overview of odot construction - oregon.gov

Overview of ODOT Construction

1

5 Regions

16 Construction Crews &17 Consultant REs

260 Full Time Inspectors

98 HQ Construction Staff

130 to 150 projects per year

$400M annual program20% state funded

How to Find Work?• Projects in Your Area• Doing Business with ODOT• Upcoming Projects and Bid Lettings

– ODOT eBIDS, these are projects in Oregon’s STIP, typically large in scale and sometimes complexity, Federal/State Funding mix

• Business Oregon/COBID– Subcontractors - work to expand your NAICS Codes

• ORPIN & OregonBuys– ORPIN/OregonBuys are small & often limited in

complexity, State Funded, Contract requirements similar to STIP projects

• Engage with:– AGC-Oregon, NMAC-Oregon, PDBG, APAO, OCAPA 2

Plans, Specs & Estimates

Advertisement, Bid, & Award

Notice to Proceed

Pre-Construction Meeting

First Notification

Project Work

Second Notification

Third Notification

Final Acceptance & Payment

https://www.oregon.gov/odot/Projects/Pages/default.aspx

https://www.oregon.gov/odot/Business/Procurement/Pages/index.aspx

https://www.oregon.gov/ODOT/Business/Procurement/Pages/Letting_Schedules.aspx

https://www.oregon.gov/odot/Business/Procurement/Pages/Bid_Award.aspx

https://www.oregon.gov/odot/stip/pages/index.aspx

http://www.oregon4biz.com/How-We-Can-Help/COBID/

https://orpin.oregon.gov/open.dll/welcome

https://www.agc-oregon.org/

https://namc-oregon.org/

https://pbdgweb.com/

http://www.apao.org/

https://www.ocapa.net/

ODOT Construction Milestones

& Process Checks


Advertisement Bid Award

Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Plans, Specifications and Estimate (PS&E)

• Final contract documents delivered to Office of Pre-Letting via ODOT Regions

• Quality control conducted prior to advertisement• Final quality control includes among other checks:

– Funding available for total construction project authorization

– Plans and specifications are complete– Permits are secured– Right of Way is certified– Legal sufficiency check

has been satisfied

4



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Plans, Specifications and Estimate (PS&E)

• Final Engineer’s Estimate (FEE) – ODOT’s internal cost estimate based on:

– Historic bid item costs– Material price trends– Presumption of the means & methods – Schedule completion dates, including interim milestones

• FEE does not include:– Anticipated items– Contingencies– Escalation (+ or -)

5



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification



• Advertisement 3 to 7 weeks depending on project size and complexity

• ODOT Resident Engineer (RE) takes lead role• During advertisement, contractor has opportunity

to ask for clarification and visit the project site • Select projects require mandatory pre-bid meeting• Bid dates are generally each Thursday, with 5 to 15

projects typically bid each month• Bid volume ranges from about 130 to 150 projects

in a typical year

6



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Advertisement, Bid & Award

• Each pre-qualified contractor submits bid based on:– Work described in the contract documents– Contractor’s understanding of the project requirements– Contractor’s means and methods– Price for each pay item– All pay items then add to a total bid cost

o Note: Total bid cost is based on estimated quantities and does not include items such as escalation, de-escalation, & performance pay factors

• Each contractor’s total bid cost is compared to other qualified bids and ODOT’s Engineer Estimate

• Lowest qualified total bid cost becomes apparent low bidder

7



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification



• ODOT Procurement Office (OPO) reviews bids for:– Required submittals received timely and meet contract

requirements

• If bid is deemed responsive, then the contract is awarded

• If bid is deemed non-responsive, then ODOT considers award to the next lowest responsive qualified bidder

• OPO provides Notice of Intent to Award

8



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Construction Authorization

• Construction authorization summarizes commitment of project budget, which generally includes:

– Contract Amount - bid items sum included in the Bid– Anticipated Items - potential items of Work such as:

o Railroad Flagging, Utility Connections, Public Information– Contingencies - 3.5% of Contract Amount, i.e. original bid:

o Funding for project quantity fluctuationo Performance pay factorso Changes in the Work

– Escalation (+ or -):o Not in project budgeto Fuel, Asphalt, & Steel

9



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Notice to Proceed

• Notice to Proceed will be issued within 5 Calendar Days after Contract is executed by ODOT

• Written Notice authorizing Contractor to begin Work• Pre-construction Conference will be held within 30

Calendar Days of the Notice to Proceed

10



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification



• ODOT RE contacts Contractor:– Schedules Pre-Construction Conference– Required to occur within 30 days of Notice to Proceed

