TC - SECTION 7: PAYMENT

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TC-7.01 Measurement of Quantities

For all items of work, other than those to be paid by lump sum, after the work is completed and before final payment is made, the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. will make final measurements to determine the quantities of various items of work performed as the basis for final settlement. The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. in case of unit price items will be paid for the actual amount of work performed and for the actual amount of materials in place in conformance with the Specifications and final measurements. All work completed under the Contract will be measured by the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. in conformance with the United States Standard Measure.
All longitudinal measurements for area will be made along the actual surface and not horizontally, and no deductions will be made for individual fixtures having an area of 9 square feet or less. For all transverse measurements for area of base course and pavements, the dimensions to be used in calculating the pay area will be the neat dimensions shown on the PlansThe official drawings issued by the Administration as part of the Contract Documents, including those incorporated in the Contract Documents by reference. or directed in writing by the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him..
Structure measurements shall conform to the neat lines shown on the PlansThe official drawings issued by the Administration as part of the Contract Documents, including those incorporated in the Contract Documents by reference. or as directed in writing, unless otherwise provided for elsewhere in the Contract DocumentsThe written agreement executed between an Administration and the successful bidder, covering the performance of the work and furnishing of labor, equipment and materials, by which the Contractor is bound to perform the work and furnish the labor, equipment and materials, and by which the Administration is obligated to compensate him therefore at the mutually established and accepted rate or price. The Contract Documents shall include the Invitation for Bids, Notice to Contractors, Instructions to Bidders, Proposal, Contract Forms and Bonds, General Provisions, Specifications, Supplemental Specifications, all Special Provisions, all Technical Provisions, all Plans and Notices to Proceed, also any written Change Orders and Supplemental Agreements that are required to complete the construction of the work in an acceptable manner, including authorized extension thereof.
Volumes of excavation, tamped fill, and borrow pits will be calculated per cubic yard from the cross section and the use of average end area formulas. Volumes of other work such as masonry, removal of masonry, etc. will be calculated using arithmetical formulas. Where the volume is bounded by varying dimensions and there are no simple volumetric formulas applicable, frequent cross sections will be taken and the cubic yard volume computed from average end area formulas.
Cement will be measured by weight.
All items that are measured by the linear foot such as pipe culverts, traffic barrier, underdrains, etc., will be measured parallel to the base or foundation upon which such structures are placed unless otherwise specified in the Contract DocumentsThe written agreement executed between an Administration and the successful bidder, covering the performance of the work and furnishing of labor, equipment and materials, by which the Contractor is bound to perform the work and furnish the labor, equipment and materials, and by which the Administration is obligated to compensate him therefore at the mutually established and accepted rate or price. The Contract Documents shall include the Invitation for Bids, Notice to Contractors, Instructions to Bidders, Proposal, Contract Forms and Bonds, General Provisions, Specifications, Supplemental Specifications, all Special Provisions, all Technical Provisions, all Plans and Notices to Proceed, also any written Change Orders and Supplemental Agreements that are required to complete the construction of the work in an acceptable manner, including authorized extension thereof.
The term gauge when used in connection with the measurement of uncoated steel sheet and light plates shall mean the U.S. Standard Gauge, except that when reference is made to the measurement of galvanized or aluminum sheets used in the manufacture of corrugated metal pipe, metal plate pipe culverts and arches, and metal cribbing, the term gauge shall mean that specified in M 36, M 167, M 196, or M 197.
When the term gauge refers to the measurement of wire, it shall mean the Washburn & Moen wire gauge as referenced in the New Departure Handbook. A tolerance of plus or minus 0.003 inch shall apply.
The term ton shall mean the short ton consisting of 2000 pounds avoirdupois. All materials that are specified by the ton shall be weighed on accurate, approved scales conforming to the requirements of the National Bureau of StandardsThe official Standards for Highway and Incidental Structures, maintained on the Administration website. The latest incorporated revisions issued on or before the date of advertisement of the Contract. Handbook 44. A digital recorder and printout shall be required on all truck scales. The digital recorder shall produce a printed record of the gross, tare, net weights, the time, date, truck identification, and Contract Number. Provisions shall be made so that the scales may not be manually manipulated during the process. The system shall be interlocked to allow printing only when the scale has come to rest.
Except for computer operated scales, all weights shall be certified by a bonded weigh person supplied by the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement., producer, or supplier. The security bond shall be $100 000.
If the material is shipped by rail, the car weight shall be accepted but the payment will be limited to the actual weight of material. Car weight will not be acceptable for material to be passed through mixing plants.
All materials for which measurements are obtained by the cubic yard shall be hauled in approved vehicles and measured at the point of delivery. No allowance will be made for the settlement of material in transit. Approved vehicles for this purpose shall be of any size or type acceptable to the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him., provided that the body is of such shape that the actual contents may be readily and accurately determined. Unless all approved vehicles are of uniform capacity, each approved vehicle shall bear a plainly legible identification mark indicating the specific approved capacity. All vehicles shall be loaded to at least their water level capacity, and all loads shall be leveled when the vehicles arrive at the point of delivery.
When requested by the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. and approved by the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. in writing, material specified to be measured by the cubic yard may be weighed, and the weight will be converted to cubic yard for payment purposes. Factors for conversion from weight measurement to volume measurement will be determined by the LaboratoryThe testing laboratory of the State Highway Administration (or other Administrations) or any other testing laboratory designated by the procurement officer. and shall be agreed to by the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. before the method of measurement of pay quantities will be approved by the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him..
Liquid asphalt material delivered for the project will be measured by volume in each railroad tank car, tank truck, distributor tank, or drums in which it is delivered. The measurements will be taken when the asphalt material is of a uniform temperature and free from air bubbles. The temperature of the material will be recorded.
The volumetric measurement of the asphalt material will be based upon a temperature of 60 F.
Reference is made to D 1250, Petroleum Measurement Tables.
Only the quantity of asphalt material actually placed in the work and accepted will be considered in determining the amount due the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement..
Timber will be measured by the thousand board foot measurement (MBM) actually incorporated in the structure. Measurement will be based on nominal widths and thicknesses and the extreme length of each piece.
The term lump sum when used as an item of payment will mean complete payment for the unit of work described.
When complete structure or structural unit (in effect, lump sum work) is specified as the unit measurement, the unit will be construed to include all necessary fittings and accessories.
Rental of equipment will be measured in hours of actual working time, moving in and moving out costs, if any, and necessary traveling time of the equipment within the limits of the project, except when special conditions make some other method of measurement desirable.


TC-7.02 Payment Allowances for Stored Material

When the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. requests payment allowance for materials, the following terms and conditions shall apply:
(a) For superstructure members delivered on the project site, an allowance of 100 percent of the material cost plus freight charges as invoiced may be made provided the cost does not exceed 90 percent of the Contract price of the applicable Contract item. The allowance will be based upon validated invoices or bills for material including freight charges, and a copy thereof shall be made a part of the documented records for the project.
(b) For reinforcement steel, piling, pipe, traffic barrier, signs and sign assemblies, and other nonperishable material in storage on the project, but excluding aggregates, cement, seed, plants, fertilizer, or other perishable items, an allowance of 100 percent of the invoiced cost of the material plus freight charges to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. may be made provided the cost does not exceed 90 percent of the Contract price of the applicable Contract item. Such material shall be delivered and stock-piled at the project site after being tested by the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. and found to have conformed to the Specifications or to have been accepted under an approved certification program prior to the allowance.
(c) No allowance will be made for fuels, form lumber, falsework, temporary structures, or other materials of any kind that will not become an integral part of the finished construction.
No payment for stored material will be made if it is anticipated that the material will be incorporated into the work within 30 days of the written request.
Only end product manufactured material or fully fabricated products that are awaiting installation or incorporation into the finished work are eligible for prepayment. Components, elements, or ingredients of a finished product are not eligible for prepayment.
(d) Material for which an allowance is requested shall be stored in an approved manner in areas within the State of Maryland where damage is not likely to occur. If any of the stored materials are lost or become damaged in any manner, the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall be responsible for repairing or replacing the damaged materials. The value of the lost or damaged material will be deducted from the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement.'s subsequent estimates until replacement has been accomplished. The request for allowances for any materials stored on private property within the State of Maryland shall be accompanied by a release from the owner and/or tenant of such property agreeing to permit the removal of the materials from the property at no cost to the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02..
The material shall be clearly marked with the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02.’s Contract Number on individual units. If the material is normally shipped to the project in bundles or other forms of packaging, the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02.’s Contract Number shall be clearly marked or affixed to the package. When the material is not stored at the actual project site, the material shall be physically separated by fencing or equivalent barrier from other materials stored at the same site. The material shall be accessible to the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. at all times.
When it is considered impractical to store materials on the actual project, the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. may approve storage areas in the vicinity of the actual project, which will be considered at the project site.
When storage of the materials within the State of Maryland is not practical, approval shall be obtained from the District EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. for storage elsewhere. Storage of materials outside the State of Maryland will be subject to the conditions set forth in this provision and limited to materials exceeding $25 000, which are designed and fabricated exclusively for use on a specific project.
(e) Material for which payment has been made, either wholly or partially, shall not be removed from the approved location until such time that it is to be incorporated into the work unless authorized by the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him..
(f) The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall submit a written request for payment to the District EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. at least two weeks prior to the estimate cutoff date established by the District EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him.. The following items shall accompany the written request for payment:
(1) Consent of surety specifying the material type and the items in which the material is to be used.
(2) Validated invoices with the signature of an officer of the company supplying the material showing actual cost.
(3) A notarized statement attesting that the invoices as submitted do not include charges or fees for placing, handling, erecting, or any other charges or markups other than the actual material cost, sales tax if applicable, and freight charges.
(4) Bills of lading showing delivery of the material. The request for allowances for any materials stored on property outside the State of Maryland shall be accompanied by a release from the owner or tenant of such property agreeing to permit verification by the InspectorThe authorized representative of the procurement officer assigned to make detailed inspection of any or all portions of the work, or materials therefore. that the material is stored at the approved location, and to permit the removal of the materials from the property at no cost to the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02..
(5) Inspection test reports, certifications and/or a written statement from the InspectorThe authorized representative of the procurement officer assigned to make detailed inspection of any or all portions of the work, or materials therefore. attesting to the inspection and approval of the material.
(6) A statement explaining why the material can not be stored on the project, if the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. is requesting to store material at a location other than the project site. The statement shall include the methods of storage, separation, and identification to be used by the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement.. The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall provide a method of inventory control and withdrawal satisfactory to the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02., which shall be used by the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. to monitor materials not stored on the project.
(7) A breakdown of the Contract line item bid unit price showing the relationship of the cost of the stored material to the costs of all other materials, labor, and components of the work included in the Contract line item unit price bid by the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement..
Upon receipt of the above by the District EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. and verification by the InspectorThe authorized representative of the procurement officer assigned to make detailed inspection of any or all portions of the work, or materials therefore. that the material is stored at the approved location, the District EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. will authorize payment.
The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall pay the material provider the amount shown on the invoice within 10 days of receipt of payment from the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02.. Evidence of payment shall be provided to the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02.. Failure to make invoice payments as specified will be cause to deduct the monies from future estimates and/or deny future stored materials payment requests.
Copies of all pertinent data shall be made by the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. and distributed to the InspectorThe authorized representative of the procurement officer assigned to make detailed inspection of any or all portions of the work, or materials therefore. for retention as part of the documented records for the project.


