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2012 Standard Specifaications for Construction – Division 1.
This module will review the significant changes in Division 1.
There have been significant changes to Division 1,
including a revision to the active voice,
more use of outline format,
incorporation of special provisions,
the significant reorganization that includes moving all pavement provisions into 109
and a sequence for contract revisions which is contained in 109.05.
To give an example of the active voice revision I’ll use an example from 104.03.
The 2003 specification reads,
"Deviations from the plans for the work or from working drawings,
will not be permitted without the written order of the Engineer."
In the 2012 book, the same specification reads,
"The Contractor must not deviate from the plans or from Department-approved working drawings and design calculations,
unless the deviation is approved by the Engineer in writing."
This makes it very clear that the contractor does not deviate and the engineer must approve.
To illustrate the change to the outline format,
I'll use an example from 105.01 of the 2003 standard specifications.
The first paragraph discusses requirements for materials or fabricated items
and has a series of sentences that explain the responsibilities of the contractor
as shown in this slide.
In the 2012 book, we've taken this same information and put it into outline format.
"Unless otherwise required by the contract, the contractor must:
A - Provide new materials.
B - Provide the information requested on the testing order.
And so on.
Section 101, "Terms, Formats and Definitions."
The 2012 spec book has incorporated 03SP101(A),
"Special Provision for Definition Changes," into Section 101.
In addition, some new definitions have been added.
"Limits of Earth Disturbance" is defined as the area extending 10 feet outside the slope stake line
except adjacent to wetlands where the limits of earth disturbance is at the slope stake line.
This definition is used to determine clearing pay limits in subsection 201.04.A.
"Liquidated Damages" are monetary damages paid by the contractor to the department for work not completed on time.
Subsection 108.10, "Liquidated Damages," describes the assessment of liquidated damages.
Mathematically and materially unbalanced bids are two new definitions in the 2012 standard specifications.
"Mathematically Unbalanced" is a bid that does not reflect reasonable actual costs for labor, equipment,
materials, plus reasonable profit, overhead and other indirect costs.
This is sometimes seen in unit prices that are bid at a penny.
"Materially Unbalanced" bid is a bid that gives reasonable doubt
that a bidder with a mathematically unbalanced bid will result in the lowest ultimate cost.
The title of Section 102 has changed in the 2012 book
to "Bid Submission, Award and Execution of Contract."
Section 102 has been updated to reflect the current electronic bid procedures.
In addition, much of 102.14, "Construction Progress Schedule,"
has been moved to the 2012 book Section 108, "Prosecution and Progress."
Section 103, "Scope of Work," will look a lot different than it did in the 2003 book.
We've moved some of the subsections to other areas of the 2012 book
and we've added some new provisions.
In the 2012 book, subsection 103.02 has changed in
title to "Revisions to the Contract."
Subsection 103.02.B.2
has changed the allowable maximum adjustment for major items of work
when they decrease below 75 percent of the original contract quantity.
The allowable maximum adjustment cannot exceed 75 percent of the original contract quantity
times the contract unit price.
Subsection 103.02.D, "Suspension of Work Ordered by the Engineer,"
is a new subsection in the 2012 book
that incorporates parts of 2003 subsection 104.01.B,
"Authority of the Engineer to Suspend Work."
Subsection 103.02.F, "Eliminated Work,"
is a new subsection that replaces old 109.05, "Adjustments for Eliminated Items."
Subsection 103.03, "Contractor-Engineer Communication,"
is a new subsection in the 2012 book.
It gives requirements for written contractor notice
and written engineer response for significant changes in the character of work,
differing site conditions, or suspension of work ordered by the engineer.
The 2003 book, subsection 103.03, ""Adjustments,"
was used to determine payment for significant changes and differing site conditions.
This subsection has been eliminated from the 2012 book.
Now payments for significant changes and differing site conditions will be in accordance with 2012 109.05.
This simplifies payment by putting all payment provisions into 109.
Subsection 103.05 in the 2003 book, "Traffic Control," has been moved.
Most of 103.05 has been moved to Division 8, "Incidental Construction."
However, some parts of 103.05 have been moved to a new subsection 104
called "Work Zone Safety and Mobility."
Subsection 103.06 in the 2003 book, "Maintenance During Construction,"
has been moved to subsection 104.07 in the 2012 book, "Contractor Obligations."
In the 2003 book, subsection 103.07, "Final Clean Up,"
has been moved in its entirety to the 2012 book subsection 104.07, "Contractor Obligations."
Section 104, "Control of the Work."
Old subsection 104.01.B, "Authority of the Engineer to Suspend Work,"
has been moved to a new subsection in the 2012 book
103.02.D,"Suspension of Work Ordered by the Engineer."
