Handling negative estimates

Last updated: 2023-02-24

All contracts let prior to December 2020 will still be withholding retainage according to the prior procedure set forth in the standard specification. In AWP Construction, retainage will continue to be calculated on the contracts when the contract percent complete is 75% or more.

Effective with the December 2020 letting, the department would no longer be withholding retainage on contracts. ASP-6 - Modifications to the standard specifications reflects this change. Because of this contract administrative change, WisDOT has established guidance for handling negative estimates. Negative payment estimates are also flagged on the Payment Estimate Exceptions tab and must be acknowledged. Refer to Payment Estimate Exceptions for details.

Negative intermediate estimates

If a negative intermediate estimate is created and expected, the estimate should not be submitted for approval. Delete the estimate and continue to enter item postings until a positive estimate can be created.

If a region inadvertently approves a negative intermediate estimate, the Bureau of Financial Management will not process the payment estimate and will place it on hold until the region submits an estimate with a positive payment to the prime contractor.

Standard Specification 109.6.2 states that the minimum amount of an estimate is $1,000.

Negative semi-final estimates

If the semi-final estimate is a negative payment estimate and there is no other work to be paid, the region emails the prime contractor requesting a check for the amount due. The prime contractor should send the check to the Bureau of Financial Management at the following address:

Wisconsin Department of Transportation
Expenditure Accounting Unit
Attn Santiago Rinaldi
PO Box 7366
Madison WI 53707-7366

If the requested reimbursement is not received from the contractor, the department will follow the process specified in Standard Spec 109.7 Acceptance and Final Payment to withhold payments from another contract to set off the amount that is owed.

 

Info: Always work closely with the Supervisor, Project Manager and Contract Specialist if you have a negative payment estimate.