103.02 Contract Revisions - Revision history

SchaeferS: /* Requirements for FHWA Review */Reset formatting again to encompass all FHWA subsections into one section

2021-02-25T15:40:27Z

Requirements for FHWA Review: Reset formatting again to encompass all FHWA subsections into one section

SchaeferS at 15:37, 25 February 2021

2021-02-25T15:37:06Z

SchaeferS: Format change for Requirements for FHWA Review and subsections below

2021-02-25T14:13:39Z

Format change for Requirements for FHWA Review and subsections below

Deboerm: /* Construction Contract Modification Process Overview */

2021-02-09T21:28:09Z

Construction Contract Modification Process Overview

Deboerm: /* Tier I - TSC Approval */

2021-01-25T21:12:39Z

Tier I - TSC Approval

Deboerm: /* Detailed Contract Modification Information */

2021-01-13T22:41:40Z

Detailed Contract Modification Information

SchaeferS: /* LAP Project Considerations */ Clarified the LAP Project Considerations section

2020-07-28T19:35:12Z

LAP Project Considerations: Clarified the LAP Project Considerations section

SchaeferS: /* LAP Project Considerations */ adjusted header level

2020-07-28T19:26:45Z

LAP Project Considerations: adjusted header level

SchaeferS: /* LAP Project Considerations */ adjusted header level

2020-07-28T19:25:26Z

LAP Project Considerations: adjusted header level

SchaeferS: /* Local Agency Projects */ removed section - see LAP Project Considerations further down the page

2020-07-28T19:25:04Z

Local Agency Projects: removed section - see LAP Project Considerations further down the page

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 Prior approval from FHWA is required for all major changes in work before the work commences.  This approval is obtained by electronic submission of FHWA [http://www.fhwa.dot.gov/programadmin/contracts/fhwa1365.cfm Form 1365]to the FHWA Area Engineer that is overseeing the project.  The area engineer will approve or comment on the submitted form and electronically transmit the form to the MDOT TSC Construction Engineer for inclusion in the project files.  The completed form must be attached to the contract modification that processes the contract revisions for the major change.  FHWA will typically respond within 5 working days.
-All major work performed prior to obtaining documented pre-approval from FHWA will be considered non participating.  However, when an emergency or unusual conditions justify expediency, the area engineer may provide verbal pre-approval of the change and immediately follow-up such verbal approvals with a formal written approval.  Major changes or major extra work are defined as any change that will significantly affect the cost of the project to the federal government, alter the termini, character, or scope of work.
+:<b>Major Changes or Major Extra Work</b>
-'''FHWA’s Michigan Division has further clarified the definition of major changes as noted below:'''
+:All major work performed prior to obtaining documented pre-approval from FHWA will be considered non participating.  However, when an emergency or unusual conditions justify expediency, the area engineer may provide verbal pre-approval of the change and immediately follow-up such verbal approvals with a formal written approval.  Major changes or major extra work are defined as any change that will significantly affect the cost of the project to the federal government, alter the termini, character, or scope of work.
-Contract revisions (contract modifications) that do not meet the threshold criteria noted above should still be discussed with the respective FHWA Area Engineer, prior to work commencing.
+::'''FHWA’s Michigan Division has further clarified the definition of major changes as noted below:'''
-<div style="text-align: right;">[mailto:Change?body=https://mdotwiki.state.mi.us/construction/index.php/103.02_Contract_Revisions Email this Page]</div>
+::# Any construction field issue (contract modification) that results in extra (new) work items and/or existing (original) work items that equal or exceed $50,000 in value.  This includes increasing original pay items unless it is for interim or final balancing as noted below.
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+::# Any change to the termini, character, or scope of the project, regardless of the amount.  Examples of these types of changes are as follows: changes in materials, changes in pavement marking types/materials, or any changes resulting in a plan revision per the MDOT Road Design Manual.
-<b>Non-Major Contract Modifications</b>
+:Contract revisions (contract modifications) that do not meet the threshold criteria noted above should still be discussed with the respective FHWA Area Engineer, prior to work commencing.
-Once an extra work item is approved, the balancing of the extra work item does not require FHWA pre-approval.
+:<b>Non-Major Contract Modifications</b>
-Extra work items and adjustments that are 100 percent state funded do not require FHWA approval unless the work constitutes a change in the scope of work. These items are to be placed on separate contract modifications. <div style="text-align: right;">[mailto:Change?body=https://mdotwiki.state.mi.us/construction/index.php/103.02_Contract_Revisions Email this Page]</div>
+:<b>Clarifications</b>
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-=====Major Changes or Major Extra Work=====
+<b>Major Changes or Major Extra Work</b>
 All major work performed prior to obtaining documented pre-approval from FHWA will be considered non participating.  However, when an emergency or unusual conditions justify expediency, the area engineer may provide verbal pre-approval of the change and immediately follow-up such verbal approvals with a formal written approval.  Major changes or major extra work are defined as any change that will significantly affect the cost of the project to the federal government, alter the termini, character, or scope of work.
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-=====Non-Major Contract Modifications=====
+<b>Non-Major Contract Modifications</b>
 Non-major contract modifications also require formal approval from FHWA, although approval in advance and completion of FHWA [http://www.fhwa.dot.gov/programadmin/contracts/fhwa1365.cfm Form 1365]are not required prior to the work being performed.
 <div style="text-align: right;">[mailto:Change?body=https://mdotwiki.state.mi.us/construction/index.php/103.02_Contract_Revisions Email this Page]</div>
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-=====Clarifications=====
+<b>Clarifications</b>
 FHWA [http://www.fhwa.dot.gov/programadmin/contracts/fhwa1365.cfm Form 1365] is not required for contract modifications of any amount that only balance pay items to field measured quantities (interim and final balancing contract modifications).  These balancing contract modifications must not contain any pay items or work that is part of a major change as defined above.

