udot university project financial management
DESCRIPTION
UDOT University Project Financial ManagementTRANSCRIPT
PROJECT FINANCIALMANAGEMENTYour Path to Project Accounting
Fall 20
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2
Table of Contents
Last revised 10/17/2012
1- INTRODUCTION.................4 • ThePathtoUnderstanding
ProjectFinance
2- BASIC PROJECT ACCOUNTING....................7
• AccountingSystemvs.Business System
• ProjectFunding • FiscalAccounting • UnderstandingFederal-aid • ProjectCostManagement • ProjectAccountingReportToolbox • FundingIncrease/DecreaseProcess • PotentialFinancialHazards • Summary
3- PROJECT PIN CREATION PROCESS........................18
‘PROPOSED’ to ‘STIP’ Status • ProjectPINCreationProcess
Overview • PotentialFinancialHazards • Summary
4- CONCEPT DEVELOPMENT (CD) PROCESS................21
‘PROPOSED’ to ‘CONCEPT COMPLETE’ Status
• CDBudget • ConceptReportCostEstimate • CDProcess • PotentialFinancialHazards • Summary
5- PRECONSTRUCTION PROCESS........................25 ‘SCOPING’ to ‘ACTIVE’ Status
• ScopingtoActiveDesign • In-houseResources • ConsultantServicesContracts • LocalGovernmentSponsoredProjects • ProcurementGuidelines • LocalGovernmentandThird-party
Betterments(FacilityUpgrades) • Pass-throughProjectAgreements • UtilityAgreements • ROWAgreements • EligibleConstructionActivities • PotentialFinancialHazards • Summary
6- ADVERTISE CONSTRUCTION PROCESS........................36
‘ADVERTISED’ Status • ConstructionAdvertisement • ProgramFinance • AdvertisingNotification • FundingAuthorization • ContractAddenda • ContractBidOpening • ContractAward • Re-advertisementorNon-award • PotentialFinancialHazards • Summary
TABLE OF CONTENTS
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UDOTUniversity|ProjectFinancialManagement
7- CONSTRUCTION AND POST-CONSTRUCTION PROCESSES....................44 ‘UNDER CONSTRUCTION’ to ‘CONSTRUCTION CLOSEOUT’ Status
• UnderConstructionOverview • ConstructionChangeOrders • ConstructionContractClosing
Overview • ConstructionCompletion
ProcessDetails • Post-constructionCompletion
ProcessDetails • PotentialFinancialHazards • Summary
8- FINANCIAL PROJECT CLOSEOUT PROCESS....50
‘CLOSEOUT’ to ‘CLOSED’ Status • ePMProjectCloseoutNetwork • ProjectTrackingOracle
Database • PotentialFinancialHazards • Summary
9- CONCLUSION..................53
10- GLOSSARY....................54
BackgroundInformation/Details
Defintions
Examples/Hints
LocalGoverment
Calloutboxescanbefoundthroughouttheguideto helporganizeinformation. Thefollowinglegenddenoteswhattypeoftheinformationthecalloutboxeshold,dependingonthecolorof theheader.
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Chapter1
ThegoalforthisguideistoprovideProjectManagers(PMs)withanoverviewoftheprojectfinancelifecycleandtogivethemtoolstominimizetheproject’sfinancialriskandmakebestuseofbudget.
ManagingthefinancesofaprojectisoneofthemostimportantresponsibilitiesofaUtahDepartmentofTransportation(UDOT)PMandProjectDeliveryTeam(PDT).Thechallengeisbalancingalimitedprojectbudget,theappropriatelevelofscope,andtheteamschedule.ThisProjectFinancialManagementguidegivesacomprehensiveoverviewofwhatittakestosuccessfullymanageaprojectbudget,teachthebasiclanguageofprojectfinance,andfulfillyourfinancialroleandresponsibilitiesduringthelifeofaproject.
Additional links to resources will be given to describe the various features of project finance, which include:
• Appropriateprojectfundingauthorization• Accurateprojectbudgetplanning• Costcontrolstoreachmilestonesunderbudget• Qualitybudgetandcostestimatereporting
ThePMandthePDTmustdefinethevariouspartsofaproject’sbudgetinordertomaintainfinancialcontrolthroughout.Thentheymustcontinuallyrefine,monitor,update,andreportonit.Goodteamcommunicationisnecessarytoensurethateveryoneisworkingeffectivelywithintheproject’sallottedtimeandbudget.Adjustmentstotheprojectorteam’sstrategymightbeneededifthebudgetortimelinechanges.
ThePDTassiststhePMindevelopingandmonitoringthebudget.ThePDTmembersare thetechnicalexpertsintheirrespectiveareasanditistheirresponsibilitytoknow,manage andcommunicatetheirpieceoftheproject.Theywilldevelopandnegotiatethebudgetundertheirareaofexpertise.
Itisimportanttoroutinelyremindtheteamabouttheirvaluablefinancialroleontheproject.
1 INTRODUCTION
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UDOTUniversity|ProjectFinancialManagement
THE PATH TO UNDERSTANDING PROJECT FINANCEWiththeexceptionofChapter2’sBasicProjectAccounting,theremainingsectionsofthisguidefollowthebasiclifecycleprocessesandmilestonesofatransportationproject.Theprojectlifecycleincludes:
ThelifecyclePhases and electronic Program Management (ePM) PIN Statusesserveasbudgetmilestonesandcheckpointopportunitiestovalidateprojectedcostestimates,accountforactualexpenditures,confirmprojectphasebudgets,andensurebudgetriskcostcontrolsareinplace.
Stewardshipofyourbudgetinvolvesplanningandcontinualmonitoringtocontroltherisklevelsbetweenthebudget,scope,andschedule.Budgetriskscanbemanagedsotheydonotjeopardizethesuccessoftheproject. The UDOT Project Manager Guide describesoneprinciplethathelpsminimizebudgetriskscalledtheMITARprocess:Monitor,Investigate,TakeAction,andReport.UsingMITARtobudgetriskfactorscausedbynewscopeorscheduleinformationwillhelpkeepthingsoncourseandmovingforward.
PROJECT FINANCIAL LIFE CYCLEInitialSpendingRequestThroughFinancialCloseout
MITAR PROCESS
Monitor: Trackandcompareprojectprogresstothebaselineprojectplan.
Investigate: Explorethecausesandpossibleresolutionstochangesinscope,schedule,budget,andteam.
Take Action: Manageandrecordthechanges,issues,andrisksthatemergeastheprojectprogresses.
Report: Communicateactualperformance,progresses,variances,andactionstakentoappropriatemembersof theorganization.
Construction and Post Construction Processes
Preconstruction Process
Financial Project Closeout Process
Project PIN Creation Process
Advertise Construction Process
Concept Development (CD) Process
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Chapter1
Engineering Technology Services:EngineeringTechnologyServices(ETS)ispartofUDOT’sProjectDevelopmentgroup.ETSsupportsanumberofapplicationsusedbyRegionandProjectDevelopmentpersonnelinthedeliveryofUDOT’sroadwayplanning,design,andconstructionprogram.TosupportUDOT’svarioususercommunities,ETSisorganizedintofiveteams:EnterpriseProgramManagement(ePM);ProjectWise;GraphicalInformationSystems(GIS);ProjectDevelopmentBusinessSystem(PDBS);andComputerAidedDesign&Development(CADD).Eachoftheseteamsisresponsibleforallaspectsofsupportfortheirrespectivecustomers.
ETS
Region Program and Project Management:Program/ProjectManagementisresponsibleformaintainingsuccessfulprogramdelivery. ProgramManagersandPMsplan,execute,monitor,construct,document,report,andcloseouttransportationprojectsfromcradletograve.Thekeytobalancingtheseactivitiesistomanagetheprocessesandtransitionsthroughallphasesoftheproject.
Construction Advertising:TheConstructionAdvertisingteamprovidescontractadvertisingsupportservicestoensurethequalityandintegrityofbiddocuments,fairbidpractices,strongcompetitivebidopportunities,andanefficient,streamlinedawardprocess.
Construction:TheCentralConstructiondivisionprovidescontractsupportservicestoensurequalitycontractadministration,laborcompliance,inspection,materialstesting,andconstructionoversight.Attheregionlevel,theResidentEngineer(RE)providesConstructionEngineeringManagement(CEM).
Program Planning and Funding:SystemsPlanningandProgrammingworkswiththeRegionofficestoplanandmonitortransportationsystemhealth,identifytransportationneeds,establishSTIPtransportationplans,andensureanefficientannualprogramdelivery.
Comptroller: TheComptroller’sofficeprovidesfinancialdatatoaiddecision-makingandprotectthebestinterestsofthepublic.Theysupportthesegoalsthroughthreemajorbusinessfinanceareas:• ProjectandFederal-aidAccounting(projectbillingandcostandcollectionsmanagement)• BudgetandFinancialReporting(revenueforecasting,cashflowanalysis,andmanagingthe
annualtransportationbudget)• GeneralAccounting(financialsystemcontrolsandsupport,generalaccountspayable/receivable,
contractencumbrance/payments,andUDOTpayroll)
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Program Finance:TheProgramFinanceofficeensuresfinancialauthorizationintegrityforprogrammedtransportationhighwayfunds.IthelpsUDOTprojectmanagement,seniorleadership,administrativepartners(suchasFAWA),andotherlocalagenciesmaintaininformationregardingtheirprogramandprojectfinances.
Navigating the process of project finance can be challenging at times. Discipline icons are featured at the beginning of each chapter. These will help you better understand the finance disciplines associated with each process. Here is a list and description of the icons:
TIP
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Costisoneofthemajorfactorsusedtodeterminethesuccessofaproject.Inordertomanagecostsefficientlyandaccurately,theProjectFinancialteamsandthePMshouldbewellacquaintedwithallfinancedetails.Thischapterreviewsfinancesystems,fundingsourcesandtheiruniquelimitations,financemanagement,andpotentialhazards.Byunderstandingtheseareasandcommunicatingprojectstatusandchangesappropriately,theteamsandthePMcansecuresuccessfulprojectdelivery.
2 BASIC PROJECT ACCOUNTING
ACCOUNTING SYSTEM VS. BUSINESS SYSTEMIt is important to recognize the distinction between an accounting system (FINET) and a business system (ePM, OMS, PDBS). TheofficialstateaccountingsystemisUtahState’sFinancialNetworksystem(FINET). Allfinancialtransactionsarerecordedinthisaccountingsystem.ManyUDOTbusinesssystemssuchasePM,OMS,andPDBSaccessFINETdatatoprovidefinancialinformationtoUDOTusersinaconvenientandeasy-to-understandformat.
AnaccountingsystemlikeFINETconsiderstheindependentfactorsofexpense/revenue,debit/credit,andpositive/negative.TheUDOTbusinesssystemssimplifythedatatoonebottom-linenumberthatcanbeeither positiveornegative.Thisonesimple numberisusuallyadequateforUDOTPMs.ContacttheComptroller’sofficewhenmoredetailisrequired.UDOTbusinesssystemsprovidefinancialdata,butthe information found in FINET is the official record.
FINET CodingTheFINET coding block is divided into twoelements:• Fund Accounting Elements:Required
foralltransactions(Fund,Department,Unit,Appropriation,Object,and RevenueSource)
• Cost Accounting Elements:Notrequired,butareusedextensivelybyUDOT(Program,Phase,andActivity)fortracking,spendinganddecisionmaking
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Chapter2
PROJECT FUNDINGUDOTaccountsfortheappropriateuseoffundsfromvarioussourcesthroughouttheprojectfundingprocess.Thisincludesreceivingfundsandunderstandingtheregulationsandspendinglimitations.
AprojectisfirstproposedontheStatewideTransportationImprovementProgram(STIP)forfunding.TheSTIPisafive-yearplanapprovedbytheUtahTransportationCommission. OnlytheearliestorfirstyearoftheSTIPisfundedandspendingauthorized.ThefutureyearfundsandprojectsremaintobeapprovedbytheUtahTransportationCommissioneachyear.
Aprojectmaybeamendedfromanon-fundedSTIPyearifrecommendedbyUDOTProgramFinanceandapprovedbytheCommission.SeeTransportation Program Funding for anexample.
STIPfundsareprogrammedatastatewidelevelbytheProgramFinanceDirectorandSTIPCoordinator.StateandfederalfundsarefiscallyconstrainedtowhatisavailableinthecurrentStateorFederalfiscalperiod.
See the links below to understand the relationship among various terms.• Fund Accounting and Cost Accounting Definitions• Analogous Terms Guide • UDOT Programs Chart
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FISCAL ACCOUNTINGState Fiscal Year:BeginsonJuly1andendsonJune30.UDOTisrequiredtoreport eachfiscalyearseparately.Services and goods delivered to UDOT must be reported in the same fiscal year in which they are received.Projectsmayspanmultiplefiscalyears,spendingisreportedannually.
Federal Fiscal Year:BeginsonOctober1andendsonSeptember30.StatesarerequiredtoobligateallfederalSTIPfundsannuallysoitiscriticalthatprojectsaredeliveredintheplannedconstructionyear.
FHWA usually closes their Financial Management Information System (FMIS) the last two weeks in September, so if you plan your project to advertise in September, allow sufficient time for the advertising obligation process.
UNDERSTANDING FEDERAL-AID
Federal Project ReimbursementTheFederal-aidHighwayPlanningandConstructionProgramisareimbursable program. Thismeansfederalfundsarenever advancedtothestateorlocalmunicipalities.Theprojectmustincureligiblecosts,thenrequestreimbursementforthefederalprorata(proportionateallocation)share.Enhancementprojectshaveaminimumof80percentfederaland20percentstateorlocalshare.Otherfundtypesrangefrom94.18percentto50percentfederalparticipationrate,dependingonwhatismandatedbyU.S.Congressinthetransportationbill.ThereimbursementUDOTreceivesforeachprojectislimitedtothefederalagreementamountinFMIS.FundingbreakdownisshownonePMscreen710.
STATE FISCAL YEAR CUTOFF EXAMPLE
Consultant provides services in May 2013: ThisexpensemustbereportedinFiscalYear2013,whichendsJune30,2013,evenifpaymentisnotapproveduntilJuly2013.
IfthePMknowsthereareissuesthatwilldelaysubmittingtheinvoicetotheComptroller’sofficebythelastweekofJuly,thePMmustcontacttheComptroller’sofficetocreateaFINETAccountingAccrualentryplaceholder.
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Chapter2
Projectexpendituresareincurreddailyonactivefederal-aidprojects.TheUDOTComptroller’sofficeprocessesaweeklyfederalbillingtoFHWAforreimbursementofeligibleprojectexpendituresincurredthepreviousweek.AnelectronicbillisinterfacedintoFHWA’sRapidApprovalandStatePaymentSystem(RASPS)fornextdayreimbursementtoUDOT. Thistightfederalreimbursementschedulemakesaccuratecodingandtimelycorrection ofprojectexpenditurescritical.SeeFinancing Federal-aid Highways for details.
OTHER AGENCIES MATCHING SHARE
Federal-aid Agreement (FAA): ThisagreementholdslocalgovernmentsresponsiblefortheirmatchandineligiblecostonprojectsadministeredbyUDOT.Theagreementneedstoshowestimatedmatchcostsandtherequirementsforadvancingthefunds,suchasmilestoneand timeframes.UDOTholdslocalgovernmentfundsintheirbehalfondeposit,thenbillsagainstthemquarterly.
Betterment Agreement: Theseareseparateagreementswherelocalgovernmentsandotheragenciesrequestfacilityupgrades.Bettermentagreementsdefineandmakethelocalagencyresponsibleforfundingandmaintainingtheseimprovements.
The Sum of Prior and 2012 FederalObligation=Total Obligation to Date
This represents state match forwhat was obligated during 2012
Federal %
Select the Project Number tab,then the Current Federal tab
Locate the Federal Percent on a Federal Project using the ePM 710 Screen
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Ineligible Federal Reimbursement CostsPrinciplesandstandardsfordeterminingeligiblecostsforfederalawards,projects,andprogramsareestablishedunderFederal 2 CFR Part 225.TheseprincipleshelpUDOTpromoteeffectiveprogramdelivery,efficiency,andbetterrelationshipsbetweentheFederalGovernmentandotheragencies.
FINETrecognizestheeligibilityoffederalreimbursementonprojectexpendituresthroughtheactivitycode.Allactivitiesbeginningwiththeprefix8areeligible.FINET will recognize the project as eligible for federal reimbursement if there is no activity within the coding block. Expenditures with an activity prefix 7 are ineligible.
Seeproject expenditures incurred on federal-aid and state programs formoreinformation.
TYPES OF PROJECT INELIGIBLE COSTS
• ROWeconomicremnants(23CFR710.203, Subpart6)
• Food/beverageatmeetings• Office/engineeringsuppliesformultipleprojects• Training(exceptiononannualprojectsetup)• Equipmentpurchase(inverylimitedsituationsallowedwithpriorFHWAapproval)
• Reception/entertainmentcosts• Laboractivitespertainingtogeneraladministration/operationofdepartmentnotdirectlyrelatedtotheproject
• Betterments• Computersupplies• Books• Coststhatbenefittheentireprogramandnotaspecificproject
• Maintenance• Finesandpenalties
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Chapter2
ProjectaccountingcodesaresetupbyProgramFinancetohelpUDOTtrackprojectfinancesintheaccountingandbusinesssystems(FINET,FMIS,ePM,OMS,PDBS).ProgramFinanceassignsaprojectnumber,FINETprogramandphasecodes,afteraprojectisapprovedontheSTIP.FMISprojectIDnumbersaregeneratedautomaticallywhenfederalfundsareprogrammed.Eachphaseofaprojecthasaspecificauthorizationprocessandanassociatedchargingphasecode.
Afterthenumbersareassigned,ProgramFinanceobtainsthenecessaryapprovalsR-709(federal),orR-76(state)forms. Theprojectphaseisnowreadyforspending.
TheUtahTransportationCommission,ProgramFinanceDirector,FinancialAuthorizationTeam,STIPCoordinator,PM,andRegionProgramManagereachplayaspecificroletoensurefundingadjustmentsaremade,authorized,andupdatedineachbusinessandaccountsystem.
