CCO Training for Certified Local Public Agencies...CONTRACT CHANGE ORDER (CCO) Form 734-1169 Single...
35
CCO Training for Certified Local Public Agencies presented by Certification User Group Training Subcommittee Webinar April 22, 2020 1:30 – 3:30 pm 1
Transcript of CCO Training for Certified Local Public Agencies...CONTRACT CHANGE ORDER (CCO) Form 734-1169 Single...
CCO Training for Certified Local Public Agenciespresented by
Certification User Group Training SubcommitteeWebinar April 22, 2020
1:30 – 3:30 pm 1
Tami Weil, Certification Program Analyst
2
Meeting Tips:• Please mute your phone to minimize background noise• If the screen lags the presenter, try refreshing your browser• Use the chat box for questions
Presenter
Presentation Notes
Tami – Will do roll call during this slide
3
Agenda
• Training Purpose: Daineal Malone• Certification Program Guidance: Tiffany Hamilton• ODOT Tips on Contract Change Orders: Kimberly Free• Local Agency Perspectives: Moderated by Daineal Malone• Q&A• Closing Remarks
Presenter
Presentation Notes
Tami - Will go over the agenda, pass off to Daineal Daineal – Will go over training purpose
Training Purpose
• How to find and use contract change order resources for Certified LPA projects
• Share tips and tricks with each other
4
Presenter
Presentation Notes
Daineal – Will go over training purpose, then intro Tiffany
• Section C, Chapter 16: Construction Contract Administration
• Section D Resources: Approval Authority Matrix
Local Agency Guidelines for Certified Local Public Agencies – AKA, the “LAG”
• Keep ODOT Transportation Project Manager/Local Agency Liaison in the loop
• Document like every CCO will be audited• Reminder! CCOs could impact DBE participation
Pro tips on keeping federal participation
5
Presenter
Presentation Notes
TPM/LALs can help spot federal non-participation issues Also, please keep ODOT Civil Rights in the loop on CCOs that could impact DBE participation. If you have any questions on this, reach out the ODOT Civil Rights Field Coordinator. (See Sec C. Ch. 8 of the LAG) In addition to the information Kim will go over, CLPA documentation needs to include all ODOT and/or FHWA approvals for a major change or required concurrence. Don’t forget FHWA’s almost golden rule – if it’s not documented, it didn’t happen
6
Presenter
Presentation Notes
Local Government main page, see Local Agency Guidelines page Certification Guidance & Forms
https://www.oregon.gov/odot/LocalGov/Pages/LAG-Manual.aspx7
Presenter
Presentation Notes
Per stakeholder request, post two formats of the LAG By Section Full LAG You can use both bookmarks and thumbnails to help with navigation
8
https://www.oregon.gov/odot/Forms/2ODOT/5191.pdf
Presenter
Presentation Notes
There are a few ways to find the Approval Authority Matrix It’s linked in Section D of the LAG, Is available on forms page And is also linked under compliance guidance
9
Presenter
Presentation Notes
Marked up excerpt from the current (Jan. 2020) version of the Approval Authority Matrix While ODOT and FHWA don’t sign the CLPA’s contract change order, certain changes need to be approved in advance Note, ODOT retains authority for approving changes to work on or along the state highway system FHWA approves major changes – environmental mitigation, Buy America, changes to scope or project limits not shown in the approved project documentation
Contract ChangesODOT Tips and Best PracticeApril 22, 2020
10
The Difference Between CCO, EWO and FOContract Change Orders (CCO) are changes to a legal document (the Contract between the Contractor and the Agency) and are themselves legal documents. Once a CCO is executed, it becomes part of the Contract. The only way to make further modification to a Contract is to process another CCO. CCOs take precedence over all other Contract Documents. CCOs = Changed Work. Changed Work is Work included in a Pay Item within the scope of the Contract that is different from that reflected in the Plans and Specifications (See Subsection 00140.30).
Extra Work Orders (EWO) = Extra Work. Extra Work is Work that is not included in the original Contract, yet necessary for completing the Project. Subsection 00140.60 and Section 00196 addresses Extra Work. Performed on a Force Account BasisOrder for Force Work (OFW) or “Force Order” (FO) or “State Force Order”(SFO) = non-contract Work or Work performed by other forces (State or Local agencies), utilities or railroad.
