The Table of Contents for this section is available.
109-1 MEASUREMENT OF QUANTITIES.
All work completed under the contract will be measured by the Engineer according to United States standard measures unless otherwise stated in the contract.
The method of measurement and computations used in the determination of quantities of material furnished and of work performed under the contract will be those methods generally recognized as conforming to accepted engineering practice.
The terms "gage" and "thickness", when used in connection with the measurement of plates, sheets, and steel wire, shall be applied as follows:
Uncoated Steel Sheets and Light Plates United States Standard Gage
Galvanized Sheets AASHTO M218 or M167
Aluminum Sheets AASHTO M196 or M197
Steel Wire AASHTO M32
The term ton will mean short ton consisting of 2,000 pounds avoirdupois.
Cement will be measured by the barrel unless otherwise indicated elsewhere in the Specifications. The term barrel will mean 376 pounds of cement.
Trucks used to haul material being paid for by weight will be either weighed empty prior to each loading or weighed empty on a daily basis. When trucks are weighed empty on a daily basis, each truck shall be weighed prior to hauling its first load of the day and shall bear a legible identification mark.
Where aggregates which are to be paid for by weight have been stockpiled after being produced, measurement for purposes of payment will be made after the aggregates have been loaded on trucks for direct delivery to the project.
When a complete structure or structural unit, as may be indicated by the unit "lump sum" or "each", is specified as the unit of measurement, the unit will be construed to include all necessary fittings and accessories.
When standard manufactured items are specified, and these items are identified by gage, unit weight, section dimensions, and/or other dimensions, such identification will be considered to be nominal weights or dimensions. Unless more stringently controlled by tolerances in cited specifications, manufacturing tolerances established by the industries involved will be accepted.
The Contractor shall receive and accept compensation provided for in the contract as full payment for furnishing all materials and performing all work under the contract in a complete and acceptable manner and for all risk, loss, damage, or expense of whatever character arising out of the nature of the work or the prosecution thereof, subject to the provisions of Article 10721. Payment to the Contractor will be made only for the actual quantities of the various items that are completed and accepted in accordance with the terms of the contract.
If the "Basis of Payment" or "Compensation" clause in the specifications relating to any unit price or lump sum price in the bid schedule requires that the said unit price or lump sum price cover and be considered compensation for certain work or material essential to the item, this same work or material will not also be measured or paid for under any other pay item which may appear elsewhere in the specifications.
All force account work shall be performed as directed by the Engineer including the numbers and types of equipment, the numbers and classifications of labor and foremen, and material requirements.
All work to be paid for on a force account basis will be paid for in the following manner:
1. Labor. For all authorized labor and foremen in direct charge of the specific operations, the Contractor will receive the rate of base wages (or scale) actually being paid by the Contractor for each hour that the labor and foremen are actually engaged in the work. Prior to beginning the work the Contractor shall submit in writing for the Engineer's approval a list of all wage rates applicable to the work. Approval will not be granted where these wage rates are not actually representative of wages being paid elsewhere on the project for comparable classes of labor performing similar work. Payment for overtime will be allowed when approved by the Engineer prior to performing the work. An amount equal to 35 percent of the total base wages paid for labor and foremen will be added to the total base wages paid to the Contractor.
The percentage additive will be full compensation for overhead, profit, benefits, and contingencies.
2. Bond, Insurance, and Tax. For property damage, liability, and worker's compensation insurance premiums, unemployment insurance contributions, bond premiums, and social security taxes on the force account work, the Contractor will receive the actual cost to which cost 6 percent will be added. The Contractor shall furnish satisfactory evidence to the Engineer of the rate or rates paid for such bond, insurance, and tax.
An annualized composite percentage of the direct cost for labor and foremen may be used to determine the cost for bond, insurance, and tax to which cost 6 percent will be added. The Contractor shall furnish satisfactory evidence to the Engineer of the annualized composite percentage for the bond, insurance, and tax.
The percentage additive will be full compensation for overhead, profit, and contingencies.
