Lump Sum Agreements
Agreements are approved based on very detailed plans and supported estimates of cost that will not be adjusted to reflect changes in costs or be verified by audit. Requirements for a lump sum agreement are:
- Plans must be of sufficient detail to allow verification of placements, methods of placement and materials used and removed.
- A highly itemized cost estimate (or actual bids) plus supporting documentation must be included. The cost estimate must be verified by the District;
- Utility Joint Use Agreements must be executed, if applicable.
- The estimate must contain appropriate credits for salvage and betterment, and accrued depreciation value, if applicable.
- No contingency or miscellaneous items in the estimate are allowed.
- Quitclaims, if applicable, must be supplied at the time of billing.
- Buy America documentation must be approved with Form 1818, MTR's and/or Certifications.
- Form must be reflected to the portion of the work to be performed by contract forces.
- Bid documents must be submitted with agreement.
- Fee schedule(s) for continuing construction contract and engineering contract must be submitted with agreement.
- The agreed lump sum amount cannot be changed unless there is a change in the scope of work.
Federal Utility Procedure (FUP)
permits reimbursement of utility relocation costs based on an estimated lump sum amount. However, ROW Division has placed a ceiling of $500,000.00 on all lump sum agreements. This level of authority may be increased, if requested, in writing, by the District Engineer to the ROW Division. The option to use the lump sum method rests with the utility company.State (SUP)
The State permits reimbursement of utility relocation costs based on a lump sum amount with the same requirements as stated for a Federal Utility Procedure Lump Sum agreement with the exception that the eligibility of costs for reimbursement must have been determined and approved by the Districts and are based on real and compensable property rights.