TC-7.03 Force Account WorkWork shall be understood to mean the furnishing of all labor, materials, equipment, and other incidentals necessary to the successful completion of the project and the carrying out of all the duties and obligations imposed by the Contract.

When the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. is required to perform work due to additions or changes to the Contract for which there are no applicable unit prices, the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. and ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. will make every effort to come to an agreed price for the performance of the work. If an agreement is not reached prior to the time that work must begin, the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. will give written notification to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. to proceed with the work on a force account basis while continuing to pursue a negotiated settlement. Failure to reach agreement prior to the completion of the work will necessitate that the work be completed and compensated in conformance with the following:
(a) Labor. Before any force account work begins, the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. and the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. must agree on the hourly labor rates for all laborers and foremen to be engaged in the work. The number of laborers and foremen engaged in the work will be subject to regulation by the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. and shall not exceed the number the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. deems most practical and economical for the work. For all labor and foremen in direct charge of the force account work, excluding general superintendence, compensation will be as follows:
(1) Certified Pay Rate. The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall receive the hourly pay rate shown on the Certified Payrolls for each hour that labor and foremen are actually engaged in the work. Hourly pay rates that exceed those previously agreed upon must be authorized by the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him.. Submit certified payrolls in conformance with the Contract DocumentsThe written agreement executed between an Administration and the successful bidder, covering the performance of the work and furnishing of labor, equipment and materials, by which the Contractor is bound to perform the work and furnish the labor, equipment and materials, and by which the Administration is obligated to compensate him therefore at the mutually established and accepted rate or price. The Contract Documents shall include the Invitation for Bids, Notice to Contractors, Instructions to Bidders, Proposal, Contract Forms and Bonds, General Provisions, Specifications, Supplemental Specifications, all Special Provisions, all Technical Provisions, all Plans and Notices to Proceed, also any written Change Orders and Supplemental Agreements that are required to complete the construction of the work in an acceptable manner, including authorized extension thereof.
(2) Fringe Benefits. The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall receive the direct cost for fringe benefits that are required by collective bargaining agreements or other employment Contracts and that are not included in the certified hourly pay rate.
(3) Payroll Burden. The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall receive the following indirect costs at the applicable percentage of the certified hourly pay rate.
Social Security Tax
Medicare Tax
Unemployment Taxes
Worker’s Compensation Insurance
ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement.’s Public Liability Insurance
ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement.’s Property Damage Liability Insurance
(4) Overhead and Profit on Labor. The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall receive an allowance of 18 percent of the sum total of (1), (2), and (3).
To substantiate the cost for (2) and (3), the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall furnish the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. a certified itemized breakdown. Instead of submitting an itemization for (3), the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. may elect to receive for Payroll Burden an amount equal to 20 percent of the certified hourly pay rate.
(b) Materials. For materials required to perform the work and accepted by the procurement officer, the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall receive the actual cost of the materials delivered on the work including tax and transportation charges paid by the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. (exclusive of machinery rentals as specified in (c) below).
In addition, the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. will be allowed 18 percent of the actual cost of materials, tax, and applicable transportation charges.
To substantiate materials and transportation cost, original receipted invoices shall be submitted.
If the materials used in the force account work are not specifically purchased for the work but are taken from the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement.’s stock, then in lieu of the original invoices the statements shall contain or be accompanied by an affidavit from the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. that shall certify that the materials were taken from the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement.’s stock, that the quantity claimed was actually used, and that the price and transportation cost of the material as claimed represents the actual cost.
The AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. reserves the right to furnish materials as it deems appropriate, and the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall have no claim for any costs, overhead, or profit on these materials.
(c) EquipmentAll machinery, tools, and apparatus necessary for the proper construction and acceptable completion of the work, together with the necessary supplies for upkeep and maintenance.. For all equipment other than small tools, the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall receive rental rates as established herein and agreed to in writing before the work is begun for the actual time the equipment is in operation on force account work. Transportation costs directly attributable to force account work will be allowed. For the purpose of definition, equipment with a new cost of one thousand dollars ($1000) or less will be considered small tools.