3. Materials. For materials authorized and accepted by the Engineer and used, the Contractor will receive the actual cost of such materials, including transportation charges paid by him (exclusive of equipment rentals as hereinafter set forth), to which cost 15 percent will be added. The Contractor shall furnish records to the Engineer to verify the quantities of materials used in the work, prices of the materials, and costs of transportation for the materials.
If materials used in the force account work are not specifically purchased for such work but are taken from the Contractor's stock, the Contractor shall furnish an affidavit certifying that such materials were taken from his stock, the quantity was actually used in the work, and the price and transportation cost claimed represent the actual cost to the Contractor.
The percentage additive will be full compensation for overhead, profit, and contingencies.
4. Equipment. For all equipment authorized by the Engineer to be used on the force account work the Contractor will receive rental payment.
Hourly rental rates paid for equipment in use which is Contractor owned or rented from another Contractor will not exceed 1/176th of the monthly rate listed in the "Rental Rate Blue Book for Construction Equipment", as published by Dataquest, Incorporated, which is current at the time the force account work is performed.
In determining the hourly rate, the regional adjustment factor and the rate adjustment factor for equipment age, as set forth in the current Blue Book, will both be applied to the basic rate. An additive payment equal to 70 percent of the Blue Book estimated operating cost per hour will also be paid for all hours equipment is in use. This additive payment will be full compensation for fuel, lubricants, repairs, servicing (greasing, fueling, and oiling), small tools, and other incidentals.
If rental rates for the equipment actually being used in the work are not listed in the Blue Book, the Contractor will receive the prevailing rental rates being paid for such equipment in the area where the project is located. An additive payment equal to 15 percent of the prevailing rental rate will also be paid for all hours equipment is in use. This additive payment will be full compensation for fuel, lubricants, repairs, servicing (greasing, fueling, and oiling), small tools, and other incidentals.
Hourly rental rates for equipment held in ready as directed by the Engineer will be 50 percent of the rate paid for equipment in use. An additive payment will not be made for equipment held in ready. When equipment is in use less than 40 hours for any given week and is held in ready as directed by the Engineer, payment for held in ready time will be allowed for up to 40 hours, less hours in use. When payment is made for equipment held in ready as directed by the Engineer, the payment for held in ready time will be allowed for up to 8 hours in a day less hours in use.
Hourly rental rates for idle equipment held in ready in accordance with Article 1044 will be 50 percent of the rate paid for equipment in use. Hourly rental rates for idle equipment held in ready in accordance with Article 1044 which is rented from a commercial rental agency will be paid for in accordance with the invoice rate for the equipment. An additive payment will not be made for idle equipment. When equipment is in use less than 40 hours for any given week and is held in ready as idle equipment in accordance with Article 1044, payment for idle equipment time will be allowed for up to 40 hours, less hours in use. When payment is made for idle equipment held in ready in accordance with Article 1044, the payment for idle equipment time held in ready will be allowed for up to 8 hours in a day less hours in use.
In the event the Contractor does not possess or have readily available such equipment necessary for the performance of the work and such equipment is rented from a commercial rental agency, the Contractor will receive payment based on the approved invoice rate for the equipment. An additive payment equal to 15 percent of the calculated hourly invoice rate will also be paid for all hours equipment is in use. This additive payment will be full compensation for fuel, lubricants, repairs, servicing (greasing, fueling and oiling), small tools, and other incidentals. The commercial rental agency cannot be the Contractor or an affiliate of the Contractor.
No compensation will be made for the use of equipment not authorized by the Engineer.
The Contractor will be reimbursed for the actual transportation costs for equipment which the Contractor is directed to furnish. Such payment will be limited to transportation costs from the nearest source of available equipment. If equipment is not returned to the point of origin, but is transported to another location, transportation costs will not exceed the cost of return to the point of origin. Rental for such equipment will not be paid when the equipment is being transported. The Contractor shall furnish records to the Engineer to verify the actual transportation costs for equipment.
The Contractor shall provide to the Engineer for approval a listing of all equipment and attachments to be utilized in the prosecution of the work. The list shall include the manufacturer's name, type, model, serial number, and year of manufacture. The list shall also include the invoice rate for equipment rented from a commercial rental agency. It shall be the Contractor's responsibility to verify the age of the equipment in a manner acceptable to the Engineer. Where such verification is not available, the rate adjustment factor used will be for the oldest equipment listed in the Blue Book.
