104SCOPE OF WORK

1-30 The Contractor’s cost records shall be complete in every respect and in such form

that the Engineer can check them. It shall be incumbent upon the Contractor to satisfy the Engineer of the validity of any request presented by the Contractor for adjustment to the contract unit price. After reviewing the Contractor’s request, the Engineer may make such adjustment as he deems warranted, based upon his engineering judgment . Payment will be made on the final estimate. The total payment , including any additional compensation granted by the Engineer due to an underrun in a major contract item , shall not exceed the payment that would have been made for the performance of 100% of the original contract quantity at the original contract unit p rice. Where non- stock fabricated materials are involved in minor items that underrun or in major items that underrun by less than 15%, and where fabrication of such material has begun or been completed before the Contractor is advised of the reduction in the quantity of the pay item, the Department will reimburse the Contractor for the verified fabrication cost, including the cost of material less salvage value, or it may instruct the Contracto r to have the fabricated material delivered to a site designated by the Engineer and make payment for such material in accordance with

104-6 Eliminated Contract Items

The Engineer may eliminate any item from the contract, and such a ction will in no way invalidate the contract. In the event the item of work involves pre -fabricated materials that are not considered to be stock items and fabrication of such material is begun or completed before the Contractor is advised of the eliminat ion of the contract item, the Department may reimburse the Contractor for the verified fabrication cost including the cost of materials less salvage value or may instruct the Contractor to have the fabricated material delivered to a site designated by the Engineer and make payment for such material in accordance with

104-7 Extra Work

The Contr actor shall perform extra work whenever it is deemed necessary or desirable to complete fully the work as contemplated. Extra work, as defined in Section 101, shall be performed in accordance with the contract and as directed. No extra work shall be comm enced before specific authorization for the performance of such extra work being given by the Engineer.

1-31 Extra work that is specifically authorized by the Engineer will be paid in accordance with

Subarticle 104-8(A). When the Contractor is required to perform work that is, in his opinion , extra work, he shall notify the Engineer in writing before performing such work. The Engineer will investigate and, based upon his determination, one of the following will occur.

104-8 Compensation and Record Keeping

1-32 shall summarize previously submitted cost records and clearly describe the Contractor's

justification for an adjustment in compensation under the terms of the contract. The claim shall be accompanied by a certification from an officer of the company or person authorized to execute supplemental agreements, stating that the claim is truthful and accurate. Upon receipt, the Engineer will review the Contractor's request and supporting documentation and notify the Contractor if the request is complete with all necess ary supporting documentation and cost records. If the Engineer determines that the work covered by the claim is in fact compensable under the terms of the contract, an adjustment in compensation will be made based upon the documentation presented and his e ngineering judgment. The adjustment will be made on the next partial pay estimate and reflected on the final estimate. The compensation allowed shall be limited to the amount that would be paid if the work was performed in accordance with Article 109-3. If the Engineer determines that the work covered by the claim is not compensable under the terms of the contract, the claim will be denied. The Engineer will notify the Contractor of his determination whether or not an adjustment of the contract is warranted within 120 calendar days after receipt of the complete request, all necessary supporting justification and cost records. The failure on the part of the Contractor to perform any of the following shall be a bar to recovery under Articles 104-3 or 104-7:

1-33 their involvement in the project and justification as to why they cannot be absorbed into

the unaffected work on the project or other projects during the period of suspension or alleged suspension. The Contractor's cost records, supporting data and supporting information shall be kept up to date and the Engineer shall be given the opportunity to review the methods by which the records, data and information are being maintained. The cost records, suppor ting data and supporting information shall be prepared weekly for each occurrence for which notice of intent to file a claim has been given and submitted to the Engineer within 7 calendar days after the end of a given weekly period. If the Contractor choos es to pursue the claim after the suspension or alleged suspension period has ended, he shall submit a written claim to the Engineer for an adjustment in compensation based upon his cost records due to idle equipment and/or idle labor within 14 calendar day s of receipt of the notice to resume work or within 14 calendar days of expiration of the alleged suspension period. This request shall summarize previously submitted cost records and clearly describe the Contractor's justification for an adjustment in co mpensation under the terms of the contract. Upon receipt, the Engineer will evaluate the Contractor's request. If the Engineer agrees that the cost of the work directly associated with the suspension or alleged suspension has increased as a result of such suspension or alleged suspension and the suspension or alleged suspension was caused by conditions beyond the control of and not the fault of the Contractor, his suppliers or subcontractors at any approved tier and not caused by weather, the Engineer will make an adjustment, excluding profit, and will modify the contract in writing accordingly. The Contractor will be paid the verified actual cost of the idle equipment and idle labor. The compensation allowed shall be limited to the equipment, labor, bond, insurance and tax costs, excluding profits, computed in accordance with Article 109-3. If the Engineer determines that the suspensions of the work by the Engineer or alleged suspensions do not warrant an adjustment in compensation, he will notify the Contractor in writing of his determination. The Engineer will notify the Contractor of his determination of whether or not an adjustment in compensation is warranted within 120 calendar days after receipt of the complete request, all necessary supporting justification and cost records. The failure on the part of the Contractor to perform any of the following shall be a bar to recovery under Article 104-4:

