Senate Transportation Committee

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Presentation transcript:

Senate Transportation Committee Statewide Suspension Claims Jon Chiglo Engineering Services Division Director January 26, 2012

Statewide Suspension Claims 165 Projects Impacted 117 have been completed 36 projects have work moved to 2012 or beyond 12 projects did not start and will start work in 2012

Statewide Suspension Claims MnDOT contracts provide for: Suspension of work Standard Contract Specification 1402.2B Provides entitlement for Prime Contractor to submit a claim associated with Suspension of Work Protects against breach of contract Federal requirement

Statewide Suspension Claims MnDOT contracts provide for: Claims for Compensation Adjustment Standard Contract Specification 1517 Provides entitlement for Prime Contractor to submit claims for materials or work not covered in the contract

Statewide Suspension Claims Reimbursement of certain expenses Pre (1517) Acceleration, traffic control, site prep During (1402.2B) Idle equipment, extended field overhead, traffic control and erosion control Post (1517) unabsorbed home office overhead, material escalation

Statewide Suspension Claims Each Project can have multiple claims 52 Projects have settled for time extension only 113 Impacted Projects remaining 48 Projects have settled for time and reserved right to cost claims at later date Each of the remaining impacted projects may have multiple claims 29 claims resolved for cost to date Approximately $2,044,000

Statewide Suspension Claims Significant Factors to Settle Claims Idle Equipment Schedule delays Material and labor escalation Structural Steel Home Office Overhead Developing rate Audit requirement False Claims Act

Statewide Suspension Claims For Further Question Contact: Jon Chiglo (651) 366-4826 Jon.Chiglo@state.mn.us Kevin Gutknecht (651) 366-4266 Kevin.gutknecht@state.mn.us

Senate Transportation Committee Statewide Suspension Claims Jon Chiglo Engineering Services Division Director January 26, 2012