CITY OF GREATER SUDBURY PROGRESS PAYMENT STATEMENTS, PROGRESS PAYMENT CERTIFICATE AND INVOICING PROCEDURE. ENG-PM-S001 v.1.01

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1 CITY OF GREATER SUDBURY PROGRESS PAYMENT STATEMENTS, PROGRESS PAYMENT CERTIFICATE AND INVOICING PROCEDURE

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3 City f Greater Sudbury Prgress Payment Statements, Prgress Payment Certificate and Invicing Prcedure Revisin Histry Date Descriptin Authr Title April 28, 2017 General Revisin J. Rybachuk Cntract Administratr R E F E R E N C E D A N D R E L AT E D D O C U M E N T S Field Inspectr Manual Change Order Prcedure Prgress Payment Statements, Prgress Payment Certificate and Invicing Prcedure Page 3 f 15

4 Table f Cntents 1. DEFINITIONS PURPOSE AND SCOPE INPUTS OUTPUTS PROGRESS PAYMENT STATEMENT (PPS): PPS Prcedure: PPS Prcess Flw:... 7 Figure 1: Flw Chart Diagram RACI Matrix: Figure 2: RACI Matrix fr Prjects Managed by Cnsultants Figure 3: RACI Matrix fr Prjects Managed by CGS CHANGE ORDER (CO): INVOICING: Prgress Payment Statements, Prgress Payment Certificate and Invicing Prcedure Page 4 f 15

5 1. DEFINITIONS CGS: CO: DPS: PPC: PPS: PTD: QA: QTY: REF: SOW: SUP: City f Greater Sudbury Change Order Daily Payable Summary Prgress Payment Certificate Prgress Payment Statement Prject t Date Quality Assurance Quantity Referee Testing Scpe f Wrk Schedule f Unit Prices 2. PURPOSE AND SCOPE The purpse f this prcedure and prcess flw is t define the respnsibilities and steps in btaining the mnth-end infrmatin required fr cntracted services. This will prvide accurate frecasting and mnthly accrual cst reprting t the Prject Management Team. The Field Inspectr will submit this infrmatin t the Cntract Administratr, which culd be a Cnsultant r a City f Greater Sudbury (CGS) emplyee, thrugh the Prgress Payment Statement (PPS) prcess cntained within this dcument. The PPS includes a Daily Payment Sheets (DPS) wrksheet t be cmpleted by the Field Inspectr. The DPS wrksheets will be cmpiled t prvide detailed mnthly actual amunts as specified in the Cntract Schedule f Unit Prices (SUP) and apprved Change Orders (CO). Details f an apprved CO will be added and accunted fr n the PPS. Refer t the Prject Change Request / Change Order Prcedure fr specific instructins regarding Change Orders. Submissin will be as per the Prgress Payment Certificate (PPC) Calendar Schedule which will be issued within the wrksheet dcuments. All dates are t be adhered t in rder t have the Draw prcessed fr that mnth. Late submissins may result in delay f prcessing until the fllwing mnth. 3. INPUTS The Inputs fr this Prcedure are: Daily Payable Summary (DPS) Deficiencies and Reserves List Testing, Restratin and Cnstructin Recrds Reserves Lien Hldback Change Orders (CO) Prgress Payment Statements, Prgress Payment Certificate and Invicing Prcedure Page 5 f 15

6 4. OUTPUTS The utputs t this prcedure are: Prvides a PPS that is t be cmpleted by the Field Inspectr and submitted fr apprval and use. Generates a manageable and measurable spreadsheet that can be used t track actual quantities and amunts as well as track prject-t-date ttals against each line f a Cntract and apprved CO. Prvides a prcedure t ensure nly items that have been verified thrugh the QA prcess are being paid fr by CGS. Prvides the Vendr and CGS with the same cntract and CO infrmatin. This is useful fr invicing purpses, tracking amunts remaining n varius lines r the Cntract as a whle. Prvides a PPC that is aligned with prject prgress fr payment t Cntractr. 5. PROGRESS PAYMENT STATEMENT (PPS): Once a Cntract has been awarded, apprved and issued t the Cntractr, a PPS with Wrk Instructins will be created which will be used t generate the Prgress Payment Certificate (PPC) fr each pay perid. Any amendments t the Cntract made thrugh an apprved CO will be reflected in the PPS fllwing this prcedure PPS Prcedure: At the start f a cntract a prject specific PPS is created. The PPS shall include exact line items, line descriptins, quantities, unit csts and dllar values as specified in the Cntract. This is cmpiled by the Designer as their final estimate, as well as ppulated Schedule f Unit Prices (SUP) frm the selected Cntractr. The PPS is issued t the Field Inspectr alng with this prcedure, instructins and a submissin schedule. The Field Inspectr is respnsible t crdinate with the Cntractr t enter the quantities achieved during the pay perid int PPS. The Field Inspectr shall include supprting dcumentatin (i.e. Daily Payable Summary (DPS), new COs, etc.) fr the entered quantities. The Field Inspectr shall nt enter any quantities that have utstanding Quality Assurance (QA) test results. If a quantity has utstanding Referee (REF) test results then nly the infrmatin verified by the QA results shall be entered int the PPS, including pssible Price Adjustments. If REF results differ frm the QA results, apprpriate adjustments will be made in the PPS fr the next payment perid. Any price adjustments shall be dcumented in accrdance with the Change Order prcedure. Once all f the relevant infrmatin has been entered int the PPS, the Field Inspectr shall sign ff within their area f respnsibility and issue the PPS. Prgress Payment Statements, Prgress Payment Certificate and Invicing Prcedure Page 6 f 15

