Drinking Water State Revolving Loan Fund (DWSRF)
Project Guide For ALL Projects
Construction Inspection and Oversight
You will need to inform your Project Manager of all construction-related meetings. At a minimum the Project Manager will attend the Pre-Bid meeting/conference, the Pre-construction meeting, all monthly construction progress meetings and the facility final inspection. It is your responsibility to see that records of the construction related meetings are kept. Copies of meeting records shall be given to your Project Manager. Your Project Manager will be our conduit for exchange of information with the DWSRF Program Manager.
You will need to supply the Project Manager with a tabulation of all bids received along with an explanation for why any bids were rejected or bidders disqualified. An executed original of the contract, complete with executed bonds, insurance certificates and other documents specified in the bid package must be given to the Project Manager at the time of, or soon after, award of the contract. The awarded contract must include a line for and with the signature of a representative from the DWSRF Program. A revised project budget based on the bid results should be completed at this time on the Program’s “Estimated Project Cost” form and submitted to the DWSRF Program Manager.
Either the “WBE/MBE Goal having been met/or/not having been met" form (Attachment A or B included in Appendix F) must be completed by the successful bidder and submitted to the Project Manager within 10 days after the bid opening. If either Goal is not met letters of solicitation that were sent to qualifying firms must be included with the "...not having been met" form to substantiate the contractor's good faith effort to meet the MBE/WBE goals. Failure to demonstrate good faith effort is reason to declare the bidder "non-responsive" and ineligible for award of the contract. Every payment requisition must include a copy of Attachment C (see Appendix F) “Utilization of MBE/WBE Firms” properly completed before the Program will process the payment, even if there were no MBE/WBE firms requesting funds in the requisition.
After the construction contract is awarded, you must ensure that a qualified inspector under the supervision of a registered professional engineer provides adequate inspection of the project. The inspector shall assure that the work is being performed in a satisfactory manner in accordance with the approved plans and specifications, approved change orders, and in accordance with sound engineering principles and building practices. Full time project inspection is not required or promoted by the Program. An inspector must be present to witness critical project processes, such as required material or facility testing, and before facilities are covered up or buried. Your engineer should determine when project inspection is required and their inspector should coordinate this inspection with the contractor.
The Project Manager and others from the Program will be authorized to inspect the project at any time during construction. At a minimum, the Project Manager will be performing a construction site inspection before the processing of any payment requisition (pay requisition meeting) that includes requests of reimbursement of construction expenses. If the Project Manager, or other Program staff members, observes any variances or discrepancies between the ongoing construction in comparison to the approved plans and specifications, or the amount of material or work provided in comparison to the amount of the reimbursement request, the Project Manager will notify you and the engineer. Upon notification, you or the engineer will see that any necessary corrective action is taken.
Requests for reimbursement (payment requisitions) will be made using the DWSRF approved payment requisition form. Your Project Manager will accept only requests for reimbursement that have been properly certified and signed by the Authorized Representative from the water system. The Program prefers to receive a minimum of three signed original payment requisitions (one for DWSRF Program, water system and engineer) each to include all required supporting documentation. The supporting documentation should include, but is not limited to, all invoices and requests for payment from the contractor with supporting invoices for all charges. These must be included for the Project Manager's records and verification of expenses. The supporting documentation required with requisitions should also include lien waivers from all subcontractors and material suppliers that had approved expenses included in the General Contractors previous request for payment. A completed "Utilization of MBE/WBE Firms" form (included in Appendix F as Attachment C) will also be required with each requisition submission, even if the requisition doesn’t include a payment to MBE or WBE participants. Reimbursements will be delayed until the contractor supplies the completed form. Reimbursements may also be delayed if the DWSRF Payment Request form is not properly completed or all required lien waivers are not provided.
The Project Manager must approve all change orders prior to the cost of the orders being authorized for reimbursement. Any increase or decrease in the contract price, completion period, or scope of the contract shall be reason to issue a change order. Change orders that cause the project amount to exceed the amount of the loan agreement cannot be approved by the Project Manager. The loan will have to be reevaluated by the DWSRF Program Manager. You may approve the change order, but the DWSRF Program cannot reimburse you for the additional cost unless the Program Manager approves the change order. To facilitate the approval process you must have a DWP approval signature line added to the project change order form included in the contract documents. Make note as to the exceptions that require the Program Manager's approval.
At the completion of the project a certificate of substantial completion must be executed. Execution of that document establishes the start date for the warrantee period for the project contract. It also establishes the completion date for construction of the project for loan repayment purposes. At a minimum the certificate must include the date of substantial completion, the percent that the project is complete, the punch list of items yet to be completed, and authorized signatures of the engineer, owner’s Authorized Representative and Project Manager (contractor may sign also). The Project Manager shall be given a completed, signed copy of the certificate. Your Project Manager shall verify that the contractor/engineer has supplied you with an operation and maintenance manual for the completed project prior to submitting your final request for reimbursement for payment.