125-22 Attachment - Admin Procedures Appendices Final Revised March 2022.pdf

the Contractor as needed of: progress schedule, Contractor payments and contract completion to make sure full adherence to the approved schedule and specified contract time. The inspection team shall monitor that the DBE/ESBE goals identified in the approved bid documents on the Form CR-266F-Schedule of DBE Participation for the project are met. The inspection team verifies and ensures that the work to be performed by DBE Sub-contractors is being performed by the previously approved DBE Firms listed on the Form CR-266F. The Resident Engineer will use the daily reports to document the on-site monitoring. Any changes to the DBE Goals or Contractors must be submitted to NJDOT on revised Form (CR-266) for approval. Section 108.01 of the NJDOT specifications must be followed. Procedure for Administration and Inspection of Federal Aid Highway Projects Page 23

The RC/PM submits to NJDOT the following documents monthly: a. Form DC-126 - Wage Rate Inspection b. Form DC-127- Monthly Summary of Contractors Payrolls c. Form 347 Statement of Compliance and Certified Payrolls d. Form CR-267 -Monthly Report, DBE Utilization e. Proof of payment to all subcontractors (DL-72) f. Cancelled checks as proof of payment for DBE subcontractors The RC/PM ensures that the Contractor and his sub-Contractors submit CC-257 electronically each month. Copies shall be submitted to NJDOT Local Aid Office with each payment vo ucher. 6.3 Payment Procedure Project Billing • West Orange will provide NJDOT Local Aid with an initial billing (payment voucher) for the construction project no later than 3 months after NJDOT has concurred in the award of the construction contract. NJDOT may receive subsequent billings (payment vouchers) on a monthly basis after the initial billing but no later than 3 months thereafter as stipulated in the project agreement. West Orange understands that failure to meet the billing requirements may result in the restriction of authorization of any future FWHA f unding until such time as progress on timely billings is demonstrated. • The project will be considered “Inactive” if West Orange fails to submit an invoice within the durations described in 23 CFR 630.106. It is West Orange’s responsibility to ensure that the federal funding is not jeopardized for this project due to an “Inactive” project status. The Contractor submits request for payments to Resident Engineer who verifies the work and quantities. The RC/PM reviews them for completeness. The monthly payment estimates are prepared based on the field measured quantities recorded in the daily inspection reports, and the summary of the pay item sheets, and include payments for the quantities of work that have been fully completed and are acceptable to the Resident Engineer and RC/PM. The RC/PM verifies bid unit prices and calculation of payment amount. The RC/PM verifies Contractor submission of certified payroll, DBE utilization report (if applicable), monthly utilization report, and training report (if applicable) and notifies the Contractor if any additional information

actor submission of certified payroll, DBE utilization report (if applicable), monthly utilization report, and training report (if applicable) and notifies the Contractor if any additional information is needed. The RC/PM stamps the invoice with the date it was received. The RC/PM has 10 days to review the invoice. If prompt payment is applicable, the Township of West Orange shall make payment to vendors on or before sixty (60) calendar days from the date on which the properly executed Payment Voucher was received, or the receipt of goods or services, whichever is later. Procedure for Administration and Inspection of Federal Aid Highway Projects Page 24

