109.07 Final Inspection, Acceptance, and Final Payment
The Michigan Department of Transportation (MDOT) is charged with overseeing local agency construction projects to ensure compliance with federal funding requirements. There are four distinct types of local agency projects involving federal funding that involve MDOT staff oversight. These project types with their letting process are noted below.
- MDOT Letting Process a. Local Agency Projects for Road, Bridge, and/or Enhancement Work
- Local Agency Letting Process a. Local Agency Projects for Enhancement Work
- Non Letting Process a. Economic Development Direct Grant Projects
- Non Letting Process a. Local Agency Force Account Construction Projects (Direct Force)
Oversight requirements for local agency construction projects 1a through 3a are defined in Region Oversight of Local Agency Construction Projects.
Non-Letting Process, Local Agency Force Account Construction Projects (Direct Force) The oversight requirements for projects in this category are described in Appendix III - Oversight, Inspection, and Materials Acceptance Requirements for Federally Funded Local Agency Transportation Projects of the Updated Guidance for Construction of Federally Funded Local Agency Projects by Non-Competitive Bid Contract (Force Account), June 2018 document.
The final inspection requirements for local agency force account projects note that the completed 1120 form, Final Inspection/Acceptance and Certification Report, is to be placed into the project files. The project files are maintained by the local agency and the local agency must maintain the original 1120 form for auditing purposes. The distribution of this form will be as follows and will not follow the distribution shown on the form:
- Local Agency Project Files
- Region Construction Engineer (RCE)
- Local Agency Program – Staff Engineer
- Transportation Service Center (TSC) Construction Engineer
- Designated Representative at TSC
When the project is substantially completed, a post construction inspection of the project should be performed by the Engineer and senior technician. The purpose of this inspection is to develop a checklist of work items remaining to be completed.
Timing of the preparation of the checklist is important. A list composed of more than 50 items usually indicates the project is not near enough completed to warrant preparation of a checklist. However, the list should be in final form and delivered to the Contractor’s representative in time for the items listed to be completed before the project completion date. The items on the checklist should be specific as to location and the nature of the uncompleted work. The Contractor’s representative should have a clear understanding of the items shown on the list.
The intent of this procedure is to give the Contractor a specific list of work items that will not be added to as the project progresses to completion. If extra work is necessary for which the Contractor will be reimbursed, an appropriate work order will be prepared describing the work to be done and the nature and amount of reimbursement to be made. Such items should then be added to the checklist prepared at the time of the post construction inspection. An item that was obviously omitted from the original checklist, or work made necessary by the Contractor’s operations after preparation of the checklist, should not be paid for as extra work.
When the items on the checklist have been completed to the satisfaction of the Engineer, the Region office should be contacted to make arrangements for a final inspection and acceptance of the project. On local government projects, local agencies should be contacted for final inspection and acceptance. Final MDOT acceptance will be made by use of Form 1120 initiated by the Transportation Service Center (TSC).
The Federal Highway Administration (FHWA) considers inactive projects as one of their top priorities. A project in the inactive state can potentially delay federal funding that could be utilized on other MDOT projects. Rebecca Jones, in the Financial Operations Division, is to be notified via e-mail at JonesR6@michigan.gov when all construction work is complete and accepted, but the next pay estimate or the final pay estimate will not be or has not been generated for more than nine (9) months from the most recent pay estimate. This notification is also to be provided when the only remaining work is watering and cultivating. The notification must include the following information:
- Current Project Status
- Remaining funds that are to be paid to the contractor
- Estimated date of payment
- Reason for delay in payment and/or work operations
This applies to state and local Federal-aid projects. Please share this information with local agencies and consultants within your area.
The following procedure for processing final estimates will expedite the finalizing of projects and final payment to the Contractor for completed work. Figure 109-2 shows an example of the Final Estimate Submittal form 1105 to be submitted with the final estimate package. Note that history sheets are not required on projects where funding is the same for all pay items, i.e. all one funding category.
The Final Estimate Submittal form 1105 must be included as part of the “Final Estimate Package”. When the items on the checklist have been completed, the Engineer will sign certifying that final quantities for payment in this estimate have been properly completed, reviewed and checked for accuracy in accordance with current published instructions.
The Contractor Payments Unit will review and generate the final project voucher summary. The Contractor Payments Unit will then sign the estimate and send it to the Treasury Department for final payment to the Contractor. A copy of the final estimate will be sent to the Engineer and to the Region office.
