Chapter 4B: Other Division-Administered Contracts

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• 4B-1  Introduction
• 4B-2  Emergency Contracts
  • 4B-2-1  Overview
  • 4B-2-2  Procedures for Payment
  • 4B-2-3  Project Closeout
    • 4B-2-3(a)  Invoice Dispute Notification
• 4B-3  Minor B Contracts
  • 4B-3-1  Overview
  • 4B-3-2  Before Work Begins
  • 4B-3-3  Procedures for Payment
  • 4B-3-4  Project Closeout
    • 4B-3-4(a)  Invoice Dispute Notification
• 4B-4  Service Contracts
  • 4B-4-1  Overview
  • 4B-4-2  Before the Work Begins
  • 4B-4-3  Procedures for Payment
  • 4B-4-4  Project Closeout
    • 4B-4-4(a)  Invoice Dispute Notification
• 4B-5  Architectural & Engineering Contracts
  • 4B-5-1  Overview
  • 4B-5-2  Before Work Begins
  • 4B-5-3  Procedures for Payment
  • 4B-5-4  Project Closeout

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4B-1 Introduction

The Division of Procurement and Contracts (DPAC) is responsible for awarding all other procurement and contracting methods.

For all other division-administered contracts, including service, Architectural and Engineering, Minor B and emergency contracts, contract managers are responsible for monitoring labor compliance activities. 

Headquarters Division of Construction Labor Compliance will be contacted for labor compliance enforcement, such as an audit or investigation, and may be contacted by the contract manager for guidance and training at Labor.Compliance@dot.ca.gov.

Staffing may determine whether a district handles Minor B and emergency contracts or asks contract managers or the Division of Construction to administer them.

4B-2 Emergency Contracts

4B-2-1 Overview

Caltrans uses emergency contracts when services or goods are needed to immediately respond to "a sudden, unexpected occurrence that poses a clear and imminent danger requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services" as provided by Public Contract Code Section 1102.

The district Maintenance unit has the responsibility to obtain a Director’s Order for emergency work. DPAC prepares and executes these service contracts.

4B-2-2 Procedures for Payment

Emergency contracts are paid in arrears and follow a receiver and invoice payment process. 

Emergency contracts must be paid within 45 days of receipt of invoice, or Caltrans becomes liable for interest. The LCO can withhold money for missing payrolls or payroll discrepancies. If payment is to be withheld, the LCO must immediately complete and file Form STD 209, “Invoice Dispute Notification,” to prevent Caltrans from accruing interest payments. Tracking logs are kept to avoid unnecessary interest payment from accruing.

4B-2-3 Project Closeout

The contract manager must verify the work is satisfactorily completed and review the file to verify that the following documents have been received:

1. Form ADM-3059 “Report of Utilization of Small/Micro Business and Disabled Veteran Business Enterprises State Funded Projects Only,” applicable to projects with a DVBE goal.
2. Form ADM-3069, “Disadvantaged Business Enterprises Utilization Report,” applicable to projects with DBE goals.
3. Certified payrolls, including fringe benefit statements, and apprentice agreements
4. Employee interviews
5. Contractor invoices
6. Form FA-1226A, “Receiver - One Invoice (Single or Multi Funding Lines)”
1. Date stamp the original receiving record in the lower left-hand corner and initial.
2. Log the date the receiving record and payroll documents are received, and the date they are submitted to be paid, into the labor compliance tracking system.
3. Verify that the receiving record includes the contract manager’s signature. Return any unsigned receiving record.
4. Make a copy of the receiving record and the invoice to retain in a logbook in a tracking system.
5. Review the payroll records, verify classifications, rates of pay, and hours against the daily reports.
6. Approve the certified payroll records by signing the receiving record and noting that payroll records are approved.
7. Forward the receiving record and invoice to the Division of Accounting, Disbursement office.

4B-2-3(a) Invoice Dispute Notification

Inform the contract manager and send the completed Form STD 209, “Invoice Dispute Notification,” to the contractor and to the Division of Accounting, Office of Accounts Payable.

When missing documents are received, or the dispute is otherwise resolved, send the invoice, the receiving record, and a copy of Form STD 209 “Invoice Dispute Notification,” to the Division of Accounting, Office of Accounts Payable for payment.

This process can also be completed in AMS Advantage directly. Refer to the AMS Advantage Quick Reference Guide for additional details on this process.

Contact the Division of Accounting, Office of Accounts Payable with any questions.

