Administration of Construction Contracts
– General ODOT Organization
Central Office
District Construction needs to communicate with the Central Office on many issues, its primary contacts are within the Division of Construction and Division of Contracts. The Table of Organization for ODOT is shown below. http://www.dot.state.oh.us/Info/orgtable.asp
The Central Office Division responsibilities lie in the area of policy development, support services and quality assurance. More specifically, its roles are:
· Work with other offices to develop specifications and policies that apply to the day to day operations at the project level.
· Acts as a liaison with other offices, the various trade organizations and FHWA on matters concerning ODOT's specifications, policies and procedures.
· Acts as a consultant to the Districts in matters concerning contract administration.
· Provides training to the Districts in contract administration.
· Reviews and reports the effectiveness of various construction methods and materials and provides advice on their use.
· Conducts Quality Assurance Reviews (QAR) to assure that ODOT's policies, procedures and specifications are being followed uniformly.
· Develops the performance measures by which the Districts are judged.
· Conducts the administrative closing of Contracts.
The responsibilities described above are of a general nature. The Division of Construction also has some specific approval functions that relate directly to the District. They are as follows:
· Processing and obtaining approval from the Controlling Board for all extra work change orders that exceed the contract limitations.
· Answering all pre bid questions. This is done to assure consistency throughout the State.
· Testifying before the Controlling Board.
· Summarizing and reporting all extra work to the Controlling Board.
· Acts as a lead office and representative when non specification matters are referred to the Central Office Review Committee. (Appendix A, SOP PHG305).
· Schedules all Claim Review Board meetings and then summarizes and reports the results to the Districts.
As mentioned above, the Division of Construction has the responsibility of policy development, the processing of controlling board requests, and the central Lab. The Office of Construction Administration has specialists in areas such as concrete, asphalt, traffic, bridges, contracts who can provide specialized advice to the Districts.
District
All District responsibilities begin with the District Deputy Director (DDD). The DDD through the Highway Management Administrator (HMA) and the District Construction Engineer is responsible for the administration of all contracts sold for the construction, reconstruction and maintenance of the highway system within the District.
While Central Office's responsibilities are primarily general in nature, the District's responsibilities are very specific. Although the Districts have always been responsible for the administration of all contracts within the District, they now have additional authority to help in the administration of these contracts. The following is a summary of the various District responsibilities as they relate to contract administration:
· Assure that all work done on each project is performed in accordance with the project's requirements (plans, proposal, specifications, supplemental specifications, special provisions, etc.)
· Approval of all change orders including extra work change orders not requiring Controlling Board approval.
· Approval of all time extensions and waivers.
· Review the contractor/subcontractor certified payrolls for compliance with the contract requirements.
· Review the contractor's performance and compliance with the contracts Equal Employment Opportunity requirements.
· Approve all estimates for work completed on the projects.
· Perform the final inspection and approve the final inspection report.
· Review the project records to assure that all requirements have been met.
· Prepare and approve the final report on the project.
· Issue the final acceptance letter and submit the finalized project to the Auditor.
The general responsibilities and requirements assigned to each District rest in the hands of the District Construction Office and specifically the District Construction Engineer (DCE). This person with the approval of the District Deputy Director and Highway Management Administrator is responsible for the administration of the contracts involving the construction, re construction and maintenance of the District's highway system as well as local projects involving State and Federal aid on the State's system. The DCE is responsible for assigning personnel to the project for this purpose. In addition, the DCE will resolve all issues not answerable at a lower level.
As part of this reorganization, each county is now under the
supervision of a
Project
In order to implement both the letter and spirit of any contract, it is necessary to have clearly defined lines of authority and communication between ODOT and the contractor. This section will present a framework to establish these lines.
ODOT Responsibilities
Although the previous section described the basic contract involving ODOT and the contractor, there are many responsibilities inherent in these contracts. These include but are not limited to the following:
· Provide a description of the work through the plans, proposal, specifications, supplemental specifications and special provisions.
· Provide a method to pay for completed work.
· Provide a project site with full access for the contractor to begin work. This includes right of way purchases and utility relocations.
· Furnish an adequate and trained inspection/engineering force at the project level.
· Secure good workmanship by the contractor. This involves the monitoring by the project staff of all operations for compliance with the documents described above.
· Arrive at decisions in a thoughtful manner with due consideration of all facts involved.
· Make decisions in a timely manner to avoid undue delay.
· Promptly pay the contractor for completed work.
· Monitor the contractor's compliance with the legal aspects of the contract such as prevailing wage and equal employment opportunity requirements.
