Final Estimates Level 2

Transcription

1 Final Estimates Level 2 Module 9: Submittal of the Final Estimate & Offer of Final Payment 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module

2 Module Content Final Estimates Package Final Estimates Process Offer of Final Payment Submittal Package Notification Of Findings Letter Source Incentive Payments Required Letters 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module

3 Final Estimate Package A Final Estimate Package is a compilation of all the documents required to substantiate the final amount paid to the contractor, as well as certification of materials and contract time used. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 3 The Final Estimates Package consists of: Offer of Final Payment Final As-Built Plans All quantity backup (Asphalt Lot Packages, Final Measurements, Pile Driving Logs, etc.) Contract Time File Material Certification Documents (PA Certification, etc.) Overruns and Underruns When applicable: Shop Drawings, As-Built Load Rating, etc. Required Forms ( , Z, Final , etc.) NOTE: This list may not be all inclusive for your project. Read your contract, Department guidance manuals and contact your DFEO for additional information. NOTE: This package should be submitted electronically (Collaboration Site, EDMS, CD, DVD, Thumb drive, FTP, etc.). Again, read your contract and contact your DFEO for their preference. 9-3

4 Final Estimate Package The Final Estimates Package will be submitted to the District Final Estimates Office (DFEO) within 30 days of Final Acceptance. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module

5 Final Estimate Process 30 Days Project Final Acceptance RO Completes Final Estimate Package Preparation DFEO Review Resident Office (RO) Runs Last Progress Estimate RO Runs Final Estimate RO Sends to the Contractor: 1. Offer of Final Payment 2. Request for Refund 1. Regular Acceptance 2. Qualified Acceptance To DFEM RO Prepares Offer of Final Payment DFEO Reviews Offer of Final Payment and sends back to RO Contract Closeout 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module

6 Final Estimate Process Resident Office Responsibility Run the last Progress Estimate Submit the Offer of Final Payment to the Contractor Submit the Final Estimates Package to the DFEO Resolve any issues that result from the Offer of Final Payment and the Final Estimates Package 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 6 It is the responsibility of Resident Office personnel to run the last progress estimate to bring all quantities up to date to match the certified amount. The offer of final payment will be made to the contractor within 30 days of Final Acceptance. The intent is to have the Final Estimate be a Zero Dollar Amount with the exception of an Overpayment. The Final Estimates Package will be turned in to the DFEO within 30 days after the Final Acceptance date. Any Certification of Quantities due the Contractor should be paid on the Progress Estimate. This will ensure that the Prime Contractor can fulfill their obligation to the Sub-Contractors and see that they are paid in a timely manner. Example: when the Contractor performs the MOT Striping at the end of the project, you will need to verify that the certified quantities are included in with the Progress Estimate. All pending items should be listed on the Offer of Final Payment Letter. 9-6

7 Final Estimate Process DFEO s Responsibility The District Final Estimates Office (DEFO) will receive a copy of the Offer of Final Payment Letter and Final Estimate Package from the Resident Offices. Any resolutions made subsequent to the Offer will be processed by the DFEO. Un encumber unused funds. Continue to provide training to Resident Office staff on an as needed basis. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 7 After the post audit review (PAR) has been completed, the DFEO needs to unencumber any unused contingency Supplemental Agreement(s) and any contingency pay item funds. When resident office staff is referenced it means both in-house and consultant staff that prepare final estimates. 9-7

8 Final Estimate Process Last Progress Estimate Immediately following Final Acceptance, the Resident Office will run the last Progress Estimate This progress estimate should match quantities to be certified on the Final Estimate 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 8 As soon as allowed after Final Acceptance, the Residency will need to run a Progress Estimate to reduce the monetary amount due the Contractor to zero. It is imperative to submit through EED for payment as soon as possible so that estimates can be processed in a expeditious manner and will not accumulate. EED stands for Electronic Estimates Disbursement through the Departments Comptroller Office. Verify with your DFEO to ensure EED applies to your project. There are some exceptions (example: Fast Response). The Progress should match quantities on the certified estimate which includes: All pay items up to date including any penalties, Fuel & Bituminous adjustments, Liquidated Damages, etc. Any Certification of Quantities due the Contractor should be paid on the Progress Estimate. This will ensure that the Prime Contractor can fulfill their obligation to the Sub-Contractors and see that they are paid in a timely manner. Example: when the Contractor performs the MOT Striping at the end of the project, you will need to verify that the certified quantities are included in with the Progress Estimate. The only remaining payment to be included in the Final Estimate would be released of retainage and any incentive payments allowed by the Contract. 9-8