The RC/PM will ensure NJDOT'S Standard Specification are enforced which require prime contractors pay subcontractors and suppliers for satisfactory performance of their work. Depending up on the particular terms of the contract, payment is required either, no later than 30 days or no later than 10 days of the prime receiving payment from DEPARTMENT/WEST ORANGE TOWN TOWNSHIP/GRANTEE. This includes payment of full retainage and subcontractors paying their subcontractors and suppliers. This payment details must be outlined in Form DL-72 and submitted regularly as required by Civil Rights. All deficiencies that prevent processing will be identified and the invoice will be returned to the vendor within 10 days of receipt by letter citing the deficiencies. The return date shall be recorded in the log. Mathematical errors or other items identified as non-payable items can be marked within the payment voucher package. Any changes must be crossed out, and the initials and date must be placed next to the change(s). The payee shall be notified of any reductions. NJDOT will not provide payment for any IMPROPER PAYMENTS made by The Township of West Orange including but not limited to following: • The item summary sheet and source document are mismatched. • The Steel or Iron items installed missing BUY AMERICA CERTIFICATE. • The prime contractor executed pay items which were designated for DBE Subcontractor as approved by Civil Rights. • When the Federal Project is INACTIVE. • In the case of non-compliance of Federal Regulations. • The CUF (commercially useful function) is not performed by DBE. • Any penalty imposed by Civil Rights for lack of CUF, SHORTFALL IN DBE GOAL ACHIEVEMENT, MINIMUM WAGE REQUIREMENT or other associated issues. For Professional Services: The consultant sends a certified invoice with progress schedule to the RC/PM; the RC/PM reviews the invoice to ensure there are no discrepancies. If the invoice has no discrepancies, the RC/PM makes recommendation for payment to the Township of West Orange Business Administrator/ Finance Department to issue a Purchase Order for the Consultant signature. Once the signed Purchase Order is returned to the Finance Office, a check is mailed to the vendor. For Construction Services: The contractor sends the invoice to the Resident Engineer who reviews the invoice to

gned Purchase Order is returned to the Finance Office, a check is mailed to the vendor. For Construction Services: The contractor sends the invoice to the Resident Engineer who reviews the invoice to ensure there are no discrepancies. If the invoice has no discrepancies, the RE recommends payment to the RC/PM; the RC/PM reviews the invoice to ensure conformance. If the invoice conforms, the RC/PM recommends payment to Township of West Orange Business Administrator/Finance Office who in turn reviews/approves the invoice and issues a Purchase Order for the Contractor signature. Once the signed Purchase Order is returned to Finance, a check is mailed to the vendor. The following criteria shall be met for an invoice to be processed: a. Payee has signed and dated the invoice. At least one copy must have an original Procedure for Administration and Inspection of Federal Aid Highway Projects Page 25

signature. b. Payee has signed and dated the Payment Voucher declaration. c. Progress report shall accompany the invoice, in accordance with Section 6.2 (b) of the Federal Aid Agreement. d. Evidence of costs incurred to date in the form of payroll certifications or receipts of contractor payments. e. Federal contract compliance documents in accordance with Section 6.2 (b) of the Federal Aid Agreement have been submitted and verified during the billing period. f. Change Orders if applicable (prior approval required) g. Cost incurred dates for all submissions are within the appropriate timeframe. For example: billing period, following authorization, notice to proceed, and approved contract modification dates, prior to contract completion dates, etc. Request for Partial payments to NJDOT The RC/PM prepares the documents and submits invoices for reimbursement to the NJDOT-Local Aid Office either monthly or quarterly on PV forms in accordance to the Federal Aid Guidelines Progress Reports will accompany all payment vouchers and shall include: 1) narrative description of work performed during the payment period and any difficulties or delays encountered; 2) comparison of actual accomplishments to the goals established for the payment period; 3) comparison, by tasks, of costs incurred with amounts budgeted, and; 4) comparison, by task, of work performed compared to the schedule, including a percentage of the total work completed. This requirement can be met by including a bar chart showing schedule timing and actual progress. 5) Copies of contract compliance documents as completed for the voucher payment period by the Resident Engineer that is designated by the Subrecipient, a complete set of which shall be furnished by the State at kickoff and/or prec onstruction meetings. 6) Electronic copies of the DC-29s (or DC-144 or approved equal) and an item summary sheet for that voucher payment period. Final Inspection, Payment and Closeout • Requests for final inspection and acceptance to

or DC-144 or approved equal) and an item summary sheet for that voucher payment period. Final Inspection, Payment and Closeout • Requests for final inspection and acceptance to NJDOT shall be made by West Orange no later than 30 days following Substantial Completion of construction. • Close-out documents shall be submitted by West Orange to NJDOT within 6 months of receipt of acceptance by NJDOT. Procedure for Administration and Inspection of Federal Aid Highway Projects Page 26

