103.02 Contract Revisions
Subsection 103.02 Revisions to the Contract, of the Standard Specifications for Construction states:
A. General. The Department reserves the right to revise the contract at any time. Revisions to the contract neither invalidate the contract nor release the surety, and the Contractor agrees to perform the work as revised. The Contractor must not proceed with the revised work until directed to do so by the Engineer, but must continue with all work unaffected by the revision.
Contract modifications are the formal process by which revisions to the contract are formally authorized, approved and incorporated into the construction contract. Contract modifications are to be processed for any revisions to the contract that alters the nature, scope, cost or schedule of the project.
The MDOT contract modification process will no longer differentiate between different item types, quantities and/or monetary revisions in work. Changes, extras, adjustments, time extensions, modified originals, overruns, and all other changes are all to be evaluated in the same manner. To better align former terms, new terms, and changes in the Standard Specifications for Construction, all these various different types of changes to a construction contract modification will be referred to in this document only as “revisions to the contract.” Contract revisions will include all possible work revisions that may be included on a contract modification. Contract revisions may be positive or negative in dollar value, or even have no dollar value associated. The criteria for determining approval requirements of contract modifications will consist of the total cumulative net dollar value change of all contract revisions and previously generated contract modifications with respect to the awarded contract amount.
For example, an awarded contract for $10,000 with a contract modification containing the following contract revision items:
- Adding more blue house paint +$1,000
- Deducting yellow house paint -$900
- Adding new green paint for shed +$400
- Modifying the application rate for a second coat of red paint (units x rate difference) = +$300
Net Contract Modification Total = +$800
$800 total net cumulative contract modifications / $10,000 original contract = 8 percent
The contract modification would be evaluated as being 8 percent over awarded contract amount requiring Tier II approval.
All contract modifications will be generated and processed in accordance with the tiered approval process described below.
Once a need has been determined to revise the terms of a construction contract, the engineer will initiate the construction contract modification process as outlined below. If at any point during approval of the contract modification something changes the contract modification (including supporting documentation for the contract modification), a revised contract modification should be processed, and new signatures obtained following the tiered process below.
The revision of any contract work must be identified and processed following the procedures outlined below. The contractor and engineer must come to an agreement on the scope and method of payment of any contract revision prior to commencement of the work. This agreement must follow the procedure of contract term revisions is outlined in subsection 109.05. If there are no existing unit prices to cover the contract revision, and if the engineer does not receive a cost estimate within five calendar days of their request, a contract modification may be generated with an estimated budget and the work may commence under force account procedures.
All force account work (subsection 109.05.D) must require the pre-approval of the region construction engineer prior to commencing the work. This prior approval should be placed in the Contractor Claims and Force Account – 105 folder. Any contract revision that will be paid for using the force account method should have an estimated budget created on a contract modification. Payments to contractors are based only on accepted work that meets subsection 109.05.D specifications and the construction manual force guidance. Estimated budgets for force account work are expected to be revised and balanced as the work progresses.
In accordance with 23 CFR 635.102 and 23 CFR 635.120, FHWA’s Michigan Division has further clarified the definition of major changes as noted below:
1. Any construction field issue that results in an increase of $50,000 or more. This includes increasing original pay items unless it is for interim or final balancing as noted below. 2. Any change in project limits. A change in project limits must also follow the procedure for Extending Project Limits as described in this manual. 3. Changes in character or scope of the project. Examples of these types of changes may include but are not limited to: plan revisions, changes in materials that change the character or scope of the work, and eliminated work that changes the character or scope of the work. 4. All extensions of time (interim, open to traffic, final, etc.) 5. Any changes to incentive requirements, liquidated damages, A+B provisions, and/or warranties. 6. Any Value Engineering Change Proposals (VECP), regardless of amount.
Federal Highway Administration (FHWA) involvement activities may be necessary for major changes depending on the project specific FHWA’s Risk-Based Project Involvement (RBPI) Stewardship & Oversight Plan (S&O Plan). FHWA Form 1365 are no longer required.
