104.10 Claim for Extra Compensation or Extension of Time
General
The Michigan Department of Transportation Construction Contractor Claims Procedure provides a formalized, tiered process for the submittal and review of a Contractor’s claim. The claim review process involves a formalized administrative procedure. The goal of the process is to resolve claims at the lowest possible level. This document will clarify the process and reinforce the level of attention, accountability, and urgency by the Contractor and Department in the claim process. The time durations within the procedures are intended to be maximum timeframes with any request for an extension to the durations, whether by the Contractor or the Department, documented in writing.
Construction Field Services (CFS) and Region Construction Engineers will be monitoring and tracking all claims. The procedures for the reporting and tracking of claims are as follows:
- A copy of all notices of intent to file claims (MDOT and local agency) must be provided to TSC Managers and Region Construction Engineers as noted in the procedures.
- For projects with FHWA Risk-Based Project Involvement (RBPI) the Engineer must review the project’s RBPI Stewardship and Oversight (RBPI S&O) plan for potential inclusion of the FHWA Area Engineer in this claims process. A copy of the Dispute Review Board (DRB) claim package is to be provided to the FHWA Area Engineer. FHWA participation in claim payment is not guaranteed. FHWA must be notified of claim prior to settlement and have opportunity to review claim documentation prior to settlement. Regulations concerning FHWA participation in claims can be found here in 23 CFR 635.124
- All claim decision letters from the Region Office Review hearings are to be copied to both the Region Construction Engineer and the CFS Construction Contracts Engineer.
Please send all (project, region and central office) claim decision letters to the contractor by certified mail. The Return Receipt is to be placed in the project file. This documentation will be used when determining if subsequent appeals are timely. If you receive what appears to be an untimely appeal from a contractor, contact the Attorney General’s Office (517-373-1479) for recommended action.
This information will replace the claim procedures in section 104 of the construction manual.
If you have any questions, please contact MDOT Construction Contracts Engineer Purush Pakala, or call him at 517-243-4336.
Claims Process Flowchart
LAP Project Considerations
LAP projects will follow Claim for Extra Compensation or Extension of Time guidance. Locals are highly encouraged to work with their DR to resolve claim issues at the lowest possible level.