N.Y. Comp. Codes R. & Regs. tit. 9 § 1646-5.6

Current through Register Vol. 46, No. 25, June 18, 2024

Section 1646-5.6 - Periodical estimates for partial payment

(a)Scope of instructions.

The instructions herein with respect to the preparation of a periodical estimate for partial payment and supporting documents are limited to the accounting features only and no procedures are included regarding the method of determining the quantities of work performed and the amounts due therefor. The latter are properly the province of the technical staffs of the local agency and the contractor, the architect, and the State's construction adviser.

(b)Schedule of amounts for contract payments.

Upon the award of a lumpsum contract covering more than one of the types of work listed on the front side of the periodical estimate for partial payment (Exhibit 13 of Appendix S-11), the contractor shall prepare for the approval by the architect and the local agency a breakdown of the contract price among the various types of work on forms DH-355A and DH-355B, Schedule of Amounts for Contract Payments, in an original and the required number of copies, as designated by the local agency. Forms DH-355A and 355-B are printed forms supplied by the division and are shown as Exhibits 11 and 12 of Appendix S-11. The original shall be retained by the local agency and copies, bearing the required signatures, shall be distributed to the contractor, the architect or other person in the field authorized to approve periodical estimates on behalf of the local agency, and to the State's construction adviser, for use in preparing and checking periodical estimates for partial payments. The breakdown of the contract price is reflected in column 6 of the Periodical Estimate for Partial Payment (form DH-356), as described in subdivision (d) of this section.

(c)Accounts payable voucher supports.

(1) The accounts payable voucher shall be supported by the originals of the following documents bearing the required approvals:

(i) Periodical Estimate for Partial Payment, form DH-356.

(ii) Schedule of Change Orders, form DH-357 (unless none issued).

(iii) Schedule of Materials Stored, form DH-358A (unless no advance requested).

(iv) Summary of Materials Stored, form DH-358B (unless no advance requested).

(2) All the above (see Exhibits 13 through 17 of Appendix S-11) are printed forms supplied by the division and shall be furnished by the local agency for use by contractors in preparing and submitting periodical requests for partial payments on the value of work performed during specific periods and for advances on account of materials stored on the site. The period to be included in a periodical estimate for partial payment shall, as a general rule, be a calendar month.

(3) The contractor, after approval by his authorized representative of the original and the required number (as designated by the local agency) of copies of the periodical estimate and the related and supporting documents, shall obtain the certification of the architect or other person in the field, authorized to do so on behalf of the local agency, and of the State's construction adviser, approving the work and the amount of the claim on the originals and all copies of the periodical estimate and supporting documents. The State's construction adviser shall retain a copy of the periodical estimate and supporting documents and the contractor shall transmit the originals and the required number of copies to the local agency for payment.

(d)Preparation of form DH-356, Periodical Estimate for Partial Payment.

The preparation of the documents supporting a Periodical Estimate for Partial Payment (form DH-356) will be described in subsequent paragraphs. Specific instructions for preparing form DH-356, shown as Exhibits 11 and 12 of Appendix S-11, follow:

(1) Numbering.

The periodical estimates shall be numbered consecutively by each contractor, beginning with no. 1 and continuing in sequence thereafter, notwithstanding the fact that in some months estimates may not have been submitted.

(2) Column 3 (front side).

This amount shall represent the value of work performed on each item during the period covered by the periodical estimate and is the difference between column 5 and column 4.

(3) Column 4 (front side).

No entry can be made in this column for the first periodical estimate; however, in succeeding months each item in column 5 from the preceding periodical estimate shall be transcribed to column 4.

(4) Column 5 (front side).

In this column shall be entered amounts representing the gross value of work in place for each item as at the closing date of the periodical estimate. In no instance shall the amounts appearing in this column exceed the amounts of the same items shown in column 6, (taken from form DH-355A and B, Schedule of Amounts for Contract Payments).

(5) Column 6 (front side).

Record in this column the identical amounts for each of the numbered items on the approved Schedule of Amounts for Contract Payments, form DH-355A and B. The total of this column recorded on line A shall equal the original contract amount.

(6) Column 7 (front side).

In this column shall be recorded an amount which is the difference between column 6 and column 5, and the amount will represent the scheduled value of uncompleted work to date.

(7) Columns 8 and 9 (front side).

The "Percent Completed-Period" is determined by dividing column 3 by column 6. The "Percent Completed- To Date" is obtained by dividing column 5 by column 6. These percentages shall be computed to one place beyond the decimal point.