The above prices and payments will be full compensation for fuel, lubricants, cutting edges, all repairs, and all other operating and maintenance costs other than operator's wages.
5. Miscellaneous. No additional allowance will be made for general superintendence, the use of manually powered tools, or other costs for which no specific allowance is herein provided.
6. Subcontracting. For administrative costs of the Contractor in connection with approved subcontract work, the Contractor will receive an amount in accordance with the rate schedule shown below of the total cost of such subcontracted work. The total cost will include labor; bond, insurance, and tax; materials; and equipment costs incurred by the subcontractor and computed in accordance with Items 1, 2, 3, and 4 above.
Total Cost of Subcontract Work Rate Schedule
$0 - $10,000 10%
Above $10,000 $1,000 + 5% Above $10,000
7. General. The Engineer will maintain the payment records of work performed on a force account basis. The Contractor shall compare records of work with the Engineer at the end of each day on which such work is in progress.
Any contention the Contractor may have for an extension in the completion date, intermediate completion date, or intermediate completion time, due to performance of force account work will be considered as provided in Article 10810.
(A) General:
Partial payments will be based upon progress estimates prepared by the Engineer at least once each month on the date established by the Engineer. Partial payments may be made twice each month if in the judgment of the Engineer the amount of work performed is sufficient to warrant such payment. No partial payment will be made when the total value of work performed since the last partial payment, excluding mobilization, amounts to less than $10,000.00. Partial payments will be approximate only and will be subject to correction in the final estimate and payment.
An amount equal to 5 percent of the total amount due on the progress estimates will be deducted and retained by the Department until 50 percent of the work has been completed. After 50 percent of the work has been completed, the Engineer may reduce the amount to be retained to 2 percent of the total amount due. Any reduction of the amount to be retained below 2 percent will be at the discretion of the Engineer, and with the consent of Surety.
On all projects with an original contract amount in excess of $200,000.00 the Contractor may request that the retainage specified above be paid to an approved trustee selected by him. Such request shall be given in writing to the State Construction Engineer. Before approval will be given, the Contractor must submit for approval 5 copies of a Trust Agreement executed by the Contractor and the Trustee on forms furnished by the Office of the State Construction Engineer. After approval of the request, the Department will pay to the Trustee the retainage. Any funds retained to cover anticipated liquidated damages will not be released to the Trustee. The Trustee may, in accordance with the stipulations contained in the Trust Agreement, invest the funds for the benefit of the Contractor and periodically pay the earnings on such investments to the Contractor. Title to and all rights in the principal of the Trust shall remain in the Department. The Trust Fund shall be treated in the same manner as retainage withheld by the Department, and it shall be under the control of the Department, subject to return to the Department upon written request. In any event, the principal funds shall not be due and payable to the Contractor, unless released by the Department. The Contractor shall have no right, or interest in the funds unless released by the Department pursuant to the terms of the trust Agreement. Upon notice of the insolvency or bankruptcy of the Contractor or an act of insolvency or bankruptcy on the part of the Contractor, the Trust shall forthwith terminate. Upon such termination, the principal in the Trust shall be returned to the Department. An assignment by operation of law or the bankruptcy of the Contractor shall not vest any rights in the principal amount in the Trustee in bankruptcy or the Contractor's creditors or agents of the creditors.
Funds paid into a trust account pursuant to this section shall not be subject to the payment of interest by the Department as provided in Article 10911.
When anticipated liquidated damages, as determined by the Engineer, equal or exceed one percent of the original contract estimate, the Engineer will withhold an amount sufficient to cover such anticipated liquidated damages and such amount will be in addition to the normal percentage retained as noted above.
Where lump sum items are included in the contract and the applicable section of the specifications require that fixed percentages of the total amount bid included in partial pay estimates, the Engineer will determine amounts due on partial pay estimates in accordance with the applicable section of the specifications.