• Contractor submits:– Project Schedule, Quality Control Plan, Traffic Control

Plan, Erosion & Sediment Control Plan; and Pollution Control Plan, among other required items

11



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification



• ODOT RE & Contractor discuss items such as: – Safety, key personnel, and major project elements– Communication channels– Documentation and payment requirements– Means and methods of contractor’s work

o Automated Machine Guidanceo Staging to accommodate all modes - rail, truck, bike,

pedestrian, ADA, auto, & special events– Utility or environmental concerns– Surveying

12



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


First Notification

• ODOT RE written Notification to Contractor• Contractor begins on-site Work• Provides Work start date for Contractor or their

Subcontractors, including:– Mobilization of equipment & resources– Aggregate source development, if any– Erection of a plant, if required – Other Contract items

13



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Project Work – Delegation of Authority

• Oregon Transportation Commission (OTC) delegates certain authorities to ODOT

• Contract Administration Engineer has authority to approve:

– Contract Change Orders, Extra Work Orders, & State Force Orders

– Contract Time Adjustments– Progress & Final contract payments– Construction Claim settlements– Serves as Statewide Department of Justice (DOJ) Liaison

• RE obtains changes to Contract approvals

14



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Project Work Authorities, Roles, & Responsibilities

• ODOT RE is responsible for:– Ensuring work is completed per Contract requirements– Providing certified staff to monitor the Work & document

compliance– Verifying quality of materials & workmanship– Performing measurement & payment for actual quantities

• ODOT RE has delegated authority to:– Suspend work and/or withhold payment for safety issues or

non-compliance– Remove unacceptable employees/subcontractors – Initiate Change Orders to modify, add, or delete Work

15



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Project WorkRoles & Responsibilities

• Contractor is responsible to:– Coordinate with utilities and other contractors; – Provide notifications for traffic changes & Mobility Group;– Contact RE for any necessary clarification or interpretation

of the Contract; and – Promptly notify RE of any disagreements or disputes,

including disputed work, differing site conditions, or delays.

16



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Project WorkRoles & Responsibilities

• Contractor must:– Provide ALL required paperwork and quality documentation– Comply with laws and permits– Schedule and control of means & methods– Provide materials, equipment, & labor– Manage subcontractors and suppliers– Satisfy labor law requirements; DBE, OJT, & TERO goals– Ensure quality workmanship– Perform materials testing (QC)– Other Contract obligations

17



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Project Work – Inspection Activities

• ODOT RE staff:– Ensure contract compliance;– Record daily activities;– Take measurements & calculate payment quantities; – Conduct DBE Commercially Useful Function reviews; – Conduct labor compliance interviews;– Monitor contractor’s quality control testing;– Coordinate quality assurance testing;– Prepare monthly progress (pay) estimates;

o Construction Section processes monthly progress estimates for payment;

– Reject non-conforming Work; and– Provide Contract clarification.

18



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Project Work – Prosecuting the Work

• Contractor submittals & notifications:– Weekly and monthly schedule updates;– Equipment lists & working drawings;– Daily traffic control & erosion control monitoring;– Quality control & conformance documentation;– Certified payrolls; and– Disagreements & disputes

o Delays to progresso Differing site conditionso Changed or extra work

19



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Project Work – Prosecuting the Work

• ODOT submittals & notifications process:– Review, comment, or approve contractor submittals;– Review and respond to notices;

o Disagreements & disputeso Delays and/or differing site conditionso Changed or extra work

• Negotiate & prepare contract change orders for changes and/or unanticipated items; and

• Prepare extra work orders to perform workon a time-and-materialsbasis.

20



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Project Work – Disagreements & Claims

• Contract is only between ODOT & Prime Contractor; • ODOT does not consider direct disagreements,

protests, or claims from subcontractors, suppliers, or any other entity not a party to the Contract;

• Contract disagreement, protest, & claims process; – Contractor raises disagreements or protest to RE for

resolution– If this discussion fails, then the contractor follows the

protest procedure

• Claims process has a tiered authority level structure, with the Contract Administration Engineer (CAE) having final approval authority; and

• CAE works with DOJ, may include litigation. 21



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Project Work – Quality Assurance

• Contractor provides Quality Control testing;• ODOT checks contractor testing per our Quality

Assurance (QA) program;• QA program complies FHWA requirements; and• Success of ODOTs QA program is dependent on

three primary features:– Laboratory Certification– Technician Certification– Specific product testing

o Verification testingo Independent assurance

22



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Project Work – Assurance

• CAE deploys Regional Assurance Specialists (RAS) to:– Provide ongoing quarterly review of project documentation

based on Contract requirements;– Provide final project documentation review & recommend

corrective actions if needed;– Recommend project documentation acceptance to CAE; and– Work toward statewide consistency in contract

administration processes, guidelines, & issue resolution.