The following conditions must be met at the time of submitting a final estimate:
- Extension of time authorized (if needed) to date of last work completed.
- Acceptance report submitted, Form 1120. Project must have been accepted and certified (required on non-exempt federal projects on the NHS) by MDOT.
- Authorizations on file. The Engineer must have on file the approved copy of any change, extra or adjustment authorization to the contract.
- All final estimates are to be processed for zero ($0) dollars. All contract modifications and progress pay estimates are to be fully processed and approved before generating the final pay estimate. Final pay estimates for zero dollars will help to ensure contractor prompt payment and efficient completion of forms such as Form 2124A and Form 1386, Post Certification of Subcontract Compliance.
The local agency Project Engineer must sign the Final Estimate Submittal form 1105 certifying that the final estimate included in this estimate has been properly completed, reviewed and checked for accuracy in accordance with current published instructions, and must submit the Final Estimate Submittal form 1105 with the final estimate. The Engineer or TSC manager must also sign the Final Estimate Submittal form 1105. A copy of this is to be sent to the Region office.
When the Region receives a copy of the Final Inspection/Acceptance and Certification Report form 1120, the project certification should be completed and appropriate distribution should be made by the Region office. Certification is not required on local government projects unless they are non-exempt and on the NHS.
Marked plans showing "as constructed" changes should be submitted to the Lansing Design Support Area upon completion of a project. This information is then transferred to the tracings for permanent record and future reference. A log job project does not include project plans other than details included in the proposal. Therefore on a log job, the engineer should send the appropriate project proposal sheets with “as-built” changes in lieu of marked plans. Instructions for the process are available at: http://www.michigan.gov/documents/mdot/As_Built_Plans_Mark-Up_Standards_295498_7.pdf and http://www.michigan.gov/documents/mdot/As_Built_Plans_ProjectWise_Submittal_Procedures_for_Jobs_Let_by_E-Proposal_295500_7.pdf
Changes in alignment, bearings, PCS, PI’s, PT’s, curve data, government corner witnesses, witnesses to alignment monuments, right-of-way monuments and boxes and right-of-way fence should be shown on plan sheets.
Changes in vertical curves, benchmarks, grade changes, structural grade changes and changes in elevation and/or percent grade of ditch flow line should be shown on profile and plan where applicable.
Changes in location, elevation, length and size of culverts, sewers, edge drain, manholes and catch basins should be shown on plan and profile. Include stationing, offset from centerline, flow line elevations, types, sizes, lengths and quantities. Other topography changes, including guardrail, slopes, drives (location and width), utility changes such as gas, telephone, power, water main, lighting, etc., should also be shown.
It is not necessary to show minor changes in earthwork, subbase or surfacing on plan or profile sheets if such changes are broken down by balances on the quantity sheets. When borrow is Contractor-furnished, actual earthwork balances are not important. Use the station-to-station breakdown as was used for plan quantities. Undercuts likewise need not be shown, as most reconstruction projects require a new soils investigation.
After review by the Region, forms and documents necessary for payment of the final estimate should be submitted as shown below.
Final Construction Estimate Biweekly/Weekly Report (original).
Marked plans (document transmittal with a cover letter).
MDOT has always provided a clear message to construction offices regarding the expectations for timely contractor payments. This has been discussed in a number of recent venues including the previous two annual MDOT Statewide Construction Alignment Conferences as well as region wide construction business team meetings. The industry has recently provided several examples of concern regarding our payment and construction administration practices. While MDOT Executive Leadership believes that these cases are isolated and not a reflection of our overall success, they do believe there are a few messages that warrant field engagement in order to ensure continued efficient construction contract administration.
Michigan and its contracting industry are still experiencing tough economic times; therefore, it is imperative that we keep contract payments flowing to contractors for satisfactorily completed work. MDOT field staff need to be pro-active in resolving project level disputes on quantities/claims and timely in processing pay estimates and contract modifications on all projects. Similar expectations are placed on the administration of local agency construction projects and MDOT needs to have an active role in the oversight of the local agency program.
