SECTION 01200 PRICE AND PAYMENT PROCEDURES

This spec was part of the Des Plaines, IL River WRF project that bid Feb 26, 2015.


SECTION 01200

PRICE AND PAYMENT PROCEDURES


PART 1 GENERAL

1.1 SECTION INCLUDES

A. Cash allowances.

B. Testing and inspection allowances.

C. Schedule of values.

D. Applications for payment.

E. Change procedures.

F. Defect assessment.

G. Unit prices.

H. Alternates.

1.2 CASH ALLOWANCES

A. Costs Included in Cash Allowances: Cost of product to Contractor or Subcontractor, less applicable trade discounts, delivery to site and applicable taxes.

B. Costs Not Included in Cash Allowances But Included in Contract Sum/Price: Product handling at site, including unloading, uncrating, and storage; protection of products from elements and from damage; labor for installation and finishing.

C. Architect/Engineer Responsibilities:
1. Consult with Contractor for consideration and selection of products, services, suppliers, and installers.
2. Select products and services in consultation with Owner and transmit decision to Contractor.
3. Prepare Change Order.

D. Contractor Responsibilities:
1. Assist  Architect/Engineer  in  selection  of  products,  services  suppliers  and installers.
2. Obtain proposals from suppliers and installers and offer recommendations.
3. On notification of selection by Architect/Engineer, execute purchase agreement with designated supplier and installer.
4. Arrange for and process shop drawings, product data, and samples. Arrange for delivery.
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5. Promptly inspect products upon delivery for completeness, damage, and defects. Submit claims for transportation damage.

E. Differences in costs will be adjusted by Change Order.

F. Allowances Schedule:
Cash Allowances – The Contractor shall include in the total base bid price for Work the following cash allowances:
1. Replacement Allowance: Replacement of existing piping, valves, wiring, conduit, and other miscellaneous materials required to incorporate the new equipment and facilities into the existing treatment plant. Note that this cash allowance shall apply only for the replacement of existing items or materials that are required to complete the work but that cannot be reused or left in place because of their condition, location, or suitability. This cash allowance shall apply only to those items that are shown or specified to be re-used, and shall not be applied to items shown or specified to be removed and replaced. This cash allowance is intended to apply only to items and materials in the existing plant whose condition, location, or suitability makes their continued use inappropriate to incorporate the new equipment and facilities into the existing treatment plant: Cash allowance shall be $0.
2. Concrete Repair: Repair of existing concrete structures, at locations determined by Owner: Cash allowance shall be $0.
3. Skilled Trades Crew Allowance: Skilled trades crew to perform modifications during Plant Startup as specified in Section 01650: Cash allowance shall be $0.
4. Plaque Allowance: Provision of project plaque. Sign type, inscription, and location to be determined by Owner:  Cash allowance shall be $0.
5. Landscape Plantings Allowance: For purchase and installation of landscape plantings (trees and bushes), as selected by the Owner:  Cash allowance shall be
$0.
6. Office Equipment and Furniture Allowance: Purchase of Owner selected office equipment and furniture to be located in the plant buildings: Cash allowance shall be $0.
7. Laboratory Equipment Allowance: Purchase of Owner selected laboratory equipment and supplies to be located in the Administration Building (does not include items specified in the contract documents): Cash allowance shall be $0.
8. General Plant Maintenance Equipment Allowance: Purchase of Owner selected shelving, workbench, hoses, nozzles, tools and equipment to be located in the plant buildings for general plant maintenance: Cash allowance shall be $0.
9. Computer Systems Equipment Allowance: Purchase of Owner selected computer systems equipment (hardware and software) for the plant SCADA system. Included in this allowance is network hardware (computers, monitors, printers, communications hardware, operating software), specialty software (upgrades of the Owner’s current SCADA software), and programming services by the Owner’s SCADA contractor to modify the Owner’s existing SCADA system: Cash allowance shall be $0.
10. Utilities Allowance: Payment of the charges from gas, electric, and telephone utility companies for extending services to new facilities in the plant (Note: Applicable only to charges from utility companies for providing service to the point of Owner connection): Cash allowance shall be $0.
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1.3 TESTING AND INSPECTION ALLOWANCES

A. Costs Included in Testing and Inspecting Allowances: Cost of engaging testing and inspecting agency; execution of tests and inspecting; and reporting results will be by Owner.

