SECTION 104 - SCOPE OF WORK (Last Revised January, 2025)
104-01 Work Required.
The Contractor shall begin work within ten days of the date of the contract award notification by the Department, unless written consent of the Department is given to begin at a later date. Contract awards are posted by the Office of the State Comptroller on www.openbooknewyork.com. The Contractor shall perform all work enumerated under the terms of the contract and shall protect all adjoining properties, utility facilities and existing highway facilities within the right of way. The Contractor shall repair and/or replace any property, utility facility or highway facility damaged or destroyed by it or its employees through construction operations, within and adjacent to the right of way. As soon as possible after the contract has been awarded, the Contractor shall contact the Regional Construction Engineer to schedule a preconstruction meeting. A preconstruction meeting is held with the Contractor and interested parties involved in the contract to discuss the contract scope, work plan and schedule and review administrative procedures necessary to begin work. A Contractor Principal, the Superintendent, Safety Officer, and others as appropriate typically attend. A separate Civil Rights meeting is frequently scheduled and conducted by the Regional Compliance Specialist (RCS) with the Contractor’s Civil Rights representatives and others as required. The Regional Construction Engineer may waive a part of a preconstruction meeting for a Contractor with multiple contract awards. The Contractor shall coordinate the work of its Subcontractors, Manufacturers, Fabricators and Material Suppliers. Their operations shall be arranged and conducted so that delays will be avoided. Where the work of the Contractor, or Subcontractors, overlaps or dovetails with that of other Contractors, materials shall be delivered and operations shall be conducted so as to carry on the work continuously in an efficient and workmanlike manner. During the life of this contract, Utilities may make changes in their facilities. These changes may be made by the Utility employees or by contract within the limits of or adjacent to this contract and may be temporary and/or permanent. Delays or oversights on the part of the Contractor, Subcontractors or Utilities in properly completing any work, thereby requiring the removal and replacement of work already in place, will not be the basis for a claim of extra compensation. Such work will be performed at the cost and expense of the responsible Contractor, Subcontractor or Utility. Reference is made to General Obligations Law §11-102 which concerns the interference and/or delay of the Contractor's progress of work by Utilities.
104-02 Changes, Contingencies, Extra Work and Deductions.
104-03 Differing Site Conditions.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1 The provisions of Article 5, Alterations and Omissions of the contract agreement shall apply. Whenever the Department determines that from any unforeseen cause the terms of any contract should be altered to provide for changes, contingencies, extra work, or the deletion of work, a change order may be issued to the Contractor. Upon direction by the Department, the Contractor shall then promptly proceed with the Work in accordance with the pertinent specifications. Such changes in quantities and alterations shall not invalidate the contract nor release the Surety, and the Contractor shall perform the Work as altered. No instructions, either written or verbal from any Department employee or agent shall be construed as an order for changes until receipt by the Contractor of written notification that a change order has been approved by the Department and filed by the Office of the State Comptroller (OSC), or written notification from the Engineer that changes in the work are eligible and authorized for payment in accord with Section 697 Field Change Payment. The Contractor may proceed with the work in advance of the approved change order if the Contractor has received an approved Authorization of Extra Work.
104-03 Differing Site Conditions.