PROJECT COST MANAGEMENTProjectcostmanagementisaccomplishedthroughthreebasicprocesses:• Cost estimating:Estimatingdesignandconstructioncostsneededtocompletetheproject• Cost budgeting:Assigningcostestimatestoindividualworkitemstoserveasa
baselinebudget• Cost control:Controllingchangestoscopeandschedulethatimpacttheprojectbudget
PHASE CODES
• 04M ConceptDevelopment-UDOT• 24M ConceptDevelopment- Consultant*• 20N Environmental-UDOT• 25N Environmental-Consultant*• 01D PreliminaryEng-UDOT• 15D PreliminaryEng-Consultant*• 03C ConstructionEng-UDOT• 13C ConstructionEng-Consultant*• 06K ContractorPayments*• 07R ROW• 12S StateForces• __H TOC/Research/Planning• 10U UtilityRelocationsContracts*• 02A PostAuditCosts• _ _T CooperativeAgreements
*Restrictedforcontractualexpenditures
Approval must be placed before proceeding to the next project phase.
TIP
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UDOTUniversity|ProjectFinancialManagement
PROJECT ACCOUNTING REPORT TOOLBOXCOGNOSisUtahstate’sreportingandperformancemanagementtool.TheCOGNOS PM Toolbox containsprojectfinancialreportsfromtheStateFinanceandUDOTDataWarehouses.Thesedatabasesprovideflexibleandefficientaccesstoprojectaccountingfinancialdata.ItcollectsinformationfromsystemsthathelpmanagetheFederal-aidandStateHighwayProgram.Projectfinancialdataisupdateddaily.
Project financial data is only as good as the quality of the input.ThePMisresponsibleformonitoringandverifyingthequalityofprojectfinancialandbudgetinformation.
UDOT and State Data Report ToolsDatacomesfromtheaccountingandbusinesssystemsandgoesintodatabasestocreatevariousCOGNOSreports.TheUDOTandstatedatabasesprovideefficientweb-based accesstoprojectaccountingreportstohelpvalidatetheePM505and495screen expenditures.RefertotheData Integration Chart tobetterunderstandhowtheePMinformationfeedsthesedatabasesandreports.
Review the instructions on how to access the State Finance Data and Reports.
TIP
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Chapter2
FUNDING INCREASE/DECREASE PROCESSThePMworkswiththeRegionProgramManagertogiveprojectbudgetrecommendationstotheProgramFinanceDirector(STIPCoordinator).TheSTIPprojectamountisamendedifchangessuchasanincrease,decrease,ortransferoffundsareneededatanytimeinaprojectlifecycle.Herearetwosituationsyoumayfacewhendealingwithbudgetadjustments:• A requested amount greater than 25 percent of the project value or $500,000,
whichever is lower:AUDOTCommissionactionisrequiredtoapprovetheamendment.RememberthattheSTIPisafinanciallyconstraineddocument,approvedannuallybytheUDOTCommission,FHWA,andFTA.Fundsaddedtooneprojectmustbetakenfromanotherprojectorprograminthesameorpreviousfundedyear.Federalfundsare adjustedinFMISbyProgramFinance.ProjectadjustmentreportsaresentfromProgramFinancetotheComptroller’sofficetoupdateFINETandfederalbillingrecordstoensurefiscalaccountability.
• Local government project funding changes:ThelocalgovernmentorurbanareaMPOorJointHighwayCommitteemustbeincludedinthenegotiationwhenafundingadjustmentinvolveslocalgovernment-sponsoredorpass-throughfunds.TheirapprovalisneededbeforeaSTIPamendment.MPOscreatethelocalTransportationImprovementPlan(TIP)thatrollintotheSTIP.TheirTIPswillbeamendedatthattimeaswell.
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POTENTIAL FINANCIAL HAZARDSBelowaresolutionstopreventcommonfinancialhazardsthatanewPMcanactivelymanageandavoid:• Verify financial authorization:VerifythattheR-709and/orR-76authorizationformis
inProjectWiseatthebeginningofeachprojectmilestone.ThisconfirmstheprojecthasreceivedauthorizationfromFHWAand/orUDOTProgramFinance.
• Verify that funds for the next project stage are in the current year:ConfirminePM thatthenextphaseofprojectactivities(suchasEnvironmental,PreliminaryEngineering, orConstruction)isfundedforthisyear.Reviewtheencumberedbudgetbalancereport locatedinthePMToolboxinCOGNOS.
• Confirm environmental clearance approval:Approvalmustbeinplacebeforeproceedingtoadvertiseonprocurementprojects,ortothePS&EDesignStageonDesign-Bid-Build,whichis30percentdesignatcompletionoftheProjectDeliveryNetwork’sPlan-in-Hand.
• Coordinate early for local government betterments and FAA:InitiatetheseagreementsassoonasthePMisawareoftheneed.CoordinateuniqueagreementfeatureswiththeComptroller’sofficesotheycanensuretheproperbilling.
• Plan, monitor and report the project budget:UseePM screen 505tosetupthebudgetandroutinelymonitorandupdateittoreflectnewprojectinformation.SeethePM Guide,Section4:BudgetMITAR(Monitor,Investigate,TakeAction,andReport)processfordetails.
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Chapter2
SUMMARYPMsneedtolearnthebasicaccountingtermsinvolvedwithcostestimating,costbudgeting,andcostcontrolinordertomanageprojectcostseffectively.
BecomingfamiliarwithFINETisessentialbecauseitprovidesanofficialprojectaccountingrecordanddetails.
UDOTmusthavepreauthorizationfromFHWAandProgramFinancebeforeincurringprojectcosts.ThisisacriticalsteprequiredforexecutionofprojectcontractsandROWactivities.Costs are ineligible for federal reimbursement on federal-aid projects without advance authorization before starting with the next phase of work.
Federalreimbursementonlycoverseligiblecosts.Federalfundsmustbematchedwithstateorlocalfundingsourcesforalmostallconstructionorimprovementprojects.ProjectsmustbeapprovedbytheCommissionandlistedintheSTIPtoreceivefunding.
TheStateFinanceandUDOTDataWarehousesarecriticalforreporting,monitoringandanalyzingintegratedprojectfinancialinformation.ThePMmustactivelymanagefinancialrisksandensuretheaccuracyoftheePMandPDBSdatathatfeedthedatabases.
• Confirm agreements are in place before proceeding to Construction Advertising: Ensureallutility,ROW,federal-aid,andbettermentagreementsareinplaceandexecuted.Ensuretheadvertisingpackagedefinesthecontractlimitationsofconstructioniftheyarependingexecution.Anylimitationsofthecontractor’soperationsshouldbeincludedintheproject’s00555MProsecutionandProgressspecialprovision.
• Confirm the on-call contract is set up before initiating a Work Task Order (WTO): Verifythattheon-callcontractusedfortheWTOhassufficientremainingfundsandlength oftimebeforeproceedingwithproposedWTOactivities.
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TOOLS AND RESOURCES
• Forguidanceonmanagingfinancialcostsontransportationprojects,referto UDOT 08-04 and Project Financial Management Team.
• RefertotheFINET coding block to findoutmoreaboutfundaccountingandcostaccountingelements.
• RefertoFund Accounting and Cost Accounting definitions, Analogous Terms Guide,and UDOT Program Chart forvarious termsanddefinitions.
• SeeTransportation Program Funding foranexampleofamendingaprojectfromanon-fundedSTIPyear.
• SeeFinancing Federal-aid Highways fordetailsonUDOTreimbursementthroughFHWA.
• Referto2 CFR Part 225 todetermineeligiblecostsforfederalawards,projectsandprogramsestablishedunderFederal2CFRPart225.
• Refertothefirstdigitoftheactivitycodetodeterminereimbursement eligibility of an activity code.
• Seeproject expenditures incurred on federal-aid and state programs formoreinformationonfederalreimbursementcosts.
• ObtainthenecessaryspendingauthorityapprovalsbyworkingwithProgramFinancetocompletetheR-709 and/or R-76 forms.
• TheCOGNOS PM Toolbox containsprojectfinancialreports fromtheStateFinanceandUDOT DataWarehouses.
• RefertotheData Integration Chart tobetterunderstandhowtheePMinformationfeedsdatabasesandreports.
• ReadinstructionsonhowtoaccesstheState Finance Data and Reports.
• Access local government betterment andfederal-aidagreements.
• UseePM screen 505tosetupthebudgetandroutinelymonitorandupdateittoreflectnewprojectinformation.
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Chapter3
ThePINistheidentificationnumberusedthroughoutthelifeofaproject.ThePINcreationprocessestablishesaprojectwithinUDOT’sePMbusinesssystem.OnlyafteraPINiscreatedcanalltheotherphasesbegin.WhilethePMisnotinvolvedinmanyofthesesteps,itisimportanttounderstandthisprocessbecausethePINstatusisessentialandthePMneedstoknowhowtoresolveanyPINorstatusissuestheymayface.
3ETSProgram/Project
ManagementProgramPlanning andFunding
ProgramFinance
EngineeringTechnologyServices(ETS)
PROJECT PIN CREATION PROCESS ‘PROPOSED’ to ‘STIP’ Status
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PROJECT PIN CREATION PROCESS OVERVIEWThe PIN creation processincludescreationoftheprojectname,location,proposedvalueandcostestimate,andtheProgramorPortfolioManager’sdesireddeliverydate.ThePINcreationandfundingprocessmustoccurbeforebeginningprojectworkactivities.Therearemanychecks,balances,andpeopleinvolvedinthePINcreationandspendingauthorizationprocess.APMshouldunderstandthebasicsofthePINcreationprocessandtimeframesshownbelow:
PROPOSED Status:APINresidesinePMscreen300’sPROPOSEDdraftlistofanticipatedprojectsafteritiscreatedbytheProgramorPortfolioManager.Itisnotyetfundedorauthorizedforspending.ThesePINswillnotappearonePMscreen710untiltheyarefundedbyProgramPlanningtomatchtheprojectvalueforthedraftSTIP.
STIP Status:AftertheSTIPisapprovedbytheCommission,theProgramPlanningFinanceDirectorwilladvancethePINfromaPROPOSEDtoaSTIPstatus. ProjectFINETcodesandprojectnumbersareassignedbytheProgramFinanceTeamat thistime,butspendingisstillnotyetauthorized.
• CreateaproposedprojectintheePM300screen(PINStatus=PROPOSED)
• Whenready,movePINtoanePM310or325fundingscreen(PINStatus=PROPOSED)
• ePMautomaticallyemailsProgramPlanning thattheprojectisreadytoaddfundstothe PIN(ePM318screen)
RegionProgramManagement(Region Program or Portfolio Manager)
ProgramFinance
• AddprojecttodraftSTIP(PINStatus=STIP)• AssignprojectFINETprogramcodeand projectnumber
Program/PlanningandFunding
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Chapter3
POTENTIAL FINANCIAL HAZARDSFollowingarewaystoavoidhazardousfinancialactivitiesduringtheProjectPINCreationprocess.• Prevent budget hazards by obtaining authorization before work starts:APMcan
preventearlybudgethazardsandineligiblechargesbyverifyingfinancialauthorizationinePMscreen370beforebeginninganyphaseworkorinitiatinganycontractsoragreements.
SUMMARYThemostimportantthingforaPMtoknowaboutthePINcreationprocessisthattheRegionProgramManagers,theCentralPortfolioManagers,ProgramPlanningandFunding,andtheProgramFinanceTeammanagethemajorityoftheprocessesusingtheePMbusinesssystem.PINcreationoccursbeforeaPMisassigned.TheePMscreen300givesProgramandPortfolioManagersaplacetobuildtheirwishlistsofprojectsfortheirprograms.PMscanviewtheprogressandearlyprojectstatusofaPINasitmovesthroughthecreationstageinePMscreen370.ThePMwillreceiveanotificationonceaprojectisassignedtothembytheRegionProgramManagerandworkcanbeginforthenextphase.
ThisprocessprovidesaworkflowforRegionProgramManagersandPortfolioManagersto:• Planpotentialfutureprojects(ePM300)• MoveapotentialprojectintotheSTIPapprovalprocess(ePM300)• Obtainstateandfederalspendingauthorizationforaproject(ePM310/325)• AssignaPM• MoveaprojectintotheActiveDesignphase(ePM370)uponsettinganinitialcommitteddelivery
date(ePM510)alongwiththebudgetandcashflowinformation(ePM505)
TOOLS AND RESOURCES
• ReviewtheePM300screen‘5YearProjectPlan/ConceptDevelopment’andtheePM370screen‘RegionProgramManagerOversight’tolearnmoreaboutthetransitionsbetweentheePMconceptandPINsetupprocesses.Tutorials are available here.AnAdobeConnectloginisrequiredforthetutorialandcanbesetupforyoubytheePMhelpdesk.
• CoordinatewiththeRegionProgramManagertohelpresolveanyfundingorotherPINcreationproblems.
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UDOTUniversity|ProjectFinancialManagement
TheConceptDevelopment(CD)processisacriticalpointatthebeginningofaproject. Thisprocessinvestigatesthefeasibilityofadvancingaprojectforfurtherfunding.ARegionProgramManageroraStatewidePortfolioManageridentifiespossibleprojectsbasedonvarioustransportationplanningorassetmanagementanalysis.Astheseprojectsareinvestigated,aconceptcostestimateisdeveloped.Thisestimateiscriticalasitservesasthebaselinebudgetthroughouttheprojectlife.CDprocessactivitiesalsohelpidentifywhethertheenvironmental,social,oreconomicimpactsaresufficienttorequireanEnvironmentalAssessment(EA)oranEnvironmentalImpactStatement(EIS)leveldocument.Attheendoftheprocess,theconceptreportandprojectconstructionscopeadvisewhetherornottoproceedtoconstruction.Bycarefullyhandlingprojectfundsandthoroughlyanalyzingprojectfeasibility,youcanhelpassureasuccessfulprojectoutcome.
CD BUDGET TheCDbudgetisfundedwithRegionConceptDevelopmentfunds.Federalfundsarenever usedforcreatingCDreports,butmaybeidentifiedforfutureprojectphasessuchasEnvironmental,Design,andConstruction.TheCDbudgetonlyincludestheteamhoursandresourcesneededtodevelopandpreparethefinalConcept Report and Concept Cost Estimate. Conceptbudgetactivitiesofteninclude: • Reviewingtrafficandoperationalstudies• Analyzingaccidenthistory• Reviewingexistingprojectdeficienciesfromeachtechnicalarea• Developingalternatives• Identifyingenvironmental,social,andeconomicissues• ConsideringandminimizingutilityandROWimpacts• Researchinganypavement,geotechnical,structural,material,orotherfeaturesrequiredfor
conceptdecisionmaking
4$$$
Program/ProjectManagement
ProgramPlanning andFunding
ProgramFinance
Comptroller
CONCEPT DEVELOPMENT (CD) PROCESS ‘PROPOSED’ to ‘CONCEPT COMPLETE’ Status
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Chapter4
CONCEPT REPORT COST ESTIMATE
ThedetailedprojectcostestimateresultingfromtheCDresearchwillincludeallthefuturefinancialfundingneededtocompletetheproject.Thisestimateispreparedanddetailedby eachtechnicalareateammembersuchastheROWLead,UtilityCoordinator,andDesign TeamLeader.Eacharealeadwillincludenotesabouttheircostestimateassumptionson theconceptestimateforfutureteamreference.Thesenotescanhelpidentifyhighrisksin eacharea.Commonriskareasareimpactstorailroads,utility,irrigationcanalfacilities, andROW.TheprojectcostestimatealsoincludesannualinflationcostsprojectedthroughtherecommendedconstructionSTIP-fundedyears.SeetheUDOTEstimator’s Cornerforcurrentinflationprojections.
LocalgovernmentconceptreportsareusuallyapartofaMetropolitanPlanningOrganization(MPO),JointHighwayCommittee(JHC), orUDOTTransportationEnhancement(TE)applicationprocess.Requestacopyoftheconceptreportfromthelocalagencyortheplanningorganizationsoyouunderstand theapprovedprojectscope.
Thisearlyconceptestimateservesasthebasisforthetotalprojectbudgetandfundingapproval.ThefuturePMandteamwillhave tomanagetheprojectwithinthisbudget. TheConceptbudgetismanagedaspartoftheCDProcess.
CONCEPT COST ESTIMATENOTE EXAMPLES
Utility: Estimateassumesthattheprojectfootprintavoidtheirrigationcanal.
ROW: Estimateincludesnineconstructioneasementsontheeastside.
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UDOTUniversity|ProjectFinancialManagement
CD PROCESSTheCDcyclebeginsandterminatesintheePMScreen300.Theseactivitiesarecompleted bytheProgramManager,thePM,ProgramFinance,andComptroller’soffice.Seethe ePM 300 tutorialforfurtherdetailsontheCDcycle.Thisprocesscanbebrokendownasfollows:
• CreateaproposedprojectintheePM300screen(PINStatus=PROPOSED)
• OncereadyforCDprocesswork,movePINtothe370setupscreens(PINStatus=SCOPING/CONCEPT)torequestfundingapprovalforconceptactivities(ePMautomaticallyemailsProgramFinancetoauthorizespending)
• AssignaProjectManagertomanagetheCDprocess
RegionProgramManagement(Region Program or Portfolio Manager)
• AfterCDscopingMeeting:EnterphasebudgetinformationinePM505screenandfinalCommitDateinePM510screen
• RequestRegionProgramManagertomovePINtoePMscreen370’s(Activetab)
ProjectManagement
• AdvancethePINinePMscreen370(ePMautomatesthePINstatustoPINstatus=CONCEPTDEVELOPMENT)
RegionProgramManagement
Program Finance:Authorizespending,openCDphase04M‘CDUDOT’/24M‘CDConsultant,inePM;createandsendFINETsetupformstoComptroller’soffice
Comptroller:OpenCDphaseinFINETtoallowcharges
ProgramFinance
Comptroller$$$
• Obtainconsultantifneeded• ManageCDphaseandcompleteConceptReport
ProjectManagement
• ReconcileConceptphaseexpendituresinePM• NotifyProgramFinancetoterminateconceptspending
ProjectManagement
ProgramFinance
Region Program/ProjectManagement(Region Program or Portfolio Manager)
PM:RequestProgramManagertocloseCDprocess (PINStatus=CONCEPTCOMPLETE,thenPINreturnstoPROPOSEDstatusinthe300screenawaitingSTIPstatusandfunding)
Program Finance:NotifyComptroller’sofficetocloseCDprocessinFINET
Comptroller:CloseCDphaseinFINETComptroller
$$$
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Chapter4
POTENTIAL FINANCIAL HAZARDSIdentifyingfinancialandbudgetsolutionsduringtheCDprocesswillresultinagoodconceptcostestimate.ThishelpsRegiondecision-makingwhentheprojectismovedforwardintoafundedyear.Belowaretwocommoncostestimatefinancialrisksthatcanbeprevented.• Verify financial authorization for CD activities: Verifythattheprojecthasreceived
fundingauthorizationfromUDOTProgramFinancebeforechargingtimeorstartingcontractworkontheCDactivities.
