SHOW ME THE MONEY Contract Payment Process Construction Estimates

Mark St.Cyr - DOTD QCIP Director February 20, 2012

QCIP 163.1T
LaGov Account Payable: Construction Audit

Team Members
Nita Chambers M. Todd Donmyer Tanna Doucet Rita Leggett Larry Hofstad Anees Pasha Micah Olivier Edward Prawitz Kirt Clement, Champion Lisa Leonard, Facilitator

Team Scope
Document the LaGov Account Payable process that flows thru Construction Audit. The process includes payment and/or funding of estimates/invoices, projects and change orders.

Team Objective
Complete future state documentation with defined roles and responsibilities for the following aspects of the contract payment process: Estimate and Invoice Estimate Approval Change Orders

Before LaGov
Contract Payment Process Overview
Create Project Create Purchase Order (PO) Add Funding Lines to PO

Issue payment

Perform Review

After LaGov
Contract Payment Process Overview

Create Project

Bid review letter signed and forwarded

After LaGov
Contract Payment Process Overview

Create Project

Bid review letter signed and forward

NOCE is signed and forwarded

After LaGov
Contract Payment Process Overview
Create Project Bid review letter signed

NOCE is forwarded

Create Purchase Order (PO) and issue Notice to Proceed (NTP)

After LaGov
Contract Payment Process Overview
Create Project Bid review letter signed

NOCE is forwarded

Add funding lines to PO

Create Purchase Order (PO) and issue Notice to Proceed (NTP)

After LaGov
Contract Payment Process Overview
Create Project Bid review letter signed

NOCE is forwarded

Create Purchase Order (PO) and issue Notice to Proceed (NTP)

Add funding lines to PO

After LaGov
Contract Payment Process Overview
Create Project Bid review letter signed

NOCE is forwarded

Create Purchase Order (PO) and issue Notice to Proceed (NTP)

Perform Review

Add funding lines to PO

After LaGov
Contract Payment Process Overview
Create Project Bid review letter signed

NOCE is forwarded

Create Purchase Order (PO)

Issue payment

Perform Review

Add funding lines to PO

Summary Noted Process Improvements

Estimate and Invoice Process Budget is now applied to project within 5 business days
Notice of Contract Execution (NOCE) is forwarded simultaneously to Construction Audit and the Project Engineer

Summary Noted Process Improvements

Estimate and Invoice Process Construction Audit sets up the purchase order prior to invoice issuance
Construction Audit notifies the Project Engineer with a purchase order(PO) number for inclusion in NTP

Summary Noted Process Improvements

Estimate and Invoice Process The Project Engineer generates Notice to Proceed (NTP) with a purchase within 30 calendar days
The Project Engineer Office Manager validates the estimate and budget data as primary check

Summary Noted Process Improvements

Estimate Approval Process
Construction Audit validates estimate and budget data within 48 hours

Summary Noted Process Improvements

Change Order Category Worksheet
Construction Change Order Category Worksheet has added a line item for funding changes. This process has been documented based on EDSM III.1.1.

Current
Contract Payment Process Overview
Create Project Bid review letter signed

NOCE is forwarded

Create Purchase Order (PO) and issue Notice to Proceed (NTP)

Issue payment

Perform Review

Add funding lines to PO

 Consultant Contract Services QCIP team working on streamlining the Retainer contract process Consultant Contract Services, Budget , and Construction Audit recently held a working session to process needed for PO encumbrance of funds prior to invoice payment. Automation of Funding splits in Construction Audit