In accordance with 23 CFR 635.109(a)(1): 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 of the specific differing site conditions before the site is further disturbed and before the affected work is performed. Upon written notification, the Engineer will investigate the site conditions, and if it is determined 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 the determination whether or not an adjustment to 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 Department will administer the above Federal regulations as follows: 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, the party discovering such conditions shall promptly notify the other party of the specific differing site conditions before the site is further disturbed and before the affected work is performed, with subsequent written notice to be provided later. The Contractor shall comply with the notice and recordkeeping provisions of §104-06 Notice and Recordkeeping. The Contractor or the State, as the case may be, must make written notice to the other party of the existence of apparent subsurface or latent physical conditions if that party wishes to adjust the contract price or time of performance, including direct costs and/or time related compensation, if applicable. Such notice shall be given within 15 calendar days of the time at which the party had knowledge, or should have had knowledge of the differing site condition. The Department will have no liability and no adjustment will be made for any damages which accrued more than 15 calendar days prior to the filing of such a notice with the Engineer. Upon written notice, the Engineer will investigate the site conditions, and if it is determined that the conditions materially differ and cause an increase or decrease in the cost or time required for the performance of the work, an adjustment, excluding anticipated profits, will be made to the contract. The Engineer will make an initial response in writing to the Contractor, within 21 calendar days, with a determination whether or not an adjustment to the contract is warranted. Situations requiring examination of the site or input from other Department personnel may require additional time to resolve. No contract
104-04 Significant Changes In The Character of Work.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1 adjustment will be allowed unless the Contractor has provided the required written notice, or written notice was provided to the Contractor by the State. If an agreement on an adjusted price has not been reached before the work begins, the Contractor shall keep daily records and make reports of all labor, material and equipment used in connection with such work and the cost thereof as specified in §109-05C. Force Account Reports. Compensation for increased costs of the work resulting from the differing site conditions will be made in accordance with §109-05 Extra Work and Time Related Compensation. Compensation for time related costs, if any, will be made in accordance with §109-05D. Time Related Compensation.
104-04 Significant Changes In The Character of Work.
In accordance with 23 CFR 635.109(a)(3): 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 are 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 work under the contract, whether such alterations or changes are in themselves significant changes in the character of work, or by affecting other work cause such other work to become significantly different in character, an adjustment, excluding anticipated profits, will be made to the contract. 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 be made by the Department, either for or against the Contractor, in such amount as determined 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: when the character of the work as altered differs materially in kind or nature from that involved or included in the original proposed construction; or 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 a change in unit price shall apply only to that portion of work in excess of 125 percent of the original contract item quantity, or in the case of a decrease below 75 percent, to the actual amount of work performed. The Department will administer the above Federal regulations as follows: The Department may make, in writing, at any time during the work, any necessary changes in quantities and alterations to the work in order to satisfactorily complete the project. If the Contractor or the Department discovers a change that constitutes a significant change in the character of work as defined below, the party discovering the change shall promptly provide the other party written notice of the significant change in the character of work before additional work is performed. The Contractor shall comply with notice and recordkeeping provisions of §104-06 Notice and Recordkeeping. The Contractor or the State, as the case may be, must make written notice to the other party of the existence of an apparent significant change in the character of work if that party wishes to adjust the contract price or time of performance, including direct costs and/or time related compensation, if applicable. Such notice shall be given within 15 calendar days of the time at which the party had knowledge, or should have had knowledge of an event, matter or occasion which results in a significant change in the character of work. The Department will have no liability and no adjustment will be made for any damages which accrued more than 15 calendar days prior to the filing of such a notice with the Engineer. Upon written notice, the Engineer will investigate the changes and if it is determined that the alterations or changes in quantities significantly change the character of work, whether such alterations or changes are in themselves significant changes in the character of work, or by affecting other work, cause such other work to become significantly different in character, an adjustment, excluding anticipated profits, will be made to the contract. The Engineer will make an initial response in writing to the
104-04 Significant Changes In The Character of Work.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1 Contractor, within 21 calendar days, with a determination whether or not an adjustment to the contract is warranted. Situations requiring examination of the site or input from other Department personnel may require additional time to resolve. 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 be made by the Department, either for or against the Contractor, in such amount as determined to be fair and equitable. No contract adjustment will be allowed unless the Contractor has provided the required written notice, or written notice was provided to the Contractor by the State. If an agreement on an adjusted price has not been reached before the work begins, the Contractor shall keep daily records and make reports of all labor, material and equipment used in connection with such work and the cost thereof as specified in §109-05C. Force Account Reports. Compensation for increased costs of the work resulting from significant changes in the character of work will be made in accordance with §109-05 Extra Work and Time Related Compensation. Compensation for time related costs, if any, will be made in accordance with §109-05D. Time Related Compensation.
A.Character of Work. The term "significant change" shall be construed to apply only when the character of the work differs materially in kind or nature from that involved or included in the original proposed construction.
