Leopardo Companies Inc.
Acme Hospital
Leopardo Companies Inc.
Acme Hospital
OR
Companies Inc. the Architect] may determine is suitable to protect Leopardo Companies Inc. and the Owner for all incomplete Work and any unsettled claims.
4. Overhead and profit shall be distributed into each item of work on a pro-rated basis.
D. Notwithstanding the foregoing, payment of retention shall be subject to all other conditions precedent that apply to payment as set forth in the Contract Documents.
C. The Schedule of Values, unless objected to by Leopardo Companies Inc., Owner or Architect, shall be the basis for the Subcontractor's application for payments.
PART 3 - PAYMENT FOR MATERIALS STORED OFF-SITE
D. Leopardo Companies Inc. shall have the right to require the Subcontractor to alter the value or add/delete categories listed on the Schedule of Values at any time for the following reasons:
3.01
PAYMENT FOR MATERIALS STORED OFF-SITE [NOTE THAT SOME PRIME CONTRACTS DO NOT ALLOW PAYMENTS FOR STORED MATERIALS AND SOME PRIME CONTRACTS PLACE DOLLAR LIMITS ON SUCH PAYMENTS. MAKE SURE TO COORDINATE THIS SECTION OF THE PROJECT MANUAL WITH THE PRIME CONTRACT] A. The Subcontractor, if intending to use an off-site storage area or facility for stored materials, shall submit a written request to the [INSERT Leopardo Companies Inc. AND OWNER] and obtain approval prior to submitting the first application for payment as described in Part 2 Applications for Payment. B. Payments [will/will not] be made for materials properly stored off site. [IF THE OWNER CONTRACT ALLOWS PAYMENT FOR STORED MATERIALS, INSERT THE REMAINDER OF THE SECTION] Properly stored shall mean in an insured warehouse with the Owner and Leopardo Companies Inc. being named as insureds, and all material identified as property of the Owner. The Subcontractor is responsible for all associated off site storage costs, transportation, insurance, including insurance coverage for stored material, while in transit, unless Subcontractor obtains written documentation that the material is covered during transit under a Builder’s Risk Policy applicable to the Project. Subcontractor shall provide Leopardo Companies Inc. and the Owner verification in writing for all material so stored. Such materials shall be protected from diversion, destruction, theft, and damage to the satisfaction of Leopardo Companies Inc., Owner and the Lender (if any), specifically marked for use on the Project, and segregated from other materials at the storage facility. The Subcontractor bears all risk of loss to materials and equipment stored off site. C. Subcontractors are to provide supporting documentation in the form of invoices, insurance policies, and any other pertinent documentation as requested by Leopardo Companies Inc. or Owner for items the items stored off-site. Documentation shall include the following:
1. The Schedule of Values appears to be incorrect or unbalanced.
2. A revision of the Schedule of Values is required due to the Subcontractor revising the sequence of construction or assembly of building components that in turn invalidates the Schedule of Values.
3. Change Orders are issued to the Subcontractor and shall be incorporated into the Schedule of Values as a separate line item at the bottom of the Schedule of Values.
E. The Subcontractor is required to correlate the documentation for payment of stored materials requested in the application for payment against the agreed upon breakdown of the Schedule of Values as described in Part 3 Payment for Stored Materials. Leopardo Companies Inc. reserves the right to not process the application for payment if this correlation has not been submitted in conjunction with the application.
2.02
APPLICATION FOR PAYMENT PROCESS
A. See the attached Leopardo Companies Inc. Subcontractor Draw Procedures at the end of this specification section.
B. The Subcontractor shall provide all supporting documentation substantiating the Subcontractor’s right to payment as the Owner, Leopardo Companies Inc. and the Architect may require.
2.03
REDUCTION OF RETENTION
[INSERT OTHER RETENTION AND RELEASE OF RETENTION TERMS TO COINCIDE WITH LEOPARDO COMPANIES INC.'S CONTRACT WITH OWNER OR AS REQUIRED - THE FOLLOWING IS CONSIDERED AN INDUSTRY STANDARD]
1. Detailed description of the material including quantities that will serve as a material description for the billing and as information to file a claim with an insurance company.
a. Stored Materials - Each item must be identified as to manufacturer, model number, and serial number, if applicable, or other identifiers should be listed for each item. Each listing must be accompanied by invoices, shipping tickets, consent of surety, and any other applicable supporting documentation. b. Stored Manufactured Building Materials - Each item must be identified as to type, manufacturer’s number or designation, and should also list the number of cartons and the contents therein storage. Each listing must also be accompanied by supporting documents including all invoices, shipping tickets and consent of surety. c. Stored Fabricated Materials - A listing specifying the number of pieces, items, and marks as may be applicable to the particular type of items. Photographs should accompany the request. 2. Individual itemized costs of materials and the total cost value, which shall not exceed the Subcontractor’s subcontractor or material supplier cost. The total cost value shall be supported by the Subcontractor’s subcontractor or material supplier invoices for the stored material.