7 The PPS is then reviewed fr quantities, deficiencies, reserves and hldbacks. Upn satisfactry review it shall then be signed ff n quantities and QA by the Administratr f the cntract, either the CGS Prject Manager r the Cnsultant Cntract Administratr. This is then issued t the Cntractr fr acknwledgement sign-ff by the Administratr f the cntract. The infrmatin cntained in the PPS has been previusly crdinated between the Field Inspectr and Cntractr and is issued as a frmal acknwledgement. Once signed ff the Cntractr shall return the PPS t the Cntract Administratr. Once the PPS has been signed ff and csts apprved a Prgress Payment Certificate (PPC) fr that pay perid is created and circulated fr signatures by the CGS Cntract Administratr. Once the PPC is signed ff and apprved it is then released t the Finance Department fr payment by the CGS Cntract Administratr PPS Prcess Flw: CGS Prject Managers are required t track their respective PPS as it wuld prve challenging therwise. These are time sensitive tasks which will fllw the Prgress Payment Certificate Calendar Schedule. All dates are t be adhered t in rder t ensure the Finance Department can prcess the payment Draw fr that mnth. Late submissins may result in the delay f prcessing until the fllwing mnth. Figure 1: Flw Chart Diagram The fllwing steps adhere t the Flw Chart Diagram and PPS template. (1) PPS Set-up a. Set-up PPS spreadsheet (CGS Cntract Administratr). - The PPS spreadsheet is t always reside n the CGS server and wrked n there. - The file lcatin is t be saved under the respective cntract flder n the server J:\S_Capital_Prjects - Naming cnventin fr all PPS files will be ENG##-##-PPS# and is nt t be changed thrughut the prcess. Prgress Payment Statements, Prgress Payment Certificate and Invicing Prcedure Page 7 f 15

8 b. Distribute PPS (CGS Cntract Administratr). i. ntificatin f template cmpletin and lcatin is sent t Cnstructin Services at CnstructinServices@greatersudbury.ca fr CGS administered prjects. a. Cnstructin Services t ntify Field Inspectr. - Cnstructin Services Clerk r designate retrieves frm crrespnding accunt and frwards it t the respnsible Field Inspectr fr the respective cntract. PPS template file t Cnsultant Cntract Administratr fr Cnsultant administered prjects. a. Further ntificatin and distributin is as per Cnsultant practices. c. Apply nted CO s t PPS (Cntract Administratr). i. Fr CGS administered cntracts, CO s will be applied as they are apprved and submitted t the CGS Cntract Administratr. a. Only apprved CO s will be applied. Time line f apprval and entry may fall under the fllwing mnth. b. If emergency wrk has been perfrmed in advance f the apprved CO, the CGS Prject Manager is t cmmunicate and submit the PCR t the CGS Cntract Administratr t allw payment fr the current mnth. The Cnsultant is respnsible fr the entry f the CO s as per their practices fr Cnsulted administered cntracts. (2) A - Mnthly PPS a. Cmpile mnthly quantities, Regular and CO items (Field Inspectr). i. Fr CGS administered cntracts, additinal DPS utilizatin nt part f this prcedure may be required as per Cnstructin Services practices (Field Inspectrs Hand Bk). Additinal DPS prcedures as per Cnsultant practices fr Cnsulted administered cntracts. (2) B - Mnthly PPS a. Sign-ff n quantity verificatin, Regular items (Field Inspectr). i. Fr CGS administered cntracts, Field Inspectr will apply their electrnic signature t the PPS spreadsheet. Prgress Payment Statements, Prgress Payment Certificate and Invicing Prcedure Page 8 f 15

9 Additinal DPS prcedures as per Cnsultant practices fr Cnsulted administered cntracts. (2) C - Mnthly PPS a. Sign-ff n quantity verificatin, CO items (Field Inspectr). i. Fr CGS administered cntracts, Field Inspectr will apply their electrnic signature t the PPS spreadsheet. Additinal DPS prcedures as per Cnsultant practices fr Cnsulted administered cntracts. (2) D Mnthly PPS a. Apply any reserves r deficiencies (Field Inspectr). - Cnstructin Deficiencies - Quality Deficiencies (crdinatin with QA Technician) - Restratin - Testing - Cnstructin Data b. Submissin fr review and sign-ff (Field Inspectr). i. ntificatin fr review is sent t CGS Prject Manager fr CGS administered cntracts. Submissin t Cnsultant Cntract Administratr as per Cnsultant practices fr Cnsulted administered cntracts. (3) A - PPS Review a. Review and revise mnthly quantities as required (CGS Prject Manager / Cnsultant Cntract Administratr). i. Fr CGS administered cntracts, the revisin can either be crrected by CGS Prject Manager and cmmunicated back t the Field Inspectr, r returned t Field Inspectr fr their crrectin and resubmissin. Revisin practice as per Cnsultant fr Cnsulted administered cntracts. b. Review and revise reserves and/r deficiencies as required (CGS Prject Manager / Cnsultant Cntract Administratr). Prgress Payment Statements, Prgress Payment Certificate and Invicing Prcedure Page 9 f 15

10 i. Fr CGS administered cntracts, the revisin can either be crrected by CGS Prject Manager and cmmunicated back t the Field Inspectr, r returned t Field Inspectr fr their crrectin and re-submissin. Revisin practice as per Cnsultant fr Cnsulted administered cntracts. (3) B - PPS Review a. This is the Cntract Regular Items PPS summary sheet. (3) C - PPS Review a. This is the Cntract CO Items PPS summary sheet. (3) D - PPS Review a. Sign-ff cnfirming that quantities, cst and quality are within cntract restraints and have met all required standards is required (CGS Prject Manager / Cnsultant Cntract Administratr). b. Submit PPS t Cntract Administratr (CGS Prject Manager / Cnsultant Cntract Administratr). i. Fr CGS administered prjects, an ntificatin is t be sent t the CGS Cntract Administratr. Submit as per Cnsultant practice fr Cnsulted administered prjects. (3) E - PPS Review a. Cmpile PPS Summary pdf package & Issue t Cntractr (Cntract Administratr). i. PPS pdf package: - PPS sign-ff sheet with first signature (included). - PPS Regular and CO items (included). - Reserves and Deficiencies (included). - Review f quantities sign-ff, Regular and CO items (included). - DPS s fr the crrespnding mnth (included). b. Cmpile/cllect signatures frm Cntractr (Cntract Administratr). Prgress Payment Statements, Prgress Payment Certificate and Invicing Prcedure Page 10 f 15

11 - Cntractr PPS Acknwledgement sign-ff cnfirming that all quantities presented are true and have been utilized fr the respective cntract directly is required. c. Submit PPS via t the CGS Cntract Administratr (Cntract Administratr). i. PPS pdf package is t be submitted which includes: - PPS sign-ff sheet with first and secnd signatures (included). - PPS Regular and CO items (included). - Reserves and Deficiencies (included). - Review f quantities sign-ff, Regular and CO items (included). - DPS s fr the crrespnding mnth (included). PPS native file is t be submitted as well. (4) PPS Apprval a. E-file f PPS files t prject file n the server (CGS Cntract Administratr). i. Remve frm server (CGS Cntract Administratr). Ensure naming cnventin cnsistency (CGS Cntract Administratr). b. Fr Cnsulted administered cntracts an ntificatin t CGS Prject Manager is sent t request their signature fr apprval (CGS Cntract Administratr). i. IF CGS Prject Manager is the CGS Spnsr, the ntificatin is t be sent t the CGS Cntract Administratr and cpied t the CGS Prject Manager/Spnsr. c. Review and sign-ff f PPS fr cst cntrl (CGS). i. Fr Cnsultant administered cntracts, the CGS Prject Manager will review and sign-ff the PPS Apprval (cnfirming that the PPS has been reviewed and is within apprved budget). i. If the CGS Prject Manager is the CGS Spnsr then this step will be cmpleted by the CGS Cntract Administratr. Fr CGS administered cntracts, the CGS Cntract Administratr will review and sign-ff the PPS Apprval (cnfirming that the PPS has been reviewed and is within apprved budget). Prgress Payment Statements, Prgress Payment Certificate and Invicing Prcedure Page 11 f 15

12 i An ntificatin t CGS Cntract Administratr is sent t ntify f cmpletin (CGS Prject Manager). (5) PPC Apprval a. Cmpile PPC (CGS Cntract Administratr). i. PPC pdf package includes: - PPC and Accunts Summary (included) - PPS sign-ff, Regular and CO items (included) - Reserves and Deficiencies (included) - Review f quantities sign-ff, Regular and CO items (included) - DPS s fr the crrespnding mnth (included) b. Issue PPC fr signatures (CGS Cntract Administratr). i. Issue PPC t Cnstructin Services Manager and the Spnsr(s). c. Review and sign-ff PPC fr Apprval (Cnstructin Services Manager). i. Autmated submissin via electrnic signature issue. - This will be issued at the same time as the Spnsrs review fr prcess flw efficiencies. d. Review and sign-ff PPC fr Accunts (Spnsrs). i. Autmated submissin via electrnic signature issue. i. This will be issued at the same time as the Cnstructin Services Manager review fr prcess flw efficiencies. e. Aut cmpile/cllect signatures fr PPC (CGS Cntract Administratr). (6) PPC Release a. Finalize PPC package (CGS Cntract Administratr). b. Secure final PPC package file (CGS Cntract Administratr). c. Release PPC package t Finance (CGS Cntract Administratr). d. Rll ver the mnthly payment (CGS Cntract Administratr). e. Return t Step 1(if the cntract is nging) - Distribute mnthly PPS template (CGS Cntract Administratr). Prgress Payment Statements, Prgress Payment Certificate and Invicing Prcedure Page 12 f 15

13 5.3. RACI Matrix: Figure 2: RACI Matrix fr Prjects Managed by Cnsultants N/A=Nt Applicable R=Respnsible A=Accuntable C=Cnsulted I=Infrmed ACTIVITY TITLE Cntractr Cnsulting Field Inspectr Cnsulting Cntract Administratr CGS Cntract Administratr CGS Prject Manager CGS Prject Spnsr/PM CGS Cnstructin Services Manager PPS Creatin R PPS Instructins sent t Cnsultant R PPS Instructins sent t Field Inspectr R Mnthly Generatin f PPS R A I C A Sign-ff f Mnthly PPS Qty Verificatin R A I C A Sign-ff f Mnthly PPS Quantity, Cst & Quality R / A I / C C C / A A Apprval f Mnthly PPS R R A Issue f Mnthly PPC R I I / A Apprval f Mnthly PPC C / I R / A R Prgress Payment Statements, Prgress Payment Certificate and Invicing Prcedure Page 13 f 15

14 Figure 3: RACI Matrix fr Prjects Managed by CGS N/A=Nt Applicable R=Respnsible A=Accuntable C=Cnsulted I=Infrmed ACTIVITY TITLE Vendr CGS Field Inspectr CGS Cntract Administratr CGS Prject Manager CGS Prject Spnsr CGS Cnstructin Services Manager PPS Creatin R PPS Instructins sent t Field Inspectr R I Mnthly Generatin f PPS R I C C A Sign-ff f Mnthly PPS Qty Verificatin R I C A Sign-ff f Mnthly PPS Quantity, Cst & Quality I R A C Apprval f Mnthly PPS R I / C A Issue f Mnthly PPC R I I / A Apprval f Mnthly PPC C / I R R Prgress Payment Statements, Prgress Payment Certificate and Invicing Prcedure Page 14 f 15

15 6. CHANGE ORDER (CO): Refer t the Prject Change Request (PCR) / Change Order (CO) prcedure fr instructin regarding the PCR/CO prcess. 7. INVOICING: Once a PPS is apprved the Cntractr may submit a matching Invice t Accunts Payable. Only line items n the invice with crrespnding line items n the apprved PPS will be paid. Other line items will nt be accepted and will have t be apprved n subsequent PPS befre invicing. The invice must be accmpanied by an apprved PPS and supprting dcumentatin. Accunts Payable will frward the invice t the CGS Prject Manager fr payment apprval. Prgress Payment Statements, Prgress Payment Certificate and Invicing Prcedure Page 15 f 15