103.03 Cancellation of Award.
The Director reserves the right to cancel the award of any contract at any time before the execution of the said contract by all parties, without any liability against the State. The Director may also reject the bid of the lowest bidder if any of the conditions for disqualification noted in Article 102.02 are found to exist at any time prior to the execution of the contract by all parties. The Director may award the contract to the next lowest responsible bidder when it is determined to be in the best interest of the State.
103.04 Return of Proposal Guaranties.
All proposal guaranties, except those of the three (3) lowest bona fide bidders, will be returned without undue delay after proposals have been checked, tabulated, and the relation to the proposals established. The proposal guaranty of the three (3) lowest bona fide bidders will be returned as soon as the contract bonds and the contract of the successful bidder have been properly executed and approved. When the award is deferred for a period of time longer than fifteen (15) calendar days after the opening of the proposals, all proposal guaranties except those of the potentially successful bidders will be returned. Should no award be made, all guaranties will be returned. Should the successful bidder agree in writing to a stipulated extension in the time limit for award, the Director may, at his discretion, permit the successful bidder to substitute a satisfactory bidder's bond if a cashier’s check was submitted with his proposal as a proposal guarantee. The Director reserves the right to return all proposal guaranties by registered mail and his responsibility shall end upon the mailing thereof.
103.05 Requirements of Contract Bonds.
a.Performance Bond. The bidder to whom the award is made shall, within fifteen (15) calendar days after the prescribed forms have been presented to him for signature (i.e. after date of award), furnish and file with the Transportation Director an acceptable surety bond on the form included in the proposal in an amount equal to 100 percent of the contract bid price of the contract as awarded. Said bond shall be furnished by a surety company qualified and authorized to make such bonds in the State of Alabama and countersigned by an authorized agent resident in the State who is qualified to execute such instruments. The bond shall have attached thereto the power of attorney of the signing official unless such power of attorney is already on file in the office of the Department. In case of default on the part of the Contractor, all expense incident to ascertaining and collecting losses suffered by the State under the bond, including engineering, direct administration, and legal services, shall be charged against the contract bond for performance of the work.
b.Labor, Materials, Services, Insurance, Feed Stuffs, or Supplies Bond. In addition thereto, the bidder to whom the award is made shall, within the same fifteen (15) calendar days, execute and file with the Director an acceptable surety bond payable to the State in an amount not less than 100 percent of the contract bid price, with the obligation that the Contractor shall promptly make payment to all persons furnishing him or them with labor, materials, feed stuffs, services, insurance, bond, or supplies for or in the prosecution of the work, and for the payment of reasonable attorney’s fees, incurred by successful claimants or plaintiffs in suits on said bond.
c.Continuous Bond Coverage. Surety bonds shall continue to be acceptable to the Director throughout the life of the contract. In event the surety executing the bonds, although acceptable to the Director at the time of execution of the contract, subsequently becomes insolvent, bankrupt, unreliable, or otherwise unsatisfactory due to any cause which becomes apparent after the Director's initial acceptance of the bonds, then the Director will require that the Contractor replace the bonds with like bonds drawn on a surety company which is acceptable to the Director. In such event, all costs of the premium for the new bonds will be borne by the Contractor.
d.Performance of Surety. The Department will not accept bonds from a surety that has failed to perform in accordance with the terms of any bond that the surety has submitted to the Department. Prospective bidders will be informed in the "Notice to Contractors" that a surety bond is unacceptable.
103.06 Execution of Contract.
The contract shall be executed by the bidder to whom award is made, on the form included in the proposal, and returned to the Director with satisfactory contract bonds within fifteen (15) calendar days after the prescribed forms have been presented to him for signature (i.e. after date of award). Should SECTION 104 SCOPE OF WORK extenuating circumstances prevail, the Director may grant an extension in time not exceeding five calendar days for the return of the contract and bonds as provided herein and in Article 103.05.
