21 ALASKA 2020 SECTION 104
104-1.01 INTENT OF C ONTRACT. The intent of the Contract is to provide for the construction
and completion of every detail of the described work. The Contractor shall furnish all labor, material, supervision, equipment, tools, transportation, supplies, and other resources required to complete the work in the time specified and in accordance with the Contract. The Contractor is responsible for the means, methods, techniques, sequence, and procedures of construction, safety, and quality control, and is responsible to perform and furnish the work in accordance with the Contract documents and any applica ble federal, state, and local laws, rules, regulations, and ordinances.
104-1.02 Changes.
1.Within Contract Scope . The Engineer may order changes within the general scope of the Contract at any time, and without notice to sureties, including altering, orderi ng additions to, or ordering deletions of quantities of any item or portion of the work. These changes shall be made by a written Change Order and shall not invalidate the Contract or release the sureties.
a.If the change does not materially differ in charac ter or unit cost from specified Contract work, the Contractor shall perform the work at the original contract measurement methods and prices, subject to the provisions of Subsection 109- 1.04.
b.If the change is materially different in character or unit cost from that specified in the Contract, a new Contract Item will be established, and an equitable adjustment to Contract price and Contract time shall be calculated by one of the following methods:
1.The Engineer and Contractor agree upon an adjustment to Contr act price and Contract time, and the Engineer issues a change order for the described work;
2.The Engineer requires the Contractor to proceed with the described work, with an adjustment to contract price and contract time, calculated by time and materials basis under Subsection 109- 1.05, and the Engineer issues a change order for the work. The Contractor shall keep complete daily records of the cost of such work; or
3.The Engineer may issue a unilateral Change Order requiring the Contractor to proceed with the work with an adjustment to the payment amount or Contract time based on the Engineer's estimate of reasonable value. The Contractor shall keep complete daily records of the cost of such work.
c.If the Engineer eliminates a Contract item, the Contractor shall accept compensation under Subsection 109- 1.09.
2.Outside Contract Scope . Changes determined to be outside the general scope of the Contract shall be made only by Supplemental Agreement issued in accordance with AS 36.30 and the State’s procurement regulatio ns. Additional bonding or insurance may be required.
3.Cost and Pricing Data. Before a Change Order or Supplemental Agreement covering work for which there is no established Contract price will be written, the Contractor shall submit detailed cost or pricing data regarding the changed work. The cost or pricing data shall include an itemization of production rates and all costs including labor, materials, and equipment required for the work. The Contractor shall certify that the data submitted are, to the best of its knowledge and belief, accurate, complete, and current as of a mutually agreed date and that the data will continue to be accurate and complete during the performance of the changed work. 22 ALASKA 20 20 4. Time Analysis. Before a Change Order or Supplemental Agreement that adds or subtracts time from the Contract will be written, the Contractor shall provide an analysis and documentation demonstrating changes to controlling items of work that affect Contract time. The Contractor shall certify that the data submitted are, to the best of its knowledge and belief, accurate, complete, and current as of a mutually agreed date and that the data will continue to be accurate and complete during the performance of the changed work.
104-1.03 DIFFERING S ITE CONDITIONS. If, duri ng the progress of the work, a differing site
condition is discovered, the party discovering the differing site condition shall promptly notify the other party in writing of the specific differing conditions. The written notification shall occur before the site is further disturbed and before the affected work is performed. A differing site condition is defined as:
1.Subsurface or latent physical conditions at the site, differing materially from those shown in the Contract documents, that could not have bee n discovered by a careful examination of the site; or
2.Unknown physical conditions at the site, of an unusual nature, differing materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the C ontract. When the Contractor is the discovering party, failure of the Contractor to give the Engineer prompt written notice of the alleged differing site condition as required under this section constitutes a waiver of any future claim arising from or relating to the alleged differing site condition. Unless otherwise directed by the Engineer, the Contractor shall leave the affected area undisturbed and suspend work in that area until the Engineer investigates the conditions. The Engineer will notify the Co ntractor of the determination whether or not an adjustment of the contract is warranted. If the Engineer finds that such conditions differ materially and increase or decrease the cost of, or the time required for, performance of the Contract, the Engineer will prepare a Change Order for an Equitable Adjustment to the Contract. The Contractor shall cooperate with the Engineer’s preparation of the Change Order , and submit data for actual costs and time to perform differing site work according to Subsection 10 4-1.02. The Change Order will provide an equitable adjustment to Contract price and Contract time, as agreed, to perform the work under a differing site condition. The Change Order will not include expected reimbursement, or anticipated profits suffered or claimed, for the work affected by the differing site condition. If the Contractor and the Engineer are unable to reach an agreement concerning the alleged differing site condition, the Contractor may file a claim under Subsection 105- 1.17. The Contrac tor shall keep accurate and detailed records of the actual cost of the work done as a result of the alleged differing site condition and shall allow the Engineer access to those records. Failure to keep records, to provide the Engineer with access to those records, or to give the notice required above will bar any recovery for the alleged differing site condition.