4B-3 Minor B Contracts

4B-3-1 Overview

Minor B contracts are usually minor construction projects less than $388,000. This threshold is subject to change. Staff may verify the current threshold at DPAC’s website:

https://dpac.onramp.dot.ca.gov/non-it-service-contracts-minor-b

4B-3-2 Before Work Begins

Before the start of work, the contract manager must review the contract and work to be performed, including any subcontractors listed at the time of bid, and hold a pre-job meeting. See Chapter 8, “Pre-job Conference Requirements and Posters,” of this manual for additional details on this pre-job meeting.

If the contract manager has questions or requires guidance, they may contact headquarters for Labor Compliance assistance at Labor.Compliance@dot.ca.gov.

4B-3-3 Procedures for Payment

Minor B contracts are paid in arrears and follow a receiver and invoice payment process. 

Minor B contracts must be paid within 45 days of receipt of invoice, or Caltrans becomes liable for interest. The contract manager can withhold money for missing payrolls or payroll discrepancies, Form STD 209, “Invoice Dispute Notification,” must be filed immediately to prevent Caltrans from accruing interest payments. Tracking logs are kept to avoid unnecessary interest payment from accruing.

4B-3-4 Project Closeout

The contract manager must verify the work is satisfactorily completed, and review the file to verify the following documents have been received:

1. Form ADM-3059, “Report of Utilization of Small/Micro Business and Disabled Veteran Business Enterprise State Funded Projects Only,” applicable to projects with a DVBE goal.
2. Form ADM-3069, “Disadvantaged Business Enterprises Utilization Report,” for projects with DBE goals.
3. Certified payrolls, including fringe benefit statements, and apprentice agreements
4. Employee interviews
5. Contractor invoice
6. Form FA-1226A, “Receiver - One Invoice (Single or Multi Funding Lines)”
1. Date stamp the original receiving record in the lower left-hand corner and initial.
2. Log the date the receiving record and payroll documents are received, and the date they are submitted to be paid, into the labor compliance tracking system.
3. Verify that the receiving record includes the contract manager’s signature. Return any unsigned receiving record.
4. Make a copy of the receiving record and the invoice to retain in a logbook in a tracking system.
5. Review the payroll records, verify classifications, rates of pay, and hours against the daily reports.
6. Approve the certified payroll records by signing the receiving record and noting that payroll records are approved.
7. Forward the receiving record and invoice to the Division of Accounting, Disbursement office.

4B-3-4(a) Invoice Dispute Notification

Inform the contract manager and send the completed Form STD 209, “Invoice Dispute Notification,” to the contractor and to the Division of Accounting, Office of Accounts Payable.

When missing documents are received, or the dispute is otherwise resolved, send the invoice, the receiving record, and a copy of Form STD 209 “Invoice Dispute Notification,” to the Division of Accounting, Office of Accounts Payable for payment.

This process can also be completed in AMS Advantage directly. Refer to the AMS Advantage Quick Reference Guide for additional details on this process.

Contact the Division of Accounting, Office of Accounts Payable with any questions.

4B-4 Service Contracts

4B-4-1 Overview

Service contracts pertain to any service necessary for the keeping of any publicly owned property or facility owned by Caltrans. It is considered an “Agreement for Services.” These contracts will be administered by the contract manager. The Labor Compliance office at headquarters offers guidance and performs enforcement activities, such as audits and investigations. 

4B-4-2 Before the Work Begins

The contract manager is responsible for labor compliance monitoring of the contract. The Office of Labor Compliance at headquarters provides guidance only and is not the recipient of payroll records for service contracts.

Before the work begins on a service contract, the contract manager must review the contract and work to be performed, including any subcontractors listed at the time of bid, and hold a pre-job meeting. See Chapter 8, “Pre-job Conference Requirements and Posters,” of this manual for additional details on this pre-job meeting.

If the contract manager has questions or requires guidance, they may contact headquarters Labor Compliance office for assistance at Labor.Compliance@dot.ca.gov.

4B-4-3 Procedures for Payment

Service contracts are paid in arrears and follow a receiver and invoice payment process. 

Service contracts must be paid within 45 days of invoice, or Caltrans becomes liable for interest. The contract manager may withhold money for missing payrolls or payroll discrepancies. When this happens, immediately complete and file Form STD 209, “Invoice Dispute Notification,” to stop Caltrans from accruing interest payments. Tracking logs are kept to prevent unnecessary interest payment from accruing.