103.07 Approval of Contract.
A period of twenty (20) calendar days will be allowed for execution of the contract by the Director and approval of same by the Governor, after its presentation by the successful bidder, unless the successful bidder agrees, in writing, to a longer period. No contract is binding upon the State until it has been executed by the Director and approved by the Governor of the State. The date of the final execution of the contract shall be the date on which it is signed by the Governor.
103.08 Failure to Execute Contract.
If the successful bidder is awarded the contract and fails to execute the contract (including furnishing acceptable contract security) the bidder will be subjected to the following actions. The Director will obtain liquidated damages for the bidder's default. The amount of the damages will be the smaller of two possible amounts. The first possible amount is the total amount of the proposal guaranty. The second possible amount is the difference between the amount of the contract as awarded and the amount of the total bid of the next lowest responsible bidder. The damages will be recovered from the bidder's cashier's check guaranty or from the principal or the sureties if the guaranty is a bid bond. The Director will return the proposal guaranty intact to the estate of the deceased successful bidder in the event of the death of the successful bidder on the date of the opening of the bids or the death of the successful bidder during the following number of days allowed for the execution of the contract. The defaulted bidder will be prohibited from participating in any manner in the original contract and will be prohibited from participating in any manner in any portion of that contract that may be removed and put into other contracts. These prohibitions shall apply to any other name under which the same person, affiliate, individual, partnership, company, firm, corporation, association, cooperative, or other legal entity may be operating in which the principal owners are involved. The prohibitions shall be: Work will not be allowed as a subcontractor or in any other capacity or role on the project. Bidding will not be allowed on the original contract if it is readvertised for letting. Bidding will not be allowed on any subsequent contract which contains any portion of the original contract. SECTION 104 SCOPE OF WORK
104.01 Intent of Contract.
The intent of the contract is to provide for the construction and completion of the work described. The Contractor shall furnish all labor, materials, equipment, tools, transportation and supplies required to complete the work in accordance with the plans, specifications, and terms of the contract. When Item 680-A, Geometric Controls, is included in the plans and in the proposal, the Contractor shall also furnish all geometric controls (see Section 680). Special provisions covering any special conditions, materials, or construction not covered in the plans or in these specifications will be included in the bidders' proposals or in supplemental agreements.
104.02 Alterations of Plans or Character of Work.
a.General. The Engineer reserves the right to make, in writing, at any time during the work, such changes in quantities and such alterations in the work as necessary to satisfactorily complete the project. Such changes in quantities and alterations shall not invalidate the contract nor release the surety, and the contractor agrees to perform the work as altered. If the alterations or changes in quantities significantly change the character of the work under the contract, whether such alterations or changes are in themselves significant changes to the character of the work or by affecting other work cause such other work to become significantly different in character, an adjustment, excluding anticipated profit, will be made to the contract. If the cost of the work does not change, then the adjustment will be zero. The basis for the adjustment shall be agreed upon prior to the performance of the work. If a basis cannot be agreed upon, then an adjustment will SECTION 104 SCOPE OF WORK be made either for or against the contractor in such amount as the Engineer may determine to be fair and equitable. If the alterations or changes in quantities do not significantly change the character of the work to be performed under the contract, the altered work will be paid for as provided elsewhere in the contract. The term "significant change" shall be construed to apply only to the following circumstances:
1.When the character of the work as altered differs materially in kind or nature from that involved or included in the original proposed construction.
2.When a major item of work, as defined elsewhere in the contract, is increased in excess of 125 percent or decreased below 75 percent of the original contract quantity. Any allowance for an increase in quantity shall apply only to that portion in excess of 125 percent of original contract item quantity, or in case of a decrease below 75 percent, to the actual amount of work performed. Changes in quantities for the items of Unclassified Excavation, Muck Excavation, Borrow Excavation, Pipe Underdrain, extra Concrete and Steel Reinforcement (for structure foundations), Piling, Bituminous Plant Mix leveling and widening material, and Bituminous Material used in plant mix bases and pavements, Disposal of Hydrocarbon Contaminated Soil, Underground Storage Tank (UST) Removal, and Removing and Disposing UST Contents shall be excluded in determining increases and decreases under the provisions of this paragraph, since it is understood that these items cannot be accurately determined before the work is done. No claims shall be made by the Contractor for any anticipated profits because of any such alteration, or by reason of any variation between the approximate quantities and the quantities of work as done. No allowance will be made on an item for which a fixed price is set in the proposal. Payment for work occasioned by changes or alterations will be made in accordance with the provisions set forth under Article 109.05. If the altered or added work is of sufficient magnitude as to require additional time in which to complete the project, such time adjustment may be made in accordance with the provisions of Article 108.09. Under no circumstances shall alterations of plans or of the nature of the work involve work beyond the terminus of the proposed construction except as may be necessary to satisfactorily complete the project.
