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• <br />g• <br />• h. <br />• <br />4/13/76 <br />AC 150/5100-10A <br />CkIAPTER 4. CONSTRUCTION AND PROJECT IMPROVEMENT COSTS <br />40. GENERAL. Construction work is performed by one of the following methods: <br />a. Contractual. All construction work must be accomplished by contract <br />unless FAA determines the project or any portion of it cah be more <br />effectively and economically accomplished on a force account basis. <br />b. Sponsor's Force Account. This involves construction work performed <br />by the sponsor with its own labor force or with the labor force of <br />another public agency. Such work must have the prior written <br />approval of FAA. <br />41. CONTRACT CONSTRUCTION. The following documents will be required for the <br />auditor's examination of claimed construction and project improvement <br />costs performed under contract: <br />a. Construction contract and all amendments. <br />b. Invoices for all work performed including all detailed supporting <br />data. <br />c. Evidence of all payments including vouchers, and cancelled checks or <br />warrants. <br />d. Charges for liquidated damages, if any. <br />e. In the case of a cost reimburseble type contract, the sponsor's <br />audit file, showing scope of examination made by sponsor's auditors <br />of the contractor's records, and the extent of the sponsor's <br />verification work performed. <br />f. If the contract results in an overrun or underrun of 25 percent or <br />more on a bid item that is 10 percent or more of the total contract, <br />a supplemental agreement with the signature of the surety is required. <br />Record for materials or equipment salvaged under these contracts as <br />a result of removal or replacement, or removal and storage of <br />existing facilities and a determination of the value of each item. <br />Sales tax refund information, if applicable. <br />i. Final inspection report showing acceptance of the airport development <br />performed under the project, and a record of disposition or <br />correction of all unsatisfactory work, if any. <br />42. FORCE ACCOUNT CONSTRUCTION. The following information will be required <br />to support claimed force account construction costs. <br />Chap 4 <br />Par 40 <br />Page 21 <br />
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