When the project’s RBPI S&O Plan requires MDOT action, the MDOT Construction/Project Engineer must electronically submit a request with any applicable document(s) to the respective FHWA Area Engineer that is overseeing the project to obtain the necessary review and/or approval. Consultant project engineers are not permitted to submit the request directly to the FHWA. The FHWA Area Engineer may approve or comment on the request. The MDOT Construction/Project Engineer must save a copy of the correspondence in the project files. All major work performed prior to obtaining documented pre-approval from FHWA may be considered non-participating. However, when an emergency or unusual conditions justify expediency, the FHWA Area Engineer may provide verbal pre-approval of the change and immediately follow-up such verbal approvals with electronic documentation. All discussions and pre-approvals should be noted on the contract modification. Approval is not required for contract modifications of any amount that only balance pay items to field measured quantities (interim and final balancing contract modifications). These balancing contract modifications must not contain any pay items or work that are part of a major change as defined above. Once an extra work item is approved, the balancing of the extra work item does not require FHWA approval.
Extra work items and adjustments that are 100 percent state or local agency funded do not require FHWA approval unless the work constitutes an extension of project limits. These items must be placed on separate contract modifications.
Any revisions to the terms of the contract must be made in a contract modification. This includes revisions to the contract time conditions. Any revisions in work that may impact the contract time requirements must be included on the same contract modification. If it is not possible to determine the exact extent of the contract time revisions at the time the contract modification is generated, then any potential impacts to contract time should be noted directly on the contract modification. Contract modifications should indicate one of the following: that there are no contract time impacts, the exact impacts to contract time, or note that revisions included on the contract modification could impact the contract time and a future contract revision may be required to address this.
Sample: It is not currently known at this time if this non-critical path contract revision work will impact the project completion schedule; however, should the work included in this contract revision alter the project schedule, the contractor will be required to submit a revised progress schedule for approval (Subsection 108.05.A.3.b).
The following general information is required on each contract modification:
- “Short Description” – Include a brief description of the contract revisions covered by this contract modification.
- “Description of Changes” – Address all items below as they apply to the contract modification:
- State the original awarded contract amount.
- State the current net total contract amount. This total shall include the net sum total of all previously generated contract modifications, including the current contract modification being developed.
- State the resulting net total difference between the current net total contract amount and original awarded contract amounts (“B” minus “A” above).
- State the resulting total net percentage change in contract amount. This shall be calculated as the total resulting changes to the contract (“C” above) divided by the original awarded contract amount (“A” above) expressed as a percentage.
- Indicate if the project is one of the following:
- Federal Highway Administration (FHWA) Risk-Based Project Involvement (RBPI)*
- FHWA RBPI Full Consultant Construction Engineering*
- MDOT Oversight
- MDOT Oversight Full Consultant Construction Engineering
- MDOT Local Agency Project (LAP)
- MDOT LAP Full Consultant Construction Engineering
- Other (Railroad, Aero, MBA)
- For all contract modifications bound for a Tier III approval process this section must include a short executive summary of project changes. This summary can and should typically discuss work beyond that contained in the subject contract modification, to more fully describe how the sum of all the contract modifications brought the contract to its current status (i.e., a last minor contract revision may not be the sole reason the entire contract has now reached Tier III status, often work in previous contract revisions contributed to the total project cost increases in a more significant way). The summary should not be overly detailed and just give a general description of how and why the contract has reached the Tier III threshold, when the work was (or will be) completed, funding (if different form regular project items), and any other general information related to the project/contract revisions. This summary description of contract revisions and explanations may be used by external reviewers in their evaluation and approval of contract modifications reaching the Tier III level.
For example, contract modifications will contain summary bullet points in the “Description of Changes” area like:
- $100 awarded contract.
- $110 current net total contract (including changes in this CM).
- $10 net total change.
- Total project now 10 percent over awarded contract amount.
- MDOT oversight project.