b.Changed or Differing Site Conditions. During the progress of the work, if subsurface or latent physical conditions are encountered at the site differing materially from those indicated in the contract or if unknown physical conditions of an unusual nature, differing materially from those ordinarily encountered and generally recognized as inherent in the work provided for in the contract, are encountered at the site, the party discovering such conditions shall promptly notify the other party in writing of the specific differing conditions before they are disturbed and before the affected work is performed. Upon written notification, the Engineer will investigate the conditions, and if he determines that the conditions materially differ and cause an increase or decrease in the cost or time required for the performance of any work under the contract, an adjustment, excluding anticipated profits, will be made and the contract modified in writing accordingly. The Engineer will notify the Contractor of his determination whether an adjustment of the contract is warranted. No contract adjustment which results in a benefit to the Contractor will be allowed unless the Contractor has provided the required written notice. The Contractor shall carry on the work promptly and diligently pending a decision. Any adjustment in compensation because of such change or changes will be made in accordance with the provisions of Article 109.05. Any adjustment in contract time because of such change or changes will be made in accordance with the provisions of Article 108.09.
c.Claims. If the Contractor does not agree with the Department’s decision concerning his request for extra compensation, he may file a claim following the procedures outlined in Section 110, Claims.
104.03 Extra Work.
a.General. The Contractor, when so directed in writing, shall perform extra work for which there is no quantity or unit price in the contract and is deemed necessary or desirable to complete fully the work SECTION 104 SCOPE OF WORK as contemplated. Such work shall be performed in accordance with the Specifications and as directed and will be paid for as provided under Subarticle 104.03(b).
b.Supplemental Agreement or Force Account Order Required. Before any such extra work is started, a supplemental agreement shall be executed, describing the kind, location, and estimated quantities of the extra work to be done and specifying the unit prices or lump sum agreed upon, or a written order shall be issued for the work, stating that compensation will be on a force account basis. However, in an emergency, the Engineer may direct the immediate start of the extra work by letter containing this information. Such letter shall be superseded later by a supplemental agreement or force account order. If satisfactory unit prices or lump sum cannot be agreed upon, the Director may require that the extra work be performed on a force account basis as outlined in Subarticle 109.04(b) or he may direct that one or more of the items of the proposed extra work be omitted from consideration and performed by other agents.
104.04 Maintenance of Traffic and Sequence of Construction.
a.General.
1.Provision for Traffic. No highway or section of highway or bridge shall be closed to traffic and no construction operations that will for any reason render the roadway generally unsuitable for use of the traveling public shall be started until adequate provisions have been made to detour or bypass the traffic in safety and comfort. Special reference is made to Article 107.07, "Public Convenience and Safety" and such is approved in writing by the Engineer.
2.Pipelines and Public Utilities. The Contractor's attention is directed to the possible existence of pipelines or other public utilities which may be buried within the limits of the work or adjacent thereto and which may or may not be shown on the plans. He shall be responsible for and shall take all necessary precautions to protect and preserve any and all such existing drains, sewers, pipes, conduits, and other underground structures or parts thereof which may be affected by his operations on the work, and which, in the opinion of the Engineer, may be properly continued in use without any changes. He shall assume full responsibility for reimbursing the owners for any damage or injury to properties or interference with their service which may result from any of his operations or negligence during the period the contract is in force. Also, he shall be responsible for any damage to utilities above ground, regardless of their location, where such damage results from any of his operations or his negligence. Attention is directed to Subarticle 107.12(b). The Contractor shall repair, replace, relocate, extend, reconstruct or make any other change in any subsurface sewer or drain encountered in the prosecution of the work and unless otherwise provided in the contract, the cost of replacing or restoring or connecting any such sewer or drain substantially to its original location, when incidental to the construction shall be included in the contract unit prices for various pay items.