1-34 (8) The failure of the Contractor to submit the written request for an adjustment in

compensation with cost records, supporting data and supporting information within 14 calendar days after the last day of the period during which the Contractor contends he has been prevented from performing all or any portion of the work for an unreasonable period of time (not originally anticipated, customary, or inherent to the con struction industry) because of conditions beyond the control of , and not the fault of , the Contractor, its suppliers or subcontractors at any approved tier and not caused by weather.

104-9 Disposition of Surplus Property

All property that is surplus to the needs of the project will remain or become the property of the Contractor, unless otherwise stated in the contract, with the following exceptions:

1-35 104-10 Maintenance of The Project

The Contractor shall maintain the project from the date of availability or the date of beginning work, whichever occurs first, until the project is finally accepted. On resurfacing projects the Contractor shall maintain each part of the project, as defined by map numbers, from the date of beginning work on that part until such part is finally accepted. This maintenance shall be continuous and effective and shall be prosecuted with adequate equipment and forces to the end that all work covered by the contract is kept in satisfactory and ac ceptable condition at all times. The Contractor shall maintain all existing drainage facilities, except where the work consists of resurfacing only, such that they are in the same condition upon acceptance of the project as they were when the project was made available to the Contractor. In the event that the Contractor's work is suspended for any reason, the Contractor shall maintain the work covered by the contract, as provided herein. When a portion of the project is accepted as provided in Article 105-17, immediately after such acceptance the Contractor will not be required to maintain the accepted portions. Should latent defects be discovered or become evident in an accepted portion of the project, such defective work shall be repaired or replaced at no cost to the Department. Where an observation period is required that extends beyond the final acceptance date, the Contractor shall perform any work required by the observation period until satisfactory completion of the observation period. The Contra ctor will not be directly compensated for any maintenance operations necessary, as this work will be incidental to the work covered by the various contract items.

104-11 Fina L Cleaning Up

Before acceptance of the project, the highway, borrow sources, waste areas and all ground occupied by the Contractor within the project limits in connection with the work shall be cleaned of all rubbish, excess materials, temporary structures and equipment . All parts of the work shall be left in an acceptable condition. The Contractor will not be directly compensated for the work of final cleaning up, as this work will be considered incidental to the work covered by the various contract items .

104-12 Value Engineering Proposal

This value engineering specification is to provide an incentive to the Contractor to initiate, develop and present to the Department for consideration, any cost reduction proposals conceived by the Contractor involving changes to the contract. A Design -Build VEP may also be considered in accordance with Subarticle 104- 12(F). This specification applies to proposal s submitted by the Contractor using the Value Engineering Proposal (VEP) Submittal Form on the Department’s website . Submittals that propose material substitutions of permanent features , such as , but not limited to, changes from rigid to flexible or flexible to rigid pavements, concrete to steel or steel to concrete bridges will not be considered acceptable VEPs . Depending on the complexity of the evaluation and implementation, VEP s that provide for a total savings before distribution of less than $10,000 may not be considered.

1-36 (3) Reliability ,

1-37 (E) Final Proposal

A copy of the Final VEP shall be submitted by the Contractor to the Engineer , the Value Management Office at ValueManagementUnit@ncdot.gov and Design -Build Unit (if applicable) . The VEP shall contain the following at a minimum:

1-38 ValueManagementUnit@ncdot.gov and Design -Build Unit (if applicable) no later than