West Orange understands that failure to meet the time requirements for project close -out may result in the restriction of authorization of future FWHA funding un til such time as progress on close-out is demonstrated. West Orange may appeal decisions made by NJDOT regarding all above compliance issues on a case-by-case basis, but NJDOT reserves the right to make a final determination whether to continue funding the project or not. West Orange understands that NJDOT will be reviewing the status of the federal-aid agreement and the issues associated with compliance on a monthly basis. The Resident Engineer, the Design Consultant, and the RC/PM in the presence of the Contractor will perform the final inspection once all the pay items of the project have been completed. The Resident Engineer will provide the Contractor with a punch list of items to be corrected. The RC/PM also notifies the NJDOT-Local Aid in writing that the project is substantial completed, once all the pay items have been completed. NJDOT-Local Aid will inspect the project site along with the RC/PM and Resident Engineer/Inspector and inform the Township of West Orange of any necessary corrective action required in writing The RC/PM will notify the NJDOT in writing after the Contractor has corrected the work included in the punch list and the corrective action list developed by the Resident Engineer/inspector and NJDOT. NJDOT and the Township of West Orange will perform the final inspection and if the Township of West Orange and NJDOT deem all the work acceptable, the RC/PM will begin preparing the final change order (if required), final payment, and as-built quantities. 6.4 Chief Financial Officer Certification After final payment has been submitted and paid. The RC/PM submits the project file to the Chief Financial Officer who in turns assigns staff from the Finance Department to conduct internal review and audit. The internal auditor may recommend revision and amendment to the project cost, if necessary. Once audit is completed the Chief Financial Officer certifies the project total cost. The RC/PM submits the following to NJDOT once the final payment has been issued to the Contractor. a. Final Payment Voucher (Form PV) along with back up documentation (copies of the payments to the Contractors) b. Chief Financial Officers Certification

or. a. Final Payment Voucher (Form PV) along with back up documentation (copies of the payments to the Contractors) b. Chief Financial Officers Certification c. Engineer’s Certification for Project Completion d. Federal Aid Change Order (Form DC-173A) e. List of As-built quantities f. Evidence of Contractors and sub-contractors Payroll compliance g. Form DC-123- Contractors Final Certificate of Compliance h. Form DC-126- Wage Rate Inspections Procedure for Administration and Inspection of Federal Aid Highway Projects Page 27

i. Form DC-127- Monthly Summary j. Form 347- Statement of Compliance k. Evidence of Contractor’s EEO compliance l. Form CC-257- Monthly Employment Utilization Report (electronically) m. Release Statement from Agreement for Federal Aid n. DC-29’s (or DC-144 or approved equal) and an item summary (electronically) o. CR-268 p. Calculations for asphalt and fuel price adjustments q. Letter certifying all corrective work has been completed r. and any other forms and/or documentation deemed necessary The RC/PM organizes and stores the file for the project indefinitely. Records Retention As per State of New Jersey Requirements, “All documents and records, from Consultant Selection through completion of Construction, up to and including payment of the final invoices and vouchers, will be retained for a minimum of 7 (seven) years following p ayment of final invoice and closeout of the project. Warranty item documents will be retained for a minimum of 3 (three) years from the end of the warranty period.” 6.5 Source Documentation Township of West Orange complies with Title 23 CFR 635.123 to provide for adequate assurance that the quantities of completed work will be determined accurately and on uniform basis. All related source documents upon which payment is based must be matter of record, as basis for the determination of acceptable pay quantities and monthly payments to the Contractor. The means and methods consisting of notes and/or daily reports for the documentation of length, width, depth and slope, calculations of area, volume, weights, sketches must be presented by the Resident Engineer, assigned to the project to protect the public interest and to ensure that the number, size, and characteristics of what being delivered match the plans/specs. The following is a list of the documents and procedures normally accepted as proper source of documentation: a. Delivery tickets are received initialed by inspector prior placement of materials b. Testing of materials is documented in the project files and referenced in daily inspection reports. c. Form DC-29 (or DC-144 or approved equal) is used for daily inspection reports and the instruction on the DC-29