Industry has been encouraged to follow standard protocol when seeking resolution on unresolved project level issues they feel are not receiving timely attention. If issues are unresolved at the project level, they are expected to first contact the TSC manager. The next and subsequent contacts will be the Region Engineer then the Engineer of Construction Field Services (CFS). Direct contact with executive leadership has been discouraged as this eliminates efficiencies and hinders local relationships.
With the recent changes to the State Administrative Board and State Transportation Commission processes for approving project level changes, it is important to establish a sound internal quality assurance plan through the regions and CFS. MDOT is also expanding our performance measures to track the progress of a number of our contract administration activities such as overdue finals, contractor claims, timely progress payments, and contract modification processing.
This section provides guidance that field staff is to follow regarding timely progress payments on all construction projects. There are a couple of embedded checklists that should be discussed with the contractor at the pre-construction meeting, as well as provided to them through the pre-construction meeting notes document.
The following topics are to be discussed at the pre-construction meeting. All decisions and outcomes are to be placed into the meeting notes to provide a clear direction on progress payments.
1. The contractor must be aware of and diligent in promptly submitting material documentation and supporting documentation per the specifications and special provisions in the contract. If they have any questions on submittal requirements they should immediately contact the engineer. This includes items such as material source lists, load tickets, form 1386, form 2124A (electronic submittal), Buy America certification, certified payrolls, testing certifications, etc.
2. The contractor should have a quality assurance check on documentation submittals to ensure that the submittals are in the correct format with identifying project information, dates, and signature(s).
3. The contractor should request daily measurements in the presence of the engineer’s representative and/or provide a daily copy of measured quantities to the engineer’s representative so discrepancies can be identified promptly.
4. The contractor should discuss any timely progress payment issues at the pre-construction meeting and present any issues at subsequent progress meetings. Contractors should not assume the issue is known or being dealt with, they need to bring it to the engineer’s attention.
5. All subcontractor names and agreement cover sheets should be provided at the pre-construction meeting and promptly thereafter when engaging the services of a subcontractor.
6. Contractors should not perform disputed, unauthorized, or extra work until an agreement on cost is established.
7. Contractors are strongly encouraged to utilize the read only or full contractor version of FieldManager. Read only files will be provided to the contractor and any subcontractors as requested when pay estimates are processed or when specifically requested. This will allow the contractor to review documentation deficiencies and address issues in a timely manner.
8. Contractors must perform acceptable quality work in accordance with the contract documents, as unacceptable work will result in delayed or no payment until the problem is addressed.
9. There should be discussion on the Frequently Used Special Provision for Prompt Payment (12SP109(A)) including the following information:
- a. Progress Payments
- i. Start Date
- ii. Frequency of Pay Estimates
- b. Prime Contractor Payment Time Requirements
- i. First (or one time) Payment
- 1. Payment to sub-contractors within 10 calendar days
- ii. Subsequent Payments
- 1. Payment to sub-contractors within 10 to 30 calendar days
- i. First (or one time) Payment
- c. Required Form Submittal
- i. Sworn Statements
- ii. Waivers of Lien
- iii. MDOT form 2124A, Prime Contractor Bi-Weekly Statement of Subcontractor/Supplier Payments
- iv. MERS Database
10. The contractor and engineer must agree to unit prices or negotiate costs for contract revisions (formerly extra work) upon encountering revised work. The contractor should submit unit costs as promptly as possible and before commencing field operations. Negotiated work costs should be agreed upon prior to the commencement of the work. This will reduce the time a pay item does not have a unit price and will not be able to be placed on a contract modification.
11. Retainage of any kind (formal or informal) between contractors or suppliers at any level is not permitted per MDOT procedures.
12. The use of electronic signatures by contractor staff for contract modification approval is strongly encouraged. Usage by MDOT is dependent on the contractor.
13. Provide the contractor with the following checklist:
Prevailing Wage Compliance
Documentation Guide - Minimum Acceptance Requirements for Materials Approvals and Documentation
Materials Source Guide
Materials Quality Assurance Procedures Manual
Buy America Requirements - Pay Items and Materials that Require Step Certification
Manuals, Guides, Advisories, and Memos
14. Provide the following checklist to the prime contractor for their usage as well as sub-contractors (as appropriate):
Is my subcontract signed?
Has my subcontract been submitted to MDOT? Check MDOT contract inquiry screen: http://mdotwas1.mdot.state.mi.us/public/trnsport/
Are all of my subcontracts current? Check contract inquiry screen.
Has my current certificate of insurance been submitted?
