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Measurement and Payment
A firm may be considered to be acting as a Subcontractor when the Engineer
observes one or more of the following characteristics:
a. The person in charge of the firm’s activities takes an active role in managing
the overall project, including extensive coordination, interpretation of Plans,
interaction with the Contracting Agency or management of a complex and
interrelated operation.
b. Rented equipment is provided fueled, operated and maintained by the
firm. Operators of rented equipment are supervised directly by the firm’s
representative. There is little interaction between the Contractor and the
employees of the firm.
c. The firm appears to be holding the risk of performance and quality of the Work.
d. The firm appears to be responsible for liability arising from the Work.
Markups on Work Performed by Subcontractor(s):
(1) On amounts paid for Work performed by each
Subcontractor on each force account and calculated
through Subsections 1-4,
up to $25,000
12 percent
(2) On amounts greater than
$25,000 up to $100,000 10 percent
(3) On amounts greater than
$100,000
7 percent
The amounts and markup rates shall be calculated separately for each
Subcontractor on each force account item established.
The payments provided above shall be full payment for all Work done on a force
account basis. The calculated payment shall cover all expenses of every nature, kind,
and description, including those listed above and any others incurred on the Work being
paid through force account. Nothing in this provision shall preclude the Contractor from
seeking an extension of time or time-related damages to unchanged Work arising as a
result of the force account Work. The amount and costs of any Work to be paid by force
account shall be computed by the Engineer, and the result shall be final as provided in
Section 1-05.1
.
An item that has been Bid at a unit price or lump sum in the Proposal will not be paid
as force account unless:
1. A change as defined in
Section 1-04.4
has occurred and the provisions require
a payment adjustment.
2. A Contract item paid by force account requires Work that is normally included in
a lump sum Contract item. In such a case, the Work normally included in a lump sum
Contract item will be paid by force account under the force account Contract item.
Items which are included in the Proposal as Force Account or which are added by change
order as Force Account may, by agreement of the parties at any time, be converted to
agreed unit prices or lump sums applicable to the remaining Work.