All Projects awarded under any alternate contracting method such as Design-Build, CM/GC or A+B, etc., have different requirements for review and approval, see Construction Manual Chapter 15 for more information
11
12
Construction Manual Chapter 12G Force Account
The Force Account process is governed by and outlined in the Construction Manual, Chapter 12G
The process begins with an approved Extra Work Order (EWO)
The Daily Force Account Record (DFAR) is the key document
http://www.oregon.gov/ODOT/Construction/Pages/Construction-Manual.aspx13
Presenter
Presentation Notes
First, the PM will need to determine Extra Work is necessary. Only work not included in the Contract as awarded, but deemed by the PM to be necessary to complete the project will be paid as Extra Work. The PM must discuss the scope, method and means of completing the work with the Contractor. And the PM must attempt to negotiate a CCO with the contractor to perform the Extra Work. If the PM is unable to successfully negotiate a CCO, the Extra Work can be completed on a Force Account Basis. Before the Extra Work to be performed on a Force Account Basis can begin, the PM must prepare and obtain approval of an Extra Work Order (EWO), provide the Contractor with a written order to begin the Extra Work, and reach an agreement with the Contractor on the details of how the Extra Work will be completed.
PM determines if Extra Work is necessary
Discuss with Contractor; attempt to negotiate a CCO
If no agreement can be reached, execute an Extra Work Order
Extra Work Order Form 734-3208
14
Presenter
Presentation Notes
This form is completed by the PM. Only the Actual Cost Calculation method is to be used for any projects let after 7/18/2013. Only a few ongoing projects are still able to use the Standard Calculation method.
Daily Force Account Record Form 734-3428
The DFAR documents the work done under the EWO
Originator’s Copy
Project Manager’s Copy
Contract Services Copy
Contractor’s Representative Copy
15
Presenter
Presentation Notes
DFAR’s are used to document the work that ODOT (the Agency) and the Contractor agree has been performed during each shift. This form is completed by the ODOT Agency Representative. An ODOT Agency Representative (usually the Inspector) and a Contractor’s Representative are required to sign this document at the end of each work shift. The form is a 4 copy carbon form that is purchased in pads. Lori Butler keeps a supply of this form in her office at the Materials Lab. CAU needs to receive the light yellow originals. We ask for the original document to ensure that we are not being billed multiple times for the same items.
16
Daily Force Account Record Form 734-3428
The DFAR is really a Daily Force Account “Contract”
Both the ODOT representative and the Contractor’s representative mustagree in writing to this daily contract
– Do not proceed with disputed work!
The ODOT representative/Inspector is responsible to:
– Prepare, sign and date a DFAR for each day of work
– Obtain the Contractor’s agreement with the DFAR in writing by signature each day
– Use only the official ODOT quadruplicate DFAR form
Presenter
Presentation Notes
Per the construction manual, “if there are any disagreement regarding the information recorded on the DFAR, and the disagreement cannot be resolved the same day, the Extra Work must stop until the PM and the Contractor resolve the disagreement. Do not proceed with Extra Work without daily agreement on the DFAR.”
17
Daily Force Account Record Form 734-3428
Summarizes everything that is to be paid and the type of work completed that day/shift
– A complete description of the work
• sufficient to verify the Class Code and Assigned Risk Rate for the type of work being performed
– Every person who worked
– All equipment used
• with sufficient information for each piece of equipment to generate an accurate Blue Book® Rental Rate
– Every material used (down to each nut and bolt!)
Common Issues found during CAU Review of Force Account documentation: Incorrect Blue Book® Rental Rates
– Incorrect time period for the work (outdated Rental Rate sheets)
– Omitted model year adjustment
– Incorrect equipment details
Incorrect information in the Taxes & Insurance on Payroll part of the Labor Actual Cost Calculation form
– Information from the wrong year (must match year of the work):
• Experience Modification Factor
• Taxes (most commonly Oregon Unemployment and Transit)
No corrections will be made to the Force Account Summary if the sum of corrections is <$10
18
Presenter
Presentation Notes
Per the Construction Manual, no corrections to the Force Account Summary will be made if further review identifies the corrections to be less than $10.
Resources
19
20
21
Change Order forms are available on the ODOT Construction Section’s Form Web site at:
http://www.oregon.gov/ODOT/Construction/Pages/Forms.aspx.
