Reference: Pub. 408, Section 110.06 Material Stored on Hand
(a) Stored Material. The Representative may authorize payment for certain material, before its incorporation into the work. Upon the Contractor’s written request and the Representative’s written approval, the Contractor may be paid 100% of the cost of the material, less the pro-rata share of the retainage, if any; provided the quantity of stored material does not exceed the total estimated quantity required to complete the project, the cost is at least $1,000 but does not exceed 90% of the contract price of the applicable contract item and/or component item, and the accumulative costs do not exceed 25% of the current contract amount. The cost of the material is that amount to be paid by the Contractor as evidenced by invoices. Fabricated structural steel that is to receive a protective coating may be approved for prepayment at 75% of the contract price of the applicable contract item and/or component item, before application of the coating, provided the structure has been fully fabricated and preassembly of field connections has been made.
The first part of the first sentence starts out with: The Representative may authorize payment for certain material, …
may authorize, or may not!
On any given project, as far as I can detect, a stored material must be on the eligibility list to be eligible for stored material pre-payment.
The quickest way to find out if materials are eligible for stored material payments is to look it up in ECMS. You will need access to ECMS for the project you are wanting to look up a bid item number to find out if it is eligible for stored material. The material being furnished is for what bid item number?
Once this is established, simply log in to ECMS for the project you are wanting to look up stored material payment eligibility. Click-on CONSTRUCTION ITEMS. The next screen will open, and along the left side, every Item Number is listed.
Next, Click-on the Item Number you are looking up for Stored Material Eligibility.
The next screen will open up. Under the ITEM DETAIL heading, you will find a sub-heading: Stored Materials. It will indicate either, “Eligible for General Stored Materials PrePayments”, or “Not Eligible for Stored Materials PrePayments”
Contractors, please use common sense when applying for stored material pre-payment for many of reasons.
The materials will many times be stored on the job site where it may possibly become damaged, as it was stored in a place where other construction activities may get too close with construction equipment operating. Or, some of the stored materials may become stolen, or missing. And, depending upon the nature of the kinds of stored material, they may become damaged from the elements if not properly covered.
It some instances, it only requires some initial planning by the Contractor’s project personnel to take the time to schedule their material shipments so that they arrive just before needing them in the quantities that are needed during the next month or so. This suggestion is just good old cash flow management!
For example, you have a site improvement project that will last for the upcoming construction season, and you will need two truckloads of precast inlets and tops to complete the project. Schedule one truckload of inlets that you need during the beginning of the season, and order the second truckload in time to get them there just before you need them later in the season.
Also, if you do need to submit for stored materials pre-payment, don’t forget to read the rest of the specification section covering Section 110.06 Material Stored on Hand.
There are several more conditions that must be met prior to getting your stored materials list approved by the inspector, so be sure to read the spec section thoroughly to do everything required that applies to your situation. Failure to do this will delay your stored material pre-payments.
There are, of course, good reasons to submit for stored materials prepayments, but again, use good common sense, and don’t overuse this spec section on a project. It creates a lot of additional work for the project inspector, and if you over use it, or abuse it, the inspector will be overwhelmed with unnecessary paperwork, and may not get around to it.
Please comment freely on this site if you have additional views, or questions concerning this matter.