1. www.transportation.ohio.gov John R. Kasich, GovernorJerry Wray, Director Ohio Department of Transportation CONSTRUCTION MONITORS MEETING

2. www.transportation.ohio.gov 2 Updates to the Construction Section of the LPA Manual Preconstruction Conference Section Language added to include discussion of the EEO, DBE and Prevailing Wage responsibilities. LPA requirement to inform the general public of general project information, lane and road closures, and/or any temporary restrictions to road access that will be experienced during the construction.

3. www.transportation.ohio.gov 3 Updates to the Construction Section of the LPA Manual Construction Contract Requirements for EEO, DBE & Prevailing Wage Compliance Section Interviews to be done no more frequently than once a month for single year projects Language added clarifying the new requirement that the project Bulletin Board be readily accessible to all employees, applicants for employment and potential employees. Language deleted stating that the Bulletin Board can be kept in the project Superintendent/foreman’s truck.

4. www.transportation.ohio.gov 4 Updates to the Construction Section of the LPA Manual Recovery of Overhead and Fringe Section (added) Language added that outlines in detail the 3 methods that the LPAs may utilize to recover overhead and fringe costs associated with force account work on federally funded projects. Time Keeping Requirements of LPA Time Sheets must be completed for employees Must be prepared at least monthly Must be signed by the employee

5. www.transportation.ohio.gov 5 Updates to the Construction Section of the LPA Manual Construction Monitor Responsibilities Section Invoices A copy of the fully executed Local-let Summary and Payable invoice should be sent to the LPA for their records. Finalization Language added stating that the CM will work with other District disciplines (REA, DEC, PW/EEOCC, LPA Manager, etc.) to complete the LPA Project Evaluation Form.

6. www.transportation.ohio.gov 6 CSFs/ OPI/ Local Programs Distribution CSFs – Capital Program – Contribute towards $1.5 B Quarter of the Federal funds sold through LL Program Project Award On-Time Local-let 85% Award On-Time On-Time defined as actual project award occurring no later than 30 days after locked award

7. www.transportation.ohio.gov 7 CSF/ OPI/ Local Programs Distribution Program Distribution Split 20-30-30-20 (dollars awarded) Historically 4 th Qtr. Heavy; 50% Locals get budgets in Jan., PS & E late winter, sell in the spring OPI Plan File to meet 90% on time delivery Plan File from the District to C.O. to meet the locked program. Historically 80% Goal / 88% Hit last 2 years

8. www.transportation.ohio.gov 8 LPA Process Reviews Purpose: To review local practices and procedures to ensure compliance with all requirements of State and Federal laws, regulations, and policies as outlined in the Department’s Stewardship and Oversight Agreement with FHWA. Report recommendations and Best Practices in LPA Program Management

9. www.transportation.ohio.gov 9 Risk Factor Ratings 54321 1 How much will the LPA receive in Federal funds in the next two years? > $10M $10M - $5M $5M - $1M $1M - $500k <$500k 2 How much has the LPA received in Federal funds in the last three years? > $30M$15-$30M $7M- $15M $3M-$7M<$3M 3 How many projects will the LPA administer in the next two years? 10+ 7-9 5-6 3-4 0-2 4 How many projects has the LPA administered in the last three years? 7+654 0-3 5 Has a QAR been performed on the LPA in the last four years? No Yes 6 Is the LPA in a high risk ODOT district?*2, 612, 4 8, 7, 3, 11 5, 19, 10 7 Has the District recommended a LPA / specific project has high risk? Yes-- No

10. www.transportation.ohio.gov 10 LPA Performance Reviews City of Kettering - 10/18 Seneca County Engineer - 11/21 City of Dayton - 12/14 Franklin County Engineer- 1/17 Montgomery County Engineer - 2/16 Hamilton County Engineer - 3/13 Cuyahoga County Engineer - 4/17 Stark County Engineer - 5/5 City of Toledo - 5/24

11. www.transportation.ohio.gov 11 LPA Performance Reviews Review Team will include: Local Programs Section (Randy Lane and Jeff Peyton) Office of Construction Administration (Naureen Dar)

12. www.transportation.ohio.gov 12 LPA Retainage Retainage of 8% on labor for the first 50% of the work is required on projects (ORC 153.12) Find that Locals typically do not co-mingle the Federal fund reimbursement with retainage – i.e. take off the top prior to invoice There has been confusion regarding how to account for retainage and how to reimburse retainage without delaying closeout of the project with ODOT.

13. www.transportation.ohio.gov 13 LPA Retainage Methods for discussion: funded locally / reimbursed with final invoice (not held for warranty period) OR have evidence of escrow accounts for federal participation. All funds retained shall be deposited in an escrow account (ORC 153.13) to the contractor Require verification of account Set up separate encumbrance to the LPA for deposit into escrow Invoice details payments to contractor and payments to lpa for retainage

14. www.transportation.ohio.gov 14 SIGNIFICANT CHANGES OF WORK ODOT C&MS 104.02(D) AND TABLE 104.02-2 PROVIDES DECREASE FACTORS FOR SIGNIFICANT CHANGES IN UNIT BID PRICE CONTRACT ITEMS INCOPRORATED INTO ODOT LPA BID DOCUMENT TEMPLATE INSTEAD OF 104.02(D) AND 104.02-2 TABLE THE LPA HAS THE OPTION TO USE LANGUAGE FROM 23 CFR 635.109(A)(3)

15. www.transportation.ohio.gov 15 SIGNIFICANT CHANGES OF WORK language from 23 CFR 635.109(a)(3): Significant changes in the character of work. (i) The engineer reserves the right to make, in writing, at any time during the work, such changes in quantities and such alterations in the work as are necessary to satisfactorily complete the project. Such changes in quantities and alterations shall not invalidate the contract nor release the surety, and the contractor agrees to perform the work as altered. (ii) If the alterations or changes in quantities significantly change the character of the work under the contract, whether such alterations or changes are in themselves significant changes to the character of the work or by affecting other work cause such other work to become significantly different in character, an adjustment, excluding anticipated profit, will be made to the contract. The basis for the adjustment shall be agreed upon prior to the performance of the work. If a basis cannot be agreed upon, then an adjustment will be made either for or against the contractor in such amount as the engineer may determine to be fair and equitable. (iii) If the alterations or changes in quantifies do not significantly change the character of the work to be performed under the contract, the altered work will be paid for as provided elsewhere in the contract. (iv) The term “significant change” shall be construed to apply only to the following circumstances: When the character of the work as altered differs materially in kind or nature from that involved or included in the original proposed construction; or When a major item of work, as defined elsewhere in the contract, is increased in excess of 125 percent or decreased below 75 percent of the original contract quantity. Any allowance for an increase in quantity shall apply only to that portion in excess of 125 percent of original contract item quantity, or in case of a decrease below 75 percent, to the actual amount of work performed.