B.Major Items. The term "significant change" shall be construed to apply to Major Items (as defined in §101-02 Definitions of Terms) only when the quantity of a Major Item is more than 125% or is less than 75% of the original contract quantity. Any allowance for a change in the unit price shall apply only to that portion of work in excess of 125% of the original contract item quantity, or to the actual amount of work performed if the quantity decreases below 75% of the original contract item quantity. The Contractor or the State, as the case may be, must make written notice to the other party of the "significant change" in the quantity of a major item if that party wishes to adjust the contract price or time of performance. Knowledge of a "significant change" in quantity could result from receipt of a change order (approved or unapproved), a letter directing a change in the contract work, review of plan details and estimates, review of work completed or progress payment quantities, or a combination of the above. Payment for major items will be limited in accordance with §109-02 CompensationPayment For Altered Quantities.
C.Minor Items. The term ‘significant change’ shall be construed to apply to Minor Items (as defined in §101-02 Definitions of Terms) only when extra work both (1) increases the quantity of a Minor Item to more than 200% of the original contract quantity and (2) results in an increase of more than $5,000 from the original contract amount. Any allowance for a change in the unit price shall apply only to that portion of work both in excess of 200% of the original contract item quantity, and in excess of $5,000 greater than the original contract amount.
D.Composite Items. Composite items, for the purposes of this subsection, consist of rock and non- rock components and are limited to unclassified excavation and trench and culvert excavation identified on the Earthwork Summary Sheets. The term "significant change" shall be construed to apply to a composite item when the character of the work differs materially in kind or nature from the original proposed construction or when the composite item is a Major Item, any individual component of the composite is less than 75% or more than 125% of the quantity stated in the Earthwork Summary Sheet used by the Department in preparing the contract, and the reasonable costs of the composite item either increases or decreases as a result of the change. Any allowance for a change in the unit price shall be governed by the appropriate subsection within §104-04 Significant Changes in the Character of the Work. At the Engineer’s request, the Contractor shall submit its price breakdown of the bid price for the individual components of any composite item.
104-05 Suspensions of Work Directed By The Engineer.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1
E.Fixed Quantity Items. Certain items of work may be "fixed quantity" items and payment will be restricted to the quantity stated in the Estimate of Quantities. The term "significant change" shall be construed to apply to fixed quantity items only if, during the progress of the work, the quantity of work is found to be less than 75% or more than 125% of the quantity stated in the Estimate of Quantities.
F.Lump Sum Items. Certain items of work may be Lump Sum items wherein a single bid amount is intended to provide payment for all necessary work during the execution of the contract. The term "significant change" shall be construed to apply to Lump Sum items when either changes in other contract work items or alterations in the work result in a significant change in the character of work required to complete "Lump Sum" items of work.
104-05 Suspensions of Work Directed By The Engineer.
In accordance with 23 CFR 635.109(a)(2): If the performance of all or any portion of the work is suspended or delayed by the Engineer in writing for an unreasonable period of time (not originally anticipated, not customary, or not inherent to the construction industry) and the Contractor believes that it is due additional compensation and/or contract time is due as a result of such suspension or delay, the Contractor shall submit to the Engineer in writing a request for adjustment within 7 calendar days of receipt of the notice to resume work. The request shall set forth the reasons and support for such adjustment. Upon receipt, the Engineer will evaluate the Contractor's request. If the Engineer agrees that the cost and/or time required for the performance of the contract has increased as a result of such suspension and the suspension was caused by circumstances beyond the control of and not the fault of the Contractor, its Suppliers or subcontractors at any approved tier, and not caused by weather, the Engineer will make an adjustment (excluding profit) and modify the contract in writing accordingly. The Contractor will be notified of the Engineer’s determination whether or not an adjustment to the contract is warranted. No contract adjustment will be allowed under this clause to the extent that performance would have been suspended or delayed by any other cause, or for which an adjustment is provided or excluded under any other term or condition of this contract. No contract adjustment will be allowed unless the Contractor has provided the required written request for adjustment within the time prescribed. The Department will administer the above Federal regulations as follows: During the progress of the work, the Engineer