10 business days after acceptanc e of the final VEP unless otherwise permitted. The Contractor has the right to withdraw, in whole or in part, any final VEP not accepted by the Department within the period to be specified in the final VEP per Subarticle 104- 12(E)(6). If a VEP is approved, the necessary changes will be a ffected by the supplemental agreement. Included as a part of the supplemental agreement will be requirements for price adjustment giving the Contractor 50% of the net savings to the project resulting from the m odifications. Supplemental agreements executed for design -bid-build contracts shall reflect any realized savings in the corresponding line items. Supplemental agreements executed for design -build contracts shall add one line item deducting the full savin gs from the total contract price and one line item crediting the Contractor with 50% of the total VEP savings. The Department reserves the right to include in the supplemental agreement any conditions it deems appropriate for consideration, approval and im plementation of the VEP . Acceptance of the supplemental agreement by the Contractor shall constitute acceptance of such conditions. The final net savings to be distributed will be the difference in cost between the existing contract cost for the involved unit bid items and the actual final cost result ing from the modification. Only those unit bid items directly affected by the supplemental agreement will be considered in making the final determination of net savings. For design- build VEPs, a cost estimat e of the net savings based on the current market values must be included with the submission and will be reviewed and approved by the State Estimator. In determining the estimate d net savings, the Department reserves the right to disregard the contract pr ices if, in the judgment of the Department, such prices do not represent a fair measure of the value of the work to be performed or to be deleted. Subsequent change documents affecting the modified unit bid items , but not related to the VEP , will be exclu ded from such determination. The Department's review and administrative costs for VEP s will be borne by the Department. The Contractor's costs for designs and/or revisions to designs and the preparation of design drawings will be borne by the Contractor. The costs to either party will not be considered in determining the net savings obtained by implementing the VEP . The Contractor's portion of the net savings shall constitute full compensation to the Contractor for effecting all changes pursuant to the agreement. The net savings will be prorated, 50% to the Contractor and 50% to the Department, for all accepted VEP s. Upon execution of the supplemental agreement , the Department will thereafter have the right to use, duplicate or disclose , in whole or in part , any data necessary for the use of the modification on other projects without obligation or compensation of any kind to the Contractor. Restrictions or conditions imposed by the Contractor for use of the VEP on other projects shall no t be valid. Except as may be otherwise precluded by this specification, the Contractor may submit a previously approved VEP on another project. Unless and until a supplemental agreement is executed and issued by the Department and final plans (hard copy and electronic) sealed by an engineer licensed in the State of North Carolina incorporating an approved VEP have been provided to the Engineer , the Value Management Office at ValueManagementUnit@ncdot.gov and the Design- Build Unit ( if applicable) , the Contr actor shall remain obligated to perform the work in accordance with the terms of the existing contract. Acceptance of the modification and its implementation will not modify the completion date of the contract unless specifically provided for in the supple mental agreement .

1-39 The Contractor shall not be entitled to additional compensation under Section 104 for

alterations in the plans or in the details of construction pursuant to the VEP . The Department will not be liable to the Contractor for failure to accept or act upon any VEP nor for any delays to the work attributable to any such VEP . The Department reserves the right to negotiate desired changes with the Contractor under the requirem ents of the contract even though the changes are the result of a VEP submitted on another contract. In this instance the savings will be prorated in accordance with the terms of the negotiated agreement.

104-13 Recycled Products Or Solid Waste Materials

It is the policy of the Department to aid in reduction of materials that become a part of our solid waste stream. To that extent the Department encourages contractors to initiate, develop and use products and construction methods that incorporate the use of recycled or solid waste products in the project. Recycled products or waste materials will be those products or materials that would otherwise become solid waste and are collected, separated, or processed and reused or returned to reuse in the form of raw materials or products that are incorporated into a beneficial reuse on the project. Targeted materials include, but are not limited to , the following: plastic, glass, paper, cardboard, shingles, tires, fly ash, bottom ash, sludge and construction and demo lition debris. This Specification will not be applicable to reclaimed asphalt materials used in accordance with Section 610 and shall not be applicable to any recycled or solid waste materials that are specified for use by t he Department on the projec t. To use recycled or solid waste materials, the Contractor shall submit to the Department of Transportation a Recycled Products or Solid Waste Materials Proposal for approval. This proposal shall be submitted to the Resident Engineer and the Resource Con servation Engineer at ResourceConservation@ncdot.gov. The proposal shall contain, at a minimum, a statement that the request for the modification is being made as a Recycled Products or Solid Waste Materials proposal and t he requirements in Subarticles 10 4-12(E)(2) through 104-12(E)(6). The Contractor shall be responsible for obtaining any and all permits that may be required for the hauling, storing, or handling of the targeted materials. If a Recycled Products or Solid Waste Materials proposal is approved, the necessary changes will be effected by supplemental agreement . Included as a part of the supplemental agreement will be requirements fo r price adjustment as follows: