MATERIAL

11.  subcontractor payment certificates;

12.  canceled checks (payroll and vendors);

13.  job cost report;

14.  job payroll ledger;

15.  general ledger, general journal (if used), and all subsidiary ledgers and journals together with all supporting documentation pertaining to entries made in these ledgers and journals;

16.  cash disbursements journal;

17.  financial statements for all years reflecting the operations on this project;

18.  income tax returns, whether such records are maintained by the company involved, its accountant, or others;

19.  depreciation records on all company equipment;

20.  all other documents used to develop costs for the Contractor’s internal purposes to establish the actual cost of owning and operating equipment;

21.  all documents that reflect the actual Contractor profit and overhead during the contract performance and each of the five years before starting this project;

22.  all documents related to preparing the Contractor’s bid, including final documents on which the bid was based, unless all such documents were placed in escrow as specified in Subsection 103.08; and

23.  worksheets used to prepare the claim and establish cost components for claim items including, but not limited to, labor, benefits and insurance, materials, equipment, Subcontractors, and all documents that confirm time periods, individuals involved, and the hours and rates for the individuals.

105.19 Resolving Claims and Disputes

The Agency will establish the claims procedure that details the means and methods for resolving all claims and disputes.

SECTION 106 CONTROLLING MATERIAL

106.01 Supply Source and Quality Requirements

Use only materials that meet contract requirements. Notify the Engineer of the proposed source of materials to be used prior to their delivery. The Engineer may conditionally approve materials at

the supply source. Correct, to the satisfaction of the Engineer, or remove conditionally approved materials incorporated into the work that subsequently fail to meet contract requirements. Unless otherwise specified, use new materials for the work.

106.02 Local Materials Sources

The Agency may designate possible sources of local materials. Calculate the amount of equipment and work necessary to produce a material that meets specifications using these sources. Expect variations in material quality within the deposits. Procure material from designated portions of the deposit. The Engineer will reject material if it is unacceptable or fails to meet contract requirements.

The Agency may acquire and make available the right to take materials from designated sources, including the right to use the property as specified, or for plant site, stockpiles, and haul roads. If the Agency chooses to use this procedure, the contract will define the acquisitions and rights provided.

If material is obtained from sources not designated in the contract, acquire the rights to take materials from these sources and pay all related costs, including those for increased haul length and for exploring and developing sources.

Use material from other than designated sources only after Agency tests indicate that the material is of equal or better value than the Agency-designated source and after its conditional acceptance is received. Locate borrow pits, gravel pits, and quarry sites out of sight of the highway.

Excavate pits and quarries so that no water collects or stands on the site. Return the work site to a neat, presentable condition following the work.

For Contractor-acquired rights to borrow sources, perform required grading and reclamation, as required under the agreement with the property owner, when work is completed. Final project acceptance requires receipt of a written release from the property owner indicating that the Contactor has satisfied all agreement conditions.

106.03 Samples, Tests, and Cited Specifications

Incorporate into the work only material that has been inspected, tested, and accepted by the Agency. Remove unacceptable materials from the site at no cost to the Agency.

Unless otherwise designated, the Agency will perform testing at its expense using the most recent standard test methods of the Agency, or AASHTO or ASTM tests in effect at the time the job is advertised.

Test method precedence is as follows:

A.   The Agency’s Standard Materials Test Methods

B.   AASHTO

C.   ASTM

An Agency representative will perform or observe sampling and sample splitting of materials.

106.04 Certificate of Compliance

The contract or the Agency’s materials and testing schedule will designate materials or assemblies that can be incorporated into the work with certificates of compliance, signed by the manufacturer, stating that they meet contract requirements. Clearly identify each lot of certified materials or assemblies delivered to the work site, and ensure that the certificate of compliance accompanies each delivery and identifies the specification requirement satisfied.

The Agency may sample and test materials or assemblies used on the basis of certificates of compliance. The Agency will reject materials not meeting contract requirements.

106.05 Plant Inspection

The Agency may inspect materials at the acquisition or manufacturing source for compliance with specified manufacturing methods. Material samples will be obtained and tested for compliance with quality requirements.

