Cal J' Gendreau

1
2009 Construction Conference

• Cal J. Gendreau
• Construction Services Engineer

2
2008 Review

• Mission Providing a transportation system that
  safely moves people and goods
• 2008 Contacts Administrated 271,633,426 in
  Contract improvements
• 2008 Customer Survey 84 Overall Satisfied
  (Residents, Motor Carriers, Government Officials,
  Business)
• Reason Foundations 17th Annual Report on the
  Performance of State Highway Systems North
  Dakota number 1 in Cost Effectiveness

3
Looking Ahead to 2009

• The American Recovery and Reinvestment Act of
  2009
• Roads and Bridges
• 27.5 Billion Dollars
• States must obligate 50 of the funding in 120
  days
• Remaining 50 within 1 year
• Goal 835,000 jobs created
• North Dakotas share? 170 Million
• 100 Federal Funded Projects

4
Looking Ahead to 2009

• Workload by Dollar Amount

Estimated Construction Costs in Millions
5
Looking Ahead to 2009

• State Workload by Staffing

Estimated Construction Costs in Millions
6
New Employees

• 16 Engineers hired since January 2008
• Special Forces 5
• Materials and Research 3
• Planning 3
• Bridge Division 2
• Minot District 1
• Devils Lake District 1
• Grand Forks District 1

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New Employees

• 8 Technicians hired since January 2008
• Fargo District 3
• Grand Forks District 2
• Bismarck District 2
• Valley City District 1

8
Special Forces

• Current Pool numbers are 14
• Transportation Engineer III 1
• Transportation Engineer I 11
• Engineering Technician III 1
• Engineering Technician II 1

9
Rotational Training Program

• Mandatory for all Transportation Engineer Is
• Two Training Tiers available (1 year and 2 year)
• Rotation through Construction/District varies
  between 3 and 12 months
• Currently 8 employees that are not Special Forces
  or District hires that will need rotations
  through Districts

10
Young Professional Award

• NDDOT named North Dakotas best place to work in
  2008

11
Engineering and Technical Training

• New Engineering Technical Training Manager
  Position established
• Establish Training Goals and Objectives for
  Engineering and Technical training
• Manage Training budget and contracts
• Develop Training Aids and Manuals
• Web-based Engineering and Technical Learning
  Institute

12
Contractor Competition

• Past trend down seems to be improving slightly

13
Fuel Adjustment Clause
14
Fuel Adjustment Clause

• No changes made after 1 year review with Industry
• 2008 Statistics About 40 of all Contracts

15
Red Line / Green Line

• 2008 Reviews
• SS-RSS-6-032(034)130
• Cold In-Place Recycling and Hot Bituminous
  Pavement
• Contractor Mayo Construction
• Discussion Ride of the recycled pavement,
  maintenance of the surface prior to overlay, cure
  time, gradation and ownership of salvaged
  materials
• AC-HPP-NH-3-002(086)199
• Widening and Whitetopping
• Contractor Progressive Contractors
• Review Pending
• 2009 Projects
• Looking for Projects to include in the program

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Electronic Plans

• Since April 2008 Bid Opening, no longer printing
  and mailing Project plans and proposals
• Plans, Proposals, Soils Reports, Cross Sections
  and Addendum all provided electronically via the
  Web
• Current Issues File size and downloading
• Future plans Provide a library function after
  the bid opening to provide Public access to final
  plans and Contract documents

17
2009 Emphasis Areas

• New Spec Book is out
• Quiz later
• Work Zone visibility
• ANSI 107-2004 Class 2 or 3 vest required by all
  persons in the Right of Way
• Flaggers
• New Flagger Handbook
• Inspection just like any other item of work
• Training Certificate
• Proper Signing
• Flagger Actions and Responsibilities

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2009 Emphasis Areas

• Subcontractors Definition (Page 16)

An individual, or legal entity with whom the
Contractor sublets part of the Contract

• Any exclusions? (104.02)

Any work, except for off-site commercial
production of materials and manufactured
component products that the Contractor purchases
or their transportation to the project requires
a subcontract.

