Section 3: Force Account and Interim Adjustments to the Contract

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Change Orders Involving Contractor Force Work Account

Create unique CO items as described in Section 1 for payment of force account work. Use Form 316, “Daily Report of Force Account Work,” to capture the actual time, equipment, labor, and materials used for the work. CO documentation should include but is not limited to:

COs for force account work less than $10,000 may be prepared based on the contractor’s estimated costs for labor, equipment, and materials. Obtain cost justification as necessary. Complete Form 316 to document the force account work payment. Subsequent to the completion of the force account work, obtain from the contractor a certified invoice listing the total cost for labor, equipment, materials, incidentals, and additional compensation provided in Article 9.7, “Payment for Extra Work and Force Account Method Force Account.” Agree to the labor, equipment, and material rates used for the force account work prior to beginning work.

A 5% markup will be added to the subcontractor’s submitted price for the prime contractor’s administrative cost, superintendence, and profit. Request a price breakdown of equipment, labor, and materials when a price submitted by a subcontractor is not fair and reasonable. Cost incurred by the state need to be justified.

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TxDOT is not required to pay taxes on services and materials fully incorporated into its projects, nor is it required to provide a certification to prove tax exempt status per the Texas Administrative Code, Title 34, Rule 3.322(c)(4). Refer to the Contractor Manual on the Texas State Comptroller website.

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Change Orders Involving Interim Adjustments

If an agreement cannot be reached with the contractor regarding the basis of payment for the CO, work may proceed by making an interim adjustment to the contract. Subsequent to performance of the work, consider modifying compensation to the contractor based on actual work performed. Interim adjustment is an adjustment made in the contract that has not been finalized by a Change Order.

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Unilateral Change Orders

Do not use a unilateral change order for work that is outside the scope of the project or for dispute resolution. Work outside the limits, excluding end of project transition areas or added work outside the original intent of the project, should not be forced on a contractor through the use of a unilateral change order. Should a unilateral change order be needed coordinate with CST. The DE will approve and sign all unilateral change orders.

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Change Order Audit

CST will perform quarterly audits of COs. CST will request executed COs from the district along with supporting documentation.

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