• Confirm the Concept Report cost estimate includes all technical disciplines and their cost-related assumptions:Communicatewithalldisciplinestomakesurethatanycosts,assumptions,andprojectfeaturesfortheirdisciplineworkareincludedintheConcept Cost Estimate Form.
SUMMARYTheCDPhaseinvestigatesthefeasibilityandneedfornewprojects.ConceptactivitieshelpdeveloptheConceptReportandtheprojectcostestimate.Technicalareateammembersdocumenttheircostestimateassumptionsincludingpotentialrisksorunknowns.Thiscostestimateistheprojectbudgetforfuturephases.
TwocommoncostestimateriskscanbepreventedbyverifyingfinancialauthorizationforCDprocessactivitiesandbyincludingalltechnicaldisciplinesandtheircost-relatedassumptionsintheestimate.
TOOLS AND RESOURCES
• ThefinalConceptReportand concept cost estimateiscreated usingtheCDbudget.
• SeetheePM300tutorialfordetails ontheCDcycle.
• RefertotheePM710screenFINETProgramField afterfundingauthorizationiscompletetoverifythe04M/24Mphases.areactive.
• IncludeallcostsfromeachdisciplineintheConcept Cost Estimate Form.
• SeetheEstimator’s Corner for guidanceonestimatingandprojectedinflationcosts.
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UDOTUniversity|ProjectFinancialManagement
ThePreconstructionprocessisanimportantpartofsuccessfulprojectplanning.APMneedstobesuretoselecttheappropriatetypeandlevelofresourcestobalancetheproject’sscheduleandqualityneeds.DuringthisprocessaPMwillcreate,document,approve,manage,andcloseavarietyofprojectcontractsandagreements.
DuringtheSCOPINGtoACTIVEstatuses,deliveryofthedesignactivitiesrequiredforaconstructionadvertisingpackageareaccomplished.Thiscanalsoincludecompletingastudyorenvironmentaldocument.Fromafinancialperspective,mostofthecostsforthisprocesscoverthespendingauthoritytoprocureneededservicesandresources,suchasconsultantservices,utilitywork,orROWacquisition.
SCOPING TO ACTIVE DESIGN
ScopingphasechargescannotbeginuntilthePINisapprovedtomovefromSTIPtoSCOPINGstatusinePM.AfterthePINisinaSTIP-fundedyear,theRegionProgramManagercompletesanymissinginformationintheePM370screenandassignsaPM.ThePMestimatestheePM505budget/cashflowandprovidesaproposedePM510commitdate.ThePMthenaskstheRegionProgramManagertoadvancethePINstatusfromSTIPtoSCOPINGintheePM370screen.ePMthensendsanauto-emailtotheProgramFinanceTeamtorequestspendingauthorization.Oncethefundingobligationisapproved,theProgramFinanceTeampreparesafundingauthorizationform(FederalR-709orStateR-76),obtainsapprovalsignatures,andthenopenstheapplicableCostAccountingphase(s)inFINET.Finally,scopingchargesbecomeeligibletoproceed.
5Program/ProjectManagement
ProgramFinance
PRECONSTRUCTION PROCESS ‘SCOPING’ TO ‘ACTIVE’ Status
26
Chapter5
ThefollowingchartshowsthephaseactivitiesthatcanbeginaftertheSTIPisapprovedandthePINisdesignatedtoafundedyear:
SCOPING Status:AftertheSTIPisapprovedandtheRegionProgramManagerfollowstheabovestepstomovethePINstatustoSCOPING,theProgramFinanceTeamreceivesanePMauto-emailtoopentheFINET phasesforspending.Oncethefundingauthorization forms are approvedbyProgramFinance,anemailissenttothePMthatScopingworkcanproceed.AfterthePMmeetswiththeprojectteamtoconfirmandenterthebudgetandadvertisingdateinePM,thePMaskstheRegionProgramManagertomovethestatusfromSCOPINGtoACTIVEintheePM370screen.
ACTIVE Status:InmostcasestheobjectiveoftheActivephaseistocompleteanddeliver thedesignforaconstructionadvertisingproject.ForasummaryoffinancialactivitiesseetheActive Process Overview.OncethePINisinACTIVEstatus,futureePMstatusadvancing isautomated.
Region Program Manager:AssignthePMandcompleteotherrequiredinformationinePMscreen370fundingscreens
PM:Enterproposedbudget/cashflowdatainePM505screen
Region Program Manager:Oncetheprojectdataisinandtheprojectisreadytobegin,movetoPINstatus=SCOPING, andePMsendsauto-emailtoProgramFinance
ProjectManagement
ProgramFinance Program Finance:AuthorizefundingobligationsoSCOPING
chargescanbeginandopentheapplicableCostAccountingPhaseinePM (suchas01DPrelimEng-UDOT,20NEnviron-UDOT,etc.);send FINETsetupinformationtoComptroller’soffice
Comptroller:OpensapplicablephasesinFINETtoallowcharges
Comptroller$$$
• AfterScopingMeeting:EnterphasebudgetinformationinePM505screenandfinalCommitDateinePM510screen
• RequestRegionProgramManagertomovePINtoePMscreen370’s(Activetab)
ProjectManagement
• AdvancethePINinePMscreen370(ePMautomatesthePINstatusfromhere,andcanincludePINStatus=ACTIVEorADVERTISED)(ActivePHASEDDESIGNisnowobsolete, butmightappearonolderprojects)
RegionProgramManagement
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UDOTUniversity|ProjectFinancialManagement
IN-HOUSE RESOURCESSelectingtheProjectDeliveryTeamandotherresourcesisoftendrivenbytheexpectationsandcommitmentsoftheprojectsponsor’sorRegionProgramManager’sProposedAdvertiseDate(PAD)/ProposedDueDate(PDD).In-housecorecompetencies,availabilityofteammembers,levelofexperience,anduniqueprojectcharacteristicsareotherdecidingfactorsthatwillhelpyouselecttheteam.
TheProjectDeliveryTeamcanconsistsolelyofUDOTemployeesoramixofUDOTandconsultantteammembers.ThePMshouldinitiateconsultantselectionandcontractingas soonaspossibleifaconsultantisneeded.Refertothe“PlanningtheProject”chapterof theUDOT PM GuideandtheUDOT Project Delivery Networksfordetailsaboutsetting upanetwork.
CONSULTANT SERVICES CONTRACTSAConsultantServicescontractisbetweenUDOTandaconsultantorbetweenthelocalgovernment(LG)andaconsultantwhohasaUDOTagreementtoperformengineeringorengineering-relatedservices.TheePMContractManagementSystem(CMS)isamodulewithinePMthattrackstheworkflowandmaintainsConsultantServicescontracts,FAA,andWorkTaskOrders(WTO).CMSalsotracksthespendingauthorization(R-709)requests/approvalsforConsultantServicescontracts.
• TheR-709forConsultantServicecontractsandon-callcontractsaregeneratedthroughtheePMCMSmodule.
• IfaConstructionEngineeringManagement(CEM)consultantisneededonaprojectthecontractmustbeinplacebytheAdvertiseConstructionprocess. Theprojectmayproceedtoadvertisementifsignaturesareinprocess,butarenot yetcompleted.
LGprojectsarealmostalwaysdesignedbyconsultantsandLG-authorizedrepresentativesalwayshelptoselect theconsultant.
Local Government
28
Chapter5
Consultant SelectionConsultantsareselectedbasedontheBrooks Act(40USC11),whichisaqualifications-basedselectionprocessforarchitectsandengineers.Therearevariousqualifications-basedselectionprocessesdevelopedbyConsultantServicesthatmeettherequirementsoftheBrooksAct.TheseprocessesrangefromselectingaconsultantdirectlyfromprequalifiedliststoafullRequestforQualifications(RFQ).Theselectionprocessrecommendedisbasedontheestimatedcontractvalueandcomplexityoftheproject.SeethePM Guide for details.
General Engineering Services and Local Government Pool• On-call:$200,000percontractand$40,000perWTO*• Direct-select:$0-$150,000percontract• RequestforPoolLetterofQualifications:$150,000-$600,000percontract
RFQ (no $ cap)• StreamlinedRFQ• RequestforLetterofInterest• StandardRFQ
Understandingthevariousselectionprocesswillhelpyoudeterminewhichonetochoosebasedontheproject’sneed,ratherthanchoosingthequickestoreasiestprocess.ThishelpspreservetheintegrityofUDOT’scontractprocessandbuildstrustwithintheconsultantcommunity.ThiscanalsosaveaPMfromre-workandtheneedtobeginanotherselectionprocess.
* The WTO limit is $40,000 per consultant for the life of the project (or PIN).
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UDOTUniversity|ProjectFinancialManagement
Financial Management of Consultant Contracts ThePMoverseesandmanagesConsultantServicescontracts,whichincludesreviewingandapprovingconsultantpayrequestsonbehalfofUDOT.Thereareanumberofareaswherepotentialerrorsmayhappenthatcanjeopardizetheprojectfunds.• Work Before Notice To Proceed (NTP):ConsultantServicesstaffissuesanofficialNTP
oneachcontract.ConsultantServicesstaffconfirmstheR-709isapprovedbeforeissuing anNTP.˚ Potential Risk:Allowingaconsultanttoproceedorapprovingpaymentforservices
performedbeforeNTP.• Work Before Contract Modification:Eachcontracthasamaximumamountthatmaynot
beexceeded.˚ Potential Risk:Allowingaconsultanttoexceedthecontract’smaximumamountbefore
amodificationhasbeenprocessedorpaymentapprovalonserviceshasbeenmade.• Documentation of Pay Requests:Paymentrequestsarerequiredto
beaccompaniedbyappropriatesupportingdocumentationforlabor orotherdirectcosts.˚ Potential Risk:Approvingapaymentrequestnotsupportedbyappropriatedocumentation,
suchastimesheetsreflectinghoursanddaysworkedorotherdirectexpenses.• Unit Price Rates:Unitpricefeetypecontractssettheratesapprovedforuseontheproject.
˚ Potential Risk:Approvingapaymentrequestwheretheratesexceedtheapprovedratesinthecontract.
Refer to Consultant Selection Thresholds and Caps for the latest cap limits.
TIP
Navigating the process of project finance can be challenging at times.Learn the ins and outs by viewing the Consultant Selection and Contracting Overview Presentation.
TIP
Consultant Selection Pitfalls
Itisunwisetousethedirect-selectengineeringpoolforserviceswheretheIndependentCostEstimate(ICE)fallswithin$30,000ofthe$150,000WTOcap.Thisdoesnotallowroomforscopenegotiationwiththeconsultantandmayresultinhavingtostartoverwithanotherselectionmethod.
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Chapter5
LOCAL GOVERNMENT SPONSORED PROJECTS
LGprojectsrequirespecialattentionfromtheUDOTPM.LGsponsoredprojectsincludeasignedFederal-aidAgreement(FAA)developedbytheUDOTPM.ThisagreementisthespendingauthorizationbetweentheLGandUDOTonbehalfoftheFederalHighwayAdministration(FHWA).TheFAAdefinestheterms,conditions,andcompliancerequirementsforreimbursementtotheLGalongwiththeresponsibilitiesoftheLGandUDOT.TheFAAmustbeinplacebeforeanyothercontractsoragreementscanbegin
LGshavetheopportunitytoprovidealocalin-kind(non-cash)match.Softmatchexamplesincludedonationsofmaterialsorlabor.RefertoUDOT Local Government Assistance to accessPDFsonFlexibleMatchApprovalGuidelinesandtheFlexibleMatchApprovalForm.
LOCAL GOVERNMENT AND THIRD-PARTY BETTERMENTS (FACILITY UPGRADES)TheUDOTPMmustprepareaBettermentAgreementifaLG,utility,orotherthirdpartyrequestsfacilityupgradesduringconstructionforeithertheirprojectorastate-sponsoredproject.TheBettermentAgreementincludesdetailsaboutthescopeofworkandtheresponsibilitiesandfundingofeachparty.Refertothe Betterment Agreement template as aresource. ThefollowingareimportantdetailstoknowaboutBettermentAgreements:• TheBettermentAgreementmustdetailwhattheLGorthirdpartywillpayforthecostof
construction,includingtheirpercentageofCEcosts.ThiswillensurethatUDOTisabletorecoverallthecostsrelatedtotheimprovements.
• BettermentdetailsneedtobeincludedinPDBSwithintheEngineer’sEstimateundera non-participatingdetailshowingtheentityinvolved.Thisdetailednon-participatingestimatebiditemallowstheUDOTComptroller’sofficetobillaccordinglyaftertheconstructioncontractisawarded.ThisisthemethodbywhichUDOTconfirmstheLGallocationandreimbursementfortheagreedbettermentcosts.RefertotheBettermentand Non-ParticipatingpresentationforPDBS instructions.
• Bettermentsareusuallyrepresentedbyadollaramountthatneedstobeaddedtothe STIPaspartoftheprojectvalue.Thesevaluescomeupasafundingsourceonthe ePM710screen.
• UDOTrequiresthatthetotalestimatedcostofbettermentworkbeadvancedordepositedinescrowwithUDOTpriortoadvertisingtheproject.
The PM makes sure the project scope and all costs are well defined in the FAA and understood by all parties. Refer to the Local Agency FAA form template and guidelines.
TIP
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UDOTUniversity|ProjectFinancialManagement
Be aware of the most current highway transportation bill regulations.
TIP
PROCUREMENT GUIDELINESThemethodofprocuringothertypesofservicesormaterialswillalsoimpacttheprojectbudget.Somemethodswillrequiremoreeffort,coordination,andlead-timethanothers.Inordertomakethebestselectiondecision,itisimportanttolearnaboutalltheprocurementoptionsavailable.TheUtahStateDivisionofPurchasingandGeneralServicesprovidespurchasing andcontractoversighttoUDOTalongwithotherstateandlocalgovernmentagencies.Purchasing 101 training and a UDOT Procurement Guide are also available.
UTILITY AGREEMENTS
Therearevarioustypesofutilityagreementsandfundreimbursementsthatcanbeusedifaprojectcannotavoidimpactstoautilityfacility.Agreementtypesandtheircostsinclude:• Utility Line Relocation or Adjustment:CheckwiththeRegionUtilityCoordinatorto
determinethecost(50percentreimbursable,100percentreimbursable,company’sdesiredbettermentwork,andcostparticipationratios.)
• Master Utility Agreement:Subsequentsupplementalagreementsforspecificlocation,especiallyusedfordesign-buildprojects.
• Reimbursement for Railroad Flagging and Inspection:Withorwithoutrailroad crossingwork.
• Letter Agreement:Lumpsum,under$5,000,50or100percentreimbursement,noaudit.• Reimbursement for Power Source Installation:Usuallyalumpsum.ContacttheRegion
UtilityCoordinatortoarrangehook-up.
AnimportantfinancialhazardwithallutilitiesistheBuy AmericaFederalRegulationrequiringallU.S.steelpurchasestoqualifyforfederal-aidreimbursement.
32
Chapter5
ROW AGREEMENTS AROWagreementisrequiredifaprojectcannotavoidimpactstoapropertyorifaconstructioneasementisneededtoallowthecontractoraccesstoaproperty.BeforeROWacquisitioncanbegin,theplannedROWbudgetisestablishedthroughtheROWCostEstimatepreparedbytheCentralROWLead.ThisestimateisrequiredforProgramFinancetogeneratetheR-709ROWfundingauthorizationandincludestheappraisal,appraisalreview,agentinformation,propertyparcelspecifications,andeasementacquisitioncosts.ItishelpfultoroutinelyverifytheePM505screenROWestimatewiththelatestROWcostsshownintheePMROWmoduleandtheePM750screen,OwnershipStatus.
ROW authorization must be obtained before the Advertise Construction Process, or else all of the federal project funds are in jeopardy.Fortheconstructionplanpackage, a00555MSpecialProvisionmustbewrittentoincludeanylimitationsofthecontractor’soperationsforparcelsoreasementsthathavenotbeenacquired.ThesesameparcelandeasementlimitationsmustbemirroredintheROWcertificationbeforetheprojectcanproceedtotheAdvertiseConstructionprocess.
ELIGIBLE CONSTRUCTION ACTIVITIESAsyouproceedthroughdesign,keepinmindthatthetypeofconstructionactivitiesallowedonaprojectaredefinedbytheprogramfundingsource.• Core program fundsarethesourceformostprojectfunds.• Restrictive program fundsincludealternatetypesofroadwayfundswithdefined
limitationsonhowtheycanbeused.
Besureyouunderstandthelimitationsoftheproject-specificfundstobetterensuretheprojectsarenotjeopardized.RefertoGuide to Federal-Aid Programs and Projects,whichwillhelpguideyourselectionmethodforprocuringprojectresources.
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UDOTUniversity|ProjectFinancialManagement
Thereareothertypesofprojectsmanagedsimilarlytopass-throughprojects,buttheseareproject-specific.ThePMwillneedtoworkwiththeRegionProgramManagertodeveloptheseagreementsandplanhowtodocument,manage,andfinanciallyclosetheseprojects.