• RAS reviews validates:– Quality & measurement for payment; and– FHWA Stewardship Agreement tied to federal funding.

23



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Project Work – Labor Compliance

• RE monitors the Contractor & subcontractors :– Labor compliance; and– Certified payroll reports.

• RE conducts Commercially Useful Function (CUF) reviews to evaluate DBE Contract compliance:

• CUF review includes:– DBE Management;– DBE Equipment;– DBE Workforce;– DBE Materials; and– DBE Performance.

24



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Project Work – Get paid promptly!

• All parties comply with the Contract• Submit all contractually required documents

– Payroll, quality documents, and submittals

• Read and understand monthly progress payment– RE and Contractor should expedite reviews– Understand Materials-on-Hand (MOH) requirements

o Request made, securely stored, and protectedo Proof of payment to supplier within 30 days of

payment by ODOT

25



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


• Use electronic depositing your payment

• Call if in doubt, RE first, then CAE

Project work - Prompt Payment!

• Doc Express – Quick Overview & Payments Drawer– Drawer Z05 Payments

• Prompt Payment Issues– Prime Contractors

o Work through the RE first, then contact Contract Admin Engineer if needed.

– Subcontractors & supplierso Work through Prime Contractors first, then contact

RE, then Contract Admin Engineer if needed.

• Contacts if issues persist:– Chris Bucher PE, ODOT Contract Admin Engineer– Joe Squire PE, State Construction & Materials Engineer

26



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


mailto:BUCHER%20Chris%20M%20%[email protected]%3e

mailto:SQUIRE%20Joe%20%[email protected]%3e

Second Notification

• End of Contract Time, bid item work is complete.• RE written acknowledgement to Contractor.• Second notification also lists:

– Date time charges stopped & liquidated damages for work not complete beyond specified contract completion date

– Submittals, required certifications, bills, warranties, certificate of insurance, & other required documentation.

– Development of corrective work item list (Punch List).– Equipment to be removed from the project site.– Starts 45-day period to file claims.

27



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Final Inspection

• Contractor notifies RE the project is complete.• RE has 15 calendar days to review project & notify

Contractor remaining Work. • Contractor has completed all Work & fulfilled

Contract as determined by the RE.

28



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Third Notification

• After final inspection, RE provides contractor written acknowledgement, subject to Final. Acceptance, the project completion date including:

– Submittal of all quality certifications, warranties, bills, forms, and documentation (labor compliance, civil rights documents, etc.).

– All minor corrective work completed.– De-mobilization.– Site clean-up.

29



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


Final Acceptance / Final Payment

• Written acknowledgement RE:– Project has been completed per the Contract.– Exception - any latent defects & warranty obligations.

• 30 calendar days after Third Notification if Final Payment has not occurred, interest accrues on unpaid portion.

• Contractor has 30 days after final payment receipt to file claims of error in final quantities & amounts.

30



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification

Final Acceptance &Payment

How to Find Work?• Projects in Your Area• Doing Business with ODOT• Upcoming Projects and Bid Lettings

– ODOT eBIDS, these are projects in Oregon’s STIP, typically large in scale and sometimes complexity, Federal/State Funding mix

• Business Oregon/COBID– Subcontractors - work to expand your NAICS Codes

• ORPIN & OregonBuys– ORPIN/OregonBuys are small & often limited in

complexity, State Funded, Contract requirements similar to STIP projects

• Engage with:– AGC-Oregon, NMAC-Oregon, PDBG, APAO, OCAPA 31



Notice to Proceed


First Notification

Project Work

Second Notification

Third Notification


https://www.oregon.gov/odot/Projects/Pages/default.aspx

https://www.oregon.gov/odot/Business/Procurement/Pages/index.aspx

https://www.oregon.gov/ODOT/Business/Procurement/Pages/Letting_Schedules.aspx

https://www.oregon.gov/odot/Business/Procurement/Pages/Bid_Award.aspx

https://www.oregon.gov/odot/stip/pages/index.aspx

http://www.oregon4biz.com/How-We-Can-Help/COBID/

https://orpin.oregon.gov/open.dll/welcome

https://www.agc-oregon.org/

https://namc-oregon.org/

https://pbdgweb.com/

http://www.apao.org/

https://www.ocapa.net/

overview of odot construction - oregon.gov

Documents