104-1.04 USE OF MATE RIALS FOUND ON THE W ORK. Before using borrow, the Contractor
shall utilize Useable Excavation to construct the selected mater ial layers on the project. For the purposes of this subsection, Useable Excavation is material encountered in the excavation that meets the requirements of Subsection 703- 2.07 Selected Material. For excavating the Useable Excavation and constructing the se lected material layers with Useable Excavation, the Contractor shall be paid only the unit bid price for excavation. Hauling, placing, compacting and other activities required to construct the selected material layers with Useable Excavation shall be 23 ALASKA 2020 subsi diary to excavation, and the Contractor shall not be paid additional sums for those activities. The Engineer may approve the use of borrow when Useable Excavation is not available. The Engineer may authorize the Contractor to use the Useable Excavation f or Contract items other than construction of the selected material layers on the project, and the Contractor shall be paid both for the excavation of the Useable Excavation and for the other Contract item for which it is acceptably used. If this action res ults in a shortage of material for the selected material layers:
1.The Contractor shall replace Useable Excavation used for other Contract items on a yard for yard basis with borrow acceptable to the Engineer; and
2.This replacement shall be at the Contractor' s expense and at no additional cost to the Department. The Contractor shall pay any royalties required for the borrow. The Contractor shall not excavate or remove any material that is within the right -of-way but outside the slope and grade lines described in the Contract, without written authorization from the Engineer. In the event the Contractor has processed material from state- furnished sources in excess of the quantities required for performance of the Contract, the Department may retain possession of the surplus processed materials, including any unsuitable material produced as a by -product, without obligation to pay the Contractor for processing costs. When the surplus materials are in a stockpile, the Engineer may direct the Contractor to leave the materials in the stockpile, level the stockpile(s) or remove the materials and restore the premises to a satisfactory condition at no additional cost to the Department. This provision does not apply to material specifically produced under Section 305, Stoc kpiled Material. The Contractor may temporarily use material from a structure that is designated to be removed to erect a new structure, but shall not cut or otherwise damage such material without the Engineer's approval.
104-1.05 CLEANUP. The Contractor s hall remove all rubbish, temporary structures, excess
materials, and equipment from the project site, from state owned materials sources, and from all work areas before project completion.
104-1.06 Value Engineering Change Proposals By Contractor.
1.Purpose and Scope. The purpose of this section is to encourage the Contractor to propose changes to Contract designs, materials, or methods based on the Contractor's experience and ingenuity. The Value Engineering Change Proposals (VECPs) contemplated are those that may result in immediate savings to the Department under this Contract without impairing essential functions and characteristics of the Project, including, but not limited to: service life, economy of operation, ease of maintenance, desired appearance, a nd safety. Cost savings on this project resulting from VECPs offered by the Contractor and accepted by the Department shall be shared equally between the Contractor and the Department.
2.Submitting Proposals . All VECPs must be in writing. The Contractor shall submit the following with each VECP:
a.A statement that the proposal is submitted as a VECP under S ubsection 104- 1.06;
b.A description of the difference between the existing Contract requirements and the proposed change, stating the comparative advantages and disadvantages of each, including effects on service life, economy of operations, ease of maintenance, desired appearance, and safety; 24 ALASKA 20 20 c. Drawings or specifications that show the proposed revisions relative to the original Contract requirements. The Contrac tor may submit schematics for conceptual approval of the proposal;
d.A detailed and complete cost estimate comparing the original estimated costs for performing the work under the existing Contract and under the proposed VECP;
e.A summary of the Contractor's development costs for the VECP, including costs for designing, testing, preparing and submitting the VECP;
f.A description and estimate of added costs the Department may incur in implementing the VECP, such as review, testing and evaluation of the VECP and Contract administration costs;
g.A date by which the Department must make a decision to obtain the cost savings projected in the VECP. The date identified must allow a reasonable time for the Department to conduct an adequate review and evaluation of the VECP and process a Change Order without affecting the Contractor’s schedule;
h.A statement of the probable effect the VECP would have on the Contract completion time. The Department's approval of the VECP shall not change the Contract completion date unless a change to the completion date is specifically provided for in the Change Order authorizing the VECP; and
i.A description of any previous use or testing of the proposed change and the conditions and results. If the proposal was previously submitted on another D epartment project, indicate the date, project name and number, and the action taken by the Department.
3.Conditions . VECPs will be considered only when all of the following conditions are met:
a.The Contractor has not based any bid prices on the anticipated ac ceptance of a VECP. If the VECP is rejected, the Contractor shall complete the work at the Contract prices.
b.VECPs, regardless of their approval status, become the property of the Department. The Contractor shall submit VECPs without use or disclosure restr ictions. The Department shall have the right to use, duplicate or disclose the VECP and any data necessary to use the VECP on the Project, on any other project, and on any other Contracts. The Contractor shall identify any trade secret information, patente d materials or proprietary processes that restrict use of the VECP.
c.The Department is the sole judge as to whether a VECP qualifies for consideration and evaluation. It may reject any VECP that does not allow a reasonable time for adequate review and evaluation by the Department or that requires excessive time or costs for review, evaluations, or investigations, or which is not consistent with the Department's design standards and policies, safety considerations, land use restrictions, permit stipulations, right-of way limitations, or other essential criteria for the project. The Department may reject a VECP without obligation to the Contractor if it contains proposals that are already under consideration by the Department or that have already been authorize d for the Contract.
d.If additional information is needed to evaluate a VECP, the Contractor shall provide it in a timely manner. Failure to do so may result in rejection of the VECP.
e.The Contractor may submit VECPs for an approved subcontractor if the Depar tment makes reimbursement to the Contractor. 25 ALASKA 2020 f. If the Contractor hires a design professional to prepare the proposal, they must be registered in the State of Alaska. That professional must seal the documents and provide evidence of Professional Liability Insurance with limits acceptable to the Department.
g.The Contractor shall not implement proposed changes before the Department accepts the VECP.
h.The Department shall not consider VECPs to share in cost savings due to changes previously ordered or authorized under other Contract sections or for work already done.
i.The Engineer shall reject all unsatisfactory work resulting from an accepted VECP. The Contractor shall remove all rejected work or materials, and shall reconstruct the work under the original Contrac t at the Contractor's sole expense under Subsection 105 -1.11.
j.Reimbursement for modifications to the VECP to adjust field or other conditions is limited to the total amount of the original Contract bid prices.
k.The Department shall not be held liable for costs or delays due to the rejection of a VECP, including but not limited to the Contractor's development costs, anticipated profits and increased material, labor or overhead costs.
4.Processing.
a.The Engineer shall accept or reject the VECP, in writing, by the date the Contractor specifies, unless extended by mutual consent. If rejected, the Engineer will explain the reasons for rejection. A VECP may be rejected if the Contractor allows the Department insufficient time to adequately review and evaluate it.
b.The Contractor may withdraw or modify a VECP at any time before it is accepted.
c.If the VECP is approved in concept (without final drawings and specifications), the Department may either undertake the re- design itself or issue the Contractor a limited notice t o proceed, subject to mutual agreement, authorizing the final design. The notice to proceed will include reference to any pertinent design criteria, Department policies, and other limitations on the design or construction methods. Approval in concept does not constitute acceptance of the VECP and will not obligate the Department to accept or pay for the final design.
d.If the final VECP is accepted, the Engineer will issue a Change Order under Subsection
104-1.02 incorporating the VECP into the Contract.