- Tier III approval required. Contract has reached the Tier III approval threshold due to several previously approved changes (provide brief overview of specifics) that were required to safely construct the project due to changing conditions caused by the a local festival which required some work items to be performed in different project schedule phases than as originally planned. These changes also required the addition of several additional minor traffic control items needed to maintain traffic mobility through the project area. No additional contract time will be needed to complete the project as scheduled.$100 awarded contract.
A full sample contract modification has been included within this document as Contract Revison Example file.pdf
There are four basic item types used in the FieldManager software. They are described in more detail as:
Original Pay Items:
- This item code is used for contract revisions that were already included in the awarded contract as a pay item, but which may need to be increased or decreased based on actual field conditions.
- A detailed explanation (including answering all of items “A” through “E” in the Detailed Contract Modification Information section below) is required for all revisions that increase or decrease the work item in excess of $25,000. (Note this is a general guideline for minimum requirements, additional information may be required on smaller dollar value changes depending upon specific project requirements.)
Modified Original Pay Items:
- Modified originals are used for contract work that was included in the awarded contract as a pay item, but which may need to be duplicated within the contract for another funding category or job number within the same contract for the same item of work.
- Provide a detailed explanation (including answering all of items “A” through “E” in the Detailed Contract Modification Information section below) for any modified original contract pay item.
- Must include the following statement as part of the reason:
“The item code, item description, and unit price for this modified original have been verified against the original contract item and are correct.” One original work item may be used multiple times to establish multiple modified original items. Modified original items are not extra work or adjustments. Extras and adjustments are excluded from this procedure, as they must be established as extra and adjustments to other projects and categories within the respective contract.
- This item type is used for any contract revisions that will require the addition of a new pay item of work in FieldManager and were not included in the awarded contract.
- Provide detailed explanation (including answering all of items “A” through “H” in the Detailed Contract Modification Information section below) for the addition of any extra work item revising the contract.
- Include any required documentation to support the extra revised contract work.
- This category is for contract revisions that require adjustments to work items. Adjustments are defined as “a monetary revision to a contract unit price or to the entire contract.” Examples: incentive, liquidated damages, HMA quality adjustment, concrete quality adjustment, traffic control quality and compliance adjustment, soil erosion and sedimentation control adjustment, prompt pay violation adjustment, delinquent payroll adjustment, significant changes (i.e., 103.02.B for major items of work ± 25 percent), etc.
- Document the details of the contract revision adjustments and all associated impacts to the project. Provide detailed explanation (including answering all of items “A” through “H” in the Detailed Contract Modification Information section below) for any contract adjustment item.
- The unit used for adjustments will be “DLR” (dollars) and the quantity can be ±.
The following detailed information is required for all contract modifications according to which item type (above) is used.
- Bulleted list item
Document the details of the contract revision work including responses to all applicable items listed below:
A. What was done?
B. Why was it done?
C. Are there any offsetting items?
D. Is the work expected to impact contract time or open to traffic date(s)?
E. Is this a design error or due to changed conditions?
- (Potential errors and omissions that are related to design efforts are to be discussed with the MDOT Design Project Manager and TSC Manager. Potential errors or omissions for construction engineering, inspection, and/or testing work are to be discussed with the TSC Manager. Please see the Premium Costs for Design and Field Issues section below for more information. Any questions can be directed to the CFS Construction Contracts Engineer.)
F. Who else has reviewed the proposed contract revisions (FHWA area engineer, region construction engineer, etc)?
G. How was the price established? Document how the cost was determined and justified either by negotiated prices or force account use.
- For example:
- Unit price compared to a similar project or similar items on the existing contract.
- Quoted price appears to be reasonable when compared with weighted average item prices – reference year.
- Force account was the only logical method due to variables/unknowns.
H. Include and attach any/all supporting documentation for the contract revision.
The following process was developed in compliance with State Transportation Commission (STC) policy. It outlines the identification, responsibilities, and resolution of design errors.