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-====[[#Major Changes or Major Extra Work|Major Changes or Major Extra Work]]====
+=====Major Changes or Major Extra Work=====
 All major work performed prior to obtaining documented pre-approval from FHWA will be considered non participating.  However, when an emergency or unusual conditions justify expediency, the area engineer may provide verbal pre-approval of the change and immediately follow-up such verbal approvals with a formal written approval.  Major changes or major extra work are defined as any change that will significantly affect the cost of the project to the federal government, alter the termini, character, or scope of work.
@@ Line 227: / Line 227: @@
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-====[[#Non-Major Contract Modifications|Non-Major Contract Modifications]]====
+=====Non-Major Contract Modifications=====
 Non-major contract modifications also require formal approval from FHWA, although approval in advance and completion of FHWA [http://www.fhwa.dot.gov/programadmin/contracts/fhwa1365.cfm Form 1365]are not required prior to the work being performed.
 <div style="text-align: right;">[mailto:Change?body=https://mdotwiki.state.mi.us/construction/index.php/103.02_Contract_Revisions Email this Page]</div>
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-====[[#Clarifications|Clarifications]]====
+=====Clarifications=====
 FHWA [http://www.fhwa.dot.gov/programadmin/contracts/fhwa1365.cfm Form 1365] is not required for contract modifications of any amount that only balance pay items to field measured quantities (interim and final balancing contract modifications).  These balancing contract modifications must not contain any pay items or work that is part of a major change as defined above.

