Construction Contract Administration

District Construction Engineer, ODOT District 12 Randy Over District Construction Engineer, ODOT District 12 Ohio Department of Transportation

Construction Contract Administration Getting Contract Administration off on the Right Foot….. Prior to PreCon DBE Goals ODOT Qualified DBE’s Total $s Meet Goal or…. Approved Waiver Qualified Staff Names and qualifications of engineers and inspectors Testing Lab is AMRL certified

Construction Contract Administration Getting Contract Administration off on the Right Foot….. Prior to PreCon Make sure District Construction & LPA Coordinator are involved in PreCon planning, 2 weeks prior to meeting, invitations sent Draft invoice from District Construction, review funding amounts and categories w/DCE or designee Hold stand alone PreAward meeting if LPA and/or consultant is new to process, project is unique, etc., otherwise complete by phone or combine w/PreCon

Construction Contract Administration Getting Contract Administration off on the Right Foot….. Prior to PreCon Last, but not least DBE/EEO/Prevailing Wage personnel understand Federal and State requirements, District personnel available to answer questions, “shadow” LPA/consultant personnel

Construction Contract Administration Example PreCon/PreAward Letter

Construction Contract Administration Example PreAward Outline

Construction Contract Administration Having a successful PreCon…. Best Practices Contractor comes prepared with…. List of subcontractors List of suppliers (ODOT approved) List of proposed JMF’s Proposed schedule showing important milestones Everyone prepared with…. Contact info and sign-in sheet Contractor’s and LPA/Consultants Decision Trees and hierarchy to resolve disputes LPA/Consultant Tape recorded and/or minutes taken and circulated Rep of Design Consultant, Testing Lab, ODOT CM, ODOT LPA Coordinator, District EEO/DBE/Prevailing Wage, LPA EEO/DBE/Prevailing Wage personnel

Construction Contract Administration The First Shovel of Dirt Has Moved….Best Practices as the project moves forward Weekly submissions of payrolls Completion of Daily Diaries Weekly, Biweekly or Monthly Progress Meetings including Construction Monitor (CM) Materials are checked against ODOT certified materials lists JMF’s are ODOT approved

Construction Contract Administration Example Job Mix Formula (JMF)

Construction Contract Administration The First Shovel of Dirt Has Moved….Best Practices as the project moves forward Through District Testing, OMM involved for steel fab, concrete beam shop approvals, if there is a timely request and staff is available Track disposition of failed materials Track materials use against PreCon suppliers

Construction Contract Administration Getting Everyone Paid….Best Practices for submitting invoices and getting approvals Aim for a 30 day turnaround for all parties…. Daily Diaries w/quantities LPA, Consultant and ODOT reviews in parallel 10 working days for ODOT to approve and submit for reimbursement or direct pay Central Office turnaround 10 working days Include only approved change orders Don’t pay for it if it isn’t acceptable (don’t rely on retainage) Don’t include retainage Clearly note 100% local items

Construction Contract Administration Getting Everyone Paid….Best Practices for submitting invoices and getting approvals Consultant & LPA Staff Invoices ODOT approved overhead rates Summary sheet Include timesheets and/or monthly reports Request for increases must be accompanied by justification, project completion date extended, extensive extra work, change in overhead rate mid-project, etc. Should be in the range or 10-15% of contractor payments Requests to District Construction Offices Plan for Encumbrance Increases in advance….. Proof of matching funds paid

Construction Contract Administration Example Invoice for Contractor

Construction Contract Administration Example Invoice for Consultants & LPAs

Construction Contract Administration So there is a changed condition, what next…. Extend existing bid items…. Extra Work…. No existing bid item Funding Caps and Contract limits? Contractor won’t agree to a price? Hope and pray….. Justification to ODOT for additional funds….

Construction Contract Administration Justification to ODOT for additional funds…. Establishment of a fair price…. Extend bid items Establish a new bid item, similar work on other contracts, cost analysis Last choice, force account Required to complete project as scoped Doesn’t impact environmental approvals/permits Communication to CM before work begins Approval can be verbal, but noted in writing, via email or by letter Summary of smaller changes so costs “reconcile”

Construction Contract Administration And the Contractor Yells, “Unless I am paid for the claim right now, I’m walking off the job!” What to do if you can’t agree….. And how to not get there in the first place…… Make everyone follow an administrative process established prior to bid, preferably as part of the contract Use comparatives, historical data such as days in the bid for traffic control, prorate the days…. Resolve the changed condition if at all possible without stopping work, otherwise home office overhead claims could occur, keep the contractor working

Construction Contract Administration Claims solutions and avoidance Pay estimates and changes promptly Seek third party assistance, experts that both parties trust Use formal Partnering Don’t write yet another letter when a phone call or a personal visit has a chance to break the deadlock Completing by the completion date is to everyone’s benefit, don’t be afraid to pay for some OT, MS concrete, etc., it builds goodwill with the public and the contractor Before the attorneys take control, consider mediation, arbitration, etc., ODOT has names

Construction Contract Administration And one last comment on Claims….. A contract is overall, an equally shared agreement although various specific responsibilities are not equally shared. If there is no clear solution yet there is agreement there was a changed condition, split shared responsibility items in half.

Construction Contract Administration Example Justification Letter

Construction Contract Administration Adequate DBE/EEO & Prevailing Wage Contract Administration…… Weekly payroll submissions and wage checks Track the DBE $s against goals, approved subs and suppliers each pay request DBEs actually doing the work, if not involve District Monthly or quarterly DBE reports to District EEO/DBE Jobsite EEO & Prevailing Wage Posters Regular employee interviews, proper records Complaint follow-through w/guidance and communication to District EEO/DBE or Prevailing Wage

Construction Contract Administration Example Monthly Prevailing Wage Report

Construction Contract Administration Example DBE Quarterly Report

Construction Contract Administration Example EEO/DBE/Prevailing Wage Interview Form

Construction Contract Administration The Project is almost complete…..

Construction Contract Administration So the project is open to traffic, but all that “paperwork” remains to final the project….. Final Inspection by contractor, LPA, consultant, ODOT, official punchlist is developed All claims resolved or dismissed, both with the contractor and with 3rd parties Documentation compiled for failed materials have been removed or a deduct made Contractor and DBE subs/suppliers sign affidavits Final certification is signed and sealed by the CPE

Construction Contract Administration Example DBE Affidavit

Construction Contract Administration Remaining “paperwork”….. Upon completion of punchlist, ODOT completes the C-85 Final estimate is processed when all required paperwork is completed District notifies Central Office to close all encumbrances

Construction Contract Administration Example Final Certification

Construction Contract Administration Example C-85

All personnel and their respective employers portrayed in this example are fictional. Any resemblance to an existing or proposed project and involved personnel is purely coincidental.