96E02/14/07

S109-96E.doc

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  Use on all projects.

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**Section 109. - MEASUREMENT AND PAYMENT**

**109.01 Measurement Methods.** [Add the following after the third
paragraph:]{.underline}

Submit measurement notes to the CO within 24 hours of performing the
work. For on-going work, submit measurement notes weekly. When work is
not complete, identify the measurement as being an interim measurement.
Submit the final measurement when the installation is completed.
Measurement notes form the basis of the Government\'s receiving report
(see Subsection 109.08(d)). For lump sum items, submit documentation to
support invoiced progress payment on a monthly basis.

Use an acceptable format for measurement records. As a minimum, include
the following information in all records of measurement:

(1) Project name and number

(2) Contract item number

(3) Date the work was performed

(4) Location of the work

(5) Measured quantity

(6) Calculations made to arrive at the quantity

(7) Supporting sketch and/or details as needed to clearly define the
    work performed and the quantity measured.

(8) Names of persons measuring the work

(9) Identification as to whether the measurement is interim or final

(10) Signed certification statement by the persons taking the
     measurements, performing the calculations, and submitting them for
     payment that the measurement and calculations are correct to the
     best of their knowledge and that the quantity being measure is
     subject to direct payment for the identified item under the
     contract.

**109.02 Measurement Terms and Definitions.**

**(m) Square yard**. [Delete the text and substitute the
following:]{.underline}

**(m) Square yard**. 9 square feet. Measure on a plane parallel to the
surface being measured. No deductions from the area computation will be
made for individual fixtures having an area of 9 square feet or less. Do
not measure overlaps.

**109.06 Pricing of Adjustments.**

**(a) Proposal.**

> **(3) Cost or pricing data.** [Delete the third paragraph and
> substitute the following:]{.underline}
>
> Submit with the cost or pricing data a written proposal for pricing
> the work according to (1) above. See Table 15-2 following FAR Subpart
> 15.4 for guidance.

**109.08 Progress Payments.** [Delete the text and substitute the
following:]{.underline}

FAR Clauses 52.232-5 - Payments under Fixed-Price Construction Contracts
and 52.232-27 - Prompt Payment for Construction Contracts are
supplemented as follows:

**(a) General**. Only invoice payments will be made under this contract.
Invoice payments include progress payments made monthly as work is
accomplished and the final payment made upon final acceptance. Only one
progress payment will be made each month. No progress payment will be
made in a month when the work accomplished results in a net payment of
less than \$1,000. Full or partial progress payment will be withheld
until a construction schedule or schedule update is submitted to and
accepted by the CO.

**(b) Closing date and invoice submittal date.** The closing date for
progress payments will be designated by the CO. Include work performed
after the closing date in the following month\'s invoice. Submit
invoices to the designated billing office by the 7th day after the
closing date. Invoices received by the designated billing office after
the 16th day following the closing date will not be accepted for payment
processing that month. Include late, unprocessed invoice submittals in
the following month\'s invoice.

**(c) Invoice requirements.** Submit the invoice to the government\'s
designated billing office. Include the following items in the invoice:

> **(1)** The information required in FAR Clause 52.232-27(a)(2)(I)
> through (a)(2)(x).
>
> **(2)** A tabulation of total quantities and unit prices of work
> accomplished or completed on each pay item as of the monthly closing
> date. Do not include any quantities unless field note documentation
> for those quantities was submitted by the closing date. Do not include
> any work involving material for which test reports required under
> Sections 153 or 154 or certifications required by Subsection 106.03
> are past due as of the closing date.
>
> **(3)** The certification required by FAR Clause 52.232-5(c) and, if
> applicable, the notice required by FAR Clause 52.232-5(d). Provide an
> original signature on the certification. Facsimiles are not
> acceptable.
>
> **(4)** If applicable, a copy of the notices that are required by FAR
> Clause 52.232-27(e)(5) and (g).
>
> **(5)** The amount included for work performed by each subcontractor
> under the contract.
>
> **(6)** The total amount of each subcontract under the contract.
>
> **(7)** The amounts previously paid to each subcontractor under the
> contract.
>
> **(8)** Adjustments to the proposed total payment which relate to the
> quantity and quality of individual items of work. Adjustments for the
> following may be made by the Government after validation of the
> invoice.
>
> *(a)* Retent resulting from a failure to maintain acceptable progress.
>
> *(b)* Retent resulting from violations of the labor provisions.
>
> *(c)* Retent pending completion of incomplete work, other \"no pay\"
> work, and verification of final quantities.
>
> *(d)* Obligations to the Government such as excess testing cost or the
> cost of corrective work pursuant to FAR Clause 52.246-12(g).
>
> *(e)* Liquidated damages for failure to complete work on time.