If the TSC Construction Engineer identifies a potential design issue, and the construction contract value/correction cost combination meets the criteria below, or the impact of the issue is significant to project, further investigation will be needed.
|Construction Contract Value||Correction Cost|
The TSC Construction Engineer will coordinate and work collaboratively with the Region Construction Engineer, Design Project Manager/Project Designer (Engineer of Record, EOR) and the TSC Manager to evaluate the issue. Considerations to include among others, are the information available during development, the process documentation, and any assumptions made. The TSC Manager will determine if the issue is a design error. A design error must be reported if the project, or a portion of the project, cannot be practically built, built as intended, or built safely as designed due to omissions or errors.
Additional consideration and dialogue will be conducted to determine if there are associated premium costs as defined below in the Premium Costs for Design Errors and Field Issues section. Documentation of the evaluation, assessment, and determination must be retained in the construction files.
The TSC Manager is required to communicate all design errors exceeding the previously defined impact or cost thresholds to the Associate Region Engineer - Development, Development Quality Assurance Engineer, the Engineer of Design, and Chief Structure Design Engineer (for bridge projects). Information provided must include: region, contract ID, job number, consultant (if applicable), issue description, impact to construction (cost, time, safety, user delay, etc.), issue resolution (how resolved), and any suggestions on how this could have been addressed during design. This information will also include lessons learned and possible process change considerations to be shared as needed. The Quality Assurance Engineer will assemble and retain this information for quarterly reporting to the Statewide Design Alignment Team (SDAT).
If a Construction Engineer believes that a design error has caused premium costs to be incurred, then the issue must be discussed with the MDOT Design Project Manager and the TSC manager. On projects that are designed by a consultant the dispute resolution process for design issues may be engaged.
Premium costs are defined as dollar amounts paid to a Contractor for non-value added work in delays, inefficiencies, rework, or extra work as shown below other than those caused by the Contractor and/or any subcontractors or suppliers. Non-value added work can occur in three distinct situations:
- Work delays or inefficiencies. In this situation, premium costs are the total delay/inefficiency damages paid to the Contractor.
- Rework. Premium costs are the dollar amount of the original items of work that have to be removed and the costs to remove these items.
- Extra work. In this situation, premium costs are computed as the amount paid to the contractor in excess of the bid item costs and/or the average unit price for the work when analyzed with the geographic location, quantity of work, transportation costs, and scope of work. It is strongly recommended to contact the CFS Construction Contracts Engineer for assistance in determination of extra costs due to extra work.
All extra work does not necessarily result in premium costs. All extra work that is determined to be the result of design errors or omissions does not necessarily result in premium costs. Contract increases due strictly to overruns of contract pay items are not premium costs, unless those contract pay item overruns are associated with re-work. Impacts to the project schedule and construction delays may also result in additional costs that must be evaluated.
Field issues due to the efforts or omission of a consultant hired for construction engineering, inspection, and/or testing will follow the same procedure noted above. If a Construction Engineer believes that a construction issue has caused premium costs to be incurred, then the issue must be discussed with the TSC Manager.
If the Construction Engineer believes that a fraudulent act has been performed by a consultant or a contractor, they should immediately contact their TSC Manager and the CFS Construction Contracts Engineer.
Work items should be balanced as soon as they are completed and not delayed until project finaling. Balancing quantities must be submitted as soon as the work items are completed, measured, and checked.
The required approval path of contract modifications will be based on the sum of the original awarded contract, the net sum of all previously generated contract modifications, and the current proposed contract revisions compared to the original contract award amount. As shown in Figure 1, if the net total contract amount is less than or equal to 5 percent then the contract modification approval occurs at the Tier I - TSC level; if the net contract amount exceeds 5 percent of the original value but is less than or equal to 10 percent then the contract modification requires both Tier I - TSC and Tier II - Region approvals; and if the contract modification exceeds 10 percent of the original contract value then the contract modification requires Tier I - TSC, Tier II - Region and Tier III - Bureau of Field Services approvals. Contracts at the Tier III - Bureau of Field Services level may also require approval of other entities and may take longer to approve. Please note that approval of the State Administrative Board will not be required if the contract modification is approved in accordance with all the instructions included within.