CONTRACT CHANGE ORDER (CCO)
Form 734-1169 Single Contract Change Order with Supporting Data andReason Codes for Work or Change OrdersForm 734-1169WB 50 Contract Change Orders with Supporting Data and
Reason Codes for Work or Change Orders, and CCOSummary
22
23
Construction ManualCH 15
https://www.oregon.gov/ODOT/Construction/Pages/Construction-Manual.aspx?wp1302=l:50
Insignificant VS Significant Changed WorkWhat Information should a Change Order contain?Cost Justification and the important of cost estimatesSupporting DataContract Time
24
Specifications or Plans that are added, modified, deleted, etc.
Use attachments if necessary – attachments are part of the change order and must be referenced and labeled correctly on each attachment page, similar to:
C##### CCO## Attachment # Page # of #
List external PM if applicable
What is the change? Where is the change? (e.g., Station/Offset)
Is Contract Time affected? If so, state the number of days being added (or deleted) from each completion date.
If completion dates have been added or deleted, have the Liquidated Damages clauses been affected?
This is much simpler with the revised terminology in the 2018 Standard Specifications
NOT a place for the “why” of a change
25
Presenter
Presentation Notes
The term FFO is no longer being used in the project name, we are awaiting direction from FHWA on how these projects will be identified.
Obtain required FHWA approval when applicable (FFO, Major Changes, alternate contracting methods)
Commonly missed
Attachments after this sheet are not part of the CCO; ensure all relevant plans and specs related to the CCO work are inserted into the CCO packet prior to this page so are distributed to the Contractor
26
How to Correctly Modify Contract Time – One Date
This Contract Change Order adds XX Calendar Days of Contract Time.
00180.50(h) Contract Time – Replace this subsection, except for the subsection number and title, with the following: Complete all work to be done under the Contract not later than [date].
Modify 00180.50(h), [date] 1.0 LS $0.00 $0.00
Revise 00180.50(h), [date] 1.0 LS $0.00 $0.00
or
27
Presenter
Presentation Notes
In this example, the Contract started out with one completion date; therefore, 00180.85(b), Liquidated Damages would already be set up for one completion date in the Special Provisions. No adjustment to 00180.85(b) is needed in this example.
How to Correctly Modify Contract Time – Adding Date(s)
28
This Contract Change Order adds an interim completion date of (h-1) to the Contract and moves the “all work” completion date to (h-2).
Add Interim: 00180.50(h-1), [date] 1.0 LS $0.00 $0.00
Modify 00180.85(b) 1.0 LS $0.00 $0.00
00180.50(h) Contract Time – Replace this subsection, except for the subsection number and title, with the following: (h-1) Complete all Work except for [description of work) not later than [date].(h-2) Complete all Work to be done under the Contract not later than [unchanged date].
Modify 00180.05(b) Liquidated Damages – Replace this subsection of the Special Provisions, except for the subsection number and title, with the following:Add the following paragraphs to the end of this subsection:There are two daily amounts of liquidated damages on this project as follows:Liquidated damages for failure to complete the Work on time required by 00180.50(h-1) will be $### per Calendar Day *. Liquidated damages for failure to complete the Work on time required by 00180.50(h-2) will be $### per Calendar Day *. If liquidated damages should become payable concurrently under the combination of 00180.50(h-1) and (h-2), liquidateddamages will be $## per Calendar Day *.* Calendar Day amounts are applicable when the Contract time is expressed on the Calendar Day or fixed date basis.
2015 Standard Specs Example
Revise 00180.50(h) to (h-2), Date Unchanged 1.0 LS $0.00 $0.00
Presenter
Presentation Notes
This option for adding a completion date (or dates) works well for those who prefer completion dates to be in date order. Adding a completion date means 00180.85(b) needs to be modified as well. This example uses 00180.85(b) from the 2015 Standard Specifications. The use of the bolded words above “Special Provisions” is extremely important so that the 00180.85(b) clauses from the Standard Specifications are not also deleted by this “replacement” of wording.
How to Correctly Modify Contract Time – Adding Date(s)
This Contract Change Order adds an interim completion date of (h-2) to the Contract.
Add 00180.50(h-2), [date] 1.0 LS $0.00 $0.00
00180.50(h) Contract Time – Replace this subsection, except for the subsection number and title, with the following: (h-1) Complete all Work to be done under the Contract not later than [unchanged date].(h-2) Complete all Work except for [description of work) not later than [date].