COMMON PASS-THROUGHS AND SIMILAR AGREEMENT TYPES:
• Federallands• Scenicby-ways• Indianreservations• Saferoutestoschools• Safesidewalkprograms• Safetyspotimprovements• Selectedhousebillprojects
OTHER PROJECT AGREEMENTS (PASS-THROUGH)Therearetwotypesofpass-throughprojects– State Pass-Through and Federal Pass-Through.Bothpass-throughprojectscanbereimbursed,butFederalPass-Throughrequiresproofofworkcompletedbeforereimbursement.FederalPass-Throughprojectsaredefinedasfundsreceivedbyonestateagencyorinstitutionandtransferredtootherstateagenciesorinstitutionstocarryouttheproject’sprogrammedpurpose.No funds are advanced before work is complete.
UDOT’S ROLE AS A ‘PASS-THROUGH ENTITY’
UDOT’sroleasa‘Pass-ThroughEntity’onfederalprojectsistoprovideafederalawardtoathird-party‘subgrantee’tocarryoutafederalprogram.
Third-party (3P) Subgrantee’s Role: • Determineswhoiseligibletoreceivefunds• Performanceismeasuredbymeetingprogramobjectives• Responsibleforprogrammaticdecision-making• Responsibletoadheretoapplicableprogramcompliancerequirements• Usesthefundstocarryoutaprogramoftheorganizationratherthanthoseofthe
‘Pass-ThroughEntity’
34
Chapter5
POTENTIAL FINANCIAL HAZARDSFollowingarewaystoavoidhazardousfinancialactivitiesduringthePreconstructionprocess:• Follow the necessary procedures before starting LG projects:TheFAAmustbe
executedbeforespendingfundsonaLGproject.• Deposit funds before executing contracts: LGsmustdepositfundsforthespecific
phasesbeforeUDOTcanexecuteanycontracts.• Include betterment details:BettermentdetailsneedtobeincludedinPDBSwithinthe
Engineer’sEstimate.• Choose an efficient, yet thorough, procurement method: Aprocurementmethodthat
initiallyappearstobetheshortest,simplestmethodcanleadtobacktrackinganddoubleworkifitturnsouttobeaninappropriatemethod.
• Prepare estimates before advertisement:ThetotalestimatedcostofthebettermentworkneedstobeadvancedordepositedwithUDOTbeforeadvertisingtheproject.
• Acquire NTP before beginning work:ConsultantsshouldnotproceedandpaymentapprovalshouldnotoccurbeforereceivingtheNTP.
• Modify the contract before costs exceed contracted amount:Consultantsshouldnotexceedthemaximumcontractamountorexpendadditionalfundsbeforeacontract modificationapproval.
• Use required documentation:Allpaymentrequestsmustbesupportedby appropriatedocumentation.
• Do not approve payments that exceed approved rates:Paymentrequestsshouldnotbeapprovedwhentheyexceedtheapprovedratesinthecontract.
• Acquire environmental document approval:TheenvironmentaldocumentmustbeapprovedbeforebeginninganyROWacquisitionorfinalizingutilityagreements.
• Verify proper steps are taken before starting ROW acquisitions:ThePMneedstoverifytheFederalfinancialauthorizationdateisinplaceandnotifytheLGbeforeROWappraisalsandacquisitionscanbegin.
• Create ROW budget before starting work:TheROWbudgetmustbeestablishedandROWfundsauthorizedbeforebeginningROWwork.
• Make sure all documents are in place before advertising: ROWcertificationmustbeobtainedbeforetheAdvertiseConstructionprocesscanbegin.
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UDOTUniversity|ProjectFinancialManagement
SUMMARY ThePreconstructionprocessrequiresthePMtodevelop,document,approve,manage, andcloseavarietyofprojectcontractsandagreements.Topreventjeopardizingprojectfundsassociatedwiththesedocuments:• UnderstandUDOT,state,andfederal-aidcontractprocesses• Communicateearlyandoftenwiththeothercontractingentities• Ensurecontractsandspendingapprovalsareinplacebeforeproceedingtothe
nextactivities
TOOLS AND RESOURCES
• RefertothePlanningtheProjectchapteroftheUDOT PM Guide for furtherinformationaboutselectingtheProjectDeliveryTeam.
• RefertoUDOT Project Delivery Networkstolearnaboutsettingupaprojectnetwork.
• RefertotheBrooks Act(40USC11)tobetterunderstandthequalifications-basedselectionprocessforarchitects andengineers.
• RefertoConsultant Selection Thresholds and Capsforthelatest
• UDOTConsultantPoolcaplimits.• LearntheinsandoutsofConsultant
Selection with a Contracting Overview.• RefertoPurchasing 101 training and
theUDOT Procurement Guide for UtahStateDivisionofPurchasingandGeneralServicespurchasingguidance.
• RefertoBuy Americaforfinancialdetailsandimpactsonanyproject,especiallythosewithutilityitems.
• VerifyyourePM505ROWestimatewiththelatestROWcostsinthe ePMROWmodule,screen750,OwnershipStatus.
Local Government and Third-party Financial Tools• RefertotheLocal Agency FAA form
template and guidelines. • RefertotheBetterment Agreement
templateandthePDBS instructions forentering“betterments”and“non-participating”ascontractbiditemsforthird-partyandLGbetterments.
• RefertoUDOT Local Government AssistancetoaccessPDFsofFlexibleMatchApprovalGuidelinesandtheFlexibleMatchApprovalForm.
36
Chapter6
Preparingtoadvertiseaconstructioncontractisoftenoneofthemosthecticandhazard-pronetimesforaproject.Thisismainlybecausestateandfederalprojectadvertisingisheavilyregulated.Advertisingisalsowhenthebulkofprojectfundsareauthorizedforspending. Thisprovidesacriticalopportunitytomitigatefinancialhazardsby:• Providingaqualityconstructioncostestimate• Verifyingexpendituresandsufficientremainingfunds• Obtainingfinalconstructionspendingapprovals
6ETSProgram
FinanceProgram/ProjectManagement
ConstructionAdvertising
EngineeringTechnologyServices(ETS)
ADVERTISE CONSTRUCTION PROCESS ‘ADVERTISED’ Status
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UDOTUniversity|ProjectFinancialManagement
• Completeadvertisingplanpackage• SendemailtonotifyCentralteamsthatpackageisreadyforreviewandrequestforfunding
ProjectManagement
ProgramFinance Program Finance:ReviewprojectFinancialStatus,approveand
obligatefunding,sendemailtonotifyPMthatfundsareauthorized,and send FINETsetupinformationtoComptroller’soffice
Comptroller:Openapplicablephases(O3CCE-UDOT,13CCE-Consultant,O6KContractorPayments,etc.)inFINET
Comptroller$$$
• AdvertiseprojectConstructionAdvertising
ProjectManagement • Leadabstractreview,incoordinationwithREandRegion
ProgramManagertorecommendaward• UpdateePM505estimatetomatchcontractbid
ConstructionAdvertising • Awardconstructioncontract
ProgramFinance • AdjustfundingtomatchthePM’supdatedePM505estimate
• OverseeconstructionandCEbudgetsProjectManagement
Thefollowingchartshowstheadvertisingactivitiesleadingintoconstruction:
OncethePINisinACTIVEstatus,allfutureePMstatusadvancingisautomated,includingADVERTISEDandAWARDstatuses.
38
Chapter6
CONSTRUCTION ADVERTISEMENTTwoUDOTcentralofficeteamsthatserveimportantfinancialrolesasyouproceedtoadvertisearetheConstructionAdvertisementandtheProgramFinancegroups.
TheConstructionAdvertisementteamisresponsiblefortheintegrityofUDOT’spublicadvertisingandbidlettingforallheavyhighwayconstructioncontracts.TheyconductbiddingthroughPDBS,whichisthesourceforimportantfinancialdocuments,includingtheEngineer’sEstimate.InterestedcontractorssubmittheirbidsthroughtheElectronicBidSystem(EBS).TheirbidiscomparedagainsttheEngineer’sEstimate,aswellasotherbiddersatbidopening.
Refer to the following for additional advertising guidance: • UDOT Central Construction and Getting Started with Project Advertising are
especially useful if your design team has not advertised a project recently.• FHWA Contract Provision Federal-aid Construction Contracts includes a list of
items and activities that jeopardize federal reimbursement of construction costs. Become familiar with these.
TIP
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UDOTUniversity|ProjectFinancialManagement
PROGRAM FINANCE TheProgramFinanceteamhelpsassureprojectfinancialqualitythroughoutthelifeoftheproject.Theirroleisespeciallyimportanttoverifyaproject’sbudgetstatusduringtheAdvertiseConstructionprocess.ThePMneedstocoordinatewithProgramFinancetoverifytheprojectfinancialinformationrequiredastheproject’sadvertisingfundingauthorizationisprepared.ThechartbelowshowsthesourceofdatathatProgramFinanceusestoverifyprojectfunds,obligations,andexpenditurestocompletetheproject’sT-725,AuthorizationtoAdvertise forConstruction.
Where to Find Project Financial Information
PreliminaryEngineering
ConsultantPE ROW UtilityForceAccount
Construction CEOversight(In-house)
ConsultantCE
UDOTContingency
Incentives StateFurnished Additive#1,#2,#3...
ePM495screenexpendituresandencumberedtotals
Allauthorizedcontractstotaled
Estimatedcost(CentralROW)
Allauthorizedcontractsandagreementstotaled(RegionUtilityCoordinator)
Engineer’sEstimateinPDBS
CEcontractamountmatchesEngineer’sEstimateinPDBS
CEcontractamountmatcheswithallauthorizedcontracttotals
ePM505screenmatchesEngineer’sEstimateinPDBS
Engineer’sEstimateinPDBS
Engineer’sEstimateinPDBS
Engineer’sEstimateinPDBS
ADVERTISING NOTIFICATIONQualitycontrolsfortheadvertisingandfinancialdocumentsarethePM’sresponsibility.ThePMmustcheckthattheEngineer’sEstimateisuploadedintoPDBS,andthatadvertisingchecklistdocumentsaresavedintoUDOT’sProjectWisebusinesssystemandmarkedforadvertisement.ThePMthennotifiesbothConstructionAdvertising([email protected])andProgramFinance([email protected])byemailthattheprojectisreadytoadvertise.
40
Chapter6
FUNDING AUTHORIZATIONProgramFinancecompletestheconstructionfundingauthorizationforms.TheywillobtaintheUDOTDeputyDirector’ssignatureforconstructionfundingapprovalontheT-725 form and FHWA’ssignatureforapprovalontheFHWA’s R-709 form.TheR-709andT-725formsarethenscannedintoProjectWiseandmarkedforadvertisement.ThePM,Comptroller’soffice,andConstructionAdvertisementteamareemailedtheProjectWiselinktoaccessapprovaldocumentsasneeded.Afterapproval,theapplicabledatesareaddedtothePDBSsystem.
Before sending an email notification that your project is ready to advertise:• Adjust your PE estimated amount to include actual plus your forecasted
in-house (UDOT team members) and consultant costs. Be aware that the ePM 495 screen expenditures can lag behind actual costs.
• Verify that the amounts on the current Engineer’s Estimate and the ePM 505 screen match.
• Refer to File Guidance Contingency 5-5-9 Percent for a list of items to include in contingency.
• Refer to Additives Bid Table for examples.• Refer to Estimator’s Corner to improve the quality of your Engineer’s Estimate.
TIP
Plan on five to seven business days for funding authorization because many UDOT and FHWA staff are involved in this approval process. The 10 Day Target Advertising Schedule time frame includes this time frame and additional details.
TIP
Refer to UDOT’s Addendum Manual to learn how to modify contract documents during advertisement.
TIP
PROJECT ADDENDAItiscommonforcontractorstoidentifyerrorsandomissionsthatimpacttheEngineer’sEstimateandprojectbudgetduringtheadvertisementperiod.AnaddendumneedstobecreatedandsubmittedtotheConstructionAdvertisementteamiftherearechangestotheprojectadvertisingdocuments.ThePMmustinitiateandmanagetheaddendumsubmissionprocess.ThePMwillworkwiththeRegionProgramManagerandProgramFinanceifanaddendumrequiresadditionalfundsthatwillexceedtheprojectvaluelimits.
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UDOTUniversity|ProjectFinancialManagement
CONTRACT BID OPENING
UDOThasarigorous,controlledbidprocessinplacetoensurecompetitive,fair,andequitablebiddingandaward.ContractorssubmittheirbidsthroughtheElectronicBidSystem(EBS)—asoftwareapplicationthatmanagesthebiddingprocess.Atbidopening,theirbidsarecomparedagainstoneanotherandagainsttheEngineer’sEstimate.
ThePMisallowedtoreviewthebidabstractifthelowestresponsivebidisequaltoorlessthan110percentoftheEngineer’sEstimate.Beforeawardingthecontract,thePMandResidentEngineer(RE)reviewthebidabstractforpotentialareasofrisksuchasunbalancedbidsorlargedifferencesinspecificbiditemsreflectingapparenterrorsintheadvertisingpackage. ThePMcoordinateswiththeRegionProgramManagertodecidewhetherornottoawardacontracttotheapparentlowbidder.
ThePMfollowstheUDOT 08B-12 policyforcontractawardguidanceifthelowestresponsivebidisgreaterthan110percentoftheEngineer’sEstimate.Refertothe10 Percent Over Engineers Estimate Guidance Documentforabstractapproval.
CONTRACT AWARDThePMconsultswiththeREbeforerecommendingawardoftheprojecttotheapparentlowbidder.Next,thePMobtainsawardapprovalfromtheprojectsponsorsuchasthePortfolioManagerorLocalGovernmentifneeded.ThePMthenadjuststheePM505screenawardandcontingencyamountsaccordingtotheProject Budget Recovery Guidance.ProgramFinancemirrorstheePM505screenupdateinFMISandforwardstheapprovaltotheComptroller’sofficeforFINETupdates.
Thepurposeforthisstepistorecoverunusedprojectfundsforre-programmingtonewprojects.Thisprocessdoes notapplytonon-UDOTsponsoredprojects.ThePMemailsConstructionAdvertisingtoproceedwiththeNoticeofAward(NOA).
ConstructionAdvertisingsendstheapparentlow-bidderanawardletterbasedonthePM’srequesttoawardandforwardsacopyofthelettertoProgramFinance.ThistriggersProgramFinancetoadjustFMIStotheePM505screen,ProjectTotalEstimate.ThecontractNOAisnowissuedbytheUDOTConstructionDivisionandtheePMPINstatusautomaticallymovesfromAdvertisedtoAwarded.
FollowingistheautomatedPINstatuschangeprocess:• ePMlooksforaNoticetoProceeddateinPDBS• ThePINstatusischangedtoUnderConstructionandtheEffectiveDatechangesto
currentdate• AdescriptionisaddedtotheModificationCommentsonePMScreen745.
RefertotheHelpsectionofePMforacompletedescriptionofallautomatic PIN status updates.
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Chapter6
RE-ADVERTISEMENT OR NON-AWARDProgramFinancede-obligatesfederalfundsandde-authorizestheconstructionphaseiftheprojectisnotawarded.Thereisnoautomaticnotificationatthistime.ThePMmustcontactProgramFinancetonotifythemthatanon-awardhasoccurred.Thefundingwillremainprogrammedontheprojectuntilthere-advertisementoradecisionismadebytheRegionProgramManagertore-assignthefunds.
POTENTIAL FINANCIAL HAZARDSItisimportanttounderstandtheAdvertisingConstructionprocessinordertoallowtheteamsufficienttimetocompletetheirworkandtoprepareadvertisingandfinancialapprovals. Tohelpaddresspossiblerisks:• Coordinate routinely with the designer throughout the design phase:Verifytheproject
scopeanddesignexpectationstopreventalast-minutebudgetcrisisatadvertising.• Complete necessary tasks before advertising:ReviewoutstandingPEcontractsand
prepareanyneededcontractmodificationsbeforeadvertising.• Prepare documents to provide answers to contractors:HaveyourConstruction
EngineeringManagement(CEM)contractNTPinplacebeforeAdvertising,soyourassignedREisavailabletoanswercontractorbidquestions.
• Advertise at the right time of year to optimize bidding opportunities:RefertotheEstimator’s Corner forbestplanningandpractices.
• Make sure processes are recorded and completed accurately:CoordinateearlyandcloselywithProgramFinancetoverifyprojectexpendituresandoutstandingcontractobligations.ProgramFinancemonitorstheirworkloadusingtheWeeklyAdvertisingReport(WAR)intheCOGNOS PM Toolbox.KeeptheSubmitforAdvertisementdatecurrent(foundontheePM510screen)asitisavaluablecommunicationtoolforthecentral officeteams.
• Ensure the quality of estimates:CoordinateearlywithConstructionAdvertisingtoensurethequalityofyourEngineer’sEstimate.Refertothe Estimator’s Cornerfortips.
• Minimize scope creep:ThePMneedstocloselymonitorandassistwherepossibletominimizescopecreeponLGprojects.
• The PE phase for expenditures automatically closes 30 days after the FMIS R-709 advertised approval date. Contact Program Finance if a design issue is identified later during construction.
• Construction phases 03C (UDOT Construction Engineering), 06K (Contractor payments), and 13C (Consultant Construction Engineering) are opened for charges.
• Program Finance adjusts FMIS to match the PM’s revised ePM 505 estimate for federally funded projects and the excess project funds are returned to the region master PIN for re-programming.
• Excess funds return to the general fund for state funded projects.
TIP
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SUMMARYAdvertisingaconstructioncontractisachallenging,high-risktimeforaproject.Uptonow, thePMhasbeenworkingprimarilywiththeProjectDesignteam.ThePMnowcoordinatescloselywithnewteamswhohavestewardshipandfinancialoversighttasksthatensuretheintegrityofUDOT’sconstructioncontractprocess.Earlycoordinationandroutinecommunicationwiththeseteamswillgoalongwaytohelptheprojectadvertiseontimeandwithinbudget.
TOOLS AND RESOURCES
• RefertoUDOT Central Construction whengettingstartedwithprojectadvertising.
• RefertoFHWA-Contract Provision Federal-aid Construction Contracts,whichincludesitemsandactivitiesthatmayjeopardizefederalreimbursementofconstructioncosts.
• RefertoFile Guidance Contingency 5-5-9 percentforcontingencyinformation.