· Review the contractor's work zone traffic control to ensure the public can pass through the work zone with the least interference.
· Respond to any complaints or questions in a timely manner.
Contractor Responsibilities
· In order to submit a bid that adequately reflects the conditions of the contract, the contractor must research all aspects of the contract such as visiting the project site, understanding the plan notes, reviewing all plan requirements.
· The contractor must notify ODOT of the project's starting date and keep ODOT informed of the proposed schedule of operations. This allows ODOT to anticipate engineering and inspection needs and therefore, efficiently manage staff.
· The contractor must provide a list of material suppliers. ODOT then can review the proposed list and obtain required samples. It should be submitted early to avoid delays associated with sampling and testing.
· The contractor must carry out the work on the projects in a diligent manner utilizing adequate labor.
· In order to manage the project efficiently and to avoid project related problems, the contractor must be aware of all federal, state and local laws that apply. Many of the legal requirements of the contract are addressed in the proposal but the contractor must also be aware of other regulations such as safety, which is not thoroughly detailed in ODOT's specifications but is extremely important. ODOT requires the contractor to protect and indemnify ODOT from all claims and liability resulting from negligence or willful violations.
· When open to traffic, the contractor must maintain the project in order to permit the public to move safely through. This includes using clean, readable signs, and traffic control devices, and maintaining the project free of debris.
· Once notified of problems the contractor must respond quickly to correct it. This is extremely important when the situation involves public safety.
Almost everything done at the project level effects another party. Because of this, the project personnel are constantly subject to pressures from outside sources. We should always be mindful of the needs of these parties, the effects of the project on them, their relationship to the project and their affect on the project. Many of these outside forces are shown on the facing page.
Other Agencies
Although the primary parties to any contract administered by ODOT are the contractor and ODOT, other political subdivisions may also be involved either directly or indirectly. During the administration of each project, these relationships should be recognized and addressed.
The Federal Highway Administration (FHWA) is involved in many projects administered by ODOT. Federal funds are available for many programs and are utilized by both ODOT and local political subdivisions for improvement to their roadway systems. Their involvement varies with the type of project and its location on the National Highway System. FHWA's philosophy for review of federal aid projects has evolved over the years and now is as follows:
· Major projects on the National Highway System (NHS) will continue to receive the most attention from FHWA. FHWA will be involved from preliminary design to finalization. This will include periodic reviews to monitor the project's progress and participation in the final inspection.
· FHWA, with the advent of ISTEA, has taken a step back in the tight oversight that had existed on all federal aid projects. On most federal aid projects, both with ODOT or local participation, FHWA has minor on site participation. It does not get involved with the project specifically but expects ODOT to administer these projects in accordance with the plans and specifications and then certify that this has been done.
· FHWA will still participate in reviews of our policies, procedures and specifications. At the project level, this may involve a review of an individual process (paving, traffic control, etc.) which is being studied statewide.
Many contracts involve direct local participation. The Local Participating Agency (LPA) will provide funds for their portion of the contract and the remainder may be provided by either FHWA or ODOT or both. Although ODOT administers the project, the LPA will have to live with the project after we are done. Therefore, with this in mind, ODOT should:
· Invite the LPA to the pre construction meeting and all progress meetings.
· Keep the LPA informed to all changes to the contract.
· The above is especially true when dealing with changes requiring large increases in the local participation.
· The LPA must be involved in the final inspection.
· The LPA must give their final approval and acceptance to the project.
Many ODOT projects impact other political sub divisions. Because of this it is important to maintain good communication with these parties. Two examples of direct impact on other political entities are haul roads and designated local detours. The procedures for dealing with these issues are as follows:
Haul Roads
· The contractor requests, through ODOT, that certain local roadways be used for hauling material and equipment to and from the project.
· ODOT reviews the request and contacts the LPA.
· If there is no objection by ODOT or the LPA the roadway is designated as a haul road.
· The roadway's condition is reviewed prior to hauling.
· If, during the course of the project, the roadway becomes dangerous, ODOT will have the contractor repair it.
· Once the project is completed, the condition is again reviewed.
· The roadway will be restored to its original condition either through the contract or by other means.
Designated Local Detours
· During the design stage, the LPA selects the route it believes traffic will take to bypass a road closure.
· Prior to construction, this route's condition is reviewed.
· If necessary, repairs are made to this route during construction. This is done through the contract.
· Once the project is completed, the condition is again reviewed.
· The pavement is restored to its original condition.