Meet the following conditions if inspection is at the plant:

A.   Cooperate fully and assist the Engineer during the inspection.

B.   Ensure the Engineer has full access to all parts of the plant used to manufacture or produce materials.

C.   If specified, provide a building, located at the plant, for use by the Engineer, as required in Subsection 106.06.

D.   Provide and maintain adequate safety measures.

E.   Equip crushing or screening facilities with automatic or semiautomatic mechanical sampling devices.

The Agency may retest materials conditionally approved at the source prior to incorporation into the work and will reject material not meeting contract requirements.

106.06 Field Laboratory

Furnish on the plant site facilities in which the Agency may house testing equipment and perform required tests.

106.07 Foreign Materials

Unless otherwise noted in the contract, all testing is to be performed within the United States and witnessed by the Engineer. When specified, arrange and pay for any additional required testing that the Agency is unequipped to perform. If materials or processes require the performance or witnessing of testing at a foreign source, reimburse the Agency for all foreign inspection expenses.

Accompany all structural materials with mill test reports and certificates of compliance.

To ensure delivery of uniform material that meets requirements, the Agency will accept structural materials requiring mill test reports only from domestic manufacturers or manufacturers with proven plant quality control.

Quality control is established by submitting detailed written proof or through Agency inspection.

106.08 Storing and Handling Materials

Store and handle materials to preserve their quality and fitness for the work. Transport bulk materials in a manner that prevents loss or segregation after loading and measuring.

Store materials so that they can be easily inspected and retested as specified in Subsection 106.03.

Obtain approval to store materials and Contractor’s plant and equipment on the right-of-way. Additional storage space is at the Contractor’s expense and option. Obtain owner’s or lessee’s written permission before storing material on private property. Furnish copies of the permission to the Engineer, if requested.

Restore storage and plant sites to their original condition at no cost to the Agency.

106.09 Unacceptable Materials

The Engineer will reject all materials not meeting contract requirements. Remove rejected material immediately unless the Engineer approves defect corrections.

106.10 Agency-Furnished Material

Agency-furnished material will be delivered to or made available to the Contractor at locations specified in the contract.

Include the cost of handling and placing Agency-furnished material in the contract items in which they are used. After delivery, assume responsibility for delivered materials. The Agency will make deductions for the cost of shortages, deficiencies, and damage that may occur to the material after delivery. The Agency will also deduct demurrage charges resulting from the Contractor’s failure to accept material delivered as scheduled.

LEGAL RELATIONS AND RESPONSIBILITY TO THE PUBLIC

Observe and comply with all of the following that affect the conduct of work on the project, have jurisdiction or authority over the work, or that affect individuals engaged or employed on the project:

Accompany all structural materials with mill test reports and certificates of compliance.

To ensure delivery of uniform material that meets requirements, the Agency will accept structural materials requiring mill test reports only from domestic manufacturers or manufacturers with proven plant quality control.

Quality control is established by submitting detailed written proof or through Agency inspection.

106.08 Storing and Handling Materials

Store and handle materials to preserve their quality and fitness for the work. Transport bulk materials in a manner that prevents loss or segregation after loading and measuring.

Store materials so that they can be easily inspected and retested as specified in Subsection 106.03.

Obtain approval to store materials and Contractor’s plant and equipment on the right-of-way. Additional storage space is at the Contractor’s expense and option. Obtain owner’s or lessee’s written permission before storing material on private property. Furnish copies of the permission to the Engineer, if requested.

Restore storage and plant sites to their original condition at no cost to the Agency.

106.09 Unacceptable Materials

The Engineer will reject all materials not meeting contract requirements. Remove rejected material immediately unless the Engineer approves defect corrections.

106.10 Agency-Furnished Material

Agency-furnished material will be delivered to or made available to the Contractor at locations specified in the contract.

Include the cost of handling and placing Agency-furnished material in the contract items in which they are used. After delivery, assume responsibility for delivered materials. The Agency will make deductions for the cost of shortages, deficiencies, and damage that may occur to the material after delivery. The Agency will also deduct demurrage charges resulting from the Contractor’s failure to accept material delivered as scheduled.