9 Final Estimate Process Once the last Progress Estimate is paid through EED, contact the DFEM and DFEO staff by for establishment of proper approval levels to run the final estimate, you will be notified by once the approval level changes are made, at that time, you will generate and run the Final Estimate. Approval levels in SiteManager will need to be changed by the DFEO. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 9 Approval levels are described in the SiteManager Handbook

10 Final Estimate Process Setting SiteManager Approval Levels for Final Estimate Level 1 Project Administrator Level 2 Final Estimates Manager Level 3 Comptroller, EED Final Approval 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module

11 Final Estimate Process The Final Estimate should be $0.00 with the exception of Retainage or any incentive payments. If overpayment occurs, then the last progress estimate will be changed to Final. Note: The last progress estimate and the offer will both be negative. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module

12 Final Estimate Process The amount certified on the final estimate will be the amount shown on the Pay Item Summary and Certification Sheet. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 12 The Certified Final Estimate Package includes the Certification of Accuracy provided by the CEI and the Pay Item Summary and Certification sheet. All of these documents should match on amounts earned and payables for that contract. 9-12

13 Offer of Final Payment Submittal Package The Offer of Final Payment Submittal Package includes: Offer of Final Payment Letter Acceptance Letter (to be signed by the Contractor). Acceptance Letter gives 2 options: Regular Acceptance Option of Agreeing with Offer Qualified Acceptance Option of Disagreeing with Offer Contractor s Affidavit & Surety Release (Form 21 A) Other documents to be returned to the District Final Estimates office 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module

14 Offer of Final Payment Submittal Package Send electronically to the Contractor s Headquarters address The Headquarter s address is specified in the Contract It is recommended to have the DFEO review the offer of final payment package for correctness prior to sending to the Contractor. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 14 The Offer Letters need to be sent electronically to the Contractor s Headquarters address. This address is located in the Contract. If addresses are not provided in the contract, request the contact information from the Contractor. DO NOT SEND OFFER LETTERS TO THE FIELD OFFICE ADDRESS. If possible send to more than 1 person to ensure receipt by the Contractor. It is also recommended to send with a return receipt and/or request a written response acknowledging receipt. 9-14

15 Offer of Final Payment Submittal Package Will be submitted to the Contractor within 30 days of Final Acceptance. The offer amount should be zero except in the case of overpayment. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 15 See Section 9-8 of the Standard Specifications; Required Contract Document Language. All items listed in the Standard Specifications, Section 9-8, that are pertinent to the Contract and that have not been received, need to be shown on the Offer Letter to the Contractor. The intent is to have the Final Estimate be a Zero Dollar Amount with the exception of an Overpayment. When it is determined the contractor has been overpaid, the last progress estimate will be negative and a request for refund will be issued. 9-15

16 Final Estimates Level 2 Offer of Final Payment Submittal Package The Offer of Final Payment Submittal Package includes: Offer of Final Payment Letter Acceptance Letter (to be signed by the Contractor). Acceptance Letter gives 2 options: Regular Acceptance Option of Agreeing with Offer Qualified Acceptance Option of Disagreeing with Offer Contractor s Affidavit & Surety Release (Form 21 A) Other documents to be returned to the District Final Estimates office 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module

17 Offer of Final Payment Letter There are two types of offer letters: Offer of final payment Request for refund 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 17 Be sure, when making the offer, the correct letter is included in the package to the Contractor. The intent is to have the Final Estimate be a Zero Dollar Amount with the exception of an Overpayment. When it is determined the contractor has been overpaid, the last progress estimate will be negative and a request for refund will be issued. There will be ONLY ONE Offer of Final Payment or Request for Refund made to the Contractor, per Contract! All pending items should be listed on the Offer of Final Payment Letter. See Section 9-8 of the Standard Specifications; Required Contract Document Language. All items listed in Section 9-8, that are pertinent to the Contract and that have not been received, need to be shown on the Offer Letter to the Contractor. 9-17

18 This is an example of an Offer Letter on a single project. 9-18

19 This is an example of an Offer of Final Payment Letter for multiple FIN Projects 9-19

20 This is an example of a Request for Refund (Overpayment) Letter for a single project. This letter is to inform the Contractor the Department has overpaid him and we are requesting a refund of the monies owed to the Department. 9-20