If a level of approval is reached and then subsequent contract modifications decrease the contract value to below the threshold, then the later contract modifications under the threshold can be approved with only the lower relevant approvals.
The “prepared by signature” block of the contract modification will contain the name of the technician, project engineer, consultant or other staff that prepared the contract modification document. This signature block is considered optional and the use of this signature block will depend upon transportation service center (TSC) or consultant office policies. The preparer of the contract modification is responsible for completing all content, including all required information, determining all signatures required, routing the document to required approvers, and for determining the approval threshold requirements. Due to varying approval times, non-sequential numbered contract modifications and other issues, the threshold net contract budget amount determination will be determined by the preparer at the time of contract modification generation. The preparer shall account for both the current contract modification and all previously “generated” contract modifications (regardless of final approval or not), but shall not include any draft contract modifications that have not yet been generated for signatures.
When consultants are managing construction projects, they must complete the signature block for “consultant project manager” by having the consultant’s licensed project engineer assigned to the project sign in this signature block. Consultants must then send the contract modification to the contractor for signature.
Once the engineer, local agency, or consultant generates the contract modification, it will be sent to the contractor for signature. The contractor shall sign and return the document to the sender within ten calendar days of transmittal. The above approval timeline is the general guideline for most contract modifications, however, for complex or large balancing modifications that may require additional time to review, the contractor may take up to a maximum of 21 calendar days to return the document. After this maximum timeframe, or if the contractor refuses to sign and return the contract modification, the engineer may then process the contract modification with “contractor failed to sign and return” noted in the contractor signature area.
Once all external non-MDOT signatures have been completed, the contract modification will go through Tier I - TSC level approval. Place the document in the respective folder within the MDOT ProjectWise system for further MDOT approvals. TSC approval must consist of at least two different licensed engineer signatures and these two signatures are mandatory for every contract modification without exception. The Recommended by signature must contain the name of the construction/licensed project engineer (including licensed project and contracts engineers, licensed assistant construction engineers, etc.) in responsible charge of the project. The Authorized by TSC manager signature block must contain the name of the TSC manager. When the contract modification is returned to the TSC office from the contractor, local agency, or consultant, the construction/licensed project engineer (or designated alternate/backup) must review and ensure that all supporting documentation is in the ProjectWise folder in accordance with sections 109.05.C and 109.05.D 109.05 Payment for Contract Revisions and sign the contract modification. The TSC manager (or their designated alternate/backup) will review the contract modification including supporting documentation and sign the contract modification.
For all MDOT construction contract modification documents, signature authority is allowed to be designated to a pre-established backup or alternate signer as required. Designated backups or delegated signature authority must be to a pre-established person that is an equivalent level or higher. However, even if a backup or designated alternate reviews and signs the document, the name on the signature block will still contain the name of the required approver. In this case, the construction/licensed project engineer and TSC manager will be named as the owners of these two signature blocks and they will ultimately be responsible for the accuracy and content of the contract modification regardless of who signed. It is never acceptable to have the same person sign multiple signature blocks on the same contract modification.
Contract modifications meeting Tier II - Region approval threshold level must first obtain all lower level Tier I – TSC approval signatures as outlined above. After receiving these approvals, the contract modification will then be submitted to the region construction engineer for their review and authorization. Backup or alternate signers for the region construction engineer will also be pre-established and must be an equivalent level or higher.
Contract modifications reaching the Tier III - Bureau of Field Services approval threshold, must first obtain all Tier I - TSC and Tier II - Region level signatures, and then be routed to the Construction Contracts Engineer at the Bureau of Field Services for review and processing. Contract modifications, with supporting documentation, reaching this level may also be sent to the Office of Commission Audits (OCA) and the Attorney General’s (AG) Office for review and concurrence prior to authorization. Contract modifications may be identified by OCA to be further explained. (Contract modifications at this level that do not conform to all the requirements established herein may have to be submitted to OCA for review.) Estimated approval time from initial receipt of the contract modification by the Construction Contracts Engineer through approval may take 14 days with all required reviews. Contract modifications reaching this threshold must be submitted with all required supporting documentation in the project file. Upon authorization by the Bureau of Field Services, the contract modification will be returned to the designated contact for the construction/licensed project engineer.