• Subcontractor Approval (104.02)

The Contractor shall not sublet, sell, transfer,
assign, or dispose of any portion of the Contract
or Contracts without written consent of the
Engineer.
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2009 Emphasis Areas

• Requests to Sublet Approval
• Standard Form SFN 5682
• Maximum percentage that can be sublet is 70
• Items of work, and quantities of each item must
  be shown. Partial items must be explained.
• A copy of the subcontract agreement must be
  provided
• A Subcontractor must be either a Qualified
  contractor, a Registered subcontractor, or a
  Certified DBE. These current lists are provided
  on NDDOT website
• District Engineer has approval authority for all
  Requests to Sublet

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2009 Emphasis Areas

• Subcontractor Registration
• Standard Form SFN 52243
• Required yearly
• Goal
• Maintain some basic subcontractor information
• Data is recorded by NDDOT and used to fill
  Subcontractor fields in CARS
• Approval process both local and central
• Some regular subcontractors file this each year
  automatically with Construction Services
• Some dont file it until the first subcontract of
  the year

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2009 Emphasis Areas

• If you receive a Request to Sublet for a
  subcontractor that is not registered
• Ask the subcontractor to fill out the
  Registration form
• Review the form for completeness, notary and
  signature
• If the form is complete, the registration can be
  considered approved. Same District Engineer
  approval authority as the Request to Sublet.
• Mail the Registration form together with the
  Request to Sublet to Construction Services for
  processing.

22
2009 Emphasis Areas

• Subcontract Form Processing
• After approval of a Request to Sublet, and if
  necessary, a Subcontractor Registration form,
  make a copy and send the original forms to
  Construction Services
• Construction Services then scans the original
  Sublet form and provides a electronic Filenet
  copy under the Project number
• Originals forms are maintained in the Divisions
  paper file
• Questions?

23
Change

• Definition
• A change is the difference between the contract
  requirements at the time of bid and the actual
  requirements imposed during construction
• Why is the time of bid important in establishing
  whether a difference occurred?
• Change is inevitable in this kind of work
• Design-Bid-Build contracts include a changes
  clause. Standard Specification 104.03

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2008 Change Orders

• 271,633,426 in Contractor payments made
• 360 Change Orders issued
• 5,393,563 Change Order total
• 2.0 Increase due to Change Orders

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2008 Change Orders by Approval Level
1 FHWA approval on Full Involvement Projects
Typically NHS projects gt 5,000,000
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2008 Change Orders by Classification
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Unresolved Change

• Unresolved Change can lead to disputes, which can
  lead to claims
• Contractor does not agree with the Owners
  determination on the difference between the
  contract requirements and the actual requirements
• Contract requires notice of unresolved change
  (Standard Spec 104.06 A)
• Why is timely notice important?
• Why is a timely reply to notice also important?

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Notice of Intent Trends

• 2008 Claims
• 1 claim received. It was resolved by Change
  Order before a formal response was required.
• 2008 Arbitration
• 1 arbitration hearing for a 2007 claim was held.
  

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Evaluating Unresolved Change

• Three Basic Steps
• Entitlement
• Determine if a change has occurred
• When a change has occurred, next determine who
  has caused the change or is liable for the change
• Impacts
• Where the owner has caused a change, the next is
  to determine the impacts of the change. These
  may include extra work, delays, reduced
  efficiency, increased material costs, etc.
• Damages
• Once impacts are defined, determine the
  associated damages. Damages can be additional
  compensation and/or additional time

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Entitlement Provisions

• Significant Changes in Character of Work
• Differing Site Conditions
• Suspension of Work
• Extra Work
• Eliminated Work

Required by FHWA for all Federal Aid work
changes clause
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Significant Changes in Character of Work

• Standard Specification 104.03 A

• The term significant change shall be construed
  to apply only to the following circumstances
• When the character of the work as altered differs
  materially in kind or nature from that involved
  or included in the original proposed
  construction, or
• When a major item of work, as defined in Section
  104.03 B, is increased in excess of 125 percent
  or decreased below 75 of the original Contract
  quantity.

32
Differing Site Conditions

• Standard Spec 104.04
• Latent (hidden) physical conditions that differ
  materially from
• those indicated in the contract, or
• those ordinarily encountered
• Does not reduce the Contractors obligation to
  perform a reasonable pre-bid investigation
  (102.06)

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Suspension of Work

• Standard Specification 104.05
• Allows the Owner to stop the work
• Allows for an adjustment for cost and/or time
  required to perform the work where the suspension
  was
• Caused by conditions beyond the control of and
  not the fault of the Contractor, and
• Not caused by weather.