3.Mail Delivery. Where mail delivery service is to be maintained during construction, mailboxes within the limits of operations shall be removed by the Contractor before work is begun and set temporarily where they will be accessible both to the mail carrier and the patron. As soon as the state of the work permits and the Engineer directs, all mailboxes shall be reset by the Contractor in permanent locations in compliance with U.S. Postal Service Regulations. Mailboxes or supports that have been damaged by the Contractor shall be replaced at his expense. The cost of removing and/or resetting mailboxes shall be paid under Item 206-E Removing Mailbox or Item 209-A Mailbox Reset.
4.Lighting for Nighttime Operations. When the Contractor performs any operations after daylight hours, he shall provide and maintain, at his expense, sufficient artificial lighting to permit proper construction and inspection.
b.Signs and Warning Lights. All signs, barricades, etc. used along the project shall be in accordance with the provisions of Part 6 of the MUTCD, the plan details and the following: Posts shall be appropriately sized for the sign of either timber (treated or painted) of not less than 4 inch x 4 inch {100 mm x 100 mm} (Nom.) cross section or metal (min. 2 lbs. {1 kg} "U" channel or equivalent) so spaced to rigidly support the sign. SECTION 104 SCOPE OF WORK When using sign stands for temporary construction signs, the system shall be selected from List IV-3, Work Zone Traffic Control Devices – Sign Stands. All signs, barricades, drums or other devices intended for use in controlling traffic shall be in accordance with the requirements of Part 6 of the MUTCD and the detailed plans, with reflectorization as noted therein. Reflectorization shall be accomplished using materials meeting the requirements of
Article 880 — 02.
All barricades, drums, signs and other devices shall be kept clean, legible, and in their proper position at all times. Damaged, defaced or dirty barricades, drums, signs and other devices shall be repaired or replaced immediately. The Engineer will ensure compliance by periodic inspections and require replacements or repair as deemed necessary.
c.Sequence of Construction. Unless otherwise provided by plan details or special provisions included in the contract, the sequence of construction for the project shall be the Contractor's provided the following requirements are met to the satisfaction of the Engineer.
1.Provides for the orderly construction of the project within the time limit provided by the Contract.
2.Provides for the preparation of any bridge sites as a first order of work.
3.Provides for handling traffic through the work in accordance with the details noted in Subarticle
d.of this Article.
4.Provides for the working out of minor drainage problems and details of temporary or permanent access as they are encountered.
5.Provides for the continuous prosecution of all paving work through the final wearing layer once planing (milling) operations, surface treatment operations, or paving operations have begun.
d.Handling of Traffic. Unless otherwise provided, the Contractor shall keep the road open to all traffic while performing the required improvements. The Contractor shall keep the portion of the project being used by public traffic, whether it be through or local traffic, in such condition that traffic will be adequately accommodated. They shall provide and maintain in a safe condition temporary approaches or crossings and intersections with trails, roads, streets, businesses, parking lots, residences, garages, and farms. Where so provided on the plans or approved by the Engineer, the Contractor may bypass traffic over an approved detour route. The Traffic Control Plan (TCP) has been developed by the Engineer in accordance with Part VI of the "Manual on Uniform Traffic Control Devices" (MUTCD). The Contractor shall furnish, erect, and maintain barricades, warning signs, delineators, flagmen, and pilot cars in accordance with the TCP. The TCP will be revised as directed by the Engineer if there is a need for traffic control that is not shown on the TCP. The need for maintaining the flow of traffic may cause the restriction of the movement and operation of the Contractor's construction equipment. Flagmen shall be furnished without additional compensation to direct traffic and protect the work as noted in Section 740. Construction adjacent to existing pavement will require the use of portable barricades, drums, signs, vertical sign panels, delineators, or other approved traffic control devices. Posts used for traffic control device supports shall be appropriately sized for the intended purpose and uniform in shape and color throughout the project. The above traffic control devices shall be supplemented as necessary with warning lights of the kind and type indicated by plan details, the proposal, or as directed by the Engineer. In addition, when deemed necessary by the Engineer, special warning lights shall be used on equipment working adjacent to traffic lanes to warn traffic. These special warning lights shall be either all purpose, 360°- 2 sealed beams, revolving types of at least 8 inches {200 mm} in height, or electronic strobe beacons. These lights shall be amber, or orange colored, and mounted so as to be readily seen by traffic at a safe distance.
