1 / 13

Measurement and Payment Module #5

Measurement and Payment Module #5. Prepared by Dr. Randy R. Rapp July 2005. Contractual Payment. Lump-sum or fixed-price Unit-price Fixed-price with cost incentives Time and materials (T&M). Progress Payments. Typically monthly Contractor request maybe 10 days prior

porter
Download Presentation

Measurement and Payment Module #5

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Measurement and PaymentModule #5 Prepared by Dr. Randy R. Rapp July 2005

  2. Contractual Payment • Lump-sum or fixed-price • Unit-price • Fixed-price with cost incentives • Time and materials (T&M) 2005, Randy R. Rapp

  3. Progress Payments • Typically monthly • Contractor request maybe 10 days prior • Lump-sum vs. unit-price verification • Inspector role • Measure quantity and type of work • Claims for extra work and change orders • Calculate payment due, minus retention • Prepare and forward recommendation • Lump-sum vs. unit-price payment basis 2005, Randy R. Rapp

  4. Conflicting Bases of Payments? • Specification writer misunderstands? • Lump-sum contract • Schedule of values OR • Cost-loaded critical path method (CPM) network • Unit-price • Neither schedule of values NOR • Cost-loaded CPM 2005, Randy R. Rapp

  5. Payment Request Evaluation • Lump-sum: completed work package • Discernable fraction thereof is usually OK • Consider change orders, if any • Unit-price: quantity x unit-price • Measurement accuracy absolutely essential • Renegotiate unit-price, if quantity exceeds allowable variation (15% to 25%) • Equipment and materials delivered but not yet installed • Maybe pay actual cost for long-lead, high-cost items • Only if contract specifically stipulates 2005, Randy R. Rapp

  6. Force Account Day work • Measurement and Payment section OR • Changes and Extra Work section • “Reasonable” allowance for overhead and profit? • Categories • Labor • Materials • Equipment • Payment is full compensation for the work 2005, Randy R. Rapp

  7. Force Account (Cont’d) • Labor • Trade classification wage rate and numbers • Foremen included, not general supervisors • Any allowances? • Materials: cost and freight • Equipment • DOT rates or Rental Rate Book • Active and standby times • Markups (p.85) 2005, Randy R. Rapp

  8. Payment for Extra Work • Often detailed in Supplementary General Conditions 2005, Randy R. Rapp

  9. Payment for Mobilization • Lump-sum contracts • Not included as a bid item: likely inflated • Include as a calculated allowance in separate technical section, per contract requirements • Not a matter of Measurement and Payment • Unit-price contracts • Properly in Measurement and Payment • Lump-sum amount stipulated in extended column 2005, Randy R. Rapp

  10. Partial Payments • Partial waivers of lien (subs’ waivers maybe one payment behind prime contractor’s) • Total cost pricing of change orders • Forward pricing of change orders • Retainage • Liquidated damages 2005, Randy R. Rapp

  11. Field Measurement for Payment • Pipeline lengths • Beware delivered vs. plan or in-place • If in-place, measure centerline on top • Earth and rock volume • Bank vs. compacted • Weight vs. volume (survey profile prior to work) • Curbs: top edge toward street • Sewers: do not include manholes • Fence: plan or top rail in-place 2005, Randy R. Rapp

  12. Field Measurement for Payment (Cont’d) • Pavement • Areas or weights • Unit-prices for handwork vs. equipment • Retaining walls • Inside vs. outside surface measurement • Calculate non-overlapping prism volumes 2005, Randy R. Rapp

  13. Final Payment • Additional requirements • Pay all project debts • Submit receipts, releases, waivers of lien • Obtain consent of surety • Besides retainage • Liquidated damages • Punch list work (1.5 to 2 times value) • Liens already filed • Upon filing Notice of Completion or Substantial Completion • Sometimes time limitation to announce intent to file lien • Time limitation to actually file 2005, Randy R. Rapp

More Related