Are my testing orders completed, signed and submitted?
Have all my material certifications been completed and submitted? Check FieldManager insufficient material report.
Are my certified payrolls completed, signed and submitted?
Do I have items of work yet to complete?
Has the prime contractor been paid for my items of work? Check MDOT contract inquiry screen.
Has a lien been placed on the project by one of my suppliers? Are joint checks required?
Do I have signed waivers / statements from my last checks?
Are there pending penalties or disincentives associated with my items of work?
Is there a pending claim for additional compensation associated with my item(s) of work?
Have daily force account records been reviewed, signed and submitted?
Has any extra work and compensation been approved by the owner?
Have I communicated payment issues to the prime's project manager/foreman/superintendent?
1. Field staff need to measure quantities placed in a timely manner and confirm placed quantities with contractor personnel. This should occur on a daily basis as practical and possible. Final field measurements should be taken at the end of each day rather than waiting to the end of the project.
2. When possible, final field measurements should be measured in the presence of a designated contractor representative to avoid multiple measurements and disagreements.
3. Field staff is to diligently work to resolve project level claims at the lowest possible level in a timely manner. Time constraints on MDOT actions on claim processing must be adhered to or extensions requested to the contractor. Waiting to resolve claim issues until the end of the project is not acceptable.
4. Agreed upon extra work is to be immediately reported on an Inspector’s Daily Report (IDR) and quantities are to be agreed to when reporting.
5. Work items placed in the field must be fully reported on an IDR. Field staff must report accurate quantities placed, if 500 feet of curb and gutter are placed, 500 feet is to be reported and not a lesser quantity for unofficial retainage, material documentation reduction, or any other reason. Work completed and accepted must be fully reported. Non-accepted work is to be reported to the engineer.
6. Local agencies must process a contract modification and/or pay estimate for claim resolutions as provided by MDOT (region office review or central office review) within seven (7) days of receipt of the claim decision.
7. The contractor or subcontractor should be informed by field staff (or office technician) when material deficiencies or missing documentation will prevent payment for completed work. The contractor is responsible to submit the missing documentation or address the issue promptly in order to ensure payment on the next pay estimate.
8. Consultant oversight record reviews should begin when the contractor submits documentation stating that all work is complete. Project record reviews can begin before punch list work is completed.
1. Pay estimates are to be processed for reported quantities even if there is a dispute on the final quantity. An example is when the field office states that 50 feet of curb was completed and the contractor states that 60 feet was completed, the field office is to pay the 50 feet of curb and timely resolve the discrepancy in final quantity.
2. Field offices need to ensure that payment is processed in a timely manner when all required documentation is received, reviewed, and approved. Procedures to ensure timely payments are encouraged (e.g. FieldManager reports reviewed by engineer, etc.).
3. Contract modifications are to be processed on a weekly basis or when there is a minimum of $10,000 in items over authorized quantity, whichever occurs first to ensure timely payment for work completed. With electronic approvals, more frequent contract modification processing is suggested. Waiting until the end of the project to process balancing contract modifications for increased quantities is not appropriate.
4. Engineers are to ensure that unit costs for contract revisions are incorporated per subsection 109.05 of the 2012 Standard Specifications for Construction. Any related correspondence is to be maintained in the project files.
5. Budgeted pay item quantities for extra work or monetary amounts for force account work are to be immediately processed via a contract modification to allow timely payment for extra work.
6. Prior to processing pay estimates, certified payrolls must be current and checked by project staff to ensure compliance with proper wage rates.
7. Material and supporting documentation must be provided, reviewed and approved. This information must be incorporated into the FieldManager files and placed in the project files.
8. Partial or stockpile payment is for work items that have been reviewed, inspected, and approved for use but are waiting to be incorporated into the project work. Partial payment is not for withholding money to generate action by the contractor for other items of work or material documentation.
1. Provide the contractor with the insufficient materials report from FieldManager after each estimate as a minimum or on a weekly basis. This is recommended even if the contractor does not use FieldManager or simply receives read only FieldManager files.
2. For lack of payment of work greater than $10,000 when proper documentation has not been provided, the project office will contact the contractor or subcontractor directly to request this information.
3. Provide contractors with read only files several days before the estimate or weekly so they can review what documentation is needed to ensure timely payment.