(1) ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. Owned EquipmentAll machinery, tools, and apparatus necessary for the proper construction and acceptable completion of the work, together with the necessary supplies for upkeep and maintenance.. For all equipment utilized on force account work, the hourly rate for each piece of equipment and attachments will be the Blue Book monthly rate for the make and model multiplied by the appropriate rate adjustment factor, divided by 176, plus the hourly operating costs. The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall furnish to the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. a complete description, including the serial numbers and year of manufacture, for all pieces of equipment used on force account work.
The hourly rate for each piece of equipment will be the sum of the base machine rate, attachment rate, and operating rates established in the Rental Rate Blue Book for Construction EquipmentAll machinery, tools, and apparatus necessary for the proper construction and acceptable completion of the work, together with the necessary supplies for upkeep and maintenance. current at the time the equipment is used.
(2) EquipmentAll machinery, tools, and apparatus necessary for the proper construction and acceptable completion of the work, together with the necessary supplies for upkeep and maintenance. Rented Exclusively for Force Account WorkWork shall be understood to mean the furnishing of all labor, materials, equipment, and other incidentals necessary to the successful completion of the project and the carrying out of all the duties and obligations imposed by the Contract.. In cases where a piece of equipment is rented or leased by the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. from a third party exclusively for force account work, the actual invoiced amount will be paid when the rates are reasonably in line with established rental rates for the equipment in question and are approved by the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him..
In addition, the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. will be allowed 5 percent of the actual invoiced amount
(3) Moving EquipmentAll machinery, tools, and apparatus necessary for the proper construction and acceptable completion of the work, together with the necessary supplies for upkeep and maintenance.. When it is necessary to obtain equipment exclusively for force account work from sources beyond the project limits, the cost of transferring the equipment to the site of the work and return will be allowed as an additional expense. Where the move requires the use of a hauling unit, the move in allowance will be limited to the rental rate for the hauling unit, as computed in (c) (1) above, plus operator wages.
When equipment is transferred under its own power, the moving allowance will be limited to half the hourly rental rate, as computed in (c) (1) above, plus operator’s wages. If the move out is to a different location, payment will in no instance exceed the amount of the move in. Move in allowance will not be made for equipment brought to the project for force account work if it is subsequently retained on the project and utilized for Contract items or related work.
(4) Standby Time. Standby rates shall apply when a piece of equipment is required to remain on the project on standby status when authorized by the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him.. When a unit works for a portion of a day and is on standby for a portion, the total time allowed shall not exceed 8 hours for that day. Standby rates shall be half of the normal hourly base rates without the operating expenses. Standby rates shall not exceed 8 hours per day and will be allowed for working days only.
EquipmentAll machinery, tools, and apparatus necessary for the proper construction and acceptable completion of the work, together with the necessary supplies for upkeep and maintenance. that is required to be on the project for transporting personnel or materials will be paid at the hourly rental rate for the actual hours per day it is utilized, with the remainder being standby time as computed above.
No compensation will be allowed for equipment that is inoperable due to breakdown.
(d) Subcontracting. The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall receive the cost of work performed by a subcontractor as determined in (a), (b), and (c). In addition, the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. will be allowed an allowance of five hundred dollars ($500) or 8 percent of the total combination of (a), (b), and (c), whichever sum is greater.
(e) Compensation. The compensation as specified in (a) through (e) above shall be received by the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. as payment for work done on a force account basis, which shall be full compensation for all costs associated with the force account including overhead and profit for the work performed.
(f) Force Account Daily Report. At the end of each days work on any Force Account, the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. and ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement.’s representative must complete a Daily Force Account Report. This report must be signed by both the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. and the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement.’s representative on a daily basis. Daily Force Account Reports for work performed and signed by a subcontractor, must also be signed by the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement.. Each party shall retain a copy as substantiation of all labor, equipment, and materials used in the performance of the Force Account work.
(g) Partial Payment. The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. may request partial payment for force account work prior to submitting final documentation. Partial payment will be limited to 50 percent of the estimated amount for the work accomplished until all documentation has been received and approved.
(h) Final Payment. The final force account payment request from the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. will be subject to audit as specified in GP-7.36 Retention of Records.


