GENERAL REQUIREMENTSPAYMENT PROCEDURES
Section 01290 - 1
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SECTION 01290 - 1
PART 1 -GENERAL
.AThis Section includes:
.1Part 1 - General
.a1.01 - Summary
.b1.02 - Related Documents And Sections
.c1.03 – Definitions
.d1.04 – Schedule of Values
.e1.05 – Payment for Materials On-hand
.f1.06 – Applications for Payment
.g1.07 - Payment Application Form and Submission
.h1.08 – Administrative Submittals Required With Payment Applications
.2Part 2 – Products (Not Used)
.3Part 3 – Execution (Not Used)
.4Part 4 – Forms
.aSchedule of Values Form 01290 – 1 F-1
.bSub-contractor payment Form 01290 – F-2
1.02RELATED DOCUMENTS AND SECTIONS
.ADocument 00700.8, “Payments”
.BSection 01320, “Construction Progress Documentation”
.CSection 01450, “Contractor’s Quality Control (QC) System”
.ADefinable Feature of Work (DFOW) - Aportion of the work that is: (1) Separate and distinct from other tasks; (2) Has common control requirements and work crews; (3) Is continuous by location on the site. For example, typical Section 03300 Concrete work, would have a separate DFOW for footings; first floor slab (unless, for example, the slab were continuously poured with the footings); second floor slab, etc; and (4) All critical path activities are DFOWs. Non-critical path activities may also be DFOWs.
.BMaterials On Hand - Acceptable materials procured and delivered to the Project Site and suitably protected but not yet used in the Project, and at sole discretion of the Owner’s Authorized Representative, acceptable materials stored at off-site locations. All off-site storage must be in secured facilities with insurance coverages acceptable to Owner. Contractor’s surety must consent in writing to Contractor’s request for payment for materials stored off-site.
1.04SCHEDULE OF VALUES
.AWithin twenty-one (21) days after the Notice to Proceed, provide a Schedule of Values (cost breakdown)organized by Definable Feature of Work (DFOW) and signed by the same person who will sign payment applications. The Schedule of Values must total the lump sum price, including additive or alternate bid items, if any, of the contract award. Each item of the Schedule of Values shall include its proper share of overhead and profit. The prices in the Schedule of Values shall be used only for determining the amount of each progress payment. A Schedule of Values may be rejected if, in Owner’s opinion, any item is unbalanced.
.BMobilization cost and payment is governed by Document 00700.8.02.C, “Mobilization Costs.” (See Document 00700.1.01.B. for definition of Mobilization and Demobilization.)
.CExcept as Directed by the Owner, Submittal activities, Shop Drawing activities, and other similar general conditions administrative or engineering activities must be included in the value for each DFOW (Definable Feature of Work).
.DOverhead (including all general requirements costs, except Mobilization, CPM Scheduling Updates and As-Built Documents Updates), and profit must be proportionally prorated over all DFOWs as a percentage of the value of eachDFOW.
.EIf using “Mobilization” Alternate “B,” as defined in Section 00700 8.02. .C, a separate line item must be presented for Owner-acceptance ofProject Acceptance submittals, as defined in Section 01330 1.03.
.FThere must also be a separate line item in the Schedule of Values for provision of Operation and Maintenance manuals, pursuant to Section 01782.
.GAfter the County accepts the Contractor’s Cost Breakdown, the Contractor cannot change the Schedule of Values without the express written approval of the Owner’s Project Manager.
1.05PAYMENT FOR MATERIALS ON HAND
.AMaterials On Hand must be collected together and separated from other materials and clearly identified as property of Owner and must be accessible to Owner at all reasonable times for examination or other legal purposes.
.BFor Materials On Hand to be considered for payment Contractor must request payment for them on Owner furnished or Owner Approved forms including accompanying documentation as required by Owner. Contractor must submit four (4) copies to Owner not later than ten (10) Days prior to the end of the payment application period. All accompanying documentation required by the Owner including evidence of purchase (and warehouse receipt when required) must be attached to the original. The Contractor must certify in writing that the subject materials meet the requirements of the Contract Documents.
.CThe Contractor must submit and the Owner must have accepted all shop drawings and submittals for the Materials On Hand prior to the Contractor’s request for payment for said Materials On Hand.
.DThe provisions allowing payment for Materials On Hand are intended to be applied to large items of equipment and construction materials of special manufacture or order for the Project.
.EFor Materials On Hand, stored off-site, Contractor must provide:
.1Bill of Sale from the manufacturer for the materials stored off-site
.2Warehouse receipt that is a complete list and inventory of materials manufactured, stored, and delivered to the storage site.
.3Receipts for materials removed from the off-site storage facility and delivered to the Project site.
1.06APPLICATIONS FOR PAYMENT
.AThe cut-off date (last day) for each progress payment is the last day of the month or as otherwise Directed by the Owner.
.BThe period of construction Work covered by each application for payment is the period beginning the first day of the payment application period and ending with the last day of the payment application period.