5.Paym ent. If the Department accepts the VECP, payment will be authorized as follows:
a.The Department will make a direct payment for the changed work at the unit or lump sum agreed prices in the Change Order. Such prices will include reimbursement of the Contract or's costs to develop and submit the VECP, including overhead and profit.
b.In addition, the Department will share the net savings with the Contractor. The amount of the VECP incentive will be equal to 50 percent of the net savings to the Department. The net savings are the difference between the original Contract price for the affected work and the cost of the revised work. For the purpose of this calculation, the cost of the revised work will include costs the Department may incur as a result of the VECP, s uch as review of the proposal, testing and evaluation, and added Contract administration costs. These costs will be estimated and agreed to in the Change Order.
c.The VECP Incentive will be paid on a prorated basis as the revised work is performed. 26 ALASKA 2020 SECTION 105 CONTROL OF WORK
105-1.01 AUTHORITY O F THE ENGINEER. The Engineer has immediate charge of the
engineering details of the project and is responsible for Contract administration. The Engineer has authority to reject defective material and suspend work not performed in accordance with the Contract. The Engineer has authority to accept completed work, issue Directives, Interim Work Authorizations, and Change Orders, and recommend Contract payments. The Engineer will decide all questions about the quality an d acceptability of the materials furnished and whether the work performed by the Contractor was in accordance with the Contract, the Contractor’s rate of progress, Contract interpretation and all other questions relating to Contract compliance. The Engineer has authority to suspend work for reasons listed under Subsection 108- 1.06. If the suspension of work is to protect the traveling public from imminent harm, the Engineer may orally order the suspension of work. Following an oral order of suspension, the Engineer will promptly give written notice of suspension to the Contractor. In other circumstances, the Engineer will give the Contractor written notice of suspension before suspension of work. A notice of suspension will state the defects or reasons for a suspension, the corrective actions required to stop suspension, and the time allowed to complete corrective actions. If the Contractor fails to take the corrective action within the specified time, the Engineer may:
1.Suspend the work until it is corrected; and
2.Employ others to correct the condition and deduct the cost from the Contract amount. The Engineer may, at reasonable times, inspect any part of the plant or place of business of the Contractor or any subcontractor that is related to Contract performance, including private or commercial plants, shops, offices, or other places of business. The Engineer may audit all books and records related to performance of the Contract, whether kept by the Contractor or a subcontractor, including cost or pricing data submitted under Subsection 104- 1.02.
105-1.02 PLANS AND W ORKING DRAWINGS. The Department shall provide the Contractor at
least two full size sets of the conformed Plans and Contract including Special Provisions. If cross - sections are available, one set wi ll be provided if requested in writing by the Contractor. The Contractor shall keep a complete set of these documents available on the project site at all times. The Contractor shall supplement structure plans with working drawings that include all details that may be required to adequately control the work and that are not included in the Plans furnished by the Department. The Contractor shall not perform work or order materials until the working drawings for such work, or for changes, are approved by the Engineer. The Engineer’s approval of working drawings or changes shall not be deemed a determination that the working drawings or changes comply with federal, state or local laws, rules, regulations and ordinances. It is Contractor’s duty to insure the working drawings comply with the Contract and any applicable federal, state or local laws, rules, regulations, and ordinances. The Contractor shall submit to the Engineer for approval any required preliminary detail or working drawings. The project name and number shall be stated in the title block for all drawings, as shall the state bridge number, when applicable. The Contractor shall submit drawings in either an electronic or paper format that is acceptable to the Engineer. When paper copies are submitted, provide three sets. The Contractor shall submit drawings to the Engineer in time to allow for review and correction before beginning the work detailed in the drawing. The Engineer shall return one set of these
Source: Alaska Standard Specifications for Highway Construction, 2020 Edition. Pages 49–53 of 584.