It is important to understand that contracts administered by ODOT have an impact on people other than ODOT. Establishing and maintaining good working relationships with the LPA will greatly help in the administration of these contracts.
Traveling Public
Every contract we are involved with impacts the public. They are our largest and at times most vocal customers. We work for them and they will tell us that sometimes. Our obligation to them is the same as it is to ODOT. We should provide, through our active involvement, the best possible finished product. We should also keep the public informed as to what the project is about and its current status. Communication is extremely important. If we are open and honest in our communication the public is generally appreciative.
Prosecution and Progress
The purpose of this section is to discuss tools available to the Department for use in tracking the Contractor's progress and timely completion of the project.
Following the signing of a contract for a construction project, the District will contact the contractor and schedule a preconstruction meeting. On or about that time, a Project Engineer/Supervisor will be chosen by the Department for that project.
Once the Project Engineer/Supervisor is chosen, it is the responsibility of that individual or team to review all of the project documents and terms of the contract prior to the preconstruction meeting. Special attention must be paid to the following items:
· Plan Notes
· Completion Date
· Interim completion dates
· Special uses of "As Per Plan" reference items
· Proposal notes, and supplemental specifications
· Phasing requirements
· Special provisions
· Addenda
· A check of the status of utility relocation (must be performed immediately as to avoid delays to the start of the project)
Preconstruction Meeting
The purpose of the preconstruction meeting is to review the various items of work as set forth in the detailed construction plans, bid proposal, specifications and the contractor's work schedule. Those items to be discussed are the necessary utility adjustments, availability of right of way, maintenance of traffic and the Department's responsibility for the inter related activities so that all concerned might have a better understanding of the problems involved and thus be able to coordinate the project.
The District Construction Engineer shall invite the following parties to the preconstruction meeting:
· Contractor
· State Personnel, including the Project Engineer/Supervisor and staff, utilities coordinator, EEO Coordinator, design engineer, traffic engineer, test engineer, public information office, county manager and all parties involved with the preparation of the plans.
· Utility companies with facilities located within the right of way, including all railroads and local park boards.
· Maintaining Agency
· Regional Transit Authority
· Parties funding project including FHWA/County/Local
At the preconstruction meeting, the project engineer must obtain a list of contacts for all parties involved with the project. This list will be useful in the future for timely resolution of problems which surface during the project construction. These contacts should also be invited to attend the progress meetings held on site once the project begins.
Items which the contractor needs for the preconstruction meetings are as follows and are listed in C&MS 108.02:
· Progress Schedule
· List of Material Sources
· List of Subcontractors
· List of Haul Roads
Progress Schedule
The Contractor must submit a progress schedule, pursuant to C&MS 108.02. This schedule must show the contractor's plan to carry out the work, the dates which the contractor and subcontractor will start the critical work, including the procurement of materials and equipment, ordering special manufactured articles, working drawings and the planned dates of critical project milestones.
A proposal note will dictate the type of schedule required. More complex project may require the contractor to use the critical path method of scheduling (CPM) proposal note 107, other will require a bar chart schedule proposal note 102.
The progress schedule must be reviewed and accepted by the District Construction Engineer. The Project Engineer will review the schedule and forward his comments to the District Construction Engineer. The following items are to be used in determining an acceptable schedule:
· All major items of work must be included in the schedule.
· Completion of the entire project must follow contract requirements.
· Duration of activities must be reasonable.
· Sequence of operations must be logical.
· Schedule must be arranged per plan phases if required.
· Schedule must include special provisions in the contract, including completion dates.
· Special material requirements of the plans must be included.
The progress schedule is the responsibility of the contractor. If the schedule does not make sense or is illogical, the District must ask for clarification. A revision of the details in question is required prior to acceptance.
Reviewing and Accepting the Contractor's Schedule
· Is the project identified ?
· Does the schedule graphically depict the work ?
· Is there sufficient detail to truly describe the work ?
· Are the sequences and activity durations reasonable ?
· Are critical deliveries shown ?
· Is there consideration for winter months ?
· Are special ODOT requirements from plan notes or special provisions accounted for ?
· Does the schedule fit within the duration allowed by contract ?
· Are there clear relationships shown between activities ?
The progress schedule is the main tool with which the owner can monitor the progress of the contract and determine at an instant the status of work. It is therefore very important that the Project Engineer accurately review the schedule before acceptance. Monitoring the progress schedule is very important in determining "fault" or responsibility for project delays. C&MS 108.06, allows the director to grant requests for an extension of time if the work was delayed. Guidelines for the review and acceptance of the relationship bar chart schedule are shown in proposal note 102.