B. Costs Not Included in Testing and Inspecting Allowance But Included in Contract Sum/Price:
1. Costs of incidental labor and facilities required to assist testing or inspecting agency.
2. Costs of testing services used by Contractor separate from Contract Document requirements.
3. Costs of retesting upon failure of previous tests as determined by Architect/Engineer.

C. Payment Procedures:
1. Submit copies of inspecting or testing firm's invoice with next application for payment.
2. Pay invoice on approval by Architect/Engineer.

D. Testing and Inspecting Allowances Schedule:
1. Include sum of $ 0 for payment of testing, inspecting, and laboratory services specified in Section 01400.

E. Differences in cost will be adjusted by Change Order.

1.4 SCHEDULE OF VALUES

A. Submit printed schedule on EJCDC 1910-8-E. Contractor's standard form or electronic media printout will be considered.

B. Submit Schedule of Values in triplicate as specified in Article 2 of the General Conditions.

C. Format: Values shall be broken down by each of the major buildings or facilities as described in the Contract Document. For each of the major facilities, utilize the Table of Contents of this Project Manual to further break down the costs. Identify each line item with number and title of the major specification Section. Identify site mobilization, bonds and insurance.

D. Include a line item for the amount of Allowances specified in this section.

E. Include within each line item, direct proportional amount of Contractor's overhead and profit.

F. Revise schedule to list approved Change Orders, with each Application For Payment.
A.
1.5 APPLICATIONS FOR PAYMENT

A. Submit three copies of each application on form EJCDC 1910-8-E. Contractor’s electronic media driven from will be considered.

B. Content and Format: Utilize Schedule of Values for listing items in Application for Payment.

C. Submit updated construction schedule with each Application for Payment.

D. Payment Period: Submit at intervals stipulated in the Agreement.

E. Substantiating Data: When Architect/Engineer requires substantiating information, submit data justifying dollar amounts in question. Include the following with Application for Payment:
1. Partial release of liens from major subcontractors and vendors.
2. Record documents as specified in Section 01700, for review by Owner which will be returned to Contractor.
3. Copies of invoices, certificates of insurance, and affidavits attesting to off-site stored products.
4. Construction  progress  schedules,  revised  and  current  as  specified  in  Section 01323.

1.6 CHANGE PROCEDURES

A. Maintain detailed records of work done on a Cost of Work basis. Provide full information required for evaluation of proposed changes, and to substantiate costs of changes in the Work.

B. Document each quotation for a change in cost or time with sufficient data to allow evaluation of the quotation.

C. On request, provide additional data to support computations:
1. Quantities of products, labor, and equipment.
2. Taxes, insurance and bonds.
3. Overhead and profit.
4. Justification for any change in Contract Time.
5. Credit for deletions from Contract, similarly documented.

D. Support each claim for additional costs, and for work done on a Cost of Work basis, with additional information:
1. Origin and date of claim.
2. Dates and times work was performed, and by whom.
3. Time records and wage rates paid.
4. Invoices and receipts for products, equipment, and subcontracts, similarly documented.

E. The Engineer may issue a Work Change Directive including a detailed description of proposed change with supplementary or revised drawings and specifications. This document will direct the Contractor through one of four procedures:
A.
1. Contractor will prepare and submit a detailed cost proposal within 10 days. Proposal would include any proposed change in Contract Time for executing the change. If proposal is accepted, Owner will execute and issue a Change Order to the Contractor.
2. Engineer will direct Contractor to proceed with Change in Work, requesting  a detailed cost proposal submitted either during or following completion of described work. If proposal is accepted, Owner will execute and issue a Change Order to the Contractor.
3. Engineer will direct Contractor to proceed with Change in Work on a Time and Material basis. Contractor will submit itemized account and supporting data after completion of change, within time limits indicated in Conditions of the Contract.
4. Engineer will direct minor changes in the Work not involving adjustment to Contract Sum/Price of Contract Time.

