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HomeMy WebLinkAbout01-2900-Payment-Procedure_Rev_1Dennis Yarmouth Intermediate Middle School January 19, 2021 Dennis Yarmouth Regional School District 100% Construction Documents Perkins Eastman DPC, project #71011 PAYMENT PROCEDURES 01 2900 - 1 SECTION 01 2900 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 01 Specification Sections, apply to this Section. 1.2 SUMMARY A. Section includes administrative and procedural requirements necessary to prepare and process Applications for Payment. B. Related Requirements: 1. Section 01 2600 "Contract Modification Procedures" for administrative procedures for handling changes to the Contract. 2. Section 01 3200 "Construction Progress Documentation" for administrative requirements governing the preparation and submittal of the Contractor's construction schedule. 3. Section 01 8113 "Sustainable Design Requirements" for administrative requirements governing submittal of cost breakdown information required for sustainable design documentation. 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 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. 3. Subschedules for Phased Work: Where the Work is separated into phases requiring separately phased payments, provide subschedules showing values coordinated with each phase of payment. 4. Subschedules for Separate Elements of Work: Where the Contractor's construction schedule defines separate elements of the Work, including Trade Contractor subcontracts, provide subschedules showing values coordinated with each element. 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: Dennis Yarmouth Intermediate Middle School January 19, 2021 Dennis Yarmouth Regional School District 100% Construction Documents Perkins Eastman DPC, project #71011 PAYMENT PROCEDURES 01 2900 - 2 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. a. Submit a separate Schedule of Values to conform to MSBA’s Pro-Pay Categories. 3. Provide a breakdown of the Contract Sum in enough detail to facilitate continued evaluation of Applications for Payment and progress reports. Provide multiple line items for principal subcontract amounts in excess of five percent of the Contract Sum. a. Include separate line items under General Contractor and Trade Contractor subcontracts for LEED documentation and other Project closeout requirements in an amount totaling five percent of the Contract Sum and subcontract amount. 4. 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. 5. Overhead Costs: Show cost of temporary facilities and other major cost items that are not direct cost of actual work-in-place as separate line items. 6. Closeout Costs. 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. 7. Schedule of Values Revisions: Revise the schedule of values when Change Orders or Construction Change Directives result in a change in the Contract Sum. Include at least one separate line item for each Change Order and Construction Change Directive. 1.5 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 Architect and paid for by Owner. 1. Initial Application for Payment, Application for Payment at time of Substantial Completion, and final Application for Payment involve additional requirements. 2. Owner’s receipt of updates on monthly deliverables, as required by the Contract Documents, shall be a prerequisite to review and approval of applications for payment. 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. Dennis Yarmouth Intermediate Middle School January 19, 2021 Dennis Yarmouth Regional School District 100% Construction Documents Perkins Eastman DPC, project #71011 PAYMENT PROCEDURES 01 2900 - 3 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. 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. 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 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. 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. 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. Sustainable design action plans, including preliminary project materials cost data. 6. Schedule of unit prices. 7. Submittal schedule (preliminary if not final). 8. List of Contractor's staff assignments. 9. List of each Trade Contractor's staff assignments. 10. List of Contractor's principal consultants. 11. Copies of building permits. 12. Copies of authorizations and licenses from authorities having jurisdiction for performance of the Work. 13. Initial progress report. Dennis Yarmouth Intermediate Middle School January 19, 2021 Dennis Yarmouth Regional School District 100% Construction Documents Perkins Eastman DPC, project #71011 PAYMENT PROCEDURES 01 2900 - 4 14. Report of preconstruction conference. I. 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. J. Final Payment Application: 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: 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. 5. AIA Document G706A. 6. AIA Document G707. 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. 9. Final liquidated damages settlement statement. 10. Evidence of completion of LEED documentation including response as required to USGBC review comments and requests for additional information as may occur. 1.6 CONTRACTOR’S RESPONSIBILITY TO OWNER FOR ARCHITECT’S ADDITIONAL SERVICES A. The Contract between Owner and Architect contains provisions for additional services that may be required of the Architect during construction due to unforeseen conditions. 1. Where such additional services become necessary due to the activities of Contractor, as determined by Owner’s Project Manager, costs for such services shall be the responsibility of Contractor and will be deducted from the Contract Amount. B. Additional services by Architect, for which Contractor shall be responsible, may include, but are not necessarily limited to, the following: 1. Review of Requests for Informatiin (RFI) and Change Order Requests for work determined to be already covered in the Contract Documents. 2. Continuation of construction administration beyond the date specified for Final Completion of the Work; refer to Section 01 3200 “Construction Progress Documentation.” 3. Review of re-submitted Submittals and Substitution Requests that have already been rejected; refer to Section 01 3300 “Submittal Procedures.” 4. Re-inspection of incomplete work, refer to Section 01 7700 “Closeout Procedures.” 5. Design services required for the resolution of non-conforming work. PART 2 - PRODUCTS (Not Used) Dennis Yarmouth Intermediate Middle School January 19, 2021 Dennis Yarmouth Regional School District 100% Construction Documents Perkins Eastman DPC, project #71011 PAYMENT PROCEDURES 01 2900 - 5 PART 3 - EXECUTION (Not Used) END OF SECTION (THIS PAGE IS BLANK)