6863-10

Inclusion of Utility Adjustments in Highway Construction Contracts

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Water and sewer work may be included in the highway contract if the local government agrees to reimburse the Department for the full cost and if the request is received early enough in the project development process to be incorporated in the project Plans. Also, if the Department has a prior agreement to pay the local governments' adjustments it would be beneficial for the sake of coordination to incorporate the work into the Project Plans. Also, if the Department has a prior agreement to pay the local governments' adjustments, approval is typically conditioned on inclusion of the work into the construction contract (see Utility-Aid guidelines - TOPPS 6863-11).

In either case mentioned above, whether the local government is providing the funding or whether the Department is providing the funding, an execution of a signed Memorandum of Understanding (MOU) will be required to provide a clear understanding of the requirements of the utility owner for approval of the work and of any materials or services to be furnished by the owner. (For example, some cities and counties prefer to do their own testing and sterilization of water lines) The MOU will be handled through the District Utilities Office. Execution of a Contract Item Agreement (CIA) will also be required when the local government is to reimburse the Department for the utility work, including any betterment items. Detailed plans, estimate and any Special Provisions are required to be submitted with the CIA request.

If a local government requests that their water or sewer work be included in the project contract the following procedures should be followed:

1. The District Utilities Office should send a letter of request and recommendation to the State Utilities Office with a copy to the responsible Design Office. It shall be the responsibility of the appropriate Design Office Head and the State Utilities Engineer to determine the practicality of the recommended procedure. The State Utilities Office will notify the District of the acceptability of the proposal.

2. The District will then request plans and detailed estimate from the local government and send them three copies of a MOU to be signed. The estimate must use DOT item numbers or special item numbers must be established through the Contracts Administration Office. A copy of the MOU, along with any comments and recommendations of the District Engineer, needs to be furnished to the Design Engineer/Project Manager, with a copy of any related correspondence. Three copies of the MOU with original signatures from the local government should be sent to the State Utilities Engineer, who shall sign on behalf of the Department, retain a copy and return two copies to the District for distribution. After award of the construction contract, the State Utilities Office will send a copy of the MOU with any CIA Authorization letters to the local government.

3. All utility plans and estimates prepared by a local government or their consultant will be submitted to the District Utilities Engineer for review and forwarded to the appropriate Design Office Head / Project Manager for inclusion in the highway plans and proposal, with copy to the State Utilities Engineer.

4. 4. The CIA will be handled similar to other reimbursement agreements. The State Utilities Engineer will send the CIA to the local government and copy the District. The local government will be requested in writing by the State Utilities Office to furnish the total cost of the contract items based on the bid amount to the Department after award of the construction contract. Along with the request for funds, the CIA will be formally authorized by the State Utilities Office.

Document History:

• issued: 11/12/80
• revised: 10/25/95
• added to TOPPS: 05/17/96
• revised: 03/18/04
• number changed from 6820-3 on 03/18/04
• reviewed: 03/03/05
• reviewed: 09/11/06
• reviewed: 01/17/08

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