TC-7.04 Scope of Payment

Payment to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. will be made from the actual quantities of Contract items performed in conformance with the PlansThe official drawings issued by the Administration as part of the Contract Documents, including those incorporated in the Contract Documents by reference. and Specifications. If, upon completion of the construction, these actual quantities show either an increase or decrease from the quantities given in the bid schedule, the Contract unit prices will still prevail, except as provided in GP-4.04 (Variations in Estimated Quantities).
The payment of any partial estimate or of any retained percentage except by and under the approved final estimate and voucher, shall in no way affect the obligation of the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. to repair or renew any defective parts of the construction or to be responsible for all damages due to such defects.
When requested in writing by the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. and approved by the procurement officer, payment allowance will be made for nonperishable material to be incorporated in the work delivered and stockpiled at the work site or other approved site in conformance with TC-7.02.
Payment to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. under this section for materials on hand shall not be construed in any way as acceptance by the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. of title to the material. Title shall remain with the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. until the project has been completed and accepted in conformance with GP-5.13 (Acceptance for Maintenance).
The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. Federal Tax Identification or Social Security Number shall be included on the face of each invoice billed to the StateThe State of Maryland acting through its authorized representative..
On Contracts in excess of $25 000, the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. and any subcontractor with a lower tier subcontract, prior to receiving a progress or final payment under this ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation., shall first certify in writing that he has made payment from proceeds of prior payments, and that he will make timely payments from the proceeds of the progress or final payment then due him, to his subcontractors and suppliers in conformance with his contractual arrangement with them.
The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall also obtain from each subcontractor a certification that payment from proceeds of prior payments have been made to any lower tier subcontractors and that timely payments will be made to the lower tier subcontractors and suppliers in conformance with contractual arrangements with them. This certification is not required from subcontractors who have no lower tier subcontracts. These certifications may be required by the procurement officer for Contracts of $25 000 or less.
In addition to any other remedies provided by law or this ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation., any ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. or subcontractor of any tier who fails to make payment as equired by the certifications set forth in the above paragraph within 30 days from the date such payment is due shall be obligated to include with such payments interest at the rate of 10 percent per annum from the date the payment was due to the date the payment was actually made to the subcontractor or lower tier subcontractor.


