Difference between revisions of "104.10 Claim for Extra Compensation or Extension of Time"

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<div style="text-align: center;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/104.10_Contractor_Claim_for_Extra_Compensation_or_Time_Extension Email this Page]</div>
 
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=[[#General|General]]=
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==[[#General|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.
 
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.
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* 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.   
 
* 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.   
  
* The claim information must be entered in the central office claim database after receiving Form 1953 from the Contractor.
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* For projects with [https://mdotwiki.state.mi.us/construction/index.php/FHWA%E2%80%99s_Risk-Based_Project_Involvement_(RBPI)_Stewardship_%26_Oversight_Plan_(S%26O_Plan) FHWA Risk-Based Project Involvement (RBPI)] the Engineer must review the project’s [https://mdotwiki.state.mi.us/construction/index.php/FHWA%E2%80%99s_Risk-Based_Project_Involvement_(RBPI)_Stewardship_%26_Oversight_Plan_(S%26O_Plan) 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 [https://www.ecfr.gov/cgi-bin/text-idx?SID=4dda70efc34f778cb216111b6014fb91&mc=true&node=pt23.1.635&rgn=div5#se23.1.635_1124 23 CFR 635.124]
 
 
* The Federal Highway Administration (FHWA) Area Engineer must be notified on all Projects of Division Interest (PODI) when a claim meeting is scheduled or an issue is scheduled to be presented to a Dispute Review Board (DRB).  A copy of the DRB claim package is to be provided to the FHWA Area Engineer.
 
  
 
* 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.
 
* 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.
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This information will replace the claim procedures in section 104 of the construction manual.
 
This information will replace the claim procedures in section 104 of the construction manual.
  
If you have any questions, please contact [mailto:DeBoerM@michigan.gov Michael DeBoer], Construction Contracts Engineer, at  or call him at 517-256-8368.
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:[https://www.michigan.gov/mdot/-/media/Project/Websites/MDOT/Business/Construction/MDOT-Standard-Specifications-for-Construction/CFS-Reference/Construction-Claims-Procedure.pdf?rev=dd54eff7d5bc451eb1023ff2a680686b&hash=70D1A96B0DDE2C5FC8C7BEE905DFDBA0 Construction Claims Procedure]
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If you have any questions, please contact [mailto:DeBoerM@michigan.gov Michael DeBoer], Construction Contracts Engineer, or call him at 517-256-8368.
  
The statewide claims spreadsheet can be found in ProjectWise, under Documents - Statewide Groups - CFS - Statewide Claims Data. 
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{|style="margin: 0 auto;"
 
|[[file:Claims database structure.PNG|250px|ProjectWise folder structure]]
 
|[[File:Claims_image.PNG|1000px|Image of file]]
 
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====[[#Claims Process Flowchart|Claims Process Flowchart]]====
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[[File:CLAIMS Flowchart DRAFT -SACT Review Complete.pdf|500px|thumbnail|center|Claims Process Flowchart]]
 
<div style="text-align: right;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/104.10_Contractor_Claim_for_Extra_Compensation_or_Time_Extension Email this Page]</div>
 
<div style="text-align: right;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/104.10_Contractor_Claim_for_Extra_Compensation_or_Time_Extension Email this Page]</div>
 
 
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=[[#MICHIGAN DEPARTMENT OF TRANSPORTATION CONTRACTOR CLAIMS PROCEDURE (Revised 2018)|MICHIGAN DEPARTMENT OF TRANSPORTATION CONTRACTOR CLAIMS PROCEDURE (Revised 2018)]]=
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==[[#LAP Project Considerations | LAP Project Considerations]]==
[[File:MDOT Construction Contractor Claims Procedure September 2018.pdf|500px|thumbnail|center|MDOT Construction Contractor Claims Procedure September 2018.pdf]]
 
 
 
A previous version of the [http://www.michigan.gov/documents/mdot/MDOT_Claims_Procedure_571598_7.pdf MDOT Contractor Claims Procedure Manual (2016)] is published on the MDOT website.
 
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LAP projects will follow [https://mdotwiki.state.mi.us/construction/index.php/104.10_Claim_for_Extra_Compensation_or_Extension_of_Time 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.
  
====[[#Claims Process Flowchart|Claims Process Flowchart]]====
 
[[File:CLAIMS Flowchart DRAFT -SACT Review Complete.pdf|500px|thumbnail|center|Claims Process Flowchart]]
 
 
<div style="text-align: right;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/104.10_Contractor_Claim_for_Extra_Compensation_or_Time_Extension Email this Page]</div>
 
<div style="text-align: right;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/104.10_Contractor_Claim_for_Extra_Compensation_or_Time_Extension Email this Page]</div>
 
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[[Category:Construction Manual]]
 
[[Category:Construction Manual]]
 
[[Category:Division 1]]
 
[[Category:Division 1]]
 
[[Category:Section 104]]
 
[[Category:Section 104]]

Revision as of 13:44, 16 August 2022

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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.

Construction Claims Procedure

If you have any questions, please contact Michael DeBoer, Construction Contracts Engineer, or call him at 517-256-8368.

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Claims Process Flowchart

Claims Process Flowchart
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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.

Email this Page

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