Article 109-6 of the Specifications provides that the Department of Transportation will reimburse the Contractor for leftover materials on a project subject to the following requirements:
- The Contractor must request reimbursement.
- The materials must have been delivered to a site designated by the Engineer.
- The materials must meet the requirements of the contract.
- The leftover materials must have been developed due to:
- revisions or elimination of items by the Engineer, or
- discrepancies in the plans or contract.
To ensure the Department is not encumbered with expenses for materials not needed, the Resident Engineer should make every effort to provide stakeout far enough in advance to provide the Contractor with order lengths and/or quantities of work required. Particular care should be given to coordinating the stakeout with the Contractor’s placing orders of non-stock items not used by the Department.
The Contractor should make written request to the Resident Engineer for reimbursement for leftover materials. The request shall include original and duplicate itemized invoice from the Contractor to the Department, listing the quantity and invoice price. The invoice price shall include the purchase cost, including taxes paid when purchased, and delivery cost. The request shall also include a copy of the original purchase invoice plus a detailed breakdown of the Contractor’s handling cost.
Upon receipt of the request, the Resident Engineer should verify the quantity of materials, verify the accuracy of the invoice, and evaluate the Department’s need for the materials. When the materials are not needed by the Department, the Resident Engineer should request the Contractor to provide an invoice reflecting the salvage value of the material retained by him or his cost for disposal of the leftover material.
The Resident Engineer should submit an estimated cost for disposition of the leftover materials to the Division Engineer and recommend one of the following four methods of disposal for the leftover materials:
- The Contractor retains the materials and the Department pays the Contractor for the cost of the materials less any salvage value.
- The Contractor returns the materials to the materials supplier and the Department pays the Contractor for the cost of handling and restocking the materials.
- The Department picks up and disposes of the leftover materials.
- The Department picks up and places the materials in inventory for its use, and the Department pays the Contractor for the cost of the materials plus handling.
The Division Engineer will evaluate the Resident Engineer’s recommendation and advice as to the method for disposal of the leftover materials. The Resident Engineer enters the Line Item through the Contract Adjustments function in HiCAMS using either Review Eliminated Contract Items or Review Leftover Materials.
