Specifications. A sample letter format which the Contractor should be encouraged to use is shown in Figures 109-2 and 109-2A. The Contractor is responsible for certifying that the material meets the requirements of the Specifications for the stage of production at which the material is stored and for obtaining the consent of the Surety for the payments to be made.
NOTE: For payment of materials estimates on Enhancement Projects and Owner Administered Projects, refer to Subsections 112A.04 and 112B.04 of this Manual.
Payment for quantities in excess of plan quantity or those anticipated to be required for the project will not be made. Advance payment for materials will be made on a Materials Estimate.
All materials for which advance payment is made must be stored or stockpiled separately in an approved location, which must be within the State of Arkansas. This requirement may be waived if the Contractor provides the Department a separate bond for the full amount of the requested estimate. Storage or stockpiling must be such that the material is conveniently accessible for inspection and/or sampling. The material must be protected from loss in quantity, deterioration in quality, or other types of damage. The material must meet the requirements of the Specifications for the stage of production at
which the material is stored. (a) Determination of Unit Price.
The Unit Price for advanced payment of
materials must be based on the Contractor's cost for the material. The Unit Price will be approved by the State Construction Engineer prior to payment of the Materials Estimate. The Unit Price will usually be computed to 5 decimal places for SiteManager projects and to 3 decimal places for FieldBook projects.
(b) Paid Invoices. For materials purchased by the Contractor, the Contractor's cost for the material is the amount the Contractor has actually paid to the supplier, including associated freight charges and taxes. These costs will be those shown on documents which have been certified by the supplier. These documents shall show the identification of the material, the quantity, and the price paid by the Contractor. They
must be "PAID" invoices, signed by the supplier and the signature notarized.
documentation must also include a certification by the Contractor that the material meets the specification requirements for the stage of production at which the material is stored.
For materials produced by the Contractor, the Unit Price to be paid will be based on documented evidence of the Contractor's cost of production. Production costs include cost of material, royalty payments, freight costs, costs of equipment and labor, insurance, and overhead involved in the production and delivery of the material to the project. A certificate of ownership shall be provided if royalty payments are not made. These costs shall be furnished to the Engineer by the Contractor with his original letter requesting the advance payment. Preliminary approval of the Unit Price may be obtained by telephone from the Construction Office; however, final approval will be made after the Contractor's letter has been reviewed by the State Construction Engineer. The letter may be sent to the Construction Office for review and approval prior to preparation of the Materials Estimate, or it may be sent as an attachment to the Materials Estimate.