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 $800 total net cumulative contract modifications / $10,000 original contract = 8 percent
-So the contract modification would be evaluated as being 8 percent over awarded contract amount requiring Tier II approval as outlined in Section IV.
+The contract modification would be evaluated as being 8 percent over awarded contract amount requiring Tier II approval.
-All contract modifications will be generated and processed within the timeframes established within this document, and shall then be subject to a tiered approval process based on thresholds and criteria fully explained in Section IV.
+All contract modifications will be generated and processed within the timeframes established below, and shall then be subject to a tiered approval process based on thresholds and criteria fully explained in Section IV.
 <div style="text-align: right;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/Construction_Contract_Modification_Process_Overview Email this Page]</div>
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 ===[[#Tier I - TSC Approval|Tier I - TSC Approval]]===
-Once all external non-MDOT signatures have been completed, the contract modification will go through Tier I - TSC level approval. For all electronic signature contract modifications, the document must be placed in the correct job number and folder within the MDOT ProjectWise system for further MDOT approvals. Non-electronic signature documents will be physically routed and mailed with all government approval timelines tripled (see Section VI). TSC approval must consist of at least two licensed engineer signatures and these two signatures are mandatory for every contract modification without exception. The “Recommended by” signature must contain the printed name of the construction/project engineer in responsible charge of the project. The “Authorized by TSC manager” signature block must contain the name of the TSC manager. When the contract modification is returned to the TSC office from the contractor,  or consultant, the construction/project engineer (or designated alternate/backup) must review and approve the contract modification within four business days of receipt. The TSC manager (or their designated alternate/backup) must also review and authorize the contract modification within four business days of the construction/project engineer signature.
+Once all external non-MDOT signatures have been completed, the contract modification will go through Tier I - TSC level approval. For all electronic signature contract modifications, the document must be placed in the correct job number and folder within the MDOT ProjectWise system for further MDOT approvals. Non-electronic signature documents will be physically routed and mailed with all government approval timelines tripled. TSC approval must consist of at least two licensed engineer signatures and these two signatures are mandatory for every contract modification without exception. The “Recommended by” signature must contain the printed name of the construction/project engineer in responsible charge of the project. The “Authorized by TSC manager” signature block must contain the name of the TSC manager. When the contract modification is returned to the TSC office from the contractor,  or consultant, the construction/project engineer (or designated alternate/backup) must review and approve the contract modification within four business days of receipt. The TSC manager (or their designated alternate/backup) must also review and authorize the contract modification within four business days of the construction/project engineer signature.
 For all MDOT construction contract modification documents, signature authority is allowed to be designated to a pre-established backup or alternate signer as required.  Designated backups or delegated signature authority must be to a pre-established person that is an equivalent level or higher.  However, even if a backup or designated alternate review and sign the document, the name on the signature block will still contain the printed name of the required approver.  In this case, the construction/project engineer and TSC manager will be named as the owners of these two signature blocks and they will ultimately be responsible for the accuracy and content of the contract modification regardless of who signed.  It is never acceptable to have the same person sign multiple signature blocks on the same contract modification.  If a designated backup signs for a responsible party, then they must indicate so by signing and printing their name along with adding the words “for [name of person]” in the signature area.  If using electronic signatures, the backup or alternate signer must enter this same text in the signature reason area as they enter their digital electronic signature.

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 ====[[#Detailed Contract Modification Information|Detailed Contract Modification Information]]====
-The following detailed information is required for all contract modifications according to which item type (Part 2 above) is used.
+The following detailed information is required for all contract modifications according to which item type (above) is used.
 * Bulleted list item