Subsection 104.01.C, "Authority of the Engineer to Direct the Acceleration of Work,"
is a new provision in the 2012 book.
This provision only applies when the engineer directs
the contractor to accelerate work for avoiding
use of delay costs or to complete the project early.
This provision does not apply when the contractor is behind schedule.
When the contractor is directed to accelerate work, payment is made in accordance with subsection 109.05.F.
The 2003 book did not have provisions for directed acceleration.
Subsection 104.04, "Conformity with the Contract,"
replaces old subsection 104.04, "Conformity with Plans and Specifications."
In the old book, the references to material specifications have been moved to the new book subsection 105.08,
"Nonconforming Materials."
Subsection 104.07, "Contractor Obligations," builds on old 104.07, "Cooperation by the Contractor,"
by combining other subsections from the 2003 book.
Added to the new 104.07 are the old 103.06, "Maintenance During Construction,"
103.07, "Final Clean Up," 104.10, "Safety and Health Requirements,"
and 108.04, "Competence of Contractor Supervision."
The majority of 2003 subsection 104.09, "Lines, Grades and Elevations,"
has been moved to new 2012 Division 8, Section 824.
Subsection 104.10, "Claims for Extra Compensation or Time Extension,"
has incorporated the requirements of Bureau of Highways Instructional Memorandum 2008-02,
"Review of Contractor Claims."
Subsection 104.11, "Work Zone Safety and Mobility,"
is a new subsection that expands upon the old 104.11,
"Limitations for Construction Equipment On or Crossing Pavements and Structures."
It updates the requirements, as well as adds language to incorporate Work Zone Safety
and Mobility Manual requirements.
One of the new requirements is that the contractor develop and provide a work zone traffic control plan.
Subsection 104.12, "Approval for the Use of Right-of-Way," is a new subsection in the 2012 book.
It provides a process for the contractor to request approval for the use
of right-of-way for construction of the project;
requires a written request by the contractor and a written response from the engineer
and it requires specific information from the contractor that is spelled out in the specification.
It incorporates some of the old specification 105.06, "Storage of Materials."
Section 105, "Control of Materials."
Subsection 105.08, "Nonconforming Materials,"
replaces the old subsection 105.08, "Unacceptable Materials."
In the new specification, there are alternatives defined for nonconforming materials
that include accepting materials with a guaranty bond or a reduction in unit price
or rejecting the materials and requiring full replacement.
Section 106, "Quality Assurance Acceptance Program."
In the 2003 book, Section 106 described the procedures for accepting materials
using the "Percent Within Limits" statistical methods.
All of this information has been moved to the Quality Assurance Manual,
except for the first paragraph.
Now, reference is made to the contract in the Quality Assurance Manual
for details of the "Percent Within Limits."
Section 107, "Legal Relations and Responsibilities to the Public."
Subsection 107.12, "Contractor's Responsibility for Utility Property and Services."
In the 2003 book, specific information was given to contact the Metro Region
personnel for utility property and services information.
This contact information has been removed from the 2012 book.
Now, the contractor must contact the maintenance representative at the appropriate MDOT region office
to receive the most current information.
Subsection 107.15.A.4, "Demolition or Renovation Notification,"
is a new subsection in the 2012 book.
It requires that the contractor must not begin demolition of any building or structure
without first giving appropriate notification as required by the contract.
Subsection 107.15.B and C,
"Construction Site Storm Water Runoff"
and "Control of Hazardous and Polluting Materials,"
have been enhanced to include requirements of the storm water permit
from the Michigan Department of Natural Resources and Environment.
Section 108, "Prosecutions and Progress."
Subsection 108.05, "Progress of the Work," incorporates the progress schedule requirements
that were in old Section 102.14, "Construction Progress Schedules."
Old subsection 108.02, "Performance of the Work,"
has been moved into new 108.05.B, "Prosecution of the Work."
If the contractor falls behind schedule,
the engineer may require updated progress schedules detailing the efforts that the contractor will make
to get back on schedule and complete the contract on time.
These additional efforts do not qualify as directed acceleration (that are described in 104.01.C)
and they are not compensable.
The old 108.03, "Limitations of Operations,"
has been moved in part to the new book in 104.08, "Cooperation by the Contractor."
This includes the language pertaining to disputes between two or more contractors.
In the new book, subsection 108.03, "Competence of Workers,"
has stronger language to ensure the competence of the workers on the project.
The old 108.04, "Competence of Contractor Supervision,"
has been relocated to the 2012 104.07, "Contractor Obligations."
Subsection 108.08.E gives the formula for increasing contract time based on increased contract quantities.
The formula remains the same;
however, the calculated extension of time cannot exceed the actual number of days required to do the work.
This is a change from the 2003 book.
Subsection 108.09.B, "Compensable Delays,"
is a new subsection in the 2012 book.