4. Provide the contractor correspondence regarding final estimate processing and what documentation is necessary when approaching the end of contract work; this has been noted as a Contractor Checklist for Final Estimate Processing. The body of the correspondence would include the following applicable information as a suggestion:
- a. The following documentation is required in order for our office to final out project XXXXX-XXXXXXA.
- i. Per section 109.07 of the 2012 Standard Specifications for Construction, the contractor needs to submit written notification that all the work is complete.
- ii. Submit form 1386, Post Certification of Subcontractor Compliance (form attached).
- iii. Submit any extension of contract time requests (form 1100A).
- iv. Submit paper copy of form 2124A (final submittal only).
- v. Resolve any pending damage claims.
- vi. Submit As-Constructed (As-Built) final plans.
- vii. Ensure that concrete initiative summaries have been provided.
- viii. Ensure that HMA initiative summaries have been provided.
- ix. Ensure that all material certification and other specification or special provision documentation requirements have been provided.
5. The project office should have a back-up person for generation of pay estimates to account for illness, vacation, out of the office issues, etc.
6. Project offices should honor requests for weekly pay estimates where weekly payments are consistently greater than $1,000,000 in value. A request to process weekly estimates is to be submitted to the Contract Services Division.
The Bay Region has developed a Contractor Prompt Payment Process – Abbreviated Summary that is available to other regions and TSCs. Although this document is related to the actual Prompt Payment requirements from prime contractors to subcontractors, etc., it is believed this document may help with understanding and processing of timely progress payments to contractors.
Electronic or scanned handwritten signature pay estimates shall be processed as described below and placed into MDOT's ProjectWise files within the construction pay estimate directory. Original handwritten signature pay estimates are to be placed into the project files. All pay estimates shall have an electronic copy in the ProjectWise construction directory no later than 10 calendar days from generation.
All construction pay estimates require an original signature/e-signature by the TSC construction engineer no later than 48 hours after pay estimate generation in FieldManager.
This signature may be delegated to the assistant construction engineer if they have been officially assigned to the project. However, if the assistant construction engineer is not a licensed professional engineer, they may not sign the final pay estimate. Additionally, anytime an assistant construction engineer signs an estimate, their signature/e-signature must include “signed for” under the name of the official construction engineer of record for the project. The assistant construction engineer must also print their name under their signature if handwritten.
All construction pay estimates require an original signature/e-signature by the consultant project engineer no later than 48 hours after pay estimate generation in FieldManager. Each pay estimate shall be filed according to the following procedure:
- Consultants shall e-mail an electronic pdf file of the signed and dated pay estimate to the MDOT project manager assigned to the project.
- The MDOT TSC construction engineer/assistant construction engineer/project engineer assigned to the project shall sign and date the pay estimate and file the pay estimate in the ProjectWise directory.
All construction pay estimates require an original signature/e-signature by the full-time employee of the local agency no later than 48 hours after pay estimate generation in FieldManager. All consultant oversight projects must also contain a signature of the consultant project engineer in addition to the signature of the local agency full time employee in responsible charge of the project. Each pay estimate shall be filed according to the following procedure:
- Local agency shall e-mail an electronic pdf file of signed and dated pay estimate to the MDOT TSC construction engineer/assistant construction engineer assigned to the project.
- The MDOT TSC construction engineer/assistant construction engineer assigned to the project shall file the signed and dated pay estimate in the ProjectWise directory.
Construction Field Services will audit a sample of each bi-weekly batch of pay estimates to ensure statewide compliance for electronic filing of pay estimates in ProjectWise, signature time frames, signature verification, and authorized signers. Compliance results will be tracked and reported.
Final Project Review (FPR) procedures apply to MDOT let projects that utilize a non-certified Construction/Project Engineer. This includes all projects where full consultant construction engineering is used. A non-certified Construction/Project Engineer is a Construction/Project Engineer that has not achieved a passing score under MDOT’s project record Certification Review Program, or is not eligible to obtain certification under this program. Non-certified Construction/Project Engineers are required to adhere to these procedures for every project until they successfully graduate into the department’s Certified Engineer Program.
