments.

6. List of Contractor's principal consultants.

7. Copies of authorizations and licenses from authorities having jurisdiction for performance of the Work (Plumbing, Electrical, HVAC, Hydronic).

8. Initial progress report.

9. Certificates of insurance and insurance policies.

10. Performance and payment bonds.

I. Final Payment Application: Submit final Application for Payment with releases and supporting documentation not previously submitted and accepted, including, but not limited, to the following:

1. Evidence of completion of Project closeout requirements.

2. Insurance certificates for products and completed operations where required and proof that taxes, fees, and similar obligations were paid.

3. Updated final statement, accounting for final changes to the Contract Sum.

4. Contractor's Release Of Claims Statement

5. Evidence that any claims have been settled.

6. Final meter readings for utilities, a measured record of stored fuel, and similar data as of date of Beneficial Occupancy or when Owner took possession of and assumed responsibility for corresponding elements of the Work.

7. Final, liquidated damages (if any) settlement statement.

J. See Invoice example next page.

PART 2 - PRODUCTS (Not Used)

PART 3 - EXECUTION (Not Used)

END OF SECTION 012900

APPLICATION AND CERTIFICATE FOR PAYMENT (CONSTRUCTION)

TO: U.S. PROPERTY & FISCAL OFFICE‑OHIO, ATTN: AGOH‑PF‑PC, 2811 W. Dublin‑Granville Road, Columbus, Ohio 43235‑2788

CONTRACTOR

CONTRACT:

ADDRESS

PROJECT:

Request (Partial) (Full) payment for Application Number ____________

(1) ORIGINAL CONTRACT SUM

(2) NET CHANGE BY MODIFICATION

(3) CONTRACT SUM TO DATE (Item 1 plus/minus 2)

(4) TOTAL COMPLETED TO DATE (

%) (Item 3 X %)

(5) RETAINAGE (

(6) TOTAL EARNED LESS RETAINAGE (Item 4 minus 5)

(7) MATERIALS STORED ON SITE (No Retainage)

(8) LESS PREVIOUS CERTIFICATES FOR PAYMENT

(9) CURRENT PAYMENT DUE (Item 6 plus 7 minus 8)

The undersigned contractor certifies that to the best of his/her knowledge and belief that the amounts requested are only for performance in accordance with the specifications, terms and conditions of the contract; payments to subcontractors and suppliers have been made from previous payments received under the contract, and timely payments will be made from the proceeds of the payments covered by this certification, in accordance with agreements and the requirements of Chapter 39 of Title 31, United States Code; and this request for progress payments does not include any amounts which the prime contractor intends to withhold or retain from the subcontractor or supplier in accordance with the terms and conditions of the subcontract.

SIGNATURE OF CONTRACTOR

TITLE

CONTRACTOR NAME (Typed or Printed)

DATE

"I certify that the item/services were received and accepted on _____________________________and that the amounts of this invoice are true and correct."

CONTRACTING OFFICER

PRINTED NAME

RANK/GRADE

TITLE

PHONE # COMM:______________________________DSN:_______________________________

UNIT:________________________________________DATE:__________________