F. Contractor may propose changes by submitting a request for change  to Architect/Engineer, describing proposed change and its full effect on the Work.  Include a statement describing reason for the change, and effect on Contract Sum/Price and Contract Time with full documentation and a statement describing effect on Work by separate or other Contractors. Document requested substitutions in accordance with Section 01600.

G. Maintain detailed records of work done on Time and Material basis. Provide full information required for evaluation of proposed changes, and to substantiate costs for changes in the Work.

H. Document each quotation for change in cost or time with sufficient data to allow evaluation of quotation.

I. Execution of Change Orders: Owner will issue Change Orders for signatures of parties as provided in Conditions of the Contract.

J. Correlation Of Contractor Submittals:
1. Promptly revise Schedule of Values and Application for Payment forms to record each authorized Change Order as separate line item and adjust Contract Sum/Price.
2. Promptly revise progress schedules to reflect change in Contract Time, revise sub-schedules to adjust times for other items of work affected by the change, and resubmit.
3. Promptly enter changes in Project Record Documents.

1.7 DEFECT ASSESSMENT

A. Replace the Work, or portions of the Work, not conforming to specified requirements in accordance with article 13 of the General Conditions.

B. Non-Payment For Rejected Products: Payment will not be made for rejected products for any of the following:
1. Products wasted or disposed of in a manner that is not acceptable.
2. Products determined as unacceptable before or after placement.
3. Products not completely unloaded from transporting vehicle.
4. Products placed beyond lines and levels of required Work.
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5. Products remaining on hand after completion of the Work.
6. Loading, hauling, and disposing of rejected products.

1.8 UNIT PRICES

A. Authority: Measurement methods are delineated in specification Section 01025.

B. Measurement methods delineated in Section 01025 complement criteria of this section. In event of conflict, requirements of Section 01025 govern.

C. Take measurements and compute quantities. Architect/Engineer will verify measurements and quantities.

D. Unit Quantities: Quantities and measurements indicated in Bid Form are for contract purposes only. Quantities and measurements supplied or placed in the Work shall determine payment. Actual quantities provided shall determine payment.
1. When actual Work requires more or fewer quantities than those quantities indicated, provide required quantities at unit sum/prices contracted.
2. When actual Work requires 25 percent or greater change in quantity than those quantities indicated, Owner or Contractor may claim for Contract Price adjustment.

E. Payment Includes: Full compensation for required labor, products, tools, equipment, plant and facilities, transportation, services and incidentals; erection, application or installation of item of the Work; overhead and profit.

F. Final payment for Work governed by unit prices will be made on basis of actual measurements and quantities accepted by Architect/Engineer multiplied  by  unit sum/price for Work incorporated in or made necessary by the Work.

G. All work specified in DIVISION 1 – GENERAL REQUIREMENTS shall be considered incidental to and included in the appropriate Unit Prices stated in the Bid Form.

H. Measurement Of Quantities:
1. Weigh Scales: Inspected, tested and certified by applicable state Weights and Measures department within past year.
2. Platform Scales: Of sufficient size and capacity to accommodate conveying vehicle.
3. Metering Devices: Inspected, tested and certified by applicable State department within past year.
4. Measurement by Weight: Concrete reinforcing steel, rolled or formed steel or other metal shapes will be measured by handbook weights. Welded assemblies will be measured by handbook or scale weight.
5. Measurement by Volume: Measured by cubic dimension using mean length, width and height or thickness.
6. Measurement by Area: Measured by square dimension using mean length and width or radius.
7. Linear Measurement: Measured by linear dimension, at item centerline or mean chord.
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8. Stipulated Sum/Price Measurement: Items measured by weight, volume, area, or linear means or combination, as appropriate, as completed item or unit of the Work.

1.9 ALTERNATES

A. Alternates quoted on Bid Forms will be reviewed and accepted or rejected at Owner's option in accordance with article 11 of Instructions to Bidders. Accepted Alternates will be identified in Owner-Contractor Agreement.

B. Coordinate related work and modify surrounding work.


PART 2  PRODUCTS

2.1 Not Used.


PART 3  EXECUTION

3.1 Not Used.


END OF SECTION