HomeMy WebLinkAbout012900 PAYMENT PROCEDURES_SUBCONTRACT RELATIONS.pdf Giant Eagle Market #6550 The Bridges, Carmel, Indiana
Building Shell Bid & Permit
DLA Project 2014040.00
August 12, 2014
PAYMENT PROCEDURES/SUBCONTRACT RELATIONS 012900 - 1
SECTION 012900 - PAYMENT PROCEDURES/SUBCONTRACT RELATIONS
PART 1 - GENERAL
1.1 RELATED DOCUMENTS
A. Drawings and general provisions of the Contract, including General and Supplementary Conditions and
other Division 01 Specification Sections, apply to this Section.
1.2 SUMMARY
A. Section includes:
1. Administrative and procedural requirements necessary to prepare and process Applications for
Payment.
2. Subcontractor relations and responsibilities.
B. Related Requirements:
1. Section 012100 "Allowances" for procedural requirements governing the handling and processing
of allowances.
2. Section 012200 "Unit Prices" for administrative requirements governing the use of unit prices.
3. Section 012600 "Contract Modification Procedures" for administrative procedures for handling
changes to the Contract.
4. Section 013200 "Construction Progress Documentation" for administrative requirements
governing the preparation and submittal of the Contractor's construction schedule.
5. Section 017700 “Closeout Procedures” for administrative requirements for the Final Payment
Application.
1.3 DEFINITIONS
A. Schedule of Values: A statement furnished by Contractor allocating portions of the Contract Sum to
various portions of the Work and used as the basis for reviewing Contractor's Applications for Payment.
1.4 SCHEDULE OF VALUES
A. Coordination: Coordinate preparation of the schedule of values with preparation of Contractor's
construction schedule.
1. Coordinate line items in the schedule of values with other required administrative forms and
schedules, including the following:
a. Application for Payment forms with continuation sheets.
b. Submittal schedule.
c. Items required to be indicated as separate activities in Contractor's construction schedule.
2. Submit the schedule of values to Owner at earliest possible date, but no later than fourteen (14)
days before the commencement of construction.
Giant Eagle Market #6550 The Bridges, Carmel, Indiana
Building Shell Bid & Permit
DLA Project 2014040.00
August 12, 2014
PAYMENT PROCEDURES/SUBCONTRACT RELATIONS 012900 - 2
B. Format and Content: Use Project Manual table of contents as a guide to establish line items for the
schedule of values. Provide at least one line item for each Specification Section.
1. Identification: Include the following Project identification on the schedule of values:
a. Project name and location.
b. Name of Architect.
c. Architect's project number.
d. Contractor's name and address.
e. Date of submittal.
2. Arrange schedule of values consistent with format of AIA Document G703.
3. Arrange the schedule of values in tabular form with separate columns to indicate the following for
each item listed:
a. Related Owner’s Cost Code, Specification Section or Division.
b. Description of the Work.
c. Change Orders (numbers) that affect value.
4. Provide a breakdown of the Contract Sum in enough detail to facilitate continued evaluation of
Applications for Payment and progress reports. Coordinate with Project Manual table of contents.
Provide multiple line items for principal subcontract amounts in excess of five percent of the
Contract Sum.
a. Include separate line items under Contractor and principal subcontracts for Project closeout
requirements in an amount totaling five percent of the Contract Sum and subcontract
amount.
5. Round amounts to nearest whole dollar; total shall equal the Contract Sum.
6. Provide a separate line item in the schedule of values for each part of the Work where
Applications for Payment may include materials or equipment purchased or fabricated and stored,
but not yet installed.
a. Differentiate between items stored on-site and items stored off-site. If required, include
evidence of insurance.
7. Provide separate line items in the schedule of values for initial cost of materials, for each
subsequent stage of completion, and for total installed value of that part of the Work.
8. Allowances: Provide a separate line item in the schedule of values for each allowance (if
applicable). Show line-item value of unit-cost allowances, as a product of the unit cost, multiplied
by measured quantity. Use information indicated in the Contract Documents to determine
quantities.
9. Purchase Contracts: Provide a separate line item in the schedule of values for each purchase
contract. Show line-item value of purchase contract. Indicate owner payments or deposits, if any,
and balance to be paid by Contractor.
10. Each item in the schedule of values and Applications for Payment shall be complete.
a. Temporary facilities and other major cost items that are not direct cost of actual work-in-
place may be shown either as separate line items in the schedule of values or distributed as
general overhead expense, at Contractor's option.
Giant Eagle Market #6550 The Bridges, Carmel, Indiana
Building Shell Bid & Permit
DLA Project 2014040.00
August 12, 2014
PAYMENT PROCEDURES/SUBCONTRACT RELATIONS 012900 - 3
11. Schedule Updating: Update and resubmit the schedule of values before the next Applications for
Payment when Change Orders or Construction Change Directives result in a change in the
Contract Sum.
1.5 RETAINAGE
A. Owner will retain 10 percent of the amount owed on each Application for Payment. See Final Payment
Application in Article 1.6, Part M below for release of retainage.