34
Extra Work

• Standard Specification 104.03
• Provides for an adjustment in compensation and
  time when extra work is required to complete the
  project.
• New specifications on preference for compensation
• Unit bid prices
• Price schedule for miscellaneous items (PS-1)
• Either agree to a negotiated unit price or
  complete the work under Force Account (109.04)
• Specifies the allowable markup for subcontract
  work

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Impacts

• Impact Determination
• Extra work
• What is different from what was bid?
• What equipment and labor was added or changed?
• Delays
• Was the work critical?
• Excuseable delay? (Both unforeseen and not the
  contractors fault)
• Compensable delay? (Time and cost recovery)
• Reduced Efficiency
• How does the productivity compare between
  unimpacted work and impacted work (measured mile)

36
Damages

• NDDOT Contracts specify how damages are to be
  calculated
• Compensation
• Unless agreed upon in advance to use Force
  Account (109.04), costs are calculated according
  to Standard Specification104.06 Claim for Extra
  Compensation
• Time
• Standard Specification 108.04 Determination and
  Extension of Contract Time

37
Claims Avoidance

• Open, frequent, and continued communication
• Partnering
• Careful preparation of design documents
• Careful preparation of contract documents
• Procedure for Pre-bid questions
• Proper project documentation
• Dispute Resolution procedures

38
Quiz

• How have federal regulations changed with regards
  to weekly payrolls?

• Removed the requirement that weekly payrolls
  contain employees social security numbers and
  home addresses
• Required that certified payrolls include a unique
  employee identification number for each employee
  and that Contractors maintain records of
  employees social security numbers and home
  addresses
• Required that the Contractor provide any required
  employment records upon request of the agency

39
Quiz

• True or False?
• All Contractors Requests to Sublet forms shall
  be submitted with a Subcontractor Registration
  form?

False. If a subcontractor is currently on the
Qualified Contractors list, the Registered
Subcontractors list or the Certified DBE list, a
registration form is not required.
40
Quiz

• Prompt Payments Requirements
• How often must the Engineer make partial payments
  based on the value of the work performed and
  materials delivered by the Contractor?

Answer At least once every 30 days (109.05 A)

• Prompt Payment Requirements
• How often must the Contractor make partial
  payments based on the value of the work performed
  and materials delivered by a subcontractor?

Answer The Contractor must pay the
subcontractor for work done or services rendered
within 20 calendar days of receipt of payment
from the Agency (109.05 B)
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Quiz

• True or False?
• If the Contractor withholds payments from a
  subcontractor, the Contractor must immediately
  notify the subcontractor and the Engineer in
  writing the reasons for withholding the payment.

True. (109.05 B)
42
Quiz

• Extra Work
• What are the specified methods for payment of
  extra work in order of preference?

• Answer (104.03)
• Unit Bid Prices
• PS-1 Price Schedule for Miscellaneous Items
• Force Account or Negotiated Unit Price

• Extra Work
• Is extra work completed by a subcontractor at
  unit bid prices eligible for additional
  Contractor reimbursement for profit and overhead?

Answer No (104.03)
43
Quiz

• Significant Change Quantity Underrun
• Can the Contractor payment for a major item, that
  underruns the plan quantity by 25 or more,
  exceed 75 of the original contract amount?

Answer No (104.03 B. 2. Revised 2008)
44
Quiz

• Environmental Protection - Erosion Controls
• On grade widening and selective grading project,
  construction operations shall be limited to
  ________ miles until erosion control measures
  have been started in the first mile.

Answer Five (110.06)
45
Quiz

• Partial Payment Payment for Materials on Hand
• In order to pay a Contractor for stockpiled
  materials, is the Contractor required to furnish
  a paid invoice for the material?

Answer No. Contractor has 35 days from the
stockpile payment date to submit an invoice for
stockpiled materials that have not been
incorporated into the work (109.06)

• Fuel Adjustment Clause Payment for Materials on
  Hand
• Are stockpiled material payments included in the
  monthly total of work done to date for the
  purposes of calculating the fuel adjustment
  clause?

Answer No (SP Fuel Cost Adjustment Clause)

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Questions?