Engineers at any level of the construction contract modification approval process have the option to contact other engineers in the approval process for advice or consultation on unusual contract modifications regardless of threshold levels. The same holds true for the advice or consent of other services available to engineers through the Bureau of Field Services Construction Contracts Unit, FHWA area engineers, the AG and/or OCA. These resources can provide a great deal of expertise to engineers which can help avoid potential contract issues. Inquiries to these areas should be routed through the region construction engineer and/or the Construction Contracts Unit to facilitate potential correlation of similar issues and/or possible statewide guidance to other engineers.
Electronic records of all construction contract modifications will be stored in the MDOT ProjectWise system to ensure proper records retention criteria for document backup, archiving, and disposal schedules can be met. Consultant generated contract modifications will also be stored in the ProjectWise system by the TSC point of contact after MDOT signatures have been obtained and an electronic copy will also be emailed back to the consultant for their records and electronic storage. The use of electronic signatures changes the standard MDOT records process, as the electronic file with the digital signatures embedded is legally considered the original document and it must be properly retained. Questions on records retention or digital electronic signatures should be referred to the MDOT Construction Contracts Unit.
The Transportation Service Center (TSC) construction engineer is responsible for maintaining accurate Construction (CON) and Construction Engineering (CE) phase line item amounts for all MDOT let projects including MDOT and local agency projects as reported in the Phase Initiator (PI) system. The construction contract authorized amount is initially set to the engineer’s estimated construction cost and construction engineering to the amount agreed to by the TSC construction engineer. These contract values are initially programmed in JobNet and represent the CON phase and CE portion of the CON phase.
After award, the construction contract authorized amount is updated to the award amount. Throughout construction the cost to date increases as work is paid on pay estimates. Tracking of the cost to date is visible within a number of programs in addition to PI including JobNet and the Statewide Monitoring and Reporting Tool (SMART) but may experience a two-week lag pending processing of charges. The TSC construction engineer should revise the construction authorized amount in PI during construction for extras and overruns as well as significant decreases of $250,000 or more. Similarly, the TSC construction engineer should increase the construction engineering authorized amount if it exceeds or is expected to exceed the authorized amount by any value. The timely accurate reporting of the CON phase and CE phase values will improve cost controls and reduce projects rejected or held for FHWA reimbursement for incomplete or inaccurate information.
The TSC construction engineer should review the authorized, cost to date, and encumbrance funding amount for the CON and CE phase line items in PI throughout construction and revise as necessary to ensure the authorized amount is adequate. At a minimum, revisions to the authorized construction amount should be made in PI for changes to CE, once a contract has reached Tier II (5%) contract modification approval and at Tier III (10%) contract modification approval, and at final project closeout. Additional revisions do not need to be performed for each Tier II or Tier III contract modification after revising the authorized amount once the contract has reached Tier II or Tier III thresholds. Revisions should be submitted for each additional 5% threshold beyond Tier II or Tier III (10%,15%, 20%, 25%, etc.). Note: CE changes do not require a contract modification and can be updated directly in PI. This applies to MDOT and local agency administered projects (LAP), see Local Agency Projects Considerations section below. The construction engineer should also review authorized funding levels to ensure there is adequate CE funding to cover consultant contract invoices.
The region system manager is included in the ProjectWise workflow for Tier II and above contract modifications on MDOT projects (not LAP). As part of the approval process for Tier II and above contract modifications, TSC construction and management staff should engage with the region system manager who will ensure there is adequate funding to cover the increase. Note: this collaboration is not for authorization/approval, but more so to help for balancing in the necessary year(s) and outward.
Since there is no pre-notification process for CE increases currently, TSC construction engineers should contact the region system manager via email when increases to construction engineering amounts are needed to ensure there is adequate funding to cover the increase.