1.6 APPLICATIONS FOR PAYMENT
A. Each Application for Payment following the initial Application for Payment shall be consistent with
previous applications and payments as certified by Owner.
1. Initial Application for Payment, Application for Payment at time of Substantial Completion, and
final Application for Payment involve additional requirements.
B. Payment Application Times: Submit Application for Payment to Owner by the last day of the month, or
as determined at the Preconstruction Conference. The period covered by each Application for Payment is
one month, starting on the first day of the month and ending on the last day of the month.
1. Submit draft copy of Application for Payment seven days prior to due date for review by Owner.
C. Application for Payment Forms: Use AIA Document G702 and AIA Document G703 as form for
Applications for Payment.
1. Identification: Include the following:
a. Project name and location.
b. Purchase order number.
c. Store number.
d. Application number.
e. Name of the Architect.
f. Subcontractor's name and address.
g. Date of submittal.
h. Period of Work covered.
D. Application Preparation: Complete every entry on form. Notarize and execute by a person authorized to
sign legal documents on behalf of Contractor. Incomplete applications will be returned without action.
1. Entries shall match data on the cost code breakdown issued by Owner. Use updated schedules if
revisions were made.
2. Include amounts for work completed following previous Application for Payment, whether or not
payment has been received. Include only amounts for work completed at time of Application for
Payment.
3. Include amounts of Change Orders and Construction Change Directives issued before last day of
construction period covered by application.
4. Applications for Payment, including retainage amounts, shall be rounded to the nearest whole
dollar
E. Stored Materials: Include in Application for Payment amounts applied for materials or equipment
purchased or fabricated and stored, but not yet installed. Differentiate between items stored on-site and
items stored off-site.
Giant Eagle Market #6550 The Bridges, Carmel, Indiana
Building Shell Bid & Permit
DLA Project 2014040.00
August 12, 2014
PAYMENT PROCEDURES/SUBCONTRACT RELATIONS 012900 - 4
1. Provide certificate of insurance, evidence of transfer of title to Owner, and consent of surety to
payment, for stored materials.
2. Provide supporting documentation that verifies amount requested, such as paid invoices. Match
amount requested with amounts indicated on documentation; do not include overhead and profit
on stored materials.
3. Provide summary documentation for stored materials indicating the following:
a. Value of materials previously stored and remaining stored as of date of previous
Applications for Payment.
b. Value of previously stored materials put in place after date of previous Application for
Payment and on or before date of current Application for Payment.
c. Value of materials stored since date of previous Application for Payment and remaining
stored as of date of current Application for Payment.
F. Change Orders: Approved Change Orders shall be invoiced with the monthly Application for Payment.
See Section 012600 for proper submittal and approval requirements.
1. Designate as a separate line item on the Application for Payment.
2. The total Change Order amount shall be included in the appropriate space on the Application for
Payment to properly reflect the increased or decreased Subcontract Sum.
G. Transmittal: Submit one (1) signed and notarized original copies of each Application for Payment to
Pittsburgh office of Owner by a method ensuring receipt within 24 hours. One copy shall include waivers
of lien and similar attachments if required.
1. Transmit each copy with a transmittal form listing attachments and recording appropriate
information about application, in a manner acceptable to Owner.
2. Faxed copy of Application for Payment is not acceptable, and will be reason for rejection
H. Waivers of Mechanic's Lien: With each Application for Payment, submit waivers of mechanic's lien from
entities lawfully entitled to file a mechanic's lien arising out of the Contract and related to the Work
covered by the payment.
1. Submit partial waivers on each item for amount requested in previous application, after deduction
for retainage, on each item.
2. When an application shows completion of an item, submit conditional final or full waivers.
3. Owner reserves the right to designate which entities involved in the Work must submit waivers.
4. Waiver Forms: Submit executed waivers of lien on forms acceptable to Owner.
I. Waivers of Mechanic's Lien: With each Application for Payment, submit waivers of mechanic's liens
from subcontractors, sub-subcontractors, and suppliers for construction period covered by the previous
application.
1. Submit partial waivers on each item for amount requested in previous application, after deduction
for retainage, on each item.
2. When an application shows completion of an item, submit conditional final or full waivers.
3. Owner reserves the right to designate which entities involved in the Work must submit waivers.
4. Submit final Application for Payment with or preceded by conditional final waivers from every
entity involved with performance of the Work covered by the application who is lawfully entitled
to a lien.
5. Waiver Forms: Submit executed waivers of lien on forms, acceptable to Owner.
J. Initial Application for Payment: Administrative actions and submittals that must precede or coincide with
submittal of first Application for Payment include the following:
Giant Eagle Market #6550 The Bridges, Carmel, Indiana
Building Shell Bid & Permit
DLA Project 2014040.00
August 12, 2014
PAYMENT PROCEDURES/SUBCONTRACT RELATIONS 012900 - 5
1. List of subcontractors.
2. List of sub-subcontractors.
3. Schedule of values.
4. List of principal suppliers and fabricators.
5. Contractor's construction schedule (preliminary if not final).
6. Products list (preliminary if not final).
7. Schedule of unit prices.
8. Submittal schedule (preliminary if not final). Includes shop drawings, product data, and samples
submitted in accordance with Section 013300.
9. List of Contractor’s key personnel.
10. List of Contractor's staff assignments.
11. List of Contractor's principal consultants.
12. Contractor’s hourly labor rate breakdown form.
13. Equipment delivery schedule.
14. Copies of building permits.
15. Copies of authorizations and licenses from authorities having jurisdiction for performance of the
Work.
16. Initial progress report.
17. Report of preconstruction conference.
18. Fully executed waiver of liens.
19. Safety plan.
20. Product inventory list for compliance with OSHA’s Hazard Communications Standard.
21. Certificates of insurance and insurance policies.
22. Performance and payment bonds if required.
23. Data needed to acquire Owner's insurance.
K. Progress Payment Application: Administrative actions and submittals, that must coincide with the
submittal of each Progress Payment Application, include the following:
1. Properly executed Change Order if any, attached to the Progress Payment Application.
2. Percentage of Work complete based upon the Schedule of Values.
3. Listing of materials and equipment delivered and suitably stored at the Project Site for subsequent
incorporation in the Work.
4. Additional information requested by the Owner in order to validate the Progress Payment
Application.
L. Application for Payment at Substantial Completion: After Architect issues the Certificate of Substantial
Completion, submit an Application for Payment showing 100 percent completion for portion of the Work
claimed as substantially complete.
1. Include documentation supporting claim that the Work is substantially complete and a statement
showing an accounting of changes to the Contract Sum.
2. This application shall reflect Certificate(s) of Substantial Completion issued previously for Owner
occupancy of designated portions of the Work.
M. Final Payment Application:
1. After completing Project closeout requirements, submit final Application for Payment with
releases and supporting documentation not previously submitted and accepted, including, but not
limited, to the following:
a. Evidence of completion of Project closeout requirements.
b. Insurance certificates for products and completed operations where required and proof that
taxes, fees, and similar obligations were paid.
c. Updated final statement, accounting for final changes to the Contract Sum.
d. AIA Document G706, "Contractor's Affidavit of Payment of Debts and Claims."
Giant Eagle Market #6550 The Bridges, Carmel, Indiana
Building Shell Bid & Permit
DLA Project 2014040.00
August 12, 2014
PAYMENT PROCEDURES/SUBCONTRACT RELATIONS 012900 - 6
e. AIA Document G706A, "Contractor's Affidavit of Release of Liens."
f. AIA Document G707, "Consent of Surety to Final Payment."
g. Evidence that claims have been settled.
h. Final meter readings for utilities, a measured record of stored fuel, and similar data as of
date of Substantial Completion or when Owner took possession of and assumed
responsibility for corresponding elements of the Work.
i. Final liquidated damages settlement statement.
2. Administrative actions and submittals that must precede or coincide with submittal of the final
Application for Payment are specified in Section 017700 – Closeout Procedures.
a. Upon completion of the Work, a separate invoice for release of retainage shall be
submitted. Retainage invoices will not be accepted in conjunction with progress billing.
1.7 SUBCONTRACT RELATIONS
A. The General Contractor/Contractor shall not contract with a proposed entity or person to whom the
Owner has made a reasonable objection.
B. By appropriate agreement, the General Contractor/Contractor shall require each Subcontractor, to the
extent of the Work to be performed by the Subcontractor, to be bound to the General
Contractor/Contractor by terms of the Contract Documents, and to assume toward the General
Contractor/Contractor all the obligations and responsibilities, including the responsibility for safety of the
Subcontractor’s Work, which the General Contractor/Contractor, by these Documents, assumes toward
the Owner. Each Subcontract shall preserve and protect the rights of the Owner under the Contract
Documents with respect to the Work to be performed by the Subcontractor so that subcontracting thereof
will not prejudice such rights. When appropriate, the General Contractor/Contractor shall require each
Subcontractor to enter into similar agreements with sub-subcontractors. The General
Contractor/Contractor shall make available to each proposed Subcontractor, prior to the execution of the
Subcontract, copies of the Contract Documents to which the Subcontractor will be bound, and, upon
written request of the Subcontractor, identify to the Subcontractor terms and conditions `of the proposed
Subcontract which may be at variance with the Contract Documents. Subcontractors will similarly make
copies of applicable portions of such documents available to their respective proposed sub-
subcontractors. General Contractor/Contractor shall review each Subcontract and each sub-subcontract
agreement so that each such agreement contains a provision whereby all Subcontractors and sub-
subcontractors shall waive their right to file any claims, liens or encumbrances against the Project.
C. Each Subcontract or sub-subcontract is assigned by the General Contractor/Contractor to the Owner
effective only after termination of the Subcontract between the General Contractor/Contractor and the
Owner for cause and only for those Subcontracts or sub-subcontracts which the Owner accepts by
notifying the parties in writing.
PART 2 - PRODUCTS (Not Used)
PART 3 - EXECUTION (Not Used)
END OF SECTION 012900