104.05 Blank.
104.06 Final Cleaning Up.
Upon completion and before work will be finally accepted and final payment made, the Contractor shall perform the following work: SECTION 104 SCOPE OF WORK
1.He shall clear and remove from the right of way and adjacent areas not owned by him, all falsework, equipment, surplus and discarded materials, temporary structures, rubbish, debris, and all other objectionable litter, and dispose of them in a satisfactory manner.
2.He shall not remove barricades, warning and direction signs, until directed by the Engineer.
3.He shall remove from the site of other operations such as pits, quarries, stream channels, structures sites, and storage yards, all weeds, portions of trees, discarded materials, machinery, temporary structures, and equipment and dispose of them in a satisfactory manner. Depositing such material on abutting property or adjacent to the right of way with or without the consent of the property owner, will not be accepted as satisfactory disposal. However, he may be allowed temporarily to store equipment, surplus material, usable forms, etc., in a neat manner on a well-kept site near the right of way.
4.He shall restore in an acceptable manner all property, public and private, damaged incident to the prosecution of the work, and shall leave the right of way and sites of structures in a neat and presentable condition satisfactory to the Engineer.
104.07 Maintenance of Roads and Detours.
a.General. The Contractor shall maintain at his expense, except as explicitly outlined in this Article, all detours and haul roads, and all roads, streets, bridges, and intersections within the project limits. This includes, but is not limited to, haul roads and detours constructed by the Contractor for his convenience. It also includes damage to the road, street, or structure caused by the Contractor's equipment. The Contractor shall regulate his loads as required by Article 105.12 and he and his surety shall be responsible for any specific damage that may result to the road, street, or structures from failure to observe regulations governing traffic thereon, or for negligence on his part. The Contractor shall perform required repairs without delay; otherwise, the State or County will perform the repairs, and the cost thereof will be deducted from amounts due on the contract. The Contractor and his surety shall indemnify and hold harmless the State, the Director, and the Engineer for damages arising from the use of roads and streets in the performance of the contract.
b.Detours. Detours designed by the Engineer and constructed in an acceptable manner shall be maintained by the Contractor with payment made under the appropriate Pay Items or as Extra Work unless the State elects to perform the maintenance instead. Roads designated as detours by the plans or the Engineer shall be maintained as outlined in this paragraph.
c.Haul Roads. Unless the plans designate otherwise, the Contractor may use any State road as a haul road with the maintenance performed as specified in Subarticle 104.07(b) above as long as his loads are regulated as specified in Subarticle 104.07(a) above. Should the Contractor wish to use a county road or city street as a haul road, he shall meet with the local governing body, review the condition of the facility, and reach an agreement as to the maintenance thereof. No payment will be made for such maintenance or restoration thereof.
d.Roads and Bridges. Existing roads and bridges which have not been constructed or overlaid by the Contractor shall be maintained by the State unless the Contractor is directed to make repairs with payment to be made as specified in Subarticle 104.07(b).
104.08 Value Engineering.
a.Purpose and Scope. Value Engineering (VE) applies to cost reduction proposals that are initiated, developed, and submitted in writing by the Contractor to the Department for modifying the plans, the specifications, or other contract requirements. This applies only to a proposed change which is identified as a Value Engineering proposal at the time it is submitted to the Department. VE proposals are those which would require a change in the contract and would result in a net savings over the contract cost without impairing essential functions and characteristics of the project, including but not limited to, service life, reliability, economy of operation, ease of maintenance, desired aesthetics, and safety. SECTION 104 SCOPE OF WORK The intent of this provision is for the Department to share with the Contractor any cost savings generated on a project as a result of a proposal or proposals offered by the Contractor and approved by the Department. The purpose is to encourage the use of the Contractor's ingenuity and experience in arriving at alternate, lower cost construction methods than those reflected in the contract documents by the sharing of savings resulting therefrom. VE proposals based solely on deleted pay items will not be considered. Nothing herein shall be construed as requiring the Department to consider or approve a VE proposal submitted hereunder; however, if a VE proposal is approved by the Department, the net savings resulting from the proposal will be shared by the Department and Contractor on a 50-50 basis.
b.Submittal of Proposal. As a minimum, the following materials and information shall be submitted with each VE proposal, plus any additional information requested by the Department:
1.A Statement that the proposal is being submitted as a Value Engineering proposal.
2.A description of the difference between the existing contract requirements and the proposed change, and the comparative advantages and disadvantages of each, including considerations such as service life, economy of operations, ease of maintenance, desired appearance, and safety.
3.A complete detailed cost analysis indicating the final estimate costs and quantities to be replaced by the proposal, the new costs and quantities generated by the proposal, and the cost effects of the proposed changes on operational, maintenance, and other considerations.
4.Plans, specifications, and recommendations as to how the VE proposed changes are to be accomplished.
5.A statement of the deadline for issuing a change order adopting the proposed change to obtain the maximum cost reduction during the remainder of the contract, noting any effect on the contract’s completion time or delivery schedule.
6.A description of any previous use or testing of the proposal on another Department project, or elsewhere, and the conditions and results therewith. If the proposal was previously submitted on another Department project, indicate the date, project number, and the action taken by the Department.
7.VE proposals may be submitted only by the Prime Contractor. Subcontractors may not submit a proposal except through the prime Contractor.
8.Six complete copies of all submittal data included in a VE proposal shall be submitted to the Department's Project Manager. All copies of the proposal will be forwarded through the Area Office to the State Construction Engineer for further handling.
c.Conditions for Consideration of Proposal.
1.The Contractor is cautioned not to base any bid prices on the anticipated approval of a VE proposal and to recognize that a proposal may be considered but not approved. In the event of rejection of the proposal, the Contractor shall complete the contract in accordance with the plans and specifications at the contract prices bid.
2.The Department will not be liable to the Contractor for failure to accept or act upon any VE proposal submitted nor for any delays to the work attributable to any such proposal.
3.The Contractor shall absorb all costs incurred in preparing a VE proposal for submission to the Department including the cost of final plan revisions. The Department will bear the cost of reviewing and administering the VE proposal.
4.Until a proposal is approved by supplemental agreement, the Contractor shall remain obligated to the terms and conditions of the existing contract.
5.All VE proposals, whether approved or not approved by the Department for use on a referenced project, become the property of the Department, and shall contain no restrictions imposed by the Contractor on their use or disclosure. The Department shall have the right to use, duplicate, and disclose in whole or in part any data necessary for the utilization of the proposal. The Department retains the right to utilize any accepted proposal or part thereof on any other or subsequent projects without any obligation to the Contractor. This provision is not intended to deny rights provided by law with respect to patented materials or processes.
6.The proposal shall not be experimental in nature but shall have been proven to the Department's satisfaction under similar or acceptable conditions on another project or location.
7.Proposed changes in the basic design of a bridge or pavement type, or which require different right-of-way limits, will not normally be considered as an acceptable VE proposal. Items of work
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Source: 2026 Standard Specifications for Highway Construction, 2026 Edition. Pages 28–34 of 826. View official source ↗