This subsection addresses delays that could not have been reasonably foreseen by the contractor
and may result in compensation to the contractor.
This subsection incorporates the first section of the 2003 book, 109.03,
"Payments for Increased Contractor Costs,"
and subsection 103.02, "Changes in the Work," that includes significant changes in the character of work,
differing site conditions, engineer-ordered suspensions,
extra work, and eliminated work.
Any costs of the contractor may have incurred due to these delays
would be reimbursed to the contractor in accordance with subsection 109.05.E, "Delay Costs."
Subsection 108.09.C, "Non-Excusable Delays,"
is also a new subsection in the 2012 book.
This subsection addresses delays that are the contractor's fault or responsibility.
These delays are non-compensable and no extensions of time will be granted.
Subsection 108.10.C, "Assessment of Liquidated Damages."
Liquidated damages are assessed on a project to recover construction engineering costs
as required by the federal regulations.
In the 2012 book, the liquidated damages table has been updated to reflect actual construction engineering costs.
In addition, several new categories have been added to the liquidated damages table.
Now there is a category for $10 to $20 million, $20 to $50 million,
and a category for $50 million or more.
Section 109, "Measurement and Payment."
In the 2003 book, subsection 109.03, "Payments for Increased Contractor Costs,"
has been deleted with portions moved to other places in the 2012 book.
Old 109.03.A has been moved to 108.09.B,
"Compensable Delays."
109.03.C in the 2003 book, "Method of Payment,"
has been revised and moved into the 2012 book 109.05.E, "Delay Costs."
In the 2003 book, subsection 109.05, "Eliminated Work,"
has been relocated into the 2012 book as 103.02.F, "Eliminated Work."
This allows for payment to the contractor for all direct costs incurred on the item
prior to the work being eliminated.
Subsection 109.05, "Payment for Contract Revisions," has changed significantly from the 2003 book.
All payment provisions are now included in this subsection.
Subsection 109.05.D.6, "Equipment and Plant,"
gives new definitions for force account equipment rental rates.
We are now defining the base hourly rate of a piece of equipment as equal to the rental rate
plus the operating rate, and all three are defined in the standard specifications.
The standby rate for equipment is equal to 50 percent of the rental rate.
In no case shall payment for equipment rental exceed the cost of the equipment.
Subsection 109.05.D.10(a),
"Force Account Employee Earnings Statement," has a new requirement.
That statement must now show the employee earnings to date.
This is because unemployment insurance is only paid on a portion of an employee’s earnings,
and once the employee exceeds those earnings there is no unemployment insurance charge.
In order to accurately determine if unemployment insurance is a cost of this additional work,
it is necessary to know the employee earnings to date.
Subsection 109.06.C in the 2003 book, "Materials Stockpiled Off-Site,"
has been eliminated.
That information has been combined with new subsection 109.04.B,
"Delivered and Stockpiled Materials."
There have been no major changes in the way this payment is made.
Subsection 109.05.E, "Delay Costs," is a new subsection in the 2012 book
and replaces in part old 109.03.C, "Payments for Increased Contractor Costs."
This specification gives a methodology for payment for compensable delays as defined in Subsection 108.09.B.
Subsection 109.05.F, "Directed Acceleration,"
explains how to compensate a contractor when they have been directed to accelerate work by the engineer
in order to avoid user delay costs or to complete the project early.
The directed acceleration compensation to the contractor does not include
compensation for acceleration when it’s done in accordance with 108.05.B,
"Prosecution of the Work."
This acceleration is done by the contractor to get back on schedule when they have fallen behind
and this does not qualify for reimbursement under directed acceleration.
Subsection 109.05.G, "Unrecoverable Costs,"
is a new subsection in the 2012 book.
This covers items such as loss of anticipated profit,
consequential damages, indirect costs,
attorney fees, litigation fees and field or home office overhead
except as provided in other provisions in the book.
These costs are typically not recoverable costs, meaning the contractor is not compensated for these costs.
Subsection 109.07, "Final Inspection, Acceptance, and Final Payment,"
includes some new subsections that address interim acceptance of projects.
Subsection 109.07.A, "Partial Acceptance,"
allows for the acceptance of completed portions of work on a project.
This is generally considered to be 100 percent completion of
portions of the work or locations of the work.
It relieves the contractor of maintenance responsibilities,
it is not final acceptance and it does not relieve the contractor for
responsibilities from defective work.
In the "Final Inspection, Acceptance, and Final Payment" subsection,
the delayed acceptance subsection discusses acceptance of such items as pavement markings, plantings, etc.
It is not final acceptance and does not relieve the contractor for responsibility to repair defective work.
Section 150, "Mobilization."
There have been no significant changes to this section from the 2003 version.