00180.85(b)(2) Multiple Contract Times - Add the following paragraph and bullet list to the end of this subsection:
The Agency determined percentages of the value of Work required to be complete by the Contract Times listed under 00180.50(h) are as follows:
For Contract Time 00180.50(h)(1) the Agency determined percentage of Work is 90 percent.For Contract Time 00180.50(h)(2) the Agency determined percentage of Work is 100 percent.
2018 Standard Specs Example
Add 00180.85(b)(2) 1.0 LS $0.00 $0.00
29
Presenter
Presentation Notes
This option for adding a completion date (or dates) works well for those who don’t mind completion dates out of date order. Adding a completion date means 00180.85(b) needs to be modified as well. This example uses 00180.85(b)(2) from the 2018 Standard Specifications. Include one of the following bullets for each Contract Completion Time in 00180.50(h). Fill in the blank with the percentage of all Work to be done, calculated based on the preliminary Engineer's Estimate and for each listed Contract Time. Show percentages to the nearest 1% and ensure that the last percentage listed is 100 percent.
How to Correctly Modify Contract Time – Deleting a Date
30
This Contract Change Order deletes the interim completion date (h-1) from the Contract.
Delete Interim Comp. Date 00180.50(h-1) 1.0 LS $0.00 $0.00
Modify 00180.85(b) 1.0 LS $0.00 $0.00
2015 Standard Specs Example
00180.50(h) Contract Time – Replace this subsection, except for the subsection number and title, with the following: Complete all work to be done under the Contract not later than [unchanged date].
Modify 00180.05(b) Liquidated Damages – Replace this subsection of the Special Provisions, except for the subsection number and title, with the following:Add the following paragraphs to the end of this subsection:There is one daily amount of liquidated damages on this project as follows:Liquidated damages for failure to complete the Work on time required by 00180.50(h) will be $### per Calendar Day *. * Calendar Day amounts are applicable when the Contract time is expressed on the Calendar Day or fixed date basis.
Revise 00180.50(h-2) to (h), Date Unchanged 1.0 LS $0.00 $0.00
Presenter
Presentation Notes
This example assumes the Contract started with two completion dates: h-1, an interim completion date and h-2, an “all work” date. Deleting a completion date means 00180.85(b) needs to be modified as well. This example uses 00180.85(b) from the 2015 Standard Specifications. The use of the bolded words above “Special Provisions” is extremely important so that the 00180.85(b) clauses from the Standard Specifications are not also deleted by this “replacement” of wording.
How to Correctly Modify Contract Time – Deleting a Date
31
This Contract Change Order deletes the interim completion date (h-1) from the Contract.
Delete Interim Comp. Date 00180.50(h-1) 1.0 LS $0.00 $0.00
Delete 00180.85(b)(2) 1.0 LS $0.00 $0.00
2018 Standard Specs Example
00180.50(h) Contract Time – Replace this subsection, except for the subsection number and title, with the following: Complete all work to be done under the Contract not later than [unchanged date].
Delete 00180.85(b)(2) from the Special Provisions
00180.85(b)(1) Single Contract Time – Add this subsection to the Special Provisions:
The Liquidated Damages per Calendar Day* are 15.0 percent of C divided by T as defined in this Section.
C = The Contractor’s Bid amount for the Contract.T = The total Calendar Days between the latest completion date or time listed under 00180.50(h) in the Solicitation Documents and the Bid Opening that will result in the greatest value for T.
* Calendar Day amounts are applicable when the Contract time is expressed on the Calendar Day or fixed date basis.
Revise 00180.50(h-2) to (h), Date Unchanged 1.0 LS $0.00 $0.00
Add 00180.85(b)(1) 1.0 LS $0.00 $0.00
Presenter
Presentation Notes
This example assumes the Contract started with two completion dates: h-1, an interim completion date and h-2, an “all work” date. Deleting a completion date means 00180.85(b) needs to be modified as well. This example uses 00180.85(b) from the 2018 Standard Specifications.
• Tips and discussion
32
Presenter
Presentation Notes
Daineal – Will moderate
33
Q&A
34
Daineal MaloneLinn County, Civil
Engineer II
541-967-3919
Tami WeilCertification
Program Analyst
503-986-4258
Kimberly FreeODOT Contract Administration
Specialist
503-986-3084
Tiffany HamiltonODOT
Certification Program Manager
503-986-3649
Closing Remarks
• Evaluation survey will be by email. It’s super short, promise!
• Thank you for your participation.
The CUG Training Subcommittee
35