@@ Line 1: / Line 1: @@
-<center>[https://mdotjboss.state.mi.us/SpecProv/getDocumentById.htm?docGuid=ef7dfa46-dbaa-4729-9e07-4470f796c3cd&fileName=%22103%20Scope%20of%20Work.pdf%22 2012 STANDARD SPECIFICATIONS FOR CONSTRUCTION - SECTION 103]</center>
+<center>[http://mdotcf.state.mi.us/public/specbook/files/2012/103%20Scope%20of%20Work.pdf 2012 STANDARD SPECIFICATIONS FOR CONSTRUCTION - SECTION 103]</center>
 <div style="text-align: center;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/103.02_Contract_Revisions Email this Page]</div>
 ===[[#Construction Contract Modification Process Overview|Construction Contract Modification Process Overview]]===
-[https://mdotjboss.state.mi.us/SpecProv/getDocumentById.htm?docGuid=ef7dfa46-dbaa-4729-9e07-4470f796c3cd&fileName=%22103%20Scope%20of%20Work.pdf%22 Subsection 103.02] Revisions to the Contract, of the 2012 Standard Specifications for Construction states:
+[http://mdotcf.state.mi.us/public/specbook/files/2012/103%20Scope%20of%20Work.pdf Subsection 103.02] Revisions to the Contract, of the 2012 Standard Specifications for Construction states:
 A.  General.  The Department reserves the right to revise the contract at any time.  Revisions to the contract neither invalidate the contract nor release the surety, and the Contractor agrees to perform the work as revised.  The Contractor must not proceed with the revised work until directed to do so by the Engineer, but must continue with all work unaffected by the revision.
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 '''Adjustments:'''
-*This category is for contract revisions that require adjustments to work items. Adjustments are defined as “a monetary revision to a contract unit price or to the entire contract.” Examples: incentive, liquidated damages, HMA quality adjustment, concrete quality adjustment, traffic control quality and compliance adjustment, soil erosion and sedimentation control adjustment, prompt pay violation adjustment, delinquent payroll adjustment, significant changes (i.e., [https://mdotjboss.state.mi.us/SpecProv/getDocumentById.htm?docGuid=ef7dfa46-dbaa-4729-9e07-4470f796c3cd&fileName=%22103%20Scope%20of%20Work.pdf%22 103.02.B] for major items of work ± 25 percent), etc.
+*This category is for contract revisions that require adjustments to work items. Adjustments are defined as “a monetary revision to a contract unit price or to the entire contract.” Examples: incentive, liquidated damages, HMA quality adjustment, concrete quality adjustment, traffic control quality and compliance adjustment, soil erosion and sedimentation control adjustment, prompt pay violation adjustment, delinquent payroll adjustment, significant changes (i.e., [http://mdotcf.state.mi.us/public/specbook/files/2012/103%20Scope%20of%20Work.pdf 103.02.B] for major items of work ± 25 percent), etc.
 *Document the details of the contract revision adjustments and all associated impacts to the project.  Provide detailed explanation (including answering all of items “A” through “H” in the Detailed Contract Modification Information section below) for any contract adjustment item.
 *The unit used for adjustments will be “DLR” (dollars) and the quantity can be ±.
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 ====[[#LAP Project Considerations | LAP Project Considerations]]====
-The construction contract modification process is the same as described in this section for LAP projects, with the following exceptions:
+The LAP Project Construction Contract Modification Process is the same as described in [http://mdotwiki.state.mi.us/construction/index.php/103.02_Contract_Revisions 103.02 Contract Revisions], with the following exceptions:
 * It is highly recommended the local agency contact the DR prior to processing any contract modification so the DR can provide direction regarding item eligibility and participation based on the current [https://www.michigan.gov/documents/mdot_federal_Guidelines_99105_7.pdf LAP Federal Eligibility Guidelines]. It’s a best practice to provide a draft contract modification to the DR for review.
 Failure to keep the DR appraised of contract modifications may result in delays in processing the modification, jeopardy of item funding participation, and jeopardy of project funding participation.  Depending on content, NEPA clearances may need to be reviewed as well.
-* General contract modification information, item E. must state ‘MDOT Oversight of LAP Project’
+* [http://mdotwiki.state.mi.us/construction/index.php/103.02_Contract_Revisions#General_Contract_Modification_Information General Contract Modification Information], item E. must state ‘MDOT Local Agency Project (LAP)’
-* FHWA does not support participation in premium costs due to design errors or non-value added work.
+* FHWA does not support participation in [http://mdotwiki.state.mi.us/construction/index.php/103.02_Contract_Revisions#Premium_Costs_for_Design_and_Field_Issues Premium Costs for Design and Field Issues].  The LPA must discuss all potential premium costs with the DR.
 * If the LPA believes a fraudulent act has been performed, they must immediately contact their DR who will inform the TSC Manager, CFS Construction Contracts Engineer, and Statewide Local Agency Construction Engineer.
 * If the project requires [https://mdotjboss.state.mi.us/webforms/GetDocument.htm?fileName=FHWA-1365.pdf FHWA Form 1365] due to a Major Change or Major Extra Work (link) or as identified in the PoDI plan, the LPA must prepare and submit said form to the DR.  The LRC must sign off on the form.  The DR will forward the form to the FHWA Local Programs Manager all will serve as the primary contact for communications with the FHWA.  Contract modifications containing 100 percent locally or state funded items do not require FHWA approval, unless the work constitutes a change in the scope of the work.  These items are to be placed on a separate contract modification.

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 ====[[#Contractors|Contractors]]====
 Once the engineer, local agency, or consultant generates the contract modification, it will be sent to the contractor for signature.  The contractor shall sign and return the document to the sender within ten calendar days of transmittal.  The above approval timeline is the general guideline for most contract modifications, however, for complex or large balancing modifications that may require additional time to review, the contractor may take up to a maximum of 21 calendar days to return the document.  After this maximum timeframe, or if the contractor refuses to sign and return the contract modification, the engineer may then process the contract modification with “contractor failed to sign and return” noted in the contractor signature area.
 <div style="text-align: right;">[mailto:Change?body=https://mdotwiki.state.mi.us/construction/index.php/103.02_Contract_Revisions Email this Page]</div>
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