The purpose of the FPR is to verify that final contract quantities are supported by proper documentation and have been paid in accordance with contract documents and MDOT’s Standard Specifications for Construction. The review provides assurance that the project records are in substantial compliance with the plans and specifications, as well as the department’s policies and procedures. Substantial compliance is defined as compliance with the essential requirements of the contract by addressing and resolving all deficiencies for the contract items sampled and listed on the Final Project Review Summary (Form #1147). When actions depart from specifications and established MDOT policies/procedures, the basis for acceptance must be documented by the Construction/Project Engineer
When actions depart from specifications and established MDOT policies/procedures, the basis for acceptance must be documented by the delivery/project engineer.
FieldManager files and LCPtracker access will be provided to the lead file reviewer by the construction office. The final project review may be performed remotely by the review team utilizing ProjectWise, FieldManager, and LCPtracker as applicable. If paper tickets need to be reviewed, the review team will coordinate with the construction office to schedule a date and time to review the physical files. Tickets can be scanned and placed in the respective folders for the purpose of review only. DO NOT dispose of the original tickets after scanning. Original tickets are source documents and need to be placed in the respective paper file.
Each FPR team will have a leader, as well as members with knowledge and experience in MDOT construction and materials documentation. The team leader will be responsible for scheduling the review, ensuring that the review is completed in a timely and thorough manner, management of review documentation, and completing final deliverables of the closeout review by compiling the final project review report, and signing the FRP summary at the completion of the review. Upon request, consultation or assistance on project related review issues is available with the Construction Administration Section of the Construction Field Services Division.
MDOT Projects: The region construction engineer will appoint team members. Members may consist of MDOT engineering and/or technical staff from other TSCs, the region, or prequalified consultants. However, staff from the overseeing TSC office shall not be part of the review team.
Local Agency Projects: The region construction engineer will appoint team members. Members may consist of MDOT engineering and/or technical staff from TSC offices not involved in oversight of the local agency, the region office, or prequalified consultants. Consultants and TSC staff who have oversight responsibility in the design or construction of the project may not participate as members of the FPR team.
When the Construction/Project Engineer has determined the final quantities of all pay items are balanced and all material approvals received and approved in FieldManager for the project, the region construction engineer will be advised that the project is ready for a final project review. It is important for the Construction/Project Engineer to complete the project closeout in a timely manner to allow adequate processing time for the entire FPR process, and post review submission of the final project payment within 120 calendar days of project completion. If a project closeout is not completed within the department’s established timelines, the Construction/Project Engineer will be required to provide the region construction engineer with an explanation. This explanation will also be reported quarterly under the “Projects with pending final estimate submittals”.
Each individual project involving a non-certified construction/project engineer must be reviewed separately. The review will cover two major areas:
- Contract administration related project documentation.
- Pay item documentation including supporting materials documentation.
The FPR team must review the project records for the following items, at a minimum:
- Required construction administration documents, per MDOT’s Standard Documentation Folder Structure for Construction Records.
- Contractor Certified Payroll documentation that has been properly reviewed by the Construction/Project Engineer in accordance with current department policy.
- Contract modifications containing extras, adjustments, and any necessary project contract change to ensure that they contain proper formatting and content, and are consistent with the procedure for processing contract modifications.
- Supporting documentation for extensions of time approved with or without liquidated damages, incentives, and/or value engineering change proposals.
- Confirmation that the person performing office technician duties for the certified Construction/Project Engineer on MDOT, local agency, maintenance and consultant projects maintains a current, non-expired MDOT office technician certification.
The selection of pay items to be reviewed must be based on the following, at a minimum:
- 10 pay items per project. For projects with less than 100 pay items, 10 percent of the items will be reviewed, with a minimum of 3 items.
- Scope of work pay items covering major items of work such as removal, earthwork, hot mix asphalt (HMA), concrete, aggregate surfaces, and structures.
- If irregularities or deficiencies are found with a pay item, the review must be expanded into similar or related item(s) of work.
- Measurement characteristics including volume, weight, length, area, lump sum, unit, removal, force account, and adjustment items.
- Items containing significant increases/decreases, adjustments, or other funding related changes during construction (i.e. adding a payment category).
- At least one force account pay item, when applicable.
- If a pay item is randomly selected for review and it has a final contract value of zero units (or was deleted from the contract) then a different pay item must be randomly selected.
Documentation requirements for many pay items can be found in the Documentation Guide (Minimum Documentation Requirements for Pay Item Approvals and Material Acceptance), which is available under construction manual.
The individual pay item review must include the following items, at a minimum:
- Pay items measured and paid in accordance with the applicable specifications and special provisions.