(B) Unbalanced Bids:
Any excess moneys included in an unbalanced bid price which the Department determines to be in excess of a reasonable unit or lump sum bid price for the work, shall be retained by the Department until the last partial payment estimate, at which time these funds will be paid to the Contractor. These retained funds will not be eligible for deposit in any trust account established pursuant to this contract nor for interest for such delay in the payment for the retained portion of the bid price. Partial payment for work performed on an unbalanced bid item shall be at the reasonable unit or lump sum price determined in accordance with this subarticle.
For purposes of this subarticle, a reasonable unit or lump sum price will be deemed to be the average of the Engineer's Estimate and the individual balanced bid prices received from the other bidders for the item in question.
109-5 PAYMENT FOR MATERIAL TO BE USED IN THE WORK.
(A) Material Delivered on the Project:
When so authorized by the Engineer, partial payments will be made up to 90 percent of the delivered cost of materials on hand that are to be incorporated in the work, provided that such materials have been delivered on or in close proximity to the project and stored in an acceptable manner. Material payments will be allowed when 90 percent of the accumulated costs of unpaid invoices are equal to or greater than $10,000.00, materials have been inspected and approved by the Engineer, and the documents listed in Subarticle 1095(C) have been furnished to the Engineer.
(B) Material Stored at Fabricator's Facilities or Contractor's Facilities:
When so authorized by the Engineer, partial payments will be made up to 90 percent of the invoiced cost, exclusive of delivery cost, for bulky materials requiring fabrication at an off site location that are durable in nature and represent a significant portion of the project cost, if it has been determined by the Engineer, that the material cannot be reasonably stockpiled in the vicinity of the work. Material payments will be allowed when the materials have been inspected and approved by the Engineer and the documents listed in Subarticle 1095(C) have been furnished to the Engineer.
(C) Required Documents:
1. Written consent of surety to make such partial payments,
2. Bill of Sale from the Contractor to the Department,
3. Copy of invoice from material supplier verifying the cost of the material.
(D) General Requirements:
The partial payments will be made on the conditional basis that the material meets the requirements of the contract and will be incorporated into the project. The Contractor shall reimburse the Department for all partial payments for material paid for, but not incorporated into the project.
Partial payments for materials on hand will not constitute acceptance, and any faulty material will be rejected even though previous payment may have been made for same in the estimates.
Partial payment will not be made for fuel, supplies, form lumber, falsework, or used materials.
Partial payments will not be made on seed or any living or perishable plant materials except that when such materials have been planted or otherwise incorporated in the work, payment may be made, not as materials, but as work done as part of a contract item for which a contract unit or lump sum price has been established.
Partial payments will not exceed 90 percent of the contract unit or lump sum prices for the work.
109-6 PAYMENT FOR LEFTOVER MATERIALS.
Payment will be made to the Contractor for materials meeting the requirements of the contract which were to have been permanently incorporated into the work or were to remain the property of the Department but due to revisions or elimination of items of work by the Engineer, due to discrepancies in the contract, or due to termination of the contract are not used in the work. The Contractor upon request will be reimbursed for the verified actual cost of such material delivered to a site designated by the Engineer, including any handling charges less any discount, but in no event shall payment exceed that which would have been made at the contract unit or lump sum price for the completed work.
The Contractor shall furnish invoices and cost records to the Engineer to verify the actual cost of materials, handling charges, discounts which were taken, and transportation charges. No percentage additive will be added to the verified cost of such material.
No payment will be made for loss of anticipated profits and no other payment will be made for leftover materials except as listed above.
109-7 COMPENSATION PAID AT CONTRACT PRICES.
Except as provided for by this article, payment for work performed will be made at the contract unit price or the contract lump sum price, as the case may be. Payment shall be made at the adjusted contract unit price, as applicable, when a price adjustment or pay factor is provided for by the Specifications or as determined by the Engineer in accordance with Article 1053. In addition to the compensation made at the unit or lump sum price, adjustment in compensation will be made in accordance with Article 1098. The Contractor shall not be paid for any work performed for which there is not a contract price, nor shall the Contractor receive additional compensation over and above the contract price for work performed or for extra work performed, except for work performed pursuant to an executed supplemental agreement or work performed in accordance with the applicable provisions of Section 104.