• RefertotheAdditives Bid Table for examplesofanEngineer’sEstimate inPDBS.
• RefertoEstimator’s CornertoimprovethequalityofyourEngineer’sEstimate.
• Refertothe10 Day Target Advertising SchedulefortimeframeafternotifyingthecentralofficeyouradvertisingpackageiscompleteinProjectWise.
• RefertoProject Budget Recovery Guidancewhenpreparingfor contractaward.
• RefertotheCOGNOS PM Toolbox WeeklyAdvertisingReport(WAR) toimprovecommunicationandtrustwithCentralAdvertisingteams.
• RefertotheUDOTAddendum Manualforguidanceonmodifyingcontractdocumentsduringadvertisement.
• FollowtheUDOT 08B-12 policy forcontractawardguidance.
• Refertothe10 Percent Over Engineers Estimate Guidance Documentforabstractapproval.
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Chapter7
TheConstructionprocessiswherethecontractorfinallybeginstheirwork.Thisprocessstartsatthecontractor’sNoticeofAward(NOA),wherePINstatusequalsAwarded,andendsatContractCloseout.Whilethecontractorconstructstheproject,theREmanagesthe day-to-dayaspectsoftheproject.TheREinspectsandverifiesthattheprojectisbuiltaccordingtocontractdocuments.ThedetailsandscopeoftheprojectarefoundinthePreconstructionPlans,Specification,andEngineer’sEstimate(PS&E).
AfterconstructionworkontheprojectiscompleteandthecontractornotifiestheREthattheprojectissubstantiallycomplete,theREarrangesafinalinspection.Oncetheprojecthaspassedthefinalinspection,theREinitiatestheContractCompletionandCloseoutprocesses.FollowingaredetailsleadingfromAwardtoConstructionCloseout:
UNDER CONSTRUCTION OVERVIEWThePM’sroleduringconstructionistomonitorandensurethattheprojectscope,schedule, andbudgetmeettheproject’scontractedintent.ThePMmustcoordinatewiththeREtomanagetheConstructionEngineering(CE)budget,minimizescopecreep,andensureconstructionoverrunsandChangeOrdersdonotexceedtheprojectfunds.ThePMmustalsoseethatallROWacquisitions,utility,andthird-partycommitmentsarefullysatisfied.Toavoidadditionalconstructioncostsanddelaystotheschedule,commitmentsmustbecompletedonscheduleandmustnotimpactthecontractoroperations.
CONSTRUCTION CHANGE ORDERS TheREcoordinateswiththePMonallChangeOrders.TheREhasauthoritytoapproveChangeOrdersoflessthan$25,000aslongasitdoesnotmodifythespecifications orexceedtheProjectValue.TheREpreparesanAuthorizationtoProceed(FormC107) thatgivestheREandthecontractortwoweekstonegotiateandapprovetheChangeOrderincaseofemergencyworkordelaystoworkprogress.ThePMassiststheREinestablishingthatthecumulativetotalofallChangeOrdersdoesnotexceedtheProjectValue,approvesChangeOrdersthatfallwithintheirapprovalauthoritylimit,andrecommendsapprovalforthosethatexceedtheRE’sapprovallimit.RefertoUDOT Policy 08B-10,forChangeOrdersgreaterthan$25,000.TheActiveProjectSummaryontheePM506screen,thesamereportasPDBSProjectDetail,helpsdetermineiftherearesufficientfundstocovertheproposedChange Order (Form C-100).
7 $$$
Construction Program/ProjectManagement
Comptroller
CONSTRUCTION AND POST– CONSTRUCTION PROCESSES ‘AWARDED’ to ‘CONTRACT CLOSEOUT’ Status
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Whenfundsarenotsufficient,thePMandREcoordinatewiththeDistrictEngineerand RegionProgramManagertoeitherresolvethescopeorobtainadditionalfundingfortheproject. ThefundingrequestisinitiatedbytheREusingtheUDOT COFN Form C118,whichisadvancedtotheComptroller’sofficeforfinalprocessingtoallowinvoicestobepaidoncefundsarelocated,approved,andaddedbyProgramFinance.SeetheUDOT CONF Form C118 instructionsforfurtherdetails.
CONSTRUCTION CONTRACT CLOSING OVERVIEWOncethecontractornotifiestheREthattheprojectissubstantiallycomplete,theREcoordinatesthefinalinspectionandpostconstructionconference.ThePMattendsthesemeetingsalongwithotherlocal,region,andcentralstakeholdersinvolvedintheproject.TheREcontinuestoworkwiththecontractortoverifythematerialscertificationanddocumentationcloseout.AfterverificationoftheprojectdocumentationbytheREandRegionContractSpecialist,theREsubmitsthefinalcontractorpaymentrequesttotheUDOTCentralConstructionoffice.AftertheRegionContractSpecialist(RCS)andCentralConstructionDivisioncompletetheirfinaldocumentationreview,andaFinalConstructionContractLetterisissuedtothecontractorbytheCentralConstructionoffice.ProgramFinanceissentacopyoftheFinalConstructionContractLetter,whichtriggerstheFinancialCloseoutprocessoftheproject.
TheUDOTConstructionDivisionhascommittedtocloseoutconstructioncontractswithin150daysfromsubstantialcompletion.ThePMwillwanttomonitorprogresstomeetthisgoal.Furtherinformationontrackingyourprojectthroughtheconstructionandpost-constructionprocessesandPINstatusescanbefoundbelow.
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Chapter7
CONSTRUCTION COMPLETION PROCESS DETAILSTheREentersthedatetheroadwayisopenandconstructionisnolongerimpacting trafficintoPDBS,andtheePMsystemautomaticallychangesthePINstatustoSUBSTANTIALLYCOMPLETE.• ePMfindsasubstantialcompletiondateinPDBS• ThePINstatusischangedtoSUBSTANTIALLYCOMPLETE,theEffectiveDateischanged
tothecurrentdate,andModificationCommentsareaddedontheePM745screen• Timebeginsfora150daycompletiongoaltocloseouttheconstructioncontract
SUBSTANTIAL COMPLETION
TheREcancallaprojectasSubstantiallyCompletewhenthefollowinghaveoccurred:• Thepublichasfullunrestricteduseoffacilities• Allsafetyfeaturesareinplace• Onlyminorincidentalworkremainsforphysicalcompletion• ThecontractorandREmutuallyagreethatremainingworkwillnotimpedethepublic
ForfulldefinitionseeSection00570of2012UDOTStandardSpecifications
POST-CONSTRUCTION COMPLETION PROCESS DETAILS
Contractor ActivitiesTimeframe: Complete 30 days after PIN status = Substantially Complete
Thedatethecontractor’sfinalpunchlistandallconstructionsiteworkiscomplete,theREentersthisinformationinPDBS,andtheePMsystemautomaticallychangesthePINstatustoPHYSICALLYCOMPLETE.• ePMfindsaphysicalcompletiondateinPDBS• ThePINstatusischangedtoPHYSICALLYCOMPLETE,theEffectiveDateischangedto
thecurrentdate,andModificationCommentsareaddedtotheePM745screen
Contractor ActivitiesTimeframe: Complete 30 days after PIN status = Physically Complete
Thedatewhenallcontractdocumentationandcontractorobligationsarefulfilled,theREentersthisinformationinPDBSandtheePMsystemautomaticallychangesthePINstatustoCONTRACTCOMPLETE.• ePMfindsacontractcompletiondateinPDBS• ThePINstatusischangedtoCONTRACTCOMPLETE,theEffectiveDateischangedtothe
currentdate,andModificationCommentsareaddedtotheePM745screen
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Resident Engineer Activities Timeframe: Complete 30 days after PIN status = Contract Complete
Thedatewhenallcontractdocumentationandcontractorobligationsarefulfilled,theRE entersthisinformationinPDBS,andtheePMsystemautomaticallychangesthePINstatustoREGIONREVIEW.• ePMfindsanoticeofcontractcompletiondateinPDBS• ThePINstatusischangedtoREGIONREVIEW,theEffectiveDateischangedtothe
currentdate,andModificationCommentsareaddedtotheePM745screen
Region Contract Specialist ActivitiesTimeframe: Complete 30 days after PIN status = Region Review
TheRegionalContractSpecialistreviewsthecontractdocumentsforcompletenessandaccuracyandsubmitsafinaldocumentationpackagetoCentralConstruction.• ePMfindsanoticeofregiondocumentationreviewcompletioninPDBS• ThePINstatusischangedtoCENTRALREVIEW,theEffectiveDateischangedtothe
currentdate,andModificationCommentsareaddedtotheePM745screen
Central Construction ActivitiesTimeframe: Complete 30 days after PIN status = Central Review
CentralConstructionreviewsdocumentationandprocessestheFinalPayEstimate.• ePMfindsanoticeoftheFinalPayEstimateinPDBS• ThePINstatusischangedtoCONTRACTCLOSEDOUT,theEffectiveDateischangedto
thecurrentdate,andModificationCommentsareaddedtotheePM745screen• ePMnotifiestheComptroller’sofficetheprojectisreadyforfinalpaymentandaudit
30 Days 30 Days30 Days60 Days
Region ContractSpecialist
CentralConstruction
ResidentEngineer
Contractor
150 Days total
The timeline to close out construction contracts using the substantial completion date as a baseline, includes:
48
Chapter7
Central Closeout Team ActivitiesTimeframe: Varies by project
AcollectivegroupincludingConstruction,CivilRights,ConsultantServices,andROWcompletestheCentralCloseoutactivities.• CloseoutandfinancialdocumentsarefinalizedforAuditreview• TheComptroller’sofficeauthorizesthefinalcontractorpaymentandtheretentionrelease
Program Finance ActivitiesTimeframe: Varies by project
ProgramFinanceadvancesPINstatustoCONSTRUCTIONCLOSEOUTandtheprojectmovestothenextprocess,FinancialCloseout.
POTENTIAL FINANCIAL HAZARDSConstructionitemoverruns,especiallyonmajoritems,andChangeOrdersarethehighestriskitemsthatcandamagetheprojectbudgetduringtheconstructionphase.Thebestpracticesforconstructionitemoverrunpreventioninclude:• Administer a constructability review:Maketimeforaqualityplanreviewandfieldreview
withanexperiencedconstructionexpertduringthedesignphase.• Conduct a project risk review:Aprojectriskreviewwillhelptodevelopanappropriate
contingencytomitigaterisks.• Manage a reconstruction investigation:Doaqualitychecktodeterminepotentialoverruns,
especiallyonaproject’smajorcostitemssuchasHMA,UTBC,andgranularborrow.• Maintain proactive construction communication:Scheduleroutinecommunicationwith
theREtomonitoroverrunsandaskfrequentquestionsaboutthequantitiesofmajoritems.
PreventChangeOrderbudgetoverruns:• Plan ahead:Tohaveaqualityplanadvertisingpackageinplace.• Prevent scope creep:BycommunicatingregularlywiththeRE.• Stay involved:Preventcontractorclaimsbystayinginvolvedtohelpmonitorwhetherthere
arepotentialconflictsfromthecontractor’sperspective.RefertoUDOT 08B-91.
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SUMMARYThemajorityofaproject’scostsareincurredduringtheconstructionphase.Commitmenttomonitoringprojectfinancesisimportant.ThePMcontinuestomonitorthebudget,followsuponanyunresolvedROWacquisitionsandutilitycommitments,andkeepsintouchwiththeREonprojectprogresstoensuretheprojectdoesnotexperiencescopecreep.RefertoUDOT PM Guideforadditionaltipsonmanagingasuccessfulconstructionphase.
ThePMshouldcontinuetomonitorprogressduringpost-constructiontoensuretimelyconstructioncloseout.
LOCAL GOVERNMENT HAZARDS
• MonitoranyLGscopecreeptoensurefederalfundsarenotjeopardized, whichisacommontendencyforallprojectsduringtheConstructionPhase
• ModifytheFAAifaLG’sadditionalestimatedshareexceeds$25,000• IftheLGchoosesnottoawardthecontract,allfederalfundsexpendedmustbereturnedandunauthorizeduntilreadvertisingorotheractionsaretaken
TOOLS AND RESOURCES
• ComparetheePM505and495screensandupdate505screenaccordingly.Bothofthesewillfeedandensureanaccurate506ActiveProjectSummaryReport.
• RefertoFinancialReportsin thePM Toolboxforprojectencumbrancesandtheprojectexpenditurecostsummary.
50
Chapter8
ThelastphaseoftheprojectlifecycleistheFinancialProjectCloseoutprocess.Thisincludesmanydifferentactivities,butthischapterwillfocusonthefinancialaspectsofprojectcloseout.Finalpaymentismade,issuesareresolved,fundsarereconciled,andprojectspendingauthorityisterminatedduringthisprocess.TimelyprojectcloseoutistheresponsibilityofthePMandallowsre-programmingofexcessprojectfundstowardotherprojects.
PromptprojectclosingwithintheFederal-aidandStateHighwayProgramiscriticaltoUDOTandFHWAinordertooptimizethelimitedfinancialresourcesunderUDOT’sstewardship.Unexpendedfundsfrompromptlyclosedprojectscanbeusedfornewprojects.
ePM PROJECT CLOSEOUT NETWORK • TheProjectCloseoutNetworkwasdevelopedtooutlineandtrackthestepsnecessary
toproperlycloseoutprojectsinePM.Forconstructionprojects,theProjectCloseoutNetworkbeginsonthedatetheREmarkstheprojectasSubstantiallyCompleteinPDBS.RefertotheConstruction Closeout Process Timelineforconstructionprojectcloseoutactivities.Fornon-constructionprojects,theProjectCloseoutNetworkbeginswhenthePMdeterminesthattheintentoftheprojectiscomplete.
8
SUBSTANTIAL COMPLETION
ThedaydeterminedbytheEngineerwhenthepublichas fullunrestricteduseofthefacilitiesfromanoperational andsafetystandpoint.RefertoSection00570ofthe UDOTStandardSpecificationsforafulldefinitionofsubstantialcompletion.
$$$Construction ComptrollerProgram/Project
ManagementProgramFinance
FINANCIAL PROJECT CLOSEOUT PROCESS ‘CLOSEOUT’ to ‘CLOSED’ Status
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ThePMinitiatestheprojectcloseoutbysettinguptheProjectCloseoutNetworkinePM. ThissetupincludesselectingtheCloseoutactivitiesbasedonthecharacteristicsoftheproject,assigningmanagementunits(MU)orteammembertothoseactivities,andselectinganetworkcloseoutcompletiondate.
• RefertoProject Closeout Network activities in ePMforatutorialanddocumentationthatshowsPMsandActivityLeadershowtosetupandupdatetheprojectinePM.TheProjectCloseoutNetworkendswhenallcontractobligationsaremetandtheprojectiscompletelyclosedinePM,FINET,andFMIS.TerminationofprojectspendingauthoritytakesplacethroughformR-77. Unexpendedfundsarereleasedoncetheprojectisclosed.Atthistimefundsforanyprojectoverrunmustbefound.CoordinatewiththeRegionProgramManagertolocateanappropriatefundingsource.Afterfundsarereconciled,ProgramFinancemovestheePMPINstatusfrom“Closeout”to“Closed.”
PROJECT TRACKING ORACLE DATABASETheProjectTrackingOracleDatabasewasdevelopedtotracktheclosureofspecificconstruction,consultant,andutilitycontracts.ThedatabasetracksifconsultantorutilitycontractsrequireapostauditfromUDOT’sInternalAuditDivision.TheregionPMSupportTechniciansaresetuptohelpaccessthisdatabase.
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Chapter8
POTENTIAL FINANCIAL HAZARDSAmajorresponsibilityofthePMistomakecertainthatallfinancialcommitmentshavebeenmetbeforeclosingtheproject.Belowaresolutionsforavoidingcloseoutproblems:
SUMMARYItisimportanttoconsidertheFinancialProjectCloseoutprocessthroughoutaproject’slifecycle. Thiswillensuretheproperstepsandfinancialdocumentsareinplaceforacloseoutthatmaysometimesbemanyyearsinthefuture.Alittlecloseoutplanningduringeachphaseoftheprojectwillgoalongwaytowardasuccessfulcloseoutprocesswhenthattimearrives.
• Check contracts and evaluations: Checkthatallconsultantcontractsareclosedandevaluationscompleted.
• Coordinate with the Comptroller’s office:CoordinatewiththeComptroller’sofficeforanywarranties,ROWcondemnations,ROWRightofOccupancy(ROO),andROWlitigations.
• Check outstanding contracts:Verifytherearenooutstandingutility,railroad,orotherthird-partycontracts.
• Complete audit:Besuretoplanabudgetforanyneededpostaudits.SeeCloseout Project Audit Cost Estimatesforguidance.ConfirmthatthefinalUDOTauditiscomplete.
• Locate additional funding: ThePMwillworkwiththeRegionProgramManagertolocateadditionalfundingtomeetobligationsofanycoststhatcomeinafterthereleaseoffunds,orthatexceedthetotalprojectbudget.
TOOLS AND RESOURCES
ThefollowingtoolsareavailabletoassistPMsinefficientlytrackingandmanaginga project’sclosure:
• UsetheePM Project Closeout Networktotrackthenecessarystepsinclosingaproject.
• RefertotheFinancial Project Tracking Oracle Databasetotracktheclosureofspecificcontractsrelatedtotheproject.
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9 CONCLUSION
“Some Project Managers go over their budgets very carefully every month; others just go over them.” – Unknown
OneofthemostimportantservicesaUDOTProjectManagerprovidesistodeliverqualityprojectstothepublicinafiscallyresponsibleway.Inthesechangingeconomictimes,it’sevenmorecriticaltomanagefundsefficientlytobettersupportUDOT’s Strategic Direction. ThisProjectFinancialManagementresourcecanserveasacoreguidetoensuredelivery ofafinanciallyhealthyproject.
InitiallyPMsshouldtakethetimetobecomefamilierwiththecontentandchapterformats, soitwillbeeasiertolocatethetoolsandreferencematerialsquicklyasyouneedthemin thefuture.Theguidealsoreferencesmanyadditionalresourcesandlinkstohelpsteerawayfrompotentialprojectfinancialhazardsthroughouttheproject’slifecycle.
Refertothecompletefinanciallifecyclecharttoviewthefinancialprocessinitsentirety.
See the full Project PIN Status Chart.
TIP
PROJECT FINANCIAL LIFE CYCLEInitialSpendingRequestThroughFinancialCloseout
Construction and Post Construction Processes
Preconstruction Process
Financial Project Closeout Process
Project PIN Creation Process
Advertise Construction Process
Concept Development (CD) Process
54
Glossary
23CFRTitle 23 – Code of Federal RegulationsRegulationtoimplementandcarryouttheprovisionsoffederallawrelatingtotheadministrationoffederal-aidforhighways. (fhwa.dot.gov)
5-5-9 Contingency EstimateTheUDOTrecommendedpercentageofconstruction contingency amount based on the type of project:
5%forORANGEbookprojects
5%forPURPLEbookprojects
9%forBLUEbookprojects
ContingencyitemsincludeFUELADJUSTMENTS,MATERIALADJUSTMENTS,OVERRUNS,UNDERRUNS,andCHANGEORDERS.
10-Day Advertising ScheduleTheCentralProjectTeams’targetschedulefromthetimetheyreceivetheprojectpackagetothetimetheproject’sadvertisementnoticeispublishedat utahlegals.com
ABC Accelerated Bridge ConstructionAmethodofbridgeconstructionthatusesinnovativeplanning,design,materials,andconstructionmethodsinasafeandcost-effectivemannertoreducetheonsiteconstructiontimethatoccurswhenbuildingnewbridgesorreplacingandrehabilitatingexistingbridges.(fhwa.dot.gov)
AbstractThePDBSbidopeningtabulationthatcomparesthecontractorbidproposalswiththeEngineer’sEstimate.
AC AgreementAdvanced Construction AgreementAnACAgreementallowsthestatetoadvanceafederalconstructionprojectwithoutobligating thefederal-aid.Thestateorlocalagencybearsallexpenditureoutlaytocovertheagreement.ThisistypicallyhandledthroughSystemsPlanningandProgramming.
AC ConversionAdvanced Construction ConversionWhentheintendedfederal-aidand/orobligationauthorityisavailable,aportionortheentireACamountmaybeconvertedtoobligatedfunds.EligibleexpendituresmaybebilledforreimbursementtothestateorlocalagencyaftertheACConversion.(23CFRChapterISubpartG630.709)
10 GLOSSARY
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UDOTUniversity|ProjectFinancialManagement
Accounting SystemTechnologyorsoftwareprogramsthatassist anorganizationtoaccount,record,summarize,interpret,andpresenttimelyfinancialdata(Ex:UDOTFINETorFHWA’sFMISsystems)incontrasttobusinesssystemssuchasePMandPDBS.
Addendum (to advertising package)
Ifanerrorisdiscoveredafteradvertisingthecontractforconstruction,anaddendumispreparedtocorrecttheerror.
ARRAAmerican Recovery and Reinvestment Act of 2009TheprimaryobjectiveforARRAwastosaveandcreatejobsalmostimmediately.Secondaryobjectivesweretoprovidetemporaryreliefprogramsforthosemostimpactedbytherecessionandinvestininfrastructure,education,health,and ‘green’energy.(Wikipedia)
ATMSAutomated Traffic Management SystemATMSisacomponentofanIntelligentTransportationSystem(ITS).ATMSintegratestechnologyprimarilytoimprovetheflowofvehicletrafficandimprovesafety.Real-timetrafficdatafromcameras,speedsensors,etc.flowsintotheTransportationOperationsCenter(TOC)whereitisintegratedandprocessed(e.g.forincidentdetection),andmayresultinactionstaken(e.g.trafficrouting,DMSmessages)withthegoalofimprovingtrafficflow.(Wikipedia)
AdditivesDuringthedesignprocess,contractorsarerequiredtobidadd-onportionsofworkinanticipationofreceivinglowbidpriceswhereadditivescanbeselected.
Administrative RecordTherecordwhichreflectsallcommunications,mediaevents,meetingminutes,etc.applicableforenvironmentalNEPAdocuments.
Advertising ChecklistAguidancedocumentthatassistsaprojectteamtoprepareacontractpackage(Plans,Specifications,andEngineer’sEstimate)foradvertisingusedtoverifythecertificationsandapprovalstoproceedtoadvertise.
AmendmentAnaudittrailforanychangesmadetoaprojectinePM.
ApportionmentApportionmentisatermwhichreferstoastatutorily-prescribeddivisionorassignmentoffunds.Anapportionmentisbasedonprescribedformulasinthelawandconsistsofdividingauthorizedobligationauthorityforaspecificprogramamongthestates.ExamplesincludeInterstateMaintenance(IM),NationalHighwaySystem(NHS),SurfaceTransportationProgram(STP),CongestionMitigationandAirQuality(CMAQ),and BridgeReplacementandRepair(BRR)programs.(txdot.gov)
Approved AmountRequestedfundsthathavebeenauthorizedbytheFHWA.
ArterialAfunctionalclassificationofaroadwaythat is foundinbothruralandurbanenvironments,whichprimarilyfocusesonhighlevelsofmobilitythroughrelativelyhigheroverallspeedsratherthanlandaccess.(fhwa.dot.gov)
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Glossary
Arterial, MinorStreetsandhighwayslinkingcitiesandlargertownsinruralareasindistributingtripstosmallgeographicareasinurbanareas (notenteringidentifiableneighborhoods).(fhwa.dot.gov)
Arterial, PrincipalMajorstreetsorhighways,manywithmulti-laneorfreewaydesign,servinghigh-volumetrafficcorridormovementsthatconnectmajorgeneratorsoftravel.(fhwa.dot.gov)
Audit (see Post Audit)Theactofscrutinizingfilesforinfractionstothe23CFR.
AuthorizationFederaland/orstatespendingapprovalforSTIPprojectsandprograms.
Authorization SignatureSignaturerequiredfromauthorizedUDOTand/orFHWArepresentative(s),afterrequestingfundsfromFHWAorotherofficials,beforespendingcanoccur.
AwardOwner’snoticetoabiddingcontractorof theacceptanceoftheirsubmittedbidon aproject.
BVIBid Variation IndexAstatisticalcomparisonthatmeasuresthevariationofconstructionbidpricesamongbiddingcontractorsonagivenproject.
BettermentFacilityconstructionimprovements,beyondthescopeoftheproject,thatareaddedtoaUDOTprojectandarefundedbyathirdparty(i.e.localgovernment,orutility).
Betterment AgreementAsigneddocumentdetailingthefacilityconstructionimprovementitemstobeconstructed,andthefinancialresponsibilitybetweenUDOTandthethirdparty.
Bid Abstract - See Abstract
Bid LettingPublishingagovernmentcontractforbid.
Bid OpeningApricevalidationprocessusedtoaccept,compare,andevaluateconstructionbidsorproposalssubmittedbycontractors, toensurefairandequitableselection.
Blue Book ProjectProjectsthatmayincludenewconstruction,rehabilitation,orreconstruction,inordertoextendthelifeofbridgesandpavement.FundingconsistsoffederalandstatefundsonInterstates,NationalHighwaySystem, andfederal-aideligibleroutes.
Bridge FundsVariousfederalfundingprogramsdedicatedtoreplaceorrehabilitateexistingbridges.
Brooks ActQualifications-basedselectionprocessforarchitectsandengineersdefinedbyUSCode40USC11.
Business SystemTheITtoolsandprogramsthatcomprise theinformationarchitectureofanorganization,suchasUDOT’sePM, OMS,PDBS,andProjectWise.
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Buy AmericaFederalconstructioncontractprovisionthatrequirestheprojectincludenosteelorironmaterialsor,ifsteelorironmaterialsareused,allmanufacturingprocesses,includingapplicationofacoatingforthesematerials,mustoccurintheUnitedStates.23 CFR 635.410. Projectsunabletomeetthisrequirementcouldjeopardizetheirfederalfunds.
C107 (UDOT Construction Division form)Authorization to Proceed with Extra WorkRequiredbeforeproceedingwithanyconstructioncontractchangeorextrawork.
C128 (UDOT Construction Division form)Report on Assembly of Final EstimateUsedtoensurecompletedocumentationfortheclosingofacontractandisrequiredbyFHWAfortheprojectclosingprocess.Thisisincludedinthefinalletterpacket.
C190 (UDOT Construction Division form)Project Acceptance ReportUsedtodocumentsubstantialandphysicalcompletionandisrequiredbyFHWAfortheprojectclosingprocess.Thisisincludedinthefinalletterpacket.
C196-A (UDOT Construction Division form)Project Materials Certification and Attachment AProvidescertificationoftheprojectmaterialstotheDistrictEngineerandisrequiredbyFHWAfortheprojectclosingprocess.Thisisincludedinthefinalletterpacket.
CAACommission Approved AmountInitialfundingamountprogrammedoneachprojectintheSTIP.TheUtahTransportationCommissionApprovedAmountisfoundin theePMProgramDevelopmentmodule, onthe710screenunder‘ProjectNumber’tab.Thecostoftheprojectisnottoexceedthisnumber.
CatExEnvironmental Categorical ExclusionACatExispreparedforactionsthatdonotindividuallyorcumulativelyhaveasignificanteffectontheenvironment.Theseareactionsthatdonot:inducesignificantimpactstoplannedgrowthorlanduseforthearea;requiretherelocationofsignificantnumbersofpeople;haveasignificantimpactonanynatural,cultural,recreational,historic,orotherresource;involvesignificantair, noise,orwaterqualityimpacts;havesignificantimpactsontravelpatterns;andotherwise,eitherindividuallyorcumulatively,haveanysignificantenvironmentalimpacts(23CFR771.117(a)).(UDOTEnvironmentalProcessManualofInstruction)
CCPConstruction Completion PacketTheCCPisfromcentralconstructionstatingtheconstructionhasbeencompletedonaproject.Aseriesofformsdesignedtosummarizetheconstructionphaseofaproject,includingtimetocomplete,materialacceptance,DBEcommitments,changeorders,materialover/underruns,andcontractorpayments.
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Glossary
CD BudgetConcept Development BudgetAnominalamount(usually$10K)assignedtoaprojectfortheCDteamtoconductastudytodeterminethefeasibilityofthatproject. CDfundsarealwaysnon-participating.
CEM BudgetConstruction Engineering Management BudgetTheCEMistheportionofaprojectbudgetthatprovidesconstructionengineeringoversightonaproject.
CEMConstruction Engineering Management Engineeringservicestooverseeandadministertheconstructioncontract.
CFCCounty of the First Class FundHouseBill287fromthe2001GeneralLegislativeSessioncreatedaspecialrevenuefundthatreceives25percentofSaltLakeCounty’s0.25percentpublictransitsalestaxthatwasapprovedbyvotersintheNovember2000generalelection.FundscanbeusedforI-15andotherstatehighwayprojectswithinSaltLakeCountyandfordebtserviceonbondsissuedtopayforsuchprojectsasprioritizedbytheCommission.(udot.utah.gov)
CFRCode of Federal RegulationsTheadministrativelawofthefederalgovernment.Highwaysarecoveredunder23CFR,Acquisitionunder48CFR,Transportationunder49CFR,etc.
CHFCentennial Highway FundTheCHFisanallocationofstateandfederalmoneyforuseinbuildingcapacity-driventransportationprojects.Usesincludeconstruction,majorreconstruction,ormajorrenovationofstateandfederalhighways, themostprominentofwhichwasthe I-15reconstructioninSaltLakeCounty. (udot.utah.gov)
CHNFCritical Highway Needs FundDuringthe2007UtahLegislativeSession,HouseBill314createdtheCHNF.ThisfundisusedonvarioustransportationprojectsthroughoutthestateasprioritizedbytheCommissionbasedonrecommendationsdevelopedbyUDOTundercriteriaidentifiedinstatelaw.(udot.utah.gov)
CMAQCongestion Mitigation Air QualityAtypeoffederalfundingthatmaybeaddedtoaprojecttoassistinobtainingormaintainingacertainstandardofairquality.
CMGCConstruction Manager General ContractorThisisamodifieddesign-buildprocessinwhichtheownerholdsthecontractforboththeconsultantdesignerandthecontractor.
CMGC ProjectConstruction Manager General Contractor ProjectContractingprocessinwhichacontractorisselectedtoaidwiththedesignandistheninvitedtoproposeapricefortheconstructionoftheproject.Thisisintendedtoidentifyandreduceprojectriskandcostofconstructionbyinvolvingthecontractorindesigndecisions.Timeissavedwhiletheprojectisindesignandconstructionriskisminimized.
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CMPOCache Metropolitan Planning OrganizationTheCMPOisresponsibleforcomprehensivetransportationplanninginportionsofCacheCounty,Utah.(cachempo.org)
CMSContract Management SystemePMBusinessSystemmoduleusedforconsultantcontracting.
COChange Order
ChangeOrdersmodifythecontractandarerequiredfor,butnotlimitedto,thefollowingconditions:panorspecificationchangeoraddition,differingsiteconditionorsignificantchangeinthecharacterofwork;changeinDBEcommitment;extensionofcontracttime;extraworkrequiredthatcannotbetiedtoanoriginalbiditem;andacceptanceofavalueengineeringproposal.(UDOTConstructionManualofInstruction)
CPMCritical Path MethodAschedulingtechniquethatusesactivitydurationsanddependenciestocalculatethelongestpathofplannedactivitiestotheendoftheproject,andtheearliestandlatestthateachactivitycanstartandfinishwithoutmakingtheprojectlonger.(Wikipedia)
Capital CostsThevalueofthephysicalfeatureson a project.
COGNOSStateofUtah’sbusinessandperformancereportingtool.
Commission MinutesMinutestakenduringUDOTTransportationCommissionmeetingsthatcontainpertinentinformationregardingprojects,includingfunding.
Comptroller’s OfficeUDOTdivisionofficeresponsibleforsupervisingthequalityofaccountingandfinancialreporting.
Concept ReportReportdevelopedbytheConceptteamdocumentingtheproposedprojectneedanddefinesthelimits,scope,andcostestimatefortheproject.
Congressional District CodeRequired2-digitnumericfieldidentifyingthegeographicalcongressionaldistrictinwhich aprojectislocated.
Consultant ContractAcontractwrittenbyUDOTConsultantServicesforarchitectural/engineeringservicesorengineeringrelatedservicesforeitherUDOTorlocalgovernmentprojects.Thefundingmaybestate,federal,orlocalgovernment.Aconsultantcontracthasvariousmethodsofqualification-basedselection (i.e.GeneralEngineeringServicesandLocalGovernmentPool,RequestforQualifications,RequestforLetterofInterest,orEngineer ofRecord).
Contingency Plannedfundssetasideforunknownfutureeventsoremergencies.See5-5-9ContingencyEstimate.
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Contract ModContract ModificationAcontractmodificationmayintroduceorcancelspecificationsortermsofanexistingcontract,whileleavingintactitsoverallpurposeandeffect.
Corridor PreservationLandpurchaseinanticipationoffuture road construction.
Cost AccountingAsystematicprocessforrecordingandreportingallthecostsandrevenuesofanorganizationinawaythatcanbeusedtoimproveitsmanagement
Cost BudgetingAllocatingcostestimatestoindividual workactivities.
Cost EstimatingAprocessusedtoapproximatethecostofaproject.Highwayprojectcostestimatingincludesthecostofmapping,survey,design,preparinganenvironmentaldocument,utilityimpactrelocations,rightofway(appraisals,appraisalreview,agents,acquisitions,andeasements),constructionmaterialsandlabor,andaudits.
DBDesign-BuildThereareseveraltypesofDBprojects,includingbestvalueandlowbid. Generally,UDOTdevelopsdocuments thatidentifytheendresultproduct,establishesthedesigncriteria,andapreliminarydesignthatprovidesinformationonunknownssuchasthegeotechnicaldata,tominimizeacontractor’srisk.Prospectivebiddersdevelopdesignproposalsbasedonthesedocuments.Thedesign-buildconceptallowsacontractormaximumflexibilityforinnovationintheselectionofdesign,materials,andconstructionmethods. WithDB,thecontractorassumesamuchlargerroleinthecontroloftheproject, withUDOThandlingmoreofanadvisoryandqualityassurancerole.(UDOTPMGuide)
DBBDesign-Bid-BuildUDOTdesignstheprojectanddevelopsasetofplans,specifications,andanestimate(PS&E).Thesedocumentsareadvertisedtothecontractingpopulationandtheysubmitbidsforthework.Thelowestresponsivebidderisselectedtoperformthework.UDOTmaintainscontroloftheconstructionproject.(UDOTPMGuide)
DBEDisadvantaged Business EnterpriseDBEsarefor-profitsmallbusinessconcernswheresociallyandeconomicallydisadvantagedindividuals(i.e.AfricanAmericans,Hispanics,NativeAmericans,Asian-PacificandSubcontinentAsianAmericans,andwomen)ownatleasta51percentinterestandalsocontrolmanagementanddailybusinessoperations.(USDOT)
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DEDesign EngineerAnengineerthatdesignsroadwayprojects.
Direct SelectAconsultantselectionprocesswhereafirm is selectedfromapre-qualifiedlistoffirms, suchasfromtheUDOTGeneral EngineeringPool.
DUNS NumberData Universal Numbering System NumberAuniversalnumericidentifierusedtotrackentitiesreceivingfederalawardsandmustbeprovidedonallfederalgrantapplications.
Dixie MPODixie Metropolitan Planning OrganizationTheDixieMPOisdesignatedbythestateofUtahtooverseetransportationplanningintheurbanizedandurbanizingareasinUtah’sWashingtonCounty—historicallyknownas‘Utah’sDixie.’(dixiempo.wordpress.com)
EAEnvironmental AssessmentANEPAdocumentpreparedforaprojectthatisnotontheCatExlist,anddoesnothavesignificantenvironmentalimpacts(i.e.minorwideningproject).
EBSElectronic Bidding SystemAUDOTsoftwareapplicationthatmanagestheprojectconstructionbiddingprocess.
EEEnvironmental EngineerAnengineerthatmanagestheNEPAprocess.
EISEnvironmental Impact StatementANEPAdocumentforaprojectthatisdeterminedtoposesignificantenvironmentalimpacts.Typicalforprojectswithanewalignmentandcantakethreetofouryears tocomplete.
ePMElectronic Program ManagementAUDOTsoftwareapplicationthatholdsallspendinginformationregardingSTIPprojectsandprograms.
ePM 300 ScreensTheinitialprojectPINcreationsetupscreensprimarilyusedbyPlanningandProgramming,ProgramandPortfolioManagers,wheretheydescribeandproposeaproject,moveitontotheSTIP,setupfundingandallowtheteamtoplantheprojectscope.
ePM, 495 Screen – Expenditure SummarySpecificscreenfoundintheePMProjectDevelopmentmoduleunderthe‘Financial’tab.Showstheprojectexpendituresummary.
ePM, 505 Screen – Cost EstimateEngineer’s EstimateSpecificscreenfoundintheePMProjectDevelopmentmoduleunderthe‘Financial’tab.ShowstheProjectManager’splannedcostestimateofaproject.
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ePM, 710 Screen – PIN/Project SetupProject InformationSpecificscreenfoundintheePMProjectDevelopmentmoduleunderthe‘Setup’tab.Showsdetailedprojectandfundinginformation(i.e.descriptions,routename, andlocation,etc.).
ePM, 750 Screen – Ownership StatusSpecificscreenfoundintheePMROWmodulethatincludesdetailsaboutownerships,parcels,landvalues,theagent’slog,condemnations,summary,deeds, andstatus.
ePM, 861 Screen – Report SelectionSpecificscreenfoundintheePMProjectDevelopmentmoduleunderthe‘Reports’ tabwhichcangeneratevariousreportssuchasbudgeting,projects,andGantt.
Earmark
Federalfundsthataresetasideforaspecificproject.Thisfundingcanonlybeusedforthespecifiedproject.AnyunexpendedfundsarereturnedtotheFHWA.
EligibleCoststhatmeetfederalstandardsforreimbursementoffederalfunds.
EncumbranceReflectscontractualprojectfinancialcommitmentspriortoanactualexpenditure.Managementtooltopreventoverspending.
Engineer’s EstimateTermgiventoadocumentfoundinPDBSthatiscreatedbytheprojectengineer,thatgivesadetailedbreakdownofcostsinallphasesoftheprojecttoadvertiseforconstructioncontractor.Thisdocumentmustremainwithin
theprojectvalue.
Environmental DocumentANEPA(NationalEnvironmentalPolicyAct)documenttodeterminewhethercertainactions(suchabuildingaroadway)‘significantly’affectthequalityofthe humanenvironment.
Environmental Documentation/Project FileAfilethatcontainsalltherelevantenvironmentaldocumentsforagivenproject.Maintaininganaccurateandup-to-dateprojectfileisanimportanttaskinanyNEPAstudy.ThisdocumentationincludestheAdministrativeRecord.(UDOTEnvironmentalProcessManualofInstruction)
ExpenditureAnyincurredcosttoaproject.
FAAFederal-Aid AgreementAsignedagreementbetweenUDOTandalocalgovernmentwhichdescribesthefundingresponsibilityforalocalproject.
FHWAFederal Highway AdministrationTheFederalHighwayAdministration(FHWA)isanagencywithintheU.S.DepartmentofTransportationthatsupportsstateandlocalgovernmentsinthedesign,construction,andmaintenanceofthenation’shighwaysystem(Federal-AidHighwayProgram)andvariousfederallyandtribalownedlands(FederalLandsHighwayProgram).(fhwa.dot.gov)
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Final Construction LetterAletterissuedfromtheEngineerforConstructionandMaterialsthatterminates aconstructioncontractandreleases thecontractor.
Finance SystemsProcessesandtoolsthathelpanorganizationtrackandmanageresourcesandaidplanninganddecision-makingsuchasINETandFMIS.
FINETFinancial NetworkUtahState’sfinancialmanagementsoftwaresystemthatprovidesaccountinginformationtohelpagenciesanalyze,makesounddecisions,andmaximizeuseoftaxrevenues.TheFINETprogramusescostaccountingelementsinputintoexpendituredocuments.Thoseprogramswitha5or4prefixidentifyinvolvementoffederalfundsontheproject.
FINET CODING BLOCKAsetofcodingelementsusedbyUtahstateagenciestorecord,classify,andretrievefinancialinformationbycategoryandsubcategories.
FMISFiscal Management Information SystemFederalsystemusedtoenterandtrackobligationoffunds,expenditures,information,andfinancialchangesandadjustmentsonfederallyfundedprojects.
FMIS ActionAnyadjustmentorobligationwithintheFMISsystemthatrequiressignatureauthorization.
FMIS NumberAuniquenumbergeneratedforeach projectinePMwhichidentifiesitwithin theFMISsystem.
FONSIFinding of No Significant ImpactAFONSIisboththedecisionbyFHWAthattheprojecthasnosignificantimpactsandthedocumentationofthatdecision.AdeterminationthattheprojectwillhavenosignificantimpactsismadebyFHWA,followingconsiderationoftheanalysispresentedintheEA,considerationofcommentsontheEAmadebyagenciesandthepublic,UDOT’sselectionofthepreferredalternative,andanychangesintheproposedactionbasedonthecommentsreceived.(UDOTEnvironmentalProcessManualofInstruction)
FVFinal VoucherAdocumentgeneratedbytheComptroller’sofficethatbreaksdownallcostsonallsubphasesofaprojectorprogram.Everypennythatwasprogrammedfortheprojectisaccountedforbythisfinaldocument.
Federal-aid ProgramAllfederalfundsthatstatesareallowedtoexpend,providingfederalcriteriaismet.
Federal Bill – ReimbursementAweeklybillsubmittedtoFHWAforreimbursementtothestateforcostsincurredonfederalprojects.Initially,thestatecoversthefundingofanygivenfederalproject.OnlyaftersubmittingnecessarydocumentsandreceivingauthorizationoffundsbyFHWA,doesthisqualifythestatetobereimbursedbyFHWA.
Federal FundingMoneyfromthefederalgovernmenttofundUDOT’sfederal-aidprogram.
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Fiscal YearDateswithinaspecifictimeframeinwhichfiscalexpendituresarerecorded.TheUtahStatefiscalyeardiffersfromthefederal fiscalyear.
Flexible MatchPublicandprivatecontributionsareallowedtobecountedtowardthenon-federalmatchforfederal-aidprojects.Candidatefederal-aidprojectsforflexiblematchmustbeidentifiedatthetimeofprojectapplication.Thecandidateprojectrequiresevaluationofthetotalprojectfundingfordeterminationofflexiblematchfeasibilityandpre-approvalbytheUDOTLocalGovernmentProgramsEngineer.Softmatchisamatchcredittoaprojectderivedfromanon-projectsource,suchastollcreditsoroff-systembridgecredits.Theamountthestatespendsontheseprojectscanbecreditedtoanotherusingfederal-aidfunds.Thefederalshareonthefederal-aidprojectdoesnotchangewiththenon-federalsharesatisfiedbyasoftmatch.However,thebillingratioisupto100%ofcostincurreddependingontheamountofsoftmatch.
FTAFederal Transit AdministrationTheUSDOTfederalagencythatprovidesfinancialandtechnicalassistancetolocalpublictransitsystems.
Funded YearFundsthatshowinthecurrentyearintheSTIP.Onlycurrentfundedyearfundscan bereimbursed.
Funding PriorityThefundingsourcethatisdeterminedorrequiredtobethefirsttobeexpended onaprojectthathasmorethanone fundingsource.
GISGeographic Information SystemAtechnologicalfieldthatincorporatesgeographicalfeatureswithtabulardatainordertomap,analyze,andassessreal-worldproblems.(GISlounge.com)
Green Book ProjectProjectsthatmayincludenewconstruction,rehabilitation,orreconstructionforextendingthelifeofbridgesandpavements.Fundingconsistsofstateconstructionfundsordedicatedfederalfunds.
HCPHighway Construction ProgramTheHCPcontainsrevenuefromlegislativeappropriations.ThesefundsareusedforconstructionandreconstructionofstateandfederalhighwaysasassignedbytheTransportationCommission.Theprojectsfundedbythisprogramareintendedtobesmallerinscaleandforcongestionrelief.OncetheprojectsincludedinthecurrentStatewideTransportationImprovementProgram(STIP)arecomplete,theprogram isfinished;Thereisnoadditionalfunding.(udot.utah.gov)
HPPHigh Priority ProjectTermgiventoaprojectthatisdeemedmoreimportanttoconstructandisfundedwithearmarkedfunds.
ICEIndependent Cost EstimateAcostestimateperformedbyresponsibleUDOTagenttoestimatetheamountneededforcontractedprofessionalengineeringservicestobeperformed.
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IMInterstate Maintenance Discretionaryfundingprogramthatprovidesfundingforresurfacing,restoration,rehabilitation,andreconstruction(4R)work,includingaddedlanestoincreasecapacity, onmostexistingInterstatesystemroutes.
ITSIntelligent Transportation SystemInformationandcommunicationtechnology(appliedtotransportinfrastructureandvehicles)thatimprovetransportoutcomessuchastransportsafety,transportproductivity,travelreliability,informedtravelchoices,socialequity,environmentalperformance,andnetworkoperationresilience.(Wikipedia)
IncentivesFinancialrewardsforcompletionofa portionoftheworkonaprojectonor beforeschedule.
In-kind Match (see Flexible Match)Innovative ContractingAnymethodofcontractingthatvariesfromlow-bidcontracting.Includesincentive/disincentives,warranties,Price+TimeBidding,lanerental,additives,alternatebidding,Design-Build,andCMGC.
Interstate SystemAnetworkoflimited-accessroadsincludingfreeways,highways,andexpresswaysformingpartoftheNationalHighwaySystem.(Wikipedia)
JHCJoint Highway CommitteeAdministersseveraltypesoffederalfundsthatareallocatedtoUtaheachyearbyCongressforuseontransportationfacilitiesintheruralandsmallurbanareasthroughoutthestate.Inadditiontothesefunds, specificdollarsarealsosetasidefor bridgesonthelocalsysteminallareas ofthestate.(UDOTPMGuide)
Jurisdictional TransferTheprocessforthetransferofahighwayorroadwayfromonejurisdictiontoanother.Thetransferofjurisdictionisusuallyfromthestatetoacityorcountywhenthehighway’sfunctionormanagementobjectivesaremorealignedwithlocalfunctions.
LGLocal GovernmentAcityorcountygovernmentwhichoperatesindependentofUDOT.
Local MatchFundscontributedtoaprojectbyalocalentitythatarerequiredasapre-determinedpercentagematchforfederalfundsona givenproject.
Local RouteAlocalroadthatisnotmaintainedbyUDOT.
MAG MPOMountainland Association of Governments Metropolitan Planning OrganizationMAGMPOservesthethreecountyregionofSummit,Wasatch,andUtahCounties,Utah,populationof588,003(2008CensusEstimate).(mountainland.org)
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MAP-21Moving Ahead for Progress in the 21st Century Act 2012federalsurfacetransportationactthatauthorizeshighwayfundingforfiscalyears2013 to 2014.
Memorandum of Understanding (MOU)AformalletterdescribinganagreementdefiningstewardshipandresponsibilitiesbetweenFHWAandUDOT.
MP MilepostAsystemusedtodesignateexactpointsalongaroadwayalignment.AllInterstateroutesaremilepostedbeginningatthemostwesterlyorsoutherlypoint.Thebeginningpointismilepost‘0’.Ifthefirstinterchangeontherouteislocatedbetweenmilepost4.0and5.0,itisnumberedasInterchange#4.Thenextinterchange,iflocatedatmilepost8.7,wouldbenumberedasInterchange#8,etc.Withthissystemthemotoristcaneasilydeterminethelocationanddistancetoadesiredinterchange.(fhwa.dot.gov)
MPOMetropolitan Planning OrganizationAfederallymandatedandfederallyfundedtransportationpolicy-makingorganizationintheUnitedStatesthatismadeupofrepresentativesfromlocalgovernmentandgovernmentaltransportationauthorities. UtahhasfourMPOs:CMPO,DIXIE,MAG,WFRC.(Wikipedia.org)
Master PINAmethodofgroupingPINswithsimilarobjectivesintocategories.ThethreeusesofMasterPINsincludeRegion,Portfolio, andMegaProjects.AregionusesaMasterPINtotrackallprojectsintheregionthatarenotpartofaPortfoliooraMegaProject. APortfoliousesaMasterPINtotrackall theprojectsthatarefundedbythatPortfolio.MegaProjectswilloftenuseaMasterPINtocaptureallthevariousPINsthatcumulativelymakeuptheMegaProject.
MITARMonitor, Track, Investigate, Report
Aprojectmanagementprocessusedtoimprovetheefficiencyofmanagingthescope,schedulebudget,andqualityofaproject.
Monitor:TrackandcompareprojectprogresstothebaselinedProjectPlan.
Investigate:ExplorethecausesandpossibleresolutionstochangesinScope,Schedule,Budget,andTeam.
Take Action:Manageandrecordthechanges,issues,andrisksthatemergeastheprojectprogresses.
Report:Communicateactualperformance,progress,variances,andactionstakentoappropriatemembersoftheorganization.
MOU (See Memorandum of Understanding)
MUManagement UnitFinancialcodeusedtodescribeadistinctorganizationalmanagementunit.
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NBINational Bridge InventoryTheaggregationofstructureinventoryandappraisaldatacollectedtofulfilltherequirementsoftheNationalBridgeInspectionStandardsthateachstate preparesandmaintains.AninventoryofallbridgessubjecttotheNationalBridgeInspectionStandards.(fhwa.dot.gov)
NBISNational Bridge Inspection StandardsFederalregulationsestablishingrequirementsforinspectionprocedures,frequencyofinspections,qualificationsofpersonnel,inspectionreports,andpreparationandmaintenanceofastatebridgeinventory.(fhwa.dot.gov)
NBIS Inventory NumberEachstructureover20feetmeasuredalongthecenteroftheroadwayisgivenastructurenumberassignedbyUDOTStructurestotrackinspections,maintenance,andprojects(thisalsoincludesLGstructures).
NEPANational Environmental Protection ActNEPArequiresfederalagenciestointegrateenvironmentalvaluesintotheirdecision- makingprocessesbyconsideringtheenvironmentalimpactsoftheirproposedactionsandreasonablealternativesto thoseactions.(epa.gov)
NHSNational Highway SystemThissystemofhighwaysdesignatedandapprovedinaccordancewiththeprovisions of23U.S.C.103b.(fhwa.dot.gov)
NOANotice of AwardWrittenconfirmationofanawardofacontractbytheownertoasuccessfulbidder.
NonparticipatingActivitiesoritemsthataredeterminedtobeineligibleforfederalparticipationandmustbepaidwithnon-federalfunds.(mdt.mt.gov)
NTPNotice to ProceedLetterfromanownertoacontractorstatingthedatethecontractorcanbeginwork subjecttotheconditionsofthecontract. TheperformancetimeofthecontractstartsfromtheNTPdate.
OAObligation Authority
Thetotalamountoffundsthatmaybeobligatedinagivenfiscalyear.Thisiscomprisedoftheobligationlimitationamountplustheamountsforprogramsthatareexemptfromtheobligationlimitation.(fhwa.dot.gov)
ObligationAfederallycommitteddollaramountforaspecificprojectsub-phase.
Obligation LimitationAnannualCongressionalrestrictionorceilingontheamountoffederalassistancethatmaybeobligatedduringaspecificperiodoftime.Thisisastatutorybudgetarycontractthatdoesnotaffecttheapportionmentorallocationoffunds.Rather,itcontrolsthe rateatwhichthesefundsmaybeused. (fhwa.dot.gov)
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On-Call ContractAcontractwithaconsultantforarchitectural/engineeringservicestoperformparticulartaskstosupplementUDOTstaffforpeakperiodsorforparticularexpertisecurrentlyunavailablewithintheDepartmentthatmaybebilledtovariousprojects.Therearevariouslimitationsonthiscontractingmethod,whichinclude:a)contractlimit,b)projectlimitwithinthecontract,c)feetypeisunitprice,d)selectionrulesstillapply,e)durationlimitofone-yearwiththeabilitytoextendforoneadditionalyear,f)noretainageisrequired.
Operating CostsProjectcoststhatarenotusedtofundthephysicalfeaturesofaroadway;suchasstudies,design,constructionoversight,etc.
Orange Book Project (see Pavement Preservation Program)Preservationprojectsthatincludepavementandbridgepreventivemaintenance. Fundingmayconsistofstateand/or federalfunds.
Out YearReferstoafiscalyearinthefuture.
OverflowProjectcostinexcessofprogrammedfundingonFederal-aidprojects.Additionalfundingsourcesmustbeidentifiedforoverflowexpenditures.
OverrunAnunexpectedcontractitemcostthatexceedsthecontractedquantityduetoanunder-estimationoftheitemquantity.
OSROperational Safety ReportAreportthatincludesareviewofaccidenthistory,existingfeatures,andarecommendationtocorrecttheseissues.OSRsareprovidedatthebeginningofprojectsduringtheconceptandscopingphasessothatsafetyplanningcanbeapartoftheentireprojectdevelopmentprocess.(udot.utah.gov)
PDBSProject Development Business SystemAUDOTsoftwareapplicationthatallowsUDOT,itsconsultants,andcontractorstodocumentandcontrolconstructionprojects.
PDCProject Design CriteriaEstablishedstateandnationalstandardsandproceduresthatguidetheestablishmentofroadwaylayouts,alignments,geometry, anddimensionsforspecifiedtypesofroadwaysincertaindefinedconditions. Theprincipaldesigncriteriaforroadwaysaretrafficvolume,designspeed,thephysicalcharacteristicsofvehicles,theclassificationofvehicles,andthepercentageofvariousvehicleclassificationtypesthatusetheroadway.(iowadot.gov)
PDTProject Delivery TeamTheteamoftechnicalspecialistsassignedtodelivertheprojectdesign,study,etc.
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PEPreliminary EngineeringWorknecessarytoadvanceaprojectfromconceptstagetoawardofcontract.Includesscooping,planningstudies,developingalternatives,environmentaldocumentation,projectdesign,andpreparationofallprojectplansandcontractdocuments.(IdahoDOT)
PFVPreliminary Final VoucherDocumentgeneratedbytheComptroller’sofficethatdefinesallexpendituresonaproject.Thisdiffersfromafinalvoucherin thatconsultantandutilitycontractsmay notbecompleteatthetimeitisissued. Thisdocumentprecedesthefinalvoucher.
PINProject Identification NumberIdentificationnumberassignedtoaproject in ePM.
PMProject ManagerTheindividualresponsiblefortheexecutionandcompletionofaprojectfromcradletograve,whichinvolvesmanagingthescope,schedule,budget,andqualityofaprojectwiththehelpofatechnicalteamcomprisedofUDOTemployeesand/orconsultantsfromvariousdisciplines.
PM TechProject Management TechnicianTheUDOTindividualresponsibleto providesupportservicesforthePMsin agivenregion.
PS&EPlans, Specifications, and Estimates
Plans,Specifications,andEstimates(PS&E)arethedetailedplansandaccompanyingspecificationsandconstructioncostestimatesthatserveasdocumentsforconstructioncontractlettingpurposes.Plansarethecontractdrawingsthatshowthelocation,character,anddimensionsoftheprescribedwork,includinglayouts,profiles,crosssection,othermiscellaneousdetails,andquantitysummaries.Specificationsarethecompilationofprovisionsandrequirementsfortheperformanceofprescribedwork.Theestimateisalistofallbiditemsandquantitiesestimatedbidprices,totalcostforeachbiditem,andthetotalestimatedcostfortheproposedproject.(txdot.gov)
Pass ThroughFederalfundsthatarepasseddirectlythroughUDOTtothereceivingentity.Thestateneverdepositsthefunds,onlydistributesthem.UDOTservesto‘pass-through’thefundsinordertoprovidefederalassistancetootherlocalagencies,MPO’s,JHC,federallands,etc.becausethereisn’tafederalorganizationalstructuretoprovideassistancedirectlytothefinalsub-recipient.
Pass-throughentities(UDOT)and sub-recipientsareequallyresponsiblefor themanagementoffederal-aidreceived.
Example:ThestatereceivesfundsfromFHWAanddistributesthemtothecity,county,privateparty,orotherentity.
Pavement Preservation ProgramConsistsofpreventivemaintenanceprojectsthatincludepavementmaintenance. Fundingmayconsistofstateand/or federalfunds.
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Pay Request (or Payment Request)Aninvoicepreparedbyaconsultantorserviceproviderrequestingpaymentfrom theowner.
Pending ActionAnythingenteredintoFMISthatiswaitingforfederalapprovaland/orauthorization.
Planned FundsFundsthatarepartofthefederalapportionmentforafiscalyear.ThesefundsareprogrammedintheSTIPandePMtobeobligatedwithspecificcriteriasetbyFHWA.
PolicyDefinesthebroadguidelinesbywhichUDOT’sadministrativegroupsdeveloptheiradministrativerules.(udot.utah.gov)
Portfolio ManagerAnindividualwhotypicallyresidesattheUDOTcentralofficeandischargedtooverseethefundstomeetthegoalsofadefinedtransportationprogram(suchasBridgePreservation,SpotSafetyImprovement,BarrierTreatment,etc.).
Post Audit (see Audit)UDOTInternalAuditDivisionperforms postauditsonutilitycontracts(over$25,000)andconsultantcontracts(over$250,000).Contractslessthanthethresholdamountmayalsobeselectedforpostauditiftherehavebeenpastauditproblemswithanentity,theentityisnotfamiliarwithfederalregulations,orotherwiseselectedforauditreview.
Pro RataProportional RatioThepercentageatwhichfederallyfundedprojectsarematchedbyeitherthestateorlocalfunds.
ProcedureStateshowpolicywillbeimplemented.
ProgramProgramsareapprovedontheSTIPasanallotmentofmoneythatisdesignatedforacertaintypeofwork.ProjectsarethenselectedbyaProgram/PortfolioManagerbasedoncriteriadesignatedforthatprogram.(UDOTPMGuide)
Program ManagerARegionindividualresponsibletoplananddevelopmethodsandprocedurestoimplementanddelivertheirregionalprogram.Theycoordinateprogramactivitiesandmanagepersonnelresponsibleforprojectmanagementfunctions.
Program FinanceTheUDOTdepartmentresponsiblefortheobligationandauthorizationoffunding.
Program Finance DirectorIndividualfromSystemsPlanningandProgramDivisionwhoisresponsibletoprogramfundsandworkwiththeregionstoplanandscheduleUDOT’sfundedprogramsfortheSTIP.
ProjectProjectsareapprovedindividuallyontheSTIP.Aprojecthasadefinedbeginningandendundertakentomeetuniquetransportationneeds.(UDOTPMGuide)
Project Accounting CodesCodessetupbyProgramFinanceandtheComptroller’sofficetotrackprojectfinances.
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Project Budget RecoveryUDOTprocesswherethePMadjuststheprojectcostestimatetomatchtheactualawardamountinePMscreen505. Thegoalistorecoverfundsinorder tomakethemavailabletore-obligate towardotherprioritizedprojects.
Project Delivery NetworksUDOTtemplatesoutliningthestages,activities,andtasksusedforproducingsuccessfulprojects.Eachnetworkfocuses onadistinctareaofprojectdelivery, andincludesdesign,concept, environmental,andprojectcloseout.
Project FileHardandelectroniccopiesofallrequireddocumentsandnecessarye-mailsforagivenprojectorprogramforprogramfinance.
Project ValueThetotalfundsavailableforaproject.
ProjectWiseABentleyapplicationthatUDOTusesforprojectfilemanagementandcollaboration.
Purple Book ProjectProjectsthataddressonlythepavementsurface,thatincludesresurfacingforasphaltpavementsorworkofsimilarscopeandfunctionforconcretepavements. Workitemsarelimitedtopavementresurfacingandotherworkthatisnecessitatedbythatresurfacing.(UDOTPurpleBookScopingandDevelopmentProcessGuidelines)
R-76State-Only Funded Project Funding Authorization FormFormgeneratedbyProgramFinanceandusedbyUDOTthatauthorizesthespendingofstatefundsonaproject.
R-77Termination of Authority FormDocumentgeneratedbyProgramFinanceafterreceiptofthefinalletter,oremailfromthePMfornon-constructionprojects, thatterminatesthespendingauthorityof aproject.
R-709Federal Funding Authorization FormUDOTformgeneratedbyProgramFinancethatauthorizesthespendingoffundsonaprogramorspecificsubphasesofaproject.
RASPSRapid Approval and State Payment SystemElectronicfinancialtransfersystemusedtomakefederalreimbursementtothestateswithintwodaysofreceiptoftheirreimbursementrequests.
REResident EngineerTheindividualresponsibleforthedaytodayconstructionmanagementofaproject.
RFPRequest for ProposalAninvitationtocontractorsorconsultantstosubmitaproposalonaspecificproject.
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RFQRequest for QualificationsAninvitationtoconsultantstosubmitastatementofqualificationsonaproject-specificscopeofworkandapproach, usuallyforacomplexproject.Itdoesnothaveadollarcap,andtheprocessusuallytakestwotofourmonths.TheRFQprocessisaqualifications-basedselectionfollowingthefederalBrooksActwhichrequiresthatengineeringfirmsareselectedbasedupontheircompetency,qualifications, andexperienceratherthanbyprice.
RLOIRequest for Letter of InterestPM’semailrequest(senttoatleastthreequalifiedfirmsfromtheLG/GEpool)askingwhethertheyareinterestedinsubmitting aPoolLetterofQualificationfora neededproject.
RODRecord of DecisionTheROD(signedbyFHWA)constitutes theofficialfederaldecisionandactionfor theprojectunderNEPA,meaningthatFHWAandUDOTcanproceedwithROWacquisitionandfinaldesignoftheproject.(UDOTEnvironmentalProcessManualofInstruction)
ROORight of OccupancyAnagreementwithapropertyownerthatgrantspermissionforUDOTtoallowunimpairedconstructiontobeginonahighwayprojectpriortothelandowner signingaROWcontract.ThePMneedstofollowuptoensuretheROWagentcompletesthefinalcontract,andthatallfinancialor othercommitmentsarecompletedwiththepropertyowner.
ROWRight of WayAdivisionwithinUDOTProjectDevelopmentwho’sprimaryresponsibilityistoacquirepropertyneededforhighwaypurposesandrelocatedisplacedbusinessesorpersons.Thedivisionisalsoresponsibleforthemanagementofpropertiesacquired, andtheoversightoflocalgovernmenthighwayprojectsusingstateandfederalfunds,utilities,accessmanagement,statewidepermits,rightofwayplans, maps,andrecords.(udot.utah.gov)
ROW, AcquisitionTheprocessofacquiringrealproperty (realestate)orsomeinteresttherein. (UDOTAcquiringPropertyBrochure)
ROW, CertificationARightofWaycertificationofapprovalbyUDOT’sROWDirectorconfirmingtheprojecthasclearedallrightofwayprojectimpactsbeforeproceedingtoadvertiseforconstruction.IftheprojectisallowedtoadvertisewithlimitationstheseshouldbedescribedintheprojectSpecialProvision00555,LimitationofOperations.
MaintenanceprojectswithoutcomplicationsdonotrequireROWcertificationbutdorequirethecertificationformfor‘NoRightofWayRequired.’
ROW, IncidentalsAnyexpensesincurredfromtheacquisitionofROW,i.e.appraisals,relocationcosts,closingcosts,lawyerfees,etc.
ROW ModuleRightofWayDivision’sePMmoduleusedtotrackaproject’sROWacquisitionprocess,budget,andprogress.
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ROW, Shotgun Estimate
DocumentcreatedbytheROWagentwhenpropertiesmustbeacquiredforthebuildingofroads.Thepropertypurchasedcouldbemultipleparcelsthatarefullyorpartiallyimpactedbyaroadconstructionproject.Theshotgunisabreakdownofthecostsoftheacquisition.AnR-709mustbesubmittedalongwiththisdocumentforrequestingfundsfromFHWA.
RPLOQRequest for Pool Letter of QualificationsAqualifications-basedconsultantselectionprocesswherethePMinvitesatleastthreeprequalifiedfirmsontheGE/LGPooltosubmitaPoolLetterofQualifications(PLOQ).
RUE EngineerRight of Way, Utilities, and EnvironmentalEngineerthatoverseesROW, Utilities,andEnvironmental.
Red Book ProjectSafetySpotImprovementprojects,thatmayincludenewsignalequipmentatwarrantedintersections,guardrailendtreatments,intersectionlightingroutemarkers,schoolzonesignupgrades,turnlanes,shouldertreatments,passinglanes,andotherspotsafetywork.
RescissionLegislationenactedbyCongressthatcancelstheavailabilityofbudgetauthoritypreviouslyenactedbeforetheauthoritywouldotherwiseexpire.(fhwa.dot.gov)
Systems Planning and Programming (SP&P)DivisionthatsupportsUDOT’soveralleffortsthroughfourmajorbusinessareas:1)monitortransportationsystemconditions,2)identifytransportationneeds,3)establishtransportationplans,4)determineprogram.(udot.utah.gov)
SRState RouteRoadsthatcomprisethestateroadsystem.
STIPStatewide Transportation Improvement ProgramUDOT’sStatewideTransportationImprovementProgram(STIP)isafive-yearplanofhighwayandtransitprojectsforthestateofUtah.TheSTIPisapprovedbytheFHWAandFederalTransitAdministration(FTA)andincludesallTIPprojectsas adoptedbytheMetropolitanPlanningOrganizations(MPO)andapprovedby theTransportationCommission.
STIP Coordinator (see Program Finance Director)UDOTemployeewhocoordinateswiththeregionstoplanandexecutetheSTIPprogram.
STPSurface Transportation ProgramFederalprogramthatprovidesflexiblefundingthatmaybeusedbystatesandlocalitiesforprojectsonanyFederal-aidhighway, includingtheNHS,bridgeprojectson anypublicroad,transitcapitalprojects, andintracityandintercitybusterminals andfacilities.
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Streamlined RFQRequest for QualificationsAninvitationtoconsultantstosubmitastatementofqualificationsonaspecific scopeofworkusuallyforasimpleproject. Asimpleprojectisdefinedasnotrequiringan‘ApproachtotheProject’asanevaluationcriteria.Thisisusuallyafastervariationof theRFQprocessandtakesapproximately 11/2months.(SeeRFQ)
SUESubsurface Utility EngineeringAbranchofengineeringpracticethatinvolvesmanagingcertainrisksassociatedwithutilitymappingatappropriatequalitylevels,utilitycoordination,utilityrelocationdesignandcoordination,utilityconditionassessment,communicationofutilitydatatoconcernedparties,utilityrelocationcostestimates,implementationofutilityaccommodationpolicies,andutilitydesign.(ASCE)
Scenic BywayRoadsdesignatedontheNationalScenicBywaysProgram(NSBP)thathave,outstandingscenic,historic,cultural,natural,recreational,andarchaeologicalqualities.(fhwa.dot.gov)
Soft Match (see Flexible Match)
State Forces/FurnishedStateemployedmanpowerorstate-ownedmaterialsthatmaybeusedonaproject.Musthavejustificationforuse,duetononcompetitiveselection.
State FundingFundingthatwillnotbereimbursedbyfederalfunds.Nofederalauthorizationisneeded.
Stewardship AgreementAnagreementtoformalizetherolesandresponsibilitiesoftheFHWA,UtahDivision,andUDOTinadministeringtheFederal-aidProgram.
Sub PhaseEachprojectissubdividedintoseveralphases.Asubphasedenotesoneofthesedivisions.Examplesinclude:01DforinhousePE,06Kforconstruction,03CforconstructionCE,etc.
Substantial CompletionThedatetheResidentEngineerdeterminesthefollowinghaveoccurredonaconstructionproject:
• Thepublichasfullunrestricteduseoffacilities
• Allsafetyfeaturesareinplace
• Onlyminorincidentalworkremainsforphysicalcompletion
• ThecontractorandREmutuallyagreethatremainingworkwillnotimpede thepublic
T-725Project Authorization MemoDocumentthatshowsthebreakdownofcostsoneachsubphaseofaprojectalongwiththefundingsources.ThisdocumentissubmittedtotheDeputyDirectorforsignaturepriortotheadvertisementoftheproject.
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TIFTransportation Improvement FundTheTIFwascreatedinthe2005SpecialSessionbyHouseBill1008andcontainsrevenuefromlegislativeappropriations, salestax,andvehicleregistrationfees. Thesefundsareusedformaintenance,construction,andreconstructionofstateandfederalhighwaysasassignedbytheTransportationCommission.(udot.utah.gov)
TIGSTransparency in Government SpendingAUDOTwebsitethatshowsthepublichowfundsarebeingspentonprojects.
TIPTransportation Improvement ProgramTheTransportationImprovementProgramisastaged,multi-year,intermodalprogramoftransportationprojectscoveringametropolitanplanningareathatisconsistentwiththemetropolitantransportationplan.(txdot.gov)
TOCTraffic Operations CenterUDOTcentrallocationforgatheringtrafficinformationusingadvancedtechnologiessuchascamerasandtrafficandweathersensors.Operatorsusethisinformationtomonitortraffic,detectaccidents/problems, andtakeactionsnecessarytoreturntrafficflowtonormal.(udot.utah.gov)
UDOTUtah Department of TransportationStateagencythatconstructsroads,bridges,highways,paths,etc.forthestate.
UDOT 08 PoliciesPoliciesandProceduresthatoutlineUDOT’sprojectdevelopmentprocessesfromconcepttodesignandconstruction.Theseincludebasicconcepts,functions,responsibilities,actionstobetaken,andthepositionthatisresponsibleforperformingtheaction.
uGateAUDOTsoftwareapplicationthatprovidesspatialandnon-spatialdatafromthroughoutUDOTinonelocation.
uPlanUDOT Planning NetworkAUDOTdevelopedweb-basedmappingandinformationtooldesignedtoassistlocalagenciesandUDOTduringthetransportationplanningprocess.
Unexpended FundsProgrammedfundsonaprojectthathavenotbeenexpended.
Utah Transportation CommissionAcommitteeofmembersappointedbythegovernortoserveaspartofanindependentadvisorycommitteewhichprioritizes projectsanddecideshowfundsarespent. (udot.utah.gov)
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Utility AgreementAnagreementthatestablisheshowautilitycompanywillbepartiallyorcompletelyreimbursedforutilityworkrequireddueto aUDOTproject.Trafficlights,electricity, gas,sewer,railroads,etc.areallconsideredtypesofutilitiesthatmayhaveanimpactonaproject.Autilityagreementiscreatedtodeterminewhattypeofutilityserviceswillimpactaroadconstructionproject.TheutilityagreementsareusuallybetweenUDOTandtheutilitycompanyandcostsaretypicallyreimbursedbyUDOTtotheutilitycompanyat50percentor100percent,althoughotherratioscanapply.
VMSVariable Message SignElectronicroadwaysignsthatprovidechangingbutspecificinformationtoroadwayusers.MessagesarecontrolledbytheTOCandmaybeusedforthepurposeofconstruction,incidentmanagement,travelerinformation,andmaintenanceactivities. (cotrip.org)
Various RoutesAprojectwithmultipleroutesthatarenotdefined/mapableinePM.
W10AFederal Funding Balance ReportFMISreportthatshowsexactfederalfundingamountsobligatedandremainingtobeexpendedbythestate.
W96AFederal Authorization FormFMISreportthatshowsallobligatedfundingonaproject.
WFRC MPOWasatch Front Regional CouncilTheWFRCisanassociationof60cities andfivecountiesorganizedforthepurpose ofpursuinggoalsofcommoninterest. TheWFRCareaofservicecomprisesDavis,Weber,Morgan,SaltLake,andTooeleCountiesandthecitiescontainedtherein.(wfrc.org)
WTOWork Task OrderArequestforspecificconsultantworkusingapreapprovedon-callcontract.(LoDaRy)
Yellow Book ProjectEmergencyUDOTbridgerepairprojects.
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