.CBefore the end of each payment application period, Contractor and Owner's Project Manager will jointly review Contractor's estimate of items of Work completed and acceptable Materials On Hand for which Contractor is requesting a progress payment. The joint review (job walk) will occur at the Project site.
.DPrior to the joint review, Contractor must provide Owner with two (2) copies of a progress estimate worksheet showing each activity on the Official Progress Schedule that has been started but is not yet complete. The worksheet will be used during the joint review to document the actual physical percentage complete of each started but uncompleted activity.
.EAfter the joint review, Contractor must prepare on Owner furnished or Owner Approved forms, a formal request for payment. Two (2) copies the formal request for payment must be submitted to the Owner no later than one day after the end of the payment period.
.FWith the submission of the formal request for payment, Contractor must provide four (4) copies of an updated Schedule of Values, showing the total value, percentage completed, and earned value of each item. The updated Schedule of Values must be submitted to Owner on Ownerfurnished or Owner Approved forms.
.GThe Contractor must submit a progress narrative report accompanying each payment application. The report must describe: general construction progress to-date; whether the project is on-schedule to meet the current contract completion date; If the project is behind schedule the report must describe factors that are causing delay; any anticipated delaying factors and their potential impact.
.HPayment will be due to Contractor thirty (30) Days after receipt by Owner of a properly prepared progress payment request from the Contractor.
1.07PAYMENT APPLICATION FORM AND SUBMISSION
.AUse forms as furnished or Approved by the Owner.
.BComplete every entry on form.
.CAll amounts billed must be submitted as whole dollar amounts.
.DA person authorized to sign legal documents for Contractor must sign the formal payment application.
.EThe Owner will return incomplete applications “Returned Without Action.”
.FEntries must match the line items on the Approved Cost Breakdown
.GInclude amounts of executed Change Orders as separate line items in the Schedule of Values
.HSubmit the signed original and one (1) copy of each application for payment to the Owner by a method ensuring receipt by Owner within 24 hours.
.ISubmit completed Record of Subcontractor Payments, signed by the same person who signs the payment application.
1.08ADMINISTRATIVE SUBMITTALS COINCIDING WITH PAYMENT APPLICATIONS
.AAdministrative actions and submittals that must coincide with submittal of each application for payment include the following:
.1Certified Payroll (Must be submitted within 10 Days from payment period end date.)
.2Updated As-Built Documents (Must be updated prior to payment period end date)
.3Updated Official Progress Schedule (Must be submitted with request for Progress Payment)
.4Updated Submittal Log (Must be submitted with request for Progress Payment)
.5Monthly Report, pursuant to paragraph 1.06 .G above (Must be submitted within 3 days from payment period end date.)
.BFinal payment application
.1Submit, on forms furnished or Approved by the Owner, four (4) copies of a final application for payment with supporting documentation not previously submitted and accepted, including, but not limited, to the following:
.aEvidence of completion of Project closeout requirements.
.bExecution of Contractor’s Final Release
.cOther documents as required by the Owner.
PART 2 -PRODUCTS (Not Used)
PART 3 -EXECUTION (Not Used)
PART 4 -FORMS
SCHEDULE OF VALUES
CONTRACT NUMBER:SCHEDULE OF VALUES ITEM: / TOTAL VALUE
MOBILIZATION (Defined in Sections 00700 8.02)SCHEDULE UPDATES (Use for “larger” projects)
AS-BUILT DOCUMENTS UPDATES
DEMOBILIZATION (if using Alternate “‘B” from Section 00700 8.02 .C)
OPERATION AND MAINTENANCE MANUALS
Definable Features of Work (examples:)
UNDER SLAB UTILITES
FIRST FLOOR SLAB
TOTAL OF ALL ITEMS (must equal bid amount)
Contractor’s Representative Signature Title Date
RECORD OF SUBCONTRACTOR PAYMENTS
Name of Project or Site Contract No.
Period Covered: From: Award To:
Attached to Payment Application #For the same period
Date Submitted Issued by
This form must be updated monthly and the updated, signed form must be attached to each payment application.Subcontractor
(including Fed Tax ID#, phone # & FAX #) / Total Amount
(from Cost Breakdown) / Amount Paid Since Last Pay Application / Total Amount Paid to Date
(continue on additional pages)
Subtotal this Page
Total, other pages
In accordance with Section 01290. .1.07, I certify that the information provided on this form is a true and accurate record of payments.
Contractor’s Representative Signature Date
FORM 1290-2, Page ____ of _____
SUBCONTRACTOR / PAYMENTS (continued)
Name of Project or Site Contract No.
Period Covered: From: Award To:
List of Subcontractors (continued)Subcontractor / Total Amount
(from cost breakdown) / Amount Paid Since Last Pay Application / Total Amount Paid to Date
TOTAL THIS PAGE
END OF SECTION 01290 - 1
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FAF MASTER Project Manual Version 7.7 – July, 2007