(8) Line A (front side).

The amounts indicated thereunder are the column totals. It will be noted the total for column 6, original estimate, is the amount of the original contract price and must be in agreement at all times with the total of the Schedule of Amounts for Contract Payments, form DH-355A and B.

(9) Line B and C (front side).

The total amount from column 3, 4, 5, 6 and 8 of the Schedule of Change Orders, form DH-357, shall be appropriately recorded on these lines, as indicated in the table under (11) below.

(10) Line D (front side).

This line for grand total is self-explanatory.

(11) Source and disposition of amounts entered on lines A through D (front side).

The following table shows the source and the disposition of the column amounts on lines A to D inclusive:

Front side of periodical estimate		Schedule of change orders	Certification of contractor
(Line)	(Column)	(Column)	(Line)
A	5	-	to	8
A	6	-	to	1
B	3	from	4	-
B	5	from	5	to	9
B	6	from	3	to	5
C	3	from	7	-
C	5	from	8	to	10
C	6	from	6	to	6
D	5	-	to	11
D	6	-	to	7

(12) Certification of contractor (reverse side).

The certification on the reverse side includes the summary of amounts used to determine the net balance due. In the first paragraph there shall be appropriately entered the name of the local agency, the name of the contractor and the date of contract. An explanation of entries for each line of the certification follows:

(i)Line 1. This is the original contract price and shall agree with the total amount shown in line A, column 6 on the front of this form.

(ii)Line 2. If, under the contract, certain allowances are stipulated for such work as utility connections and associated items, for which the cost could not be predetermined, the total amount of such allowances shall be entered here, and such amounts shall not be considered as eligible for payment until validated for an appropriate amount as indicated on line 4 below.

(iii)Line 3. The amount to be shown here is the difference between line 1 and line 2.

(iv)Line 4. Enter on this line the total value of only such allowances included in line 2 as have been validated. The amount to be entered here is the original amount of the allowance; additions or deductions in connection with such validations will be reflected in change orders.

(v)Line 5. On this line shall be entered the total amount of additions on issued change orders. The amount shall be the total of column 3 on the schedule of change orders and line B, column 6 on the front of this form.

(vi)Line 6. Enter on this line the total amount of deductions on issued change orders and line C, column 6 on the front of this form. The net addition or deduction, plus line 4, shall be extended into the right-hand column.

(vii)Line 7. The amount obtained by computing the difference between line 3 and line 6 will establish the current adjusted contract amount.

(viii)Line 8. From the front of this form, the amount shown in line A, column 5 (value of work performed to date) shall be entered.

(ix)Line 9. Enter on this line that portion of the total value of issued change order additions, completed to date. The amount shall be the amount shown in column 5 of the schedule of change orders and line C. column 5 on the front of this form.

(x)Line 10. Enter on this line that portion of the total value of issued change order deductions, deductible to date. The amount shall be the amount shown in column 8 of the schedule of change orders and line C, column 5 on the front of this form.

(xi)Line 11. The total value of work performed to date is determined by adding line 8 and line 9, minus line 10. This amount shall be in agreement with line D, column 5 on the front of this form.

(xii)Line 12. Enter on this line the percentage of the amount representing the value of work performed to date to be retained and record the amount retained in the right-hand column. See section 1646-5.5 in this connection.

(xiii)Line 13. This amount is determined by subtracting line 12 from line 11.

(xiv)Line 14. The amount to be entered on this line is brought forward from line 13 on the previously approved periodical estimate.

(xv)Line 15. This amount is determined by subtracting line 14 from line 13.

(xvi)Line 16. In preparing estimates for partial payments to the contractor, the value of materials delivered to the site may be taken into consideration. Enter on this line the net amount of materials stored as shown on the Summary of Materials Stored, form DH-358B.

(xvii)Line 17. The amount to be entered on this line is to be brought forward from line 16 on the previous periodical estimate.

(xviii)Line 18. The amount to be entered on this line is determined by computing the difference between line 16 and line 17. The amount shown on line 16, representing the allowance for materials stored as shown on previous estimate, must be liquidated in full on each succeeding estimate and will result in an addition or a deduction from the amount on line 15 in determining the balance due this payment on line 19.

(xix)Line 19. The amount to be entered on this line is computed by adding (or subtracting) line 15 and line 18 and represents the net amount due the contractor for the current periodical estimate.

(xx) Prior to the submission of the first periodical estimate, the contractor shall forward to the local agency a letter stating the name and title of officer, or employee, or/and their alternates, authorized in its behalf to submit, approve and certify periodical estimates. The certificate provides space in the last paragraph for the insertion of the contractor's name and the signature of the authorized representative of the contractor.