21 This is an example of a Request for Refund (Overpayment) Letter for multiple projects. 9-21

22 Offer of Final Payment Submittal Package The Offer of Final Payment Submittal Package includes: Offer of Final Payment Letter Acceptance Letter (to be signed by the Contractor). Acceptance Letter gives 2 options: Regular Acceptance Option of Agreeing with Offer Qualified Acceptance Option of Disagreeing with Offer Contractor s Affidavit & Surety Release (Form 21 A) Other document to be returned to the District Final Estimates office 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 22 Slide repeated for emphasis on Offer of Final Payment Process 9-22

23 Acceptance Letters There are two types of acceptance letters: Regular Acceptance Qualified Acceptance 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 23 Option a Regular or Full Acceptance: Contractor submitted what is actually accepted on the Initial Offer Letter. Option b Contractor does not agree with the actual offer amount. The Contractor will list the issues in question through this method Qualified Acceptance. 9-23

24 Acceptance Letters Regular Acceptance Letter This form, signed by the Contractor, signifies his agreement to either: Accept the amount offered Refund the amount requested by the Department (Overpayment) As full and final settlement of any and all claims to compensation. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 24 If the Contractor takes a full or regular acceptance, all that is left is to process the estimate for payment, and start the process of closing the project. NOTE: If the Contractor is overpaid, the request for Refund Letter will be sent to the Contractor via so that an electronic record is made of the Contractor s receipt. 9-24

25 Acceptance Letters Qualified Acceptance Letter This form, signed by the Contractor, signifies that they do not agree the offer amount is correct. The contractor will: Accept the amount offered or refund the amount requested Then detail the dollar amounts/pay items in dispute. The letter stipulates the contract shall remain open while the Contractor pursues resolution of disputes or pending claims. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 25 If the Contractor takes a qualified acceptance, it means they could accept the amount offered but have additional issues/disputes. The Contractor must provide, in writing, the dispute(s), or pending claim(s) with full particulars for all items and on all issues in the dispute(s). This includes itemized amounts claimed for all items and sufficient information about the location of the dispute to isolate the exact area of the dispute. This is submitted as part of the qualified acceptance letter. 9-25

26 This is an example of a Qualified Acceptance letter and where the Contractor disputes the final offer on the monies owed to him and describes any qualified issues in dispute. 9-26

27 Continued Qualified Acceptance Letter. 9-27

28 Offer of Final Payment Submittal Package The Offer of Final Payment Submittal Package includes: Offer of Final Payment Letter Acceptance Letter (to be signed by the Contractor). Acceptance Letter gives 2 options: Regular Acceptance Option of Agreeing with Offer Qualified Acceptance Option of Disagreeing with Offer Contractor s Affidavit & Surety Release (Form 21 A) Other documents to be returned to the District Final Estimates office 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 28 Slide repeated for emphasis on Offer of Final Payment Process 9-28

29 Contractor s Affidavit & Surety Release (Form 21 A) This document is required to be submitted by the Contractor on all projects. It certifies the Contractor has complied with all terms of the contract. It provides release of the final payment by the Contractor s Surety. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module

30 This is page 1 of 3 of the Contractor s Affidavit & Surety Consent (Form 21-A) 9-30

31 This is page 2 of 3 of the Contractor s Affidavit & Surety Consent (Form 21-A) 9-31

32 This is page 3 of 3 of the Contractor s Affidavit & Surety Consent (Form 21-A) 9-32

33 Offer of Final Payment Submittal Package The Offer of Final Payment Submittal Package includes: Offer of Final Payment Letter Acceptance Letter (to be signed by the Contractor). Acceptance Letter gives 2 options: Regular Acceptance Option of Agreeing with Offer Qualified Acceptance Option of Disagreeing with Offer Contractor s Affidavit & Surety Release (Form 21 A) Other documents to be returned to the District Final Estimates office 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 33 Slide repeated for emphasis on Offer of Final Payment Process 9-33

34 Outstanding Documents After final acceptance, all documents from the Contractor will be sent directly to the District Final Estimates Office. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 34 Examples: 1. Final Construction Compliance with Specifications and Plans 2. Acceptance Letter 3. Contractor Survey 9-34

35 This is page 1 of 2 of the Construction Compliance with Specification & Plans, Form This is not only required at the final estimate, but also with each monthly partial estimate during the contract duration. This form must be received before payment can be made each month and prior to final payment. 9-35

36 This is page 2 of 2 of the Construction Compliance with Specification & Plans, Form

37 Notification of Findings Letter What happens when an Offer of Final Payment Letter has been sent to the Contractor and additional issues are found? A Notification of Findings Letter is sent to the Contractor detailing the additional issues found. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 37 Once an Offer of Final Payment Letter has been sent to the Contractor, there may be a need to send a Notification of Findings Letter on issues found after the offer letter has been sent. The DFEO performs PARs on Certified Estimate Packages. If errors are found during the PAR, the DFEO will notify the responsible party of their findings for concurrence, and a Notification Letter is sent to the Contractor. This letter will include all changes for the Contractor to either agree on or disagree with. 9-37

38 Notification of Findings Letter This letter will address specific issues that were added or corrected due to issues discovered on the final estimate. These changes are needed based on the findings of the Post Audit Reviews (PAR) or for additional information. This letter could be sent to the Contractor before or after an Acceptance Letter has been received. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 38 This letter may be in addition to the original offer or it may come after receiving the Acceptance Letter. 9-38

39 Notification of Findings Letter This letter will be issued to the Contractor by the DFEO Only those items listed are eligible to be qualified. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 39 This letter will be issued to the Contractor with the specific items listing those changes. The letter will state that, only those items listed are eligible to be qualified. If the Contractor takes exception to any of the items listed, they will be in addition to any and all items listed in the original qualified letter. ONLY DFEO WILL SEND OUT THE NOTIFICATION LETTER When sending the notification letter, the DFEO WILL NOT send the estimate with this letter. 9-39

40 Notification of Findings Letter What happens if, after receiving the Full Acceptance from the Contractor, there is an overpayment found based on the PAR review? The Contractor has a right to accept or reject any or all of these changes. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 40 If after receiving the Full Acceptance from the Contractor there is an overpayment found based on the PAR review, then the CCEI responsible for that particular contract will be held accountable to provide assistance in the recovery of those funds due the Department. The Contractor has a right to accept or reject any or all of these changes. This is a Certified Final Estimates Package from the resident office. The resident office is held accountable for the accuracy of the final estimate. 9-40

41 Notification of Findings Letter What happens after receiving the Overpayment Acceptance letter and Refund Check from the Contractor, there is an error found based on the PAR review? The Contractor has a right to accept or reject any of these changes. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 41 After receiving the Overpayment Letter and Refund Check from the Contractor, issue a notification letter to the Contractor of the specific issues addressing items that were added or corrected due to differences discovered on the final estimate. This may increase or decrease the overpayment. The Contractor has a right to accept or reject any of these changes. 9-41

42 Example of Notification of Findings letter. 9-42

43 Source Chapter 14 of the Review and Administration Manual describes the Final Estimate process Submittal of the Final Estimate 14.9 Contractor s Acceptance of the Final Estimate Notification Letter of Due to Additional Review 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 43 NOTE: The Review and Administration Manual (R&AM) is currently being updated. The information covered in Chapter 14 of the R&AM may be moved to the Construction Project Administration Manual (CPAM) in the near future. Look for updates and changes to these manuals. Admin.shtm Each manual has a past revisions link at the top of the page. Contact your DFEO with any questions. 9-43

44 Incentive Payments Examples: Liquidated Savings No excuse Bonus Lane Rentals Contact the DFEO by . Specify the dollar amount 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 44 If incentive payments such as liquidated savings, no-excuse bonus, lane rentals, incentive/disincentive, etc. are due, immediately following Final Acceptance, contact the DFEO by . In the correspondence to the DFEM, specify the dollar amount necessary for encumbrance for incentive payment. 9-44

45 Incentive Payments When can the incentive payment be made? After the Offer of Final Payment Who encumbers these funds? The District Office 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 45 No incentive payment can be made until the Offer of Final Payment is made to the Contractor, unless otherwise specified in the Contract. These monies must be encumbered by the District Office or designee, in cooperation with the DCE. 9-45

46 Required Letters Chapter 14 of the Review and Administration Manual shows examples of the required letters. Boilerplate letters are provided on the State Final Estimate s SharePoint Site. 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 9 46 Boilerplate letters are provided on the State Final Estimate s SharePoint Site. 9-46

47 ANY QUESTIONS? 11/1/2017 FDOT Final Estimates Level 2 Release 11, Module