Flowchart 9A: Reimbursement Process
Caption: Flowchart 9A process flowchart outlining the roles for the Awarding Agency, Local Public Agencies and the Colorado Department of Transportation. Details and information provided in this flowchart image is outlined below.
Flowchart 1 Project Development Phase Information
- During construction, Contractor submits materials documentation to the LPA’s Project Engineer (certificates of compliance, certified test results and Buy America(n) docs), payroll certification and monthly schedule updates.
- Refer to Video 9A.1
- Your project engineer must certify for each contractor estimate or billing that the work has been completed in reasonably close conformity with the plans and specifications.
- You are responsible for all estimate payments to the contractor and must review quantities with the contractor. The contractor’s billing must address required retainage or securities. Retainage or securities amount will not be less than those required by CDOT contracts. Before payment is made, the contractor must submit suitable schedule updates and materials certifications in accordance with the CDOT Standard Specifications.
- Contractors are required to pay subcontractors for the items included in the estimate within 7 days of receipt of the payment, according to the prompt payment law, CRS 24-91-103( 2). You must ensure prompt payment to subcontractors by collecting and reviewing monthly CDOT Form 1418 Monthly Payment Summary, or by using a similar method of oversight.
- For more information, refer to the FHWA video Contractor Payroll Submittals and Statements of Compliance.
- Prepare and approve interim and final billings
- You must verify that the work was performed as stated in the contract and that the billing is for actual work performed. Refer to the project agreement for billing and payment arrangements.
- Contractor step
- LPA/Consultant should submit billing charges, also known as requests for reimbursement or reimbursement requests, once a month or less frequently to the CDOT project manager during project construction and at completion. Billing procedures and required documentation will be established during your agreement negotiations with CDOT. It will take approximately 30 days for CDOT to review, approve and pay proper project billings submitted by your agency.
- You must also be cognizant of the construction project end date. (Additional information about end dates is available in the Resource section of this site.)
- You should mark the final bill "FINAL." You will bill for 100 percent of eligible costs noting the percentage of local funding share. CDOT’s project manager will verify the reimbursement according to the established matching ratio specified in the Inter-Agency Government Agreement.
- If applicable, there should be an itemized list of other miscellaneous project charges such as utility relocation or construction engineering. These charges must be substantiated by the supporting documentation.
- A sample local agency billing package is available in the resource section of this website.
- 9A.4 Notes: For Interim estimates and reimbursement requests, the Form250LA (not complete yet) and mix designs (approved earlier and supplied as a part of the final materials doc) would not be required back up doc., the pay documentation would be used to back up the request – Forms 266s, 279, diaries, etc., but that would NOT be attached to the request, but held in the field office of LPA. A cover sheet has been developed to include with interim pay estimates that includes appropriate certifications by the LPA that they are complying with all requirements.
- For the FINAL invoices, all the documentation must be in order and the FINAL invoice should be received by CDOT on or before the performance end date.
- CDOT receives Request for Reimbursement
- CDOT reviews and processes payment
