Quality Initiatives and Adjustments

Email this Page

General

Initiative pay items are used to establish a budgeted project amount for material work that exceeds specification thresholds and requirements. These values are calculated for each project and further instructions for determining these values can be obtained from the Specifications and Estimates Section in the Design Division. The contractor does not bid on these pay items. The pay items are established in the bid documents with a unit cost of one dollar with the total maximum amount fixed per the calculated value by the project design staff.

Adjustment pay items are used for assessing negative monetary amounts to the contractor when materials or work requirements are not met. Requirements for issuing pay item adjustments can be found in the applicable special provision or the Standard Specifications for Construction.

Initiative and adjustment calculations for material and workmanship specification issues (e.g., material testing, percent within limits, joint density, etc.) must be calculated and evaluated upon completion of the work or a sub unit (i.e., lot, sublot, etc.) of the work as noted in the respective special provision or the Standard Specifications for Construction. This review will ensure that construction staff appropriately evaluates potential negative assessments, rejection of material, or removal of material in a timely manner. The review will promote efficient and timely direction to the contractor.

MDOT has reporting requirements to and receives requests from the State Transportation Commission, Federal Highway Administration (FHWA), Michigan Legislature, Office of Commission Audits, and other entities regarding use of incentives, initiatives, and adjustments. All bi-weekly or final applications of adjustments or initiatives must be processed individually. These are not to be grouped together as a net resultant. MDOT must report the data in its individual units and applications.

The following are brief descriptions of quality adjustments commonly used on construction projects.

[top of page]

---

Jobsite Poster Compliance Adjustment

Used when jobsite poster deficiencies are not addressed in a timely manner resulting in a negative assessment against the contractor for failure to meet specification requirements.

This applicability of this pay item is discussed in the Special Provision for Jobsite Poster Deficiencies and Initial Mobilization Payment, 12SP150A(01)

[top of page]

---

Soil Erosion and Sedimentation Control Adjustment

The applicability of this pay item is discussed in the Special Provision for Non-Compliance with Soil Erosion and Sedimentation Control Requirements (12SP208(A)).

[top of page]

---

Open Graded Drainage Course Adjustment

The applicability of this pay item is discussed in the Special Provision for Open-Graded Drainage Course (12SP303(A)).

[top of page]

---

HMA Quality Adjustment

Used when HMA work results in a negative assessment against the contractor for failure to meet specification requirements.

[top of page]

---

Longitudinal Joint Density Quality Adjustment

Used when HMA joint work results in a negative assessment against the contractor for failure to meet specification requirements.

[top of page]

---

Conc Quality Adjustment

Used when concrete work results in a negative assessment against the contractor for failure to meet specification requirements.

[top of page]

---

Traf Control Quality and Compliance Adjustment

The applicability of this pay item is discussed in the Special Provision for Traffic Control Quality and Compliance (12SP812(C)).

[top of page]

---

Unacceptable Plant Adjustment

Used when unacceptable plants are identified by the engineer resulting in a negative assessment of 50 percent of the original bid price for the relevant (Botanical Name) plant is assessed for failure to meet specification requirements of Section 815.

For further Construction Manual information regarding unacceptable plants see Section 815 Unacceptable Plants.

[top of page]

---

Adjustment Pay Item Code Table

The following pay item codes and descriptions must be used on MDOT let projects. Several of these items will be specified prior to letting when establishing pay items for bidding, but many will be used as an extra pay item established during the life of the project when needed. These pay items are included in the most recent reference file in FieldManager.

Pay Item Code	Unit of Measure	Pay Item Description
1500010	Dlr	Jobsite Poster Compliance Adjustment
1020001	LS	Lane Rental
1020002	Dlr(+)	Lane Rental Incentive
1020003(*)	Dlr	Incentive, ______
1080000	Dlr	Liquidated Damages, Oversight
1080001	Dlr	Liquidated Damages, Other
2080000	Dlr	Soil Erosion and Sedimentation Control Adjustment
3030000	Dlr	Open Graded Drainage Course Adjustment
5010000	Dlr	HMA Quality Adjustment
5010007	Dlr	HMA Quality Initiative
5010018	Dlr	Longitudinal Joint Density Quality Initiative
5010019	Dlr	Longitudinal Joint Density Quality Adjustment
6020401	Dlr	Conc Quality Initiative
6050000	Dlr	Conc Quality Adjustment
8120000	Dlr	Traf Control Quality and Compliance Adjustment
8150000	Dlr	Unacceptable Plant Adjustment

(+) Dlr means Dollars, the unit of measure that is to be used for the respective items.

(*) The supplemental pay item description can be as appropriate for the project, but it must use the pay item coding noted above, two examples are: Incentive, M-44, Open to Traffic or Incentive, M-77 (B04 of 88056), Open to Traffic.

[top of page]

---

FieldManager Documentation

Construction staff must allocate all negative adjustment pay items appropriately and accurately to the proper project and category numbers on the contract. Project staff are to review the project numbers and categories within the contract for applicability of quality adjustments. These quality adjustments are not to be applied to categories funded 100 percent by utility, railroad or private companies.

Liquidated damages are to be applied to the project number and category where work was delayed. It is acceptable to split liquidated damages into different projects or categories as applicable. Liquidated damages are not to be applied to categories funded 100 percent by utility, railroad, or private companies.

The processing of negative adjustment pay items must not create an overall negative value category within a project number. Construction staff must verify and ensure positive overall category value in FieldManager prior to processing any contract modification. If a negative overall category value will be created the negative adjustment must be prorated to other appropriate categories and/or project numbers.

[top of page]

---

MDOT-Let Local Agency Projects

Local Agency projects follow the same administration requirements as noted above with the provision that the Local Agency Project Engineer (LPE) is to review the project numbers and categories within the contract for applicability of quality adjustments and liquidated damages. These quality adjustments and liquidated damages are not to be applied to categories funded 100 percent by utility, railroad or private companies.

Email this Page

[top of page]

---