TC-7.05 Progress Payments

(a) Current Estimate.
(1) Lump Sum Contracts. The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall furnish an acceptable breakdown of the lump sum Contract price showing the amount included therein for each principal category of the work. Said breakdown shall be in such detail so as to provide a basis for estimating monthly progress payments.
(2) Monthly Estimates. Each month the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. will pay the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. for the Contract value of the work satisfactorily performed during the preceding calendar month, including authorized additions less variable retainage specified in (3) Variable Retainage. Retainage will not be released until final payment (unless partially released in a semi final payment). Current estimates will be based upon the procurement officer’s estimate of quantity (including materials and/or equipment complete in place) satisfactorily performed. In the instance of lump sum items and each items, the procurement officer’s estimate will be the proper percentage of the item satisfactorily performed during the preceding month. All quantities, estimates, and fractions will be reasonably accurate approximations and are subject to corrections: (a) in subsequent current estimates; (b) in any semi final estimate; and (c) in final payment. Any or all partial payments may be withheld in the event the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. has not complied with current requirements of the Specifications. Should either the procurement officer or the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. be of the opinion that any estimates, quantities, or fractions (either as to an individual current estimate or accumulations thereof) do not represent a reasonably accurate approximation of actual work, then the details questioned will be reviewed. Any necessary corrections and adjustments will be made in the next current estimate.
(3) Variable Retainage. The Contract will be subject to a variable retainage. Any variation in retainage (increase or decrease) will be at the discretion of the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. and the District EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him.. Those meeting the minimum qualifications may have retainage reduced upon request of the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. with consent of surety. This request shall be processed through the District EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him.. If, in the opinion of the District EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. at any time during the performance of the work, the evaluation of the contract or ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. changes, retainage reduction may be reconsidered.
Minimum Qualifications are as follows: After 50 percent project completion and upon request, Contractors with 'A' evaluations for the last two years may be reduced from 5 percent to 1 percent. Project completion percentage will be based upon actual work completed (excluding monies paid for stored materials). An interim evaluation of the current project would need to be completed and would need to be an 'A'.
At 50 percent project completion and upon request, Contractors with 'B' evaluations or any combination of 'A' and 'B' evaluations for the last two years may be reduced from 5 percent to 2.5 percent, and remain at that level until released upon final payment. Project completion percentage will be based upon actual work completed (excluding monies paid for stored materials). An interim evaluation of the current project would need to completed and would need to be an 'A' or 'B'.
Contractors with 'C' evaluations or any combination of 'C' and 'D' evaluation for the past two years will begin and remain at 5 percent for the life of the project.
Contractors with a 'D' evaluation for the last two years will begin at 5 percent. Project performance will be evaluated monthly with the retainage being raised to 10 percent for continued 'D' performance.
New Bidders. Contractors who have not been previously rated by the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. may be eligible for a reduction in retainage. To be eligible, their past performance on highway and bridge work shall be documented by the government agency with whom they had a contract and their performance shall be documented on AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. forms. Contractors who do not fit into the above criteria would require a 5 percent retainage throughout the life of the ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation..
Subcontractors.
(A) Sections A-E apply if the contractor has furnished 100 percent payment security and 100 percent performance security.
(B) The contractor may not retain from any payment due a subcontractor a percent of the payment greater than the percent for retainage specified above.
(C) A subcontractor at any tier may not retain from any payment due a lower tier subcontractor a percent of the payment greater than the percent of payments retained from the subcontractor.
(D) A contractor and a subcontractor are not prohibited, by §§A and B, from withholding an amount in addition to retainage if the contractor or subcontractor determines that a subcontractor's performance under the subcontract provides reasonable grounds for withholding the additional amount.
(E) The contractor and each subcontractor at any tier shall include, in all of their subcontracts for work called for by this contract, wording that incorporates the provisions of §§B—E.
(4) Escrow Accounts For Retained Funds. The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. may elect to have retained funds paid to an escrow agent who may invest the funds in an approved interest bearing account which, upon completion of the ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation., will be paid to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. to the extent to which the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. is entitled. The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement.’s election to use the escrow account procedure shall be indicated on the Contract DocumentsThe written agreement executed between an Administration and the successful bidder, covering the performance of the work and furnishing of labor, equipment and materials, by which the Contractor is bound to perform the work and furnish the labor, equipment and materials, and by which the Administration is obligated to compensate him therefore at the mutually established and accepted rate or price. The Contract Documents shall include the Invitation for Bids, Notice to Contractors, Instructions to Bidders, Proposal, Contract Forms and Bonds, General Provisions, Specifications, Supplemental Specifications, all Special Provisions, all Technical Provisions, all Plans and Notices to Proceed, also any written Change Orders and Supplemental Agreements that are required to complete the construction of the work in an acceptable manner, including authorized extension thereof, and the escrow agreement shall be in a form and under terms approved by the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02.. The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall forfeit the right to the use of the escrow account for refusal or failure to indicate an election prior to execution of the ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation.. Note: This shall not apply if it conflicts with any Federal grant or regulation affecting the ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation..
(b) Semi-Final Estimate Payments.
(1) Upon completion of the project and the acceptance by the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. for maintenance, the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02., at the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement.’s request and with the consent of surety, will initiate a Memorandum of Action by the Director, Office of Construction, State Highway AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02., authorizing semi final payment. Such a semi final estimate payment will be based upon: (a) quantities the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. has computed and set up as proposed final quantities, and (b) a reasonably accurate estimate for those quantities for which the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. has not yet completed computations. The quantities that the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. sets forth as proposed final quantities shall be so designated. To arrive at the amount of the semi final estimate, the following will be deducted from the apparent estimated value of the ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation.: (a) total of all amounts previously paid to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. as current estimates, and (b) sums deemed chargeable against the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. including liquidated damages, and as a retainage, a sum not less than 1 percent of the total value of the ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation..
(2). In cases where there has been substantial completion of the project and there are remaining only inconsequential or minor work items such as painting, seeding, mulching, or planting to be completed and such items cannot be completed for an extended period of time because of seasonal or weather conditions, a semi final inspection will be made. If the work completed is found to be satisfactory, then there is deemed to be a partial acceptance on the entire project except for the uncompleted work items. Upon the above referred to partial acceptance, the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02., within 30 days from such partial acceptance, upon request of the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. and with consent of surety, shall pay to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement., what is hereby known as a partial semi final estimate payment. Such a semi final estimate will be based upon: (a) quantities the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. has computed and set up as proposed final quantities, and (b) a reasonably accurate estimate for those quantities for which the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. has not yet completed computations. The quantities that the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. sets forth as proposed final quantities shall be so designated. To arrive at the amount of the semi final payment, the following will be deducted from the apparent estimated value of the ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation.: (a) total of all amounts previously paid to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. as current estimates; and (b) sums deemed chargeable against the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. including liquidated damages, and as a retainage, a sum equal to 1 percent of the total value of the Contract or $2000 which ever is greater.
(3) If all retained funds have not been paid to an escrow agent, as provided for in (a)(4), the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. shall, upon payment of the semi final estimate, place the remaining retainage in a interest bearing escrow account, as designated and on such terms and conditions as specified by the procurement officer. At the time of the final payment, any retainage due, and any interest accrued on the retainage due from the time of payment of the semi final estimate, shall be paid to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement..