may direct the Contractor in writing to suspend work due to circumstances beyond the Contractor's control. If the performance of all or any portion of the work is suspended or delayed by the Engineer for an unreasonable period of time (not originally anticipated, not customary, or not inherent to the construction industry) and the Contractor believes that it is due additional compensation and/or additional time to perform the work as a result of such suspension or delay, the Contractor shall keep daily records of all labor, material and equipment idled or used in connection with such work and the cost thereof in accordance with the recordkeeping provisions of §104--06 Notice and Recordkeeping. The Contractor shall submit a request for contract adjustment within seven (7) calendar days of receipt of the notice from the Engineer to resume work. This request shall set forth the reasons and support for such adjustment. Upon receipt, the Engineer will evaluate the Contractor's request for contract adjustment, and if it is determined that the cost and/or time required for the performance of the contract has increased as a result of a suspension of work directed by the Engineer and the suspension was caused by circumstances beyond the control of and not the fault of the Contractor, its Subcontractors, Manufacturers, Fabricators or Material Suppliers and not caused by weather, an adjustment, excluding profits, will be made to the contract. The Engineer will notify the Contractor of the determination whether or not an adjustment to the contract is warranted. No contract adjustment will be made to the extent that performance would have been suspended or delayed by any other cause, or for which an adjustment is provided for or excluded under any other term or condition of this contract. No contract adjustment will
104-06 Notice and Recordkeeping.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1 be allowed unless the Contractor has provided the required written notice, or written notice was provided to the Contractor by the State. Compensation for increased costs of the work resulting from a Suspension of Work Directed by the Engineer will be made in accordance with §109-05 Extra Work and Time Related Compensation. Compensation for time related costs, if any, will be made in accordance with §109-05D. Time Related Compensation.
104-06 Notice and Recordkeeping.
The Contractor shall provide the Engineer written notice of its contentions regarding Differing Site Conditions, Significant Changes in the Character of Work, Suspensions of Work Directed by the Engineer, disputed work, time related disputes or any other dispute. The notification and recordkeeping provisions in this Contract shall be strictly complied with for disputes of any nature and are a condition precedent to any recovery. Timely notice and recordkeeping affords the Department the opportunity to initiate measures that will mitigate damages to all parties and/or to agree to terms and conditions for timely payment for any eligible added costs.
A.Written Notice Requirements.
1.Differing Site Conditions. The Contractor shall provide written notice of its contentions to the Engineer, or the Engineer will provide written notice of the Department’s contentions to the Contractor, within 15 calendar days after the appropriate party knew or should have known of any dispute regarding Differing Site Conditions.
2.Significant Changes in the Character of Work. The Contractor shall provide written notice of its contentions to the Engineer, or the Engineer will provide written notice of the Department’s contentions to the Contractor, within 15 calendar days after the appropriate party knew or should have known of any dispute regarding Significant Changes in the Character of Work.
3.Suspensions of Work Directed By The Engineer. The Contractor shall provide written notice of its contentions to the Engineer within 7 calendar days of receipt of a notice to resume work.
4.Disputed Work. The Contractor shall provide written notice of its contentions to the Engineer within 15 calendar days of receipt of a direction to complete work that the Contractor believes is not contract work, any direction of the Engineer that the Contractor believes exceeds the requirements of the provisions of the contract.
5.Time Related Compensation. The Contractor shall provide written notice of its contentions to the Engineer within 15 calendar days of the occurrence of any event which affects the scheduled time of performance, if the Contractor believes that it is or will be entitled to additional compensation for time related damages, whether due to delay, extra work, disputed work, breach of contract or other causes. After submitting the required notice, the Contractor shall follow the dispute process set forth in §105-14 , Disputed Work and Dispute Resolution.
B.Recordkeeping Requirements. If an agreement on an adjusted price has not been reached before the work begins, the Contractor shall keep and submit records for each operation and location sufficient to support any additional costs, in accordance with §109-05C. Force Account Report.
104-07 Site Housekeeping.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1
1.Differing Site Conditions. If an agreement on an adjusted price has not been reached before the work begins, the Contractor shall keep and submit daily records to document all labor, material and equipment used for disputed work in accordance with §109-05C.1. Daily Summary.
2.Significant Changes in the Character of Work. If an agreement on an adjusted price has not been reached before the work begins, the Contractor shall keep and submit daily records to document all labor, material and equipment used for disputed work in accordance with §109- 05C.1. Daily Summary.
3.Suspensions of Work Directed By The Engineer. The Contractor shall keep and submit daily records to document all labor, material and equipment used in accordance with §109-05C.1. Daily Summary, beginning upon receipt of a notice of Suspension of Work from the Department.
4.Disputed Work. During the progress of any disputed work for which an agreement on an adjusted price has not been reached, the Contractor shall keep and submit daily records of all labor, material and equipment used for disputed work in accordance with §109-05C.1. Daily Summary.
5.Time Related Compensation. If the Contractor is claiming time related compensation, the Contractor shall keep and submit daily records of all labor, material and equipment for each operation and location affected by the delay in accordance with §109-05C.1. Daily Summary. Other records shall, as far as practicable, be sufficient to support any costs claimed under §109- 05D.1. Time Related Compensation. For the duration of the time related compensation period, the Contractor shall prepare and submit weekly reports to the Engineer setting forth the following:
a.Potential effect on the Contractor’s schedule.
b.Identification of all operations that have been, are, or may be delayed.
c.Explanation of how the Department’s acts or omissions are affecting or delaying operations.
C.Failure to Comply. Failure of the Contractor to provide such written notice in a timely fashion will be grounds for denial of the dispute and the Department does not have to show prejudice to its interest before such denial is made. In the event the Contractor fails to provide the required written notice within the required time limits, or fails to maintain and submit the records specified above, any claim for compensation shall be deemed waived, notwithstanding the fact that the Department may have had actual notice of the facts and circumstances comprising such dispute and is not prejudiced by such failure of notice or recordkeeping.
104-07 Site Housekeeping.
The contract site shall be cleaned up at the close of each work day, and be left in an orderly condition. Waste and debris shall be removed from the work site and surrounding areas cleaned of debris or waste generated from the work site. Containers shall be provided for the collection and separation of waste, and garbage and other waste shall be disposed of at frequent and regular intervals. Any salvaged material not specified to be disposed of otherwise, shall become the property of the Contractor and shall be removed from the site.
104-08 Maintaining Traffic.
The Contractor shall maintain and protect traffic in accordance with the requirements of the MUTCD and the contract documents.
104-09 Contractor’S Retention of Records.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1
A.Closing of Highway. The legal closing of a highway to public travel in the manner provided by Section 104 of the Highway Law will be done by the Commissioner or by the County Superintendent of Highways when requested by the Department. Not all highways are legally closed during highway construction operations. When a highway is legally closed and public travel diverted therefrom, adequate warning, danger and direction signs and lights shall be erected and maintained by the Contractor to properly protect and direct public travel by day and by night. Suitable barricades shall also be erected at the ends of such closed sections of highways and large signs displayed indicating such closure. All signs, barricades and other traffic control devices used shall conform to the MUTCD.
B.Use of Restricted Highway. With the award of a contract the Commissioner will, unless otherwise specified, designate the section of highway under contract a "Restricted Highway" pursuant to Section 104A of the Highway Law and Section 1625 of the Vehicle and Traffic Law. Pursuant to these legal sections, the Commissioner has the authority to (1) establish maximum and minimum speed limits at which vehicles may proceed along any such Restricted Highway; (2) establish weight and dimension limits of vehicles; (3) regulate the use of such Restricted Highway by pedestrians, equestrians, and animals; (4) regulate parking, standing, stopping, and backing of vehicles; (5) control persons and equipment engaged in work on such highway. When used on such Restricted Highways, all traffic control devices shall be considered as official traffic control devices and shall conform to the MUTCD. The Commissioner will therefore cause signs indicating such restrictions to be placed at such points as deemed necessary for the safe use of the Restricted Highway. The traveling public and Contractor must observe and comply with these restrictions, as posted, except that the Contractor may be allowed greater latitude with respect to size and weight of construction equipment. Construction Equipment or vehicles shall be operated on the Restricted Highway as provided under §105-12 Load Restrictions.
104-09 Contractor’S Retention of Records.
The Contractor shall retain all records for six years following the date of approval of the contract final agreement by the Office of the State Comptroller. Required records shall include all payrolls, accounts, details that comprise its total cost pursuant to any of the provisions under §104-02 Changes, Contingencies, Extra Work and Deductions, records maintained pursuant to §105-14 Disputed Work and Dispute Resolution and §109-05 Extra Work and Time Related Compensation, papers, maps, photographs, or other documentary materials, regardless of physical form or characteristics, made or received by the Contractor in connection with the contract. Legible copies, including microfilm copies, are acceptable, provided they are so arranged, identified, and indexed that any individual document, or component of the records, can be located with reasonable facility. The Contractor shall make such records available to the Department for review and audit upon request, if deemed necessary by the Department. In case all or a part of such records are not made so available, the Contractor understands and agrees that any items not supported by reason of such unavailability of the records shall be disallowed, or if payment therefore has already been made, the Contractor shall, upon demand in writing by the Commissioner, refund to the Department the amount so disallowed.
104-10 Value Engineering Change Proposal (Vecp).
A.Purpose and Scope. The purpose of a Value Engineering Change Proposal (VECP) is to encourage the use of the Contractor's ingenuity and experience in arriving at alternative construction designs, methods, and procedures that result in a lower direct cost to accomplish a contract requirement. It is the intent of this provision to share with the Contractor any substantial direct cost savings which may be generated as a result of a VECP offered by the Contractor and approved by the Department. A VECP is a Contractor-initiated change request. If approved, the changes and
104-10 Value Engineering Change Proposal (Vecp).
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1 payments will be authorized through the change order process. Before a VECP can be implemented, it must pass through three approval processes: conceptual approval, formal approval, and change order approval. To expedite the review process, the Contractor has the option of jointly submitting the conceptual VECP and the formal VECP for simultaneous review. If the VECP receives formal approval, as part of the change order process the Contractor may request that the Department consider granting advanced authorization of extra work. The VECP should produce direct cost savings to the Department and the public without, in the sole judgment of the Department, impairing essential functions and characteristics of the facility including but not limited to service life, economy of operation, ease of maintenance, desired appearance, and safety. The Contractor, when developing a VECP, shall address the designer's objectives, environmental permit requirements and regulations, commitments made to the public to mitigate the impact of construction, and other such concerns. The "direct cost savings" is the difference of the "construction savings" generated by implementing the VECP minus reasonable "design costs" associated with the VECP. The "construction savings" is the difference between what it would cost to complete all the contract work without implementing the VECP and the cost to complete all the contract work if the VECP is implemented. This includes any changes to quantities or unit prices across the entire contract if affected by the VECP. If the estimated cost to complete all the contract work without implementing the VECP differs from the contract bid amount for the work, supporting documentation to explain the variance shall be provided. Reimbursable "design costs" are specific to engineering changes (examples: design changes, plan sheet revisions, and quantity estimating). Expenditures toward proposal preparation (examples: scheduling, documentation, cost analysis, material research, etc.) are not reimbursable. Indirect cost savings (time, user delay, railroad force account costs, inspection costs, etc.), although considered when reviewing the merits of the VECP, are not reimbursed. A VECP may alter the progress schedule and milestone dates, which in turn could affect time-related contract provisions. Proposals that reduce the time to complete the contract, and only result in indirect cost savings, may be accepted based on the mutual benefit derived. These proposals will be evaluated in accordance with §104-10F. Time Savings.
B.Submittal of Conceptual VECP. A conceptual proposal is required for all VECP. It should outline the general technical concepts associated with the VECP and the estimated direct cost savings which may result. Upon review by the Department, one of the following actions will be taken: • Conceptual approval and a request for the Contractor to submit a formal VECP. • Request for additional information • Rejection of the VECP The Contractor shall submit an original and three copies of the conceptual VECP to the Engineer along with any additional information requested by the Department. The conceptual VECP should contain sufficient information for concept review and evaluation, including the following as a minimum:
1.Conceptual VECP Summary. A summary of the VECP identified as "Conceptual VECP" which includes:
a.Short title (description) of the VECP (10 or less words).
b.Contract information (Contract D number, PIN, contract description, contractor, federal aid number if applicable, letting date, Region, and county).
c.Original total contract bid price.
d.Estimated contract cost. This may be different from the original total contract bid price due to addition or alteration of work (i.e., the estimated cost to complete the work if the VECP is not implemented). The Engineer must concur with the estimated contract cost.
104-10 Value Engineering Change Proposal (Vecp).
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1
e.Estimated contract cost if the VECP is implemented (excludes VECP design cost and any VECP construction savings reimbursement).
f.Estimated VECP construction savings (Item d. minus Item e.).
g.Estimated VECP design cost (Not all VECP will have design cost).
h.Estimated direct cost savings due to the VECP (Item f. minus Item g.).
i.Fifty percent of the estimated direct cost savings (This should equal the overall savings to the State).
j.Estimated total adjusted contract cost if VECP is implemented (includes VECP savings and design cost reimbursements).
k.The type of VECP (either "Cost Savings" or "Time Savings Only").
l.Date by which the authorization of extra work (change order) must be granted. (If time sensitive, requests for advance authorization of extra work per §104-02 Changes, Contingencies, Extra Work and Deductions will be considered.)
m.Identification of any new or existing contract pay items requiring agreed prices.
n.Identification of any materials with long lead times (to order, fabricate, deliver, etc.) that may require purchase authorization from the Engineer prior to formal approval/disapproval of the VECP, or may delay the implementation of the VECP. Identify any date by which authorization to order these materials must be received without affecting the progress schedule.
o.A basic description of the VECP and associated benefits and impacts (progress schedule, environmental, maintenance & protection of traffic, quality, etc.).
2.Conceptual Plans. Conceptual plan drawings.
3.Design Criteria. If the VECP proposes design changes, supporting technical design criteria shall be provided.
4.Schedules.
a.The most recently approved baseline progress schedule.
b.The most recently approved construction progress schedule update.
c.A draft, proposed, revised progress schedule illustrating the impacts of the VECP. The schedule shall identify: (1) the time required to develop a formal VECP; (2) the time required to order, fabricate, and deliver materials with long lead times; (3) the time required to obtain any environmental permits or other required approvals; (4) any anticipated progress schedule changes (contract completion date, milestone dates, task durations, etc.); (5) the latest date by which authorization of the VECP extra work must be granted without affecting the schedule. The draft progress schedule should provide a sufficient level of detail upon which the reasonableness of the VECP can be determined. Should the Department find that insufficient time is available for review and processing, it may reject the VECP solely on such basis. If the Department fails to respond to the VECP by the date specified, the Contractor will consider the VECP rejected and will have no basis for a dispute against the State as a result thereof. The Department may accept a VECP that requires a contract time extension if sufficient cost savings are anticipated.
5.Estimate of costs. The conceptual VECP estimate of costs should include sufficient information to determine the reasonableness of the VECP. If the proposal requires the ordering of materials, the Contractor needs to provide documentation from the suppliers to justify the cost of the materials.
6.Previous Use or Testing. A description of any previous use or testing of the VECP on another Department contract or elsewhere, the conditions and results therewith. The Contractor shall
104-10 Value Engineering Change Proposal (Vecp).
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1 submit the technical aspects of the VECP in sufficient detail so the Department can determine the suitability of the VECP from an engineering perspective. If the technology is new, test information shall be provided to the Department's satisfaction. If a similar VECP was previously submitted on another Department contract, indicate the date, contract number, and the action taken by the Department.
C.Submittal of Formal VECP. Upon notification by the Engineer that the conceptual VECP is approved and a formal VECP is necessary, the Contractor will submit to the Engineer an original and three copies of the following materials and information for each formal VECP along with any additional information requested by the Department:
1.Formal VECP Summary. A summary of the VECP, identified as "Formal VECP", which follows the conceptual VECP summary format and information requirements (Information and estimates may have changed since the conceptual VECP).
2.Complete Plans and Specifications. Complete plans and specifications, which meet Department standards, showing the proposed changes relative to the original contract features and requirements. The Department requires a