4B-4-4 Project Closeout

The contract manager must verify the work is satisfactorily completed and review the file to verify that the following documents have been received:

1. Form ADM-3059, “Report of Utilization of Small/Micro Business and Disabled Veterans Business Enterprises State Funded Contracts Only,” for state funded projects with a DVBE goal.
2. Form ADM-3069, “Disadvantaged Business Enterprises Utilization Report,” for projects that contain federal funds and a DBE goal.
3. Certified payrolls, including fringe benefit statements, and apprentice agreements
4. Employee interviews
5. Contractor invoice
6. Form FA-1226A, “Receiver - One Invoice (Single or Multi Funding Lines)”
1. Date stamp the original receiving record in the lower left-hand corner and initial.
2. Log the date the receiving record and payroll documents are received, and the date they are submitted to be paid, into the labor compliance tracking system.
3. Verify that the receiving record includes the contract manager’s signature. Return any unsigned receiving record.
4. Make a copy of the receiving record and the invoice to retain in a logbook in a tracking system.
5. Review the payroll records, verify classifications, rates of pay, and hours against the daily reports.
6. Approve the certified payroll records by signing the receiving record and noting that payroll records are approved.
7. Forward the receiving record and invoice to the Division of Accounting, Disbursement office.

4B-4-4(a) Invoice Dispute Notification

Inform the contract manager and send the completed Form STD 209, “Invoice Dispute Notification,” to the contractor and to the Division of Accounting, Office of Accounts Payable.

When missing documents are received, or the dispute is otherwise resolved, send the invoice, the receiving record, and a copy of Form STD 209, to the Division of Accounting, Office of Accounts Payable for payment.

This process can also be completed in AMS Advantage directly. Refer to the AMS Advantage Quick Reference Guide for additional details on this process.

Contact the Division of Accounting, Office of Accounts Payable with any questions.

4B-5 Architectural & Engineering Contracts

4B-5-1 Overview

Architectural and Engineering (A&E) contracts are for services provided and are subject to prevailing wage based on work performed. However, some consultants provide professional services requiring special licensing, registration or certification that includes:

• Architectural
• Landscape architectural
• Environmental engineering
• Land surveying
• Construction engineering and management
• Project management

A&E contracts follow a qualifications-based system, as opposed to other contract types that are lowest bidder-based. When A&E contracts are awarded, there is a negotiation process for a cost proposal.

4B-5-2 Before Work Begins

Before the start of work, the contract manager must review the contract and work to be performed, including any subcontractors listed at the time of bid, and hold a pre-job meeting. See Chapter 8, “Pre-job Conference Requirements and Posters,” of this manual for additional details on this pre-job meeting.

If the contract manager has questions or requires guidance, they may contact the headquarters Labor Compliance office for assistance.

4B-5-3 Procedures for Payment

Architecture and engineering (A&E) contracts are paid in arrears and follow a receiver invoice payment process. 

A&E contracts must be paid within 45 days of invoice, or Caltrans becomes liable for interest. The contract manager may withhold money for missing payrolls or payroll discrepancies. When this happens, immediately complete and file Form STD 209, “Invoice Dispute Notification,” to stop Caltrans from accruing interest payments. Tracking logs are kept to prevent unnecessary interest payment from accruing.

4B-5-4 Project Closeout

The contract manager must verify that the work is satisfactorily completed and review the file to verify that the following documents have been received:

1. Form ADM-3059, “Report of Utilization of Small/Micro Business and Disabled Veterans Business Enterprises State Funded Contracts Only,” for projects with a DVBE goal.
2. Form ADM-3069, “Disadvantaged Business Enterprises Utilization Report” for projects federally funded with DBE goals.
3. Certified payrolls, including fringe benefit statements, and apprentice agreements
4. Employee interviews
5. Contractor invoice
6. Form FA-1226A, “Receiver – One Invoice (Single or Multi Funding)”
1. Date stamp the original receiving record in the lower left-hand corner and initial.
2. Log the date the receiving record and payroll documents are received, and the date they are submitted to be paid, into the labor compliance tracking system.
3. Verify that the receiving record includes the contract manager’s signature. Return any unsigned receiving record.
4. Make a copy of the receiving record and the invoice to retain in a logbook in a tracking system.
5. Review the payroll records, verify classifications, rates of pay, and hours against the daily reports.
6. Approve the certified payroll records by signing the receiving record and noting that payroll records are approved.
7. Forward the receiving record and invoice to the Division of Accounting, Disbursement office.

Invoice Dispute Notification

Inform the contract manager and send the completed Form STD 209, “Invoice Dispute Notification,” to the contractor and to the Division of Accounting, Office of Accounts Payable.

When missing documents are received, or the dispute is resolved, send the invoice, the receiving record, and a copy of Form STD 209 to the Division of Accounting, Office of Accounts Payable for payment.

This process can also be completed in AMS Advantage directly. Refer to the AMS Advantage Quick Reference Guide for additional details on this process.

Contact the Division of Accounting, Office of Accounts Payable with any questions.