In addition to maintaining accurate funding amounts for Construction phases, TSC Construction Engineers will also need to submit revisions when there have been schedule delays of 6 months or more. TSC Construction Engineers should submit a revision in PI to extend the project end date, with appropriate justification, once the contract modification has been approved for the approved extension of time when cumulatively over 6 months. This applies to MDOT and LAP projects. Phase date information can be reviewed under the Phase tab in PI or in JobNet.
Note: Revisions are only needed on active (authorized) Construction phases. Construction phases which are not yet obligated are updated through change requests in JobNet by the system manager or project manager until the phase is obligated. After obligation the Construction Engineer or delegated Construction team member will submit revisions via contract modification and PI.
Further detailed instructions for completing these revisions in PI are available under the Help link in the upper right corner of the PI program webpage.
Phase Initiator is accessed through MILogin.
Form 2744B must be completed and submitted to request the revision initiator role in Phase Initiator.
This is the entire example Contract Modification in one PDF file. Appendix B - Sample Contract Modification
The LAP Project Construction Contract Modification Process is the same as described in 103.02 Contract Revisions, with the following exceptions:
- It is highly recommended the local agency contact the DR prior to processing any contract modification so the DR can provide direction regarding item eligibility and participation based on the current LAP Federal Eligibility Guidelines. It’s a best practice to provide a draft contract modification to the DR for review.
Failure to keep the DR appraised of contract modifications may result in delays in processing the modification, jeopardy of item funding participation, and jeopardy of project funding participation. Depending on content, NEPA clearances may need to be reviewed as well.
- General Contract Modification Information, item E. must state ‘MDOT Local Agency Project (LAP)’
- FHWA does not support participation in Premium Costs for Design and Field Issues. The LPA must discuss all potential premium costs with the DR.
- If the LPA believes a fraudulent act has been performed, they must immediately contact their DR who will inform the TSC Manager, CFS Construction Contracts Engineer, and Statewide Local Agency Construction Engineer.
- If the contract modification requires FHWA action in accordance with the RBPI S&O plan, the LRC must review the proposed change. If the proposed change is acceptable, the DR will forward the request to FHWA. Work associated with Extending Project Limits should be placed on a separate contract modification.
- All contract modifications must be signed by:
- LRC in the ‘recommended by local agency’ signature block
- MRC in the ‘construction engineer’ signature block
- TSC Manager (or designated alternate/backup) in the ‘managing office’ signature block
- Appropriate parties in the ‘Region Construction Engineer’ and ‘Bureau of Field Services’ signature block based on Tier II and III approval threshold requirements
- FHWA Local Programs Manager, if project is a RBPI, and signature requirement is part of the RBPI S&O plan.
The TSC construction engineer is responsible for maintaining accurate Construction (CON) and Construction Engineering (CE) phase line item amounts for all MDOT let projects including MDOT and local agency projects as reported in the Phase Initiator (PI) system. At a minimum, revisions to the authorized construction amount should be made for LAP projects in PI for changes to CE (if applicable), once a contract has reached Tier II (5%) contract modification approval and at Tier III (10%) contract modification approval, and at final project closeout. Additional revisions do not need to be performed for each Tier II or Tier III contract modification after revising the authorized amount once the contract has reached Tier II or Tier III thresholds. Revisions should be submitted for each additional 5% threshold beyond Tier II or Tier III (10%, 15%, 20%, 25%, etc.). Following the approval of a LAP contract modification the TSC construction engineer should revise the construction authorized amount in PI during construction for extras and overruns as well as significant decreases of $250,000 or more. Similarly, the TSC construction engineer should increase the construction engineering authorized amount if it exceeds or expected to exceed the authorized amount by any value. Note that CE phases on LAP projects may be rare depending on location, if the CE phase is not present, no further action is required related to CE.
In addition to maintaining accurate funding amounts for Construction phases, TSC Construction Engineers will also need to submit revisions when there have been schedule delays of 6 months or more on LAP projects. TSC Construction Engineers should submit a revision in PI to extend the project end date with appropriate justification once the LAP contract modification has been approved for the approved extension of time. Phase date information can be reviewed under the Phase tab in PI or in JobNet.