Fuel price adjustments will be made to the payments due the Contractor for contract items specified in the Project Special Provisions, or for extra work item specified in the supplemental agreement, when the average F.O.B. price for diesel fuel at the terminals in Charlotte, Wilmington and Selma, North Carolina has fluctuated by more than 10% from the Base Index Price contained in the Project Special Provisions. When the average F.O.B. price for diesel fuel at the above terminals fluctuates upward or downward from the Base Index Price by more than 10%, an amount will be added to or deducted from the monies due the Contractor as follows.
The current quantity for the specified contract items for which partial payment is made will be multiplied by the respective Diesel Fuel Usage Factor contained in the Project Special Provision to determine the theoretical diesel fuel usage for each specified contract item. The sum of the theoretical diesel fuel usage for all specified contract items will be multiplied by the algebraic difference between the average F.O.B. price for diesel fuel at the above specified terminals and the Base Index Price contained in the Project Special Provisions to determine the fuel price adjustment to be made on the partial payment estimate.
The Engineer's estimate of quantities for contract items measured by cross sections shall be utilized on the various partial payment estimates to determine fuel price adjustments. Where it is determined by the Engineer after payment for all or a portion of such contract item that is subject to a fuel price adjustment that the total quantity of work paid to date must be adjusted to reflect more accurate quantity determinations, the Engineer will make a prorata increase or decrease in the fuel price adjustment proportionate to the adjustment in the total quantity of work paid. The prorated fuel price adjustment for the contract item will be determined by multiplying the cumulative fuel price adjustment made for that contract item for the previous estimate period(s) by the adjusted quantity for that contract item and divided by the total quantity of work paid for the previous estimates for the contract item. Payment for the prorated fuel price adjustment will be made accordingly on the partial payment estimate that includes the adjustment in the quantity of work paid.
After notification of the Contractor of the final quantities as provided in Article 1099, no change in the fuel price adjustment will be made due to changes in the quantities of work to be paid unless the change in the quantities would result in an increase or decrease in the fuel price adjustment of more than $200.00.
Upon completion of the final estimate assembly, the Engineer will notify the Contractor giving the final quantities and the apparent liquidated damages, if any, assessed. After the Contractor reviews the final quantities and submits the documents listed in Article 10910, the entire sum found to be due after deducting all previous payments and all amounts to be retained or deducted under the provisions of the contract will be paid the Contractor.
109-10 DOCUMENTS REQUIRED FOR THE PROCESSING OF THE FINAL ESTIMATE.
Prior to the processing of the final estimate, the following documents shall have been submitted to and accepted by the Engineer.
1. Statement of Consent of Surety on the contract bonds for payment of money due the Contractor.
2. Affidavit of the Contractor that all obligations and debts arising out of the construction have been satisfied, or affidavit which shall include a list of obligations not satisfied.
3. Written notice that the Contractor has no request for any extension in the completion date or any adjustment in compensation from that shown in the final estimate or in lieu thereof written notice presenting all request for adjustment of the final estimate setting forth full justification for such requests.
4. Any other documents that are required by the contract such as completed Form PR47 and all reports, statements, and other information necessary for compliance with applicable labor regulations of the Federal Highway Administration.
Submission of false information in the documents required by this section shall be a basis for disqualifying the Contractor from further bidding in accordance with Article 10216.
109-11 INTEREST ON FINAL PAYMENT.
Should final payment on a project not be made within
120 calendar days after the project final acceptance date, interest,
at the average rate earned by the State Treasurer on the investment
within the State's Short Term Fixed Income Investment Fund during
the month preceding the date interest becomes payable, will be
paid the Contractor on the final payment for the period beginning
on the 121st day after final acceptance and extending to the date
the final estimate is paid, provided that the documents required
by Article 10910 have been submitted within 30 days of the
mailing of the notification outlined in Article 1099.
In the event the Contractor fails to submit the required documents
within the stipulated 30 day period, and the final estimate is
not paid until 120 calendar days
following final acceptance of the project, the number of days
on which interest accrues will be reduced by the number of days
in excess of 30 that the Contractor requires to submit the document(s).