- Supporting documentation that is signed and properly identified through MDOT let control section and job number.
- Documentation that is properly completed on current contract time frame prescribed forms.
- Component materials for each pay item properly documented, approved, and accepted.
- A sample of the Inspector’s Daily Reports (IDRs) containing each pay item, which demonstrates conformance with MDOT’s policies and procedures.
For each pay item reviewed, the acceptance of the materials component must also be examined.
During the review, ensure that documentation for the following emphasis areas is adequate:
- Signed Material Source List forms are included in project files.
- The materials were approved in accordance with the MDOT Materials Quality Assurance Procedures Manual and Materials Source Guide.
- Sufficient quantity of each material was approved for materials accepted by test for all pay items reviewed.
- All materials approved for use under General Certification, Test Data Certification, and Approved Manufacturer/Supplier are in accordance with Material Source List Form 501.
- All required testing was completed at appropriate intervals.
- All testing personnel were properly qualified.
- Items included on the Qualified Product List are Visually Inspected and noted on an IDR.
- Materials approved by visual inspection are noted on the appropriate IDRs, and quantities are within the threshold limits in accordance with the Materials Source Guide in effect at the time of letting.
- Proper sampling and testing of concrete items, including frequency and results of slump tests, modulus of rupture, atmosphere and concrete temperatures, air content, and yield/evaporation (bridge projects only) tests.
- Verification of proper sampling and testing of HMA items, including frequency and results of mix and air temperatures tests, application yield rate data, loose mixture tests, density tests, and all other information required in the MDOT Construction Manual under Division 5
- Steel and iron certifications for Buy America provisions.
The Materials Review Worksheets (Form #1972) should include reference to specific test documents examined, so that a reviewer can easily trace these documents. Also, total quantities tested must be reported.
Independent Assurance Testing (IAT) is required for all federally funded projects on the National Highway System (NHS). IAT is also required for each individual inspector or tester, and their equipment in four areas:
- Concrete sampling and testing.
- Aggregate sampling and testing.
- In-place density testing.
- HMA mixture testing.
A listing of current IATs for an individual can be found in the Independent Assurance Testing Database. The FPR team must verify and document that all required IATs were completed.
The FPR Report contains the review work papers documenting the findings of the review. The report, developed by the FPR team, should provide sufficient data for the Construction/Project Engineer, FHWA, region personnel, and external department project auditors to make an assessment of the level of administrative compliance of the documentation.
The following forms, which are available on MDOT’s Web site, must be used to develop the FPR Report:
MDOT’s let control section and job number should appear on each sheet to properly identify the work papers. Clearly identify the pay item or material reviewed on each form. Fill in the MDOT standard specifications for construction section number for the item, and/or proposal reference page of the special provision for the item detailing the basis of measurement and payment. The special provision modifies the standard specification for the item reviewed. The support documents examined by the FPR team should be listed on the forms. Any deficiencies identified by the FPR team must be supported by reference to the applicable specification or special provision or other reference material to ensure all parties involved understand the basis of the deficiency. All forms should be signed by the member of the review team who completed that portion of the review.
Verify that pay items documentation is:
- Cross-referenced in Field Manager under the “Lot number” field.
- Identified by MDOT project number, date, inspector, and file reference number.
- Properly identify indexed and cross-referenced to source documents in the field measurement books.
The FPR team will complete the FPR summary and meet with the Construction/Project Engineer to discuss their findings and mutually agree upon a resolution of deficiencies timeframe. If deficiencies are found the Construction/Project Engineer will be required to address the deficiencies in the agreed upon timeframe and notify the FPR team when all issues have been addressed. The FPR team will then conduct a follow-up review not more than 30 days after deficiency list was given to the engineer.
Once all deficiencies noted in the review have been resolved, and the project records are in substantial conformance with current department policies/procedures, the FPR team leader will sign the FPR summary. The original signed FPR Report is then placed in the official project files. On local agency projects, provide the overseeing TSC with a copy of the FPR Report and summary for their records. The TSC Construction Engineer must verify that the FPR summary has been completed and signed, and that all deficiencies noted on the form have been resolved prior to submitting the final project estimate for payment.
- Current Project Status
- Remaining funds that are to be paid to the contractor
- Estimated date of payment
- Reason for delay in payment and/or work operations