A. [Leopardo Companies Inc./Owner] shall be entitled to withhold ten (10%) percent of each payment due to a Subcontractor until Substantial Completion of the Subcontractor’s Work. [OPTIONAL – CHECK PRIME CONTRACT FOR DETAILS ON RETENTION AND MIRROR THEM HERE. OR, IF AGENCY WORK, VERIFY WITH OWNER]: When fifty (50%) percent of the value of the Work has been satisfactorily completed, the Subcontractor may submit a written request to Leopardo Companies Inc. that no additional retainage be held throughout the balance of the Agreement. [Leopardo Companies Inc./Owner] may grant or deny the request in its sole discretion, based upon its opinion of the progress and performance of the Subcontractor through the date of the request. If the request is granted and the Subcontractor’s Work subsequently fails to meet contracted requirements, does not conform to Contract, or the Subcontractor does not meet its schedule commitments, the ten (10%) percent retainage shall be reinstated.]
B. The Subcontractor, when requesting a reduction of retention, shall submit to Leopardo Companies Inc., an AIA G707, Consent of Surety to Reduction In or Partial Release of Retention form.
C. Within thirty (30) days after Certificate of Substantial Completion has been issued for all portions of its Work, the Subcontractor’s retention may be reduced to a sum as [Leopardo Companies Inc./Leopardo
PROJECT MANUAL – REV DATE: 1/04 SECTION 01290 – Payment Procedures
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ISSUE DATE: January 1, 2006
PROJECT MANUAL – REV DATE: 1/04 SECTION 01290 – Payment Procedures
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ISSUE DATE: January 1, 2006
Leopardo Companies Inc.
Acme Hospital
Leopardo Companies Inc.
Acme Hospital
3. Estimated cost value for those materials that are fabricated by the Subcontractor’s subcontractor or material supplier.
B. See the attached Leopardo Companies Inc. Subcontractor Draw Procedures at the end of this specification section.
4. The location where the material is physically stored, including the warehouse address and storage location within the warehouse, such as bin number, aisle number or other designation. All material shall be segregated and marked. 5. Copies of the insurance policies that cover the stored materials and that names Leopardo Companies Inc. and the Owner as insureds. The limit of the insurance policy shall be equal to or greater than the replacement value of the stored materials. D. When Applications for Payment include products stored off the Project Site or stored on the Project Site but not incorporated in the Project, for which no previous payment has been requested, a complete description of such product shall be attached to the application.
C. Final payment will not be made until a “Final Release Subcontractor/Material-man” waiver has been submitted. The Final Release must be signed by an authorized representative of the Subcontractor and must be notarized. D. Final unconditional waivers will be required for all of Subcontractor’s Subordinate Parties listed on Subcontractor’s sworn statement. These final waivers must be submitted along with the final release, before payment can be made.
2.02
SUBTIER SUBCONTRACTORS
A. The Subcontractor’s second tier Subcontractor’s sworn statements, waivers and other supporting documentation will be required with each pay application.
E. Subcontractor shall submit a certificate of title listing the [Owner’s/Leopardo Companies Inc.’s] ownership in the off-site stored materials equal to the amount paid effective at the time funds are delivered.
F. [TO BE USED IF MATERIALS ARE TO BE STORED AT PREMISES OF A SECOND TIER SUBCONTRACTOR] If the size, quantity, and/or type of material or product is such that a bonded warehouse is deemed unsuitable, then, with Leopardo Companies Inc.'s approval, the Subcontractor may elect to prepay its subcontractor or supplier for certain material and products which are to remain on and be stored on that subcontractor/supplier’s premises until needed by the Project. In such event, the Subcontractor shall enter into a security agreement with the subcontractor/supplier under which the Subcontractor shall be granted a security interest in and to all such material and products fabricated and/or to be supplied by the subcontractor/supplier for this Project and stored on the subcontractor/supplier’s premises. This Security Agreement shall be a part of the financing statement, which shall be presented to a filing officer for filing pursuant to the Uniform Commercial Code. All expenses incurred in obtaining this security agreement shall be at Subcontractor’s sole cost and expenses, and shall not accrue to the Owner, Leopardo Companies Inc., Architect, nor the Project. A copy of each and every security agreement shall be filed with Leopardo Companies Inc. with the first Application for Payment which requests payment for such material or products. G. All payment requests for off-site stored materials must be accompanied by a "Payment Request for Stored Materials" and a "Subcontractor Affidavit for Stored Materials". Payment requests for stored materials not complying with the foregoing requirements will not be approved. Subcontractors are to notify the Leopardo Companies Inc. in ample time to conduct verification procedures.
END OF SECTION 01290
H. Subcontractors may not apply the cost of materials stored off-site towards a reduction in the retention amount.
I. Representatives of Leopardo Companies Inc., Owner and the Lender (if applicable) shall have the right to make inspections of the storage areas at any time.
PART 4 - WAIVERS OF LIEN AND SWORN STATEMENTS
2.01
WAIVERS OF LIEN
A. The Subcontractor’s first Application for Payment (see Part 2 Applications for Payment) will be based upon 100 percent of the value of Work installed. The first payment, amounting up to 90 percent of application, will be made to the Subcontractor without supporting documentation. Subsequent Applications for Payment must be accompanied by lien waivers from the Subcontractor, its Subordinate Parties or receipted invoices covering payment to the Subcontractor for previous calendar month period. Lien waivers must be unconditional and must show the amount paid.
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PROJECT MANUAL – REV DATE: 1/04 SECTION 01290 – Payment Procedures
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ISSUE DATE: January 1, 2006
PROJECT MANUAL – REV DATE: 1/04 SECTION 01290 – Payment Procedures
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ISSUE DATE: January 1, 2006
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