**(d) Government\'s receiving report.** The Government\'s receiving
report will be developed using the measurement notes received and
accepted by the CO. Within 4 days after the closing date, the CO will be
available by appointment at the Government\'s designated billing office
to advise the Contractor of quantities and unit prices appearing on the
Government\'s receiving report.

**(e) Processing progress payment requests.** No payment will be made
for work unless field note documentation for the work was provided by
the closing date.

> **(1) Invoices received by the 7th day following the closing date.**
>
> *(a) Proper invoices.* If the invoice meets the requirements of
> Subsection 109.08(c), and the quantities and unit prices shown on the
> Contractor\'s invoice agree with the corresponding quantities and unit
> prices shown on the Government\'s receiving report, the invoice will
> be paid.
>
> *(b) Defective invoices.* If the invoice does not meet the
> requirements of Subsection 109.08(c), or if any of the quantities or
> unit prices shown on the Contractor\'s invoice exceed the
> corresponding quantities and unit prices shown on the Government\'s
> receiving report, the invoice will be deemed defective and the
> Contractor so notified according to FAR Clause 52.232-27(a)(2).
> Defective invoices will not be corrected by the Government and will be
> returned to the Contractor within 7 days after the Government\'s
> designated billing office receives the invoice.
>
> Revise and resubmit returned invoices by the 18th day following the
> closing date. The CO will evaluate the revised invoice. If the invoice
> still does not meet the requirements of Subsection 109.08(c), the
> Contractor will be so notified according to FAR Clause
> 52.232-27(a)(2), and no progress payment will be made that month.
> Correct the deficiencies and resubmit the invoice the following month.
>
> If the revised invoice meets the requirements of Subsection 109.08(c),
> but still had quantities or unit prices exceeding the corresponding
> quantities and unit prices shown on the Government\'s receiving
> report, the Government\'s data for that item or work will be used. The
> Contractor\'s invoice, as revised by the Government\'s receiving
> report, will be forwarded for processing by the 23rd day following the
> closing date. The Contractor will be notified by the 23rd day
> following the closing date of the reasons for any changes to the
> invoice.
>
> **(2) Invoices received between the 8th and 16th day following the
> closing date.**
>
> *(a) Proper invoices.* If the invoice meets the requirements of
> Subsection 109.08(d), and the quantities and unit prices shown on the
> Contractor\'s invoice agree with the corresponding quantities and unit
> prices shown on the CO\'s receiving report, the invoice will be deemed
> proper and forwarded for processing within 7 days of receipt.
>
> *(b) Defective invoices.* If the invoice does not meet the
> requirements of Subsection 109.08(d), the invoice will be deemed
> defective, the Contractor so notified according to FAR Clause
> 52.232-27(a)(2), and no progress payment will be made that month.
> Correct the deficiencies and resubmit the invoice the following month.
>
> If the invoice meets the requirements of Subsection 109.08(d), but has
> quantities or unit prices exceeding the corresponding quantities and
> unit prices shown on the Government\'s receiving report, the
> Government\'s data for that item of work will be used. The
> Contractor\'s invoice, as revised by the Government\'s receiving
> report, will be forwarded for processing within 7 days of the
> Government\'s receipt of the invoice. The Contractor will be notified
> of the reasons for any changes to the invoice.

**(f) Partial payments.** Progress payments may include partial payment
for material to be incorporated in the work, provided the material meets
the requirements of the contract and is delivered on or in the vicinity
of the project site or stored in acceptable storage places.

Partial payments for stockpiled manufactured material (aggregates) will
be based on Contractor process control test results. If test results
show the material to be out-of-specification, or in \"reject\" where
statistical evaluation procedures are used, no payment for stockpiled
materials will be made.

Partial payment for material does not constitute acceptance of such
material for use in completing items of work. Partial payments will not
be made for living or perishable material until incorporated into the
project.

Partial payments for material will not exceed the lesser of:

> **(1)** 80 percent of the contract bid price for the item, or
>
> **(2)** 100 percent of amount supported by copies of invoices
> submitted.
>
> The quantity paid will not exceed the corresponding quantity estimated
> in the contract.

**109.09 Final Payment.** [Delete the first sentence and substitute the
following:]{.underline}

FAR Clause 52.232-5, Payment under Fixed-Price Construction Contracts,
and FAR Clause 52.232-27 - Prompt Payment for Construction Contracts are
supplemented as follows: