Collection on Negative Estimates
Do not let a negative estimate exceed the amount of money left on the project.
When a negative estimate cannot be avoided, the district will notify Finance (FIN) with an email to
, with the subject line DIS-NEGATIVE ESTIMATE-Month, Year (i.e. AUS-NEGATIVE ESTIMATE-Jan 2025). Select one of the following options as it pertains to the project to include with the email:
- OPTION 1 - CSJ is negative in the amount of $X.XX due to provide reason. There will be future payments of provide brief details (i.e. additional work, CO work, final mobilization payment) that will bring the contractor out of negative pay status. No check will be requested at this time.
- OPTION 2 - CSJ is negative in the amount of $X.XX due to provide reason. There are no future payments due to the contractor that will bring the contractor out of negative pay status. The AO will begin the process to request a refund check. Finance will be copied on the request letter.
When the Department is requesting the refund check, use the template letter available on the Construction Division’s website and follow the process below:
- within 30 days, the district prepares and sends the letter to the contractor
- send certified mail and email to the contractor with a carbon copy to and
- upon receipt of the letter, FIN-Accounts Payable will assist in creating Form 1234, “Refund of Expenditure”,
- FIN will track the refund and notify the district when the check is received.
After 30 days have elapsed from the date of the initial letter, send a second letter instructing to Contractor to make payment within 10 days. In the event the Contractor is nonresponsive to the second letter, contact FIN/Revenue Management for collection. Send all letters via certified mail requesting address correction and verify that the correct address is on record with CST’s Construction and Maintenance Contract Letting Section (CST-CMCL).
Finance will track the refund and notify the district when the check is received. Refer to the
page, Construction Support TIPS for additional steps on how to proceed once a check from the contractor has been received.