(13) Certificate of architect.

This block is headed, "Certificate" and appears immediately beneath the certificate of the contractor. It is to be appropriately completed by the architect, or his authorized representative, before transmittal to the local agency for payment, where the architect, under his contract, inspects and supervises the construction work. Should the local agency itself inspect and supervise the construction work performed in lieu of the architect, the authorized field representative of the local agency shall sign in this block.

(14) Certificate of owner.

This block shall be appropriately completed by the local agency and signed by the executive officer of the person designated by the board of the authority, before payment is made to the contractor.

(15) Approval of Division of Housing.

Provision has been made in the certificate of architect block for the approval of the periodical estimate by the State's construction adviser or other authorized representative of the division. Such approval shall be obtained after all other approvals have been obtained and prior to payment by the local agency.

(e)Schedule of change orders.

(1) Form DH-357, Schedule of Change Orders, is a printed form supplied by the division and is shown as Exhibit 15 of Appendix S-11. Supplies of this form shall be furnished by the local agency to the contractor for use in preparing periodical estimates. Every Periodical Estimate for Partial Payment (form DH-356) shall be supported by a schedule of change orders, in an original and the required number of copies, unless no change orders have been issued since the award of the contract. The fact that no change orders have been issued during the period covered by a given periodical estimate will not remove the necessity for supporting the periodical estimate with a schedule of change orders.

(2) It will be noted on the specimen form of DH-357 (Exhibit 15 of Appendix S-11) that provision has been made for an analysis, in summary form, of the adjusted contract amount, to date. Only the total column of this analysis shall be completed, and the distribution to dwelling facilities and non-dwelling facilities shall be disregarded.

(f)Advances to contractors for materials stored at site.

(1) When the conditions of a contract so provide, an advance of funds may be made to the contractor for materials suitably stored at the site of the project proper by him of [sic] his subcontractors to the extent of 90 per cent of their value.

(2) In the event the contractor applies for such an advance, a Schedule of Materials Stored, form DH-358A, shall be prepared by him and submitted as a supporting document of the periodical estimate for partial payment, such form bearing the signature of the person or persons preparing and checking the inventory. This form and form DH-358B, Summary of Materials Stored, are printed forms supplied by the division and are shown as Exhibits 16 and 17 of Appendix S-11.

(3) The contractor and his subcontractors in preparing this schedule shall submit separate listings and total values of materials, which shall be identified by, and keyed with, the items shown on the Schedule of Amounts for Contract Payments (form DH-355).

(4) The unit price as scheduled shall not exceed the net purchase price as reflected by invoices or the amounts for materials set forth in the Schedule of Amounts for Contract Payments (form DH-355), whichever is applicable. Unit prices of materials stored are required, except in instances where materials are invoiced at a lump sum price. In such cases full explanation is necessary.

(5) The local agency shall require that:

(i) the total value of materials stored, plus

(ii) an adequate estimated allowance for labor costs to cover installation, plus

(iii) the value of work in place as reported on the current estimate, shall not exceed the approved total amount of the particular item as reflected in the schedule of amounts for contract payments.

(6) It is suggested that the inventory be limited to items of consequential value and a minimum for particular items be fixed by the local agency.

(7) The amount allowed monthly for materials stored shall not be cumulative. The inventory previously allowed shall be deducted in full on line 17, of each estimate, and the amount of the new inventory entered on line 16 on reverse side of estimate.

(8) A summary of amounts as detailed in the Schedule of Materials Stored, from DH-358A, shall be recorded on Summary of Materials Stored, form DH-358B, and grouped so as to identify the materials of the contractor and each subcontractor, and in each case keyed with the appropriate item numbers. There shall be allowed for such stored materials 90 per cent of its established value and the net amount only, shall be carried to the periodical estimate on line 16. No retention shall be established with these allowances, as the amount first allowed will be deducted in full in each succeeding estimate.

(9) The certificate provided at the bottom of the summary of materials stored shall be properly executed by the authorized representative of the local agency.

(10) The net amount of the advance shall be included in the amount charged to account 1400, Development Costs, and a record thereof shall be made in the contractors ledger, all as described in section 1646-5.4.

(g)Advances to contractors for materials stored off the site.

Under certain special circumstances, advances may be made to contractors for materials stored off the site of the project proper. Local agencies are requested to apply to the division for the appropriate forms, instructions, and authorizations.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 1646-5.6