TC-7.06 Final Acceptance and Final Payment

(a) When the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. has completed a ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation., and it has been accepted for maintenance in conformance with the provisions of GP-5.13 (Acceptance for Maintenance), the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. will promptly proceed:
(1) To make any necessary final surveys;
(2) To complete any necessary computations of quantities; and
(3) To submit to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. for consideration, within 60 days after final completion and acceptance for maintenance by the procurement officer, a tabulation of the proposed final quantities, and a list of deficiencies required to be corrected prior to issuing a materials clearance. This tabulation shall be accompanied by a statement setting forth: (a) the additional work performed under change orders and/or supplemental agreements; (b) the authorized extension of time; (c) the number of days that have been charged to complete the ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation.; and (d) any deductions, charges, or liquidated damages that have been made or imposed.
(b) The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall then have a period of 30 days from the date of receiving the aforementioned tabulation from the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02., in which:
(1) To decide whether or not to accept final payment upon such a basis, and
(2) To notify the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02., in writing, of the decision. The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. may request an additional period up to 30 days in which to notify the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. of the decision. In the event the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. notifies the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. that he protests final payment on such a basis, that notification shall outline the reasons for said protest.
(c) Upon receipt of a notification of acceptance as provided for in paragraph (b) above, final acceptance of the completed Contract will be contingent upon the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02.’s authorized materials clearance. Within 20 days after the above conditions are met, the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. will prepare the final estimate and final payment forms and submit them to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement.. These forms will show all data noted in paragraph (a) above, together with deductions for all prior payments. Within 30 days from the date these forms are received, the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall execute them and return them to the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. for execution and payment. If such signed forms are not received by the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. within the specified time, the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. will prepare duplicate forms for execution and payment. Such action by the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. shall be deemed to constitute acceptance and final payment.
(d) If under the provisions of paragraph (b) above, the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. notifies the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. of his protest and nonacceptance of the data submitted to him, the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. shall pay the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. a semi final estimate, or an additional semi final estimate in the event a semi final estimate has already been paid based upon the data noted in paragraph (a) above, with deductions for all prior payments. A retainage equal to 1 percent of the total value of the Contract will be withheld by the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02.. The acceptance of such semi final estimate, or additional semi final estimate, shall not be considered a waiver on the part of the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. of his right to pursue his protest and press for acceptance and final payment.
(e) In the event the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. does not accept the data submitted to him as described in paragraph (a) above and/or has outstanding a claim filed in conformance with GP-5.14 (Filing of Claim by Contractor), the procurement officer and the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall confer at mutually convenient times and endeavor to reconcile all points of disagreement expeditiously. If such reconciliation is accomplished, the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. will promptly proceed with acceptance and final payment on the reconciled basis and in conformance with the provisions of paragraph (c) above. If reconciliation is not accomplished within 30 days, the decision of the procurement officer shall be reviewed by the AdministratorThe chief executive officer of an Administration. and appropriate legal counsel. After review by the AdministratorThe chief executive officer of an Administration., the decision of the procurement officer is deemed to be the final action. The procurement officer shall furnish a copy of the final decision to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. by certified mail, return receipt requested. This decision may be appealed by the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. to the Maryland State BoardThe Board of Public Works of the State of Maryland. of Contract Appeals. This shall be done by filing a written notice of appeal to the Appeals BoardThe Board of Public Works of the State of Maryland. within 30 days from the date of the final decision. Failure to provide timely notification to the procurement officer shall constitute a waiver by the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. of his right under GP-5.15 (Disputes), and final payment may be made by the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. based on the procurement officer’s recommendation.
(f) All prior partial estimates and payments shall be subject to correction at the time of acceptance and final payment. If the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. has been previously overpaid, the amount of such overpayment shall be set forth in the Final Payment forms and the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. hereby agrees that he will reimburse the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. for such overpayment within 180 days of receipt of such advice, and his surety will not be granted release from obligation under the terms of the Contract until reimbursement has been made in full.
(g) Within 10 days after the provisions of (a) through (f) have been fulfilled, the procurement officer shall notify the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. that final acceptance of the project has been made. This notice will initiate the processing of the Memorandum of Action by the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02.’s Chief EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him., authorizing final payment. Final Payment will be due and payable within 30 days of the Chief EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him.’s Memorandum of Action. As a condition precedent to Final Payment, the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. shall be required to execute a general release of all claims against the AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. arising out of, or in any way connected with the ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation..
(h) In conformance with subsection 7-222 of the State Finance and Procurement Article of the Annotated Code of Maryland, certification must be obtained from the Comptroller of the Treasury, and the Employment Security AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02., that all State taxes have been paid prior to the release of final payment on a construction ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation.. The check will be processed and mailed only after notification is received from both departments that no State tax is owed.


TC-7.07 Late Payments

(a) Payments for semi final estimates shall be made within 30 days of the date when the amount becomes due and payable as evidenced by the Director’s Memorandum of Action. Payments for final estimates shall be made within 30 days of the date when the Contract amount becomes due and payable as evidenced by the Chief EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him.’s Memorandum of Action. Charges for late payments of invoices, other than as described by Title 15, Subtitle 1, of the State Finance and Procurement Article, Annotated Code of Maryland, or by the Public Service Commission of Maryland with respect to regulated public utilities, as applicable, are prohibited.
(b) Contracts that specify invoicing required - Unless a payment is unauthorized, deferred, delayed, or set-off under COMARCode of Maryland Regulations 21.02.07, Payments to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. pursuant to this Contract shall be made no later than 30 days after the StateThe State of Maryland acting through its authorized representative.’s receipt of a proper invoice from the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement..
The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. may be eligible to receive late payment interest at the rate of 9% per annum if:
(1) The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. submits an invoice for the late payment interest within thirty days after the date of the StateThe State of Maryland acting through its authorized representative.’s payment of the amount on which the interest accrued; and
(2) A contract claim has not been filed under State Finance and Procurement Article, Title 15, Subtitle 2, Annotated Code of Maryland.
The State is not liable for interest:
(1) Accruing more than one year after the 31st day after the agency receives the proper invoice; or
(2) On any amount representing unpaid interest. Charges for late payment of invoices are authorized only as prescribed by Title 15, Subtitle 1, of the State Finance and Procurement Article, Annotated Code of Maryland, or by the Public Service Commission of Maryland with respect to regulated public utilities, as applicable.
(c) A proper invoice shall include: a description of the items or services provided; the date the goods were received or the inclusive dates the services were rendered; the Contract prices; retention, if any; the basis for the billing; the Contract or purchase order number; the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement.’s Federal Tax Identification Number or Social Security Number; and the name and address of the proper invoice recipient.
(d) In order to receive payment of interest, the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. must submit a proper invoice for accrued interest within 30 days after the payment date of the amount on which the interest is claimed to have accrued. Interest may not be claimed for more than one year following the 31st day after the date that a proper invoice was received, or on amounts representing unpaid interest, or on an amount due under a Contract remaining unpaid for any period prior to July 1, 1983, or if a claim has been filed under State Finance and Procurement Article, Title 15 of subtitle 2 of the Code.
(e) For the purposes of this Contract an amount will not be deemed due and payable if:
(1) The amount invoiced is inconsistent with the ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation.
(2) The proper invoice has not been received by the person or office specified in the ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation..
(3) The invoice or performance under the Contract is in dispute or the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. has failed to otherwise comply with the provisions of the ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation..
(4) The items or services have not been accepted.
(5) The quantity of items delivered is less than the quantity invoiced.
(6) The items or services do not meet the quality requirements of the ContractAny agreement entered into by a procurement agency for the acquisition of supplies, services, construction, construction related services, architectural services or engineering services.Contract does not include: Collective bargaining agreements with employee organizations or agreements creating employer employee relationships, as defined in Article 64A, Section 15A(a)(3), Annotated Code of Maryland, Medicaid, Medicare, Judicare, or similar reimbursement contracts which user eligibility and cost are set by law or regulation..
(7) The Contract provides for progress payments, but the proper invoice for the progress payment has not been submitted pursuant to the schedule contained in the agreement.
(8) The invoice is for the retainage, but not all stipulated conditions for release of the retainage have been met.
(9) The ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. has not submitted satisfactory documentation or other evidence reasonably required by the procurement officer or by the Contract concerning performance under the Contract and compliance with its provisions.

TC-7.08 Eliminated Items

In addition to the provisions of GP-4.04 Variations in Estimated Quantities, the following shall apply to AdministrationShall mean any one of the Administrations within the Maryland Department of Transportation, as listed in GP 1.02. Contracts.
Should any Contract items contained in the Invitation for BidsAny document, whether attached or incorporated by reference, used for soliciting bids under procurement by competitive sealed bidding and small procurement procedures including requests for quotations. be found unnecessary for the proper completion of the work contracted, the EngineerAny person designated by the Administrator or the procurement officer, acting directly or through his duly authorized representative, such representative acting within the scope of the particular duties assigned to him or of the authority given him. may, upon written order to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement., eliminate such Contract items from the Contract and no allowance will be made for items so eliminated in making final payment to the ContractorAny person having a Contract with a procurement agency. Contractor does not include an employee with an employment Contract, or an employee organization with a collective bargaining agreement. except for material costs incurred prior to notification of the elimination of the items.

SPECIAL PROVISION INSERTS

The following Special Provision Inserts update TC Section 7 after the official publication of the Standard SpecificationA written description of functional characteristics, or the nature of a construction item to be procured. It may include a. Updated documents may be found within the Standard and Supplemental Specifications for Construction and Materials on the MDOTMaryland Department of Transportation SHA web page.

TC — 7.09 Diesel Fuel Adjustment Price. Dated 5/30/2017.