HomeMy WebLinkAbout01290.pdf BICKFORD OF CARMEL, IN 12/12/2012
PAYMENT PROCEDURES 01290 - 1
SECTION 01290 - PAYMENT PROCEDURES
PART 1 - GENERAL
1.1 RELATED DOCUMENTS
A. Drawings and general provisions of the Contract, including General and Supplementary
Conditions and other Division 1 Specification Sections, apply to this Section.
1.2 SUMMARY
A. This Section specifies administrative and procedural requirements necessary to prepare and
process Applications for Payment.
B. Related Sections:
1. Division 1 Section "Allowances" for procedural requirements governing the handling and
processing of allowances.
2. Division 1 Section "Contract Modification Procedures" for administrative procedures for
handling changes to the Contract.
3. Division 1 Section "Unit Prices" for administrative requirements governing the use of unit
prices.
4. Division 1 Section "Construction Progress Documentation" for administrative
requirements governing the preparation and submittal of Contractor's construction
schedule.
5. Division 1 Section "Submittal Procedures" for administrative requirements governing the
preparation and submittal of submittal schedule.
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. Correlate 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 Architect at earliest possible date but no later than
seven days before the date scheduled for submittal of initial Applications for Payment.
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3. Sub-schedules for Separate Elements of Work: Where the Contractor's construction
schedule defines separate elements of the Work, provide sub-schedules showing values
correlated with each element.
B. Format and Content: Use the 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. Provide a breakdown of the Contract Sum in enough detail to facilitate continued
evaluation of Applications for Payment and progress reports. Coordinate with the Project
Manual table of contents. Provide multiple line items for principal subcontract amounts in
excess of five percent of Contract Sum.
4. Round amounts to nearest whole dollar; total shall equal the Contract Sum.
5. 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.
6. 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.
7. Allowances: Provide a separate line item in the schedule of values for each allowance.
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.
8. 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.
9. Each item in the schedule of values and Applications for Payment shall be complete.
Include total cost and proportionate share of general overhead and profit for each item.
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.
10. 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 APPLICATIONS FOR PAYMENT
A. Each Application for Payment shall be consistent with previous applications and payments as
certified by Architect and paid for by Owner.
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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: The date for each progress payment is indicated in the Agreement
between Owner and Contractor. The period of construction work covered by each Application
for Payment is the period indicated in the Agreement.
C. Application for Payment Forms: Use AIA Document G702 and AIA Document G703 as form for
Applications for Payment.
D. Application Preparation: Complete every entry on form. Notarize and execute by a person
authorized to sign legal documents on behalf of Contractor. Architect will return incomplete
applications without action.
1. Entries shall match data on the schedule of values and Contractor's construction
schedule. 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. Indicate separate amounts for work being carried out under Owner-requested project
acceleration.
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.
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. Materials previously stored and included in previous Applications for Payment.
b. Work completed for this Application utilizing previously stored materials.
c. Additional materials stored with this Application.
d. Total materials remaining stored, including materials with this Application.
F. Transmittal: Submit four signed and notarized original copies of each Application for Payment
to Architect 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.
G. 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.
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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 waivers of lien on forms, executed in a manner acceptable to
Owner.
H. Initial Application for Payment: Administrative actions and submittals that must precede or
coincide with submittal of first Application for Payment include the following:
1. List of subcontractors.
2. Schedule of values.
3. Contractor's construction schedule (preliminary if not final).
4. Products list (preliminary if not final).
5. Schedule of unit prices.
6. Submittal schedule (preliminary if not final).
7. Copies of building permits.
8. Copies of authorizations and licenses from authorities having jurisdiction for performance
of the Work.
9. Initial progress report.
10. Report of preconstruction conference.
11. Certificates of insurance and insurance policies.
12. Performance and payment bonds.
13. Data needed to acquire Owner's insurance.
I. Application for Payment at Substantial Completion: After issuing 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 Certificates of Partial Substantial Completion issued
previously for Owner occupancy of designated portions of the Work.
J. Final Payment Application: Submit final Application for Payment with releases and supporting
documentation not previously submitted and accepted, including, but not limited, to the
following:
1. Evidence of completion of Project closeout requirements.
2. Insurance certificates for products and completed operations where required and proof
that taxes, fees, and similar obligations were paid.
3. Updated final statement, accounting for final changes to the Contract Sum.
4. AIA Document G706, "Contractor's Affidavit of Payment of Debts and Claims."
5. AIA Document G706A, "Contractor's Affidavit of Release of Liens."
6. AIA Document G707, "Consent of Surety to Final Payment."
7. Evidence that claims have been settled.
8. 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.
PART 2 - PRODUCTS (Not Used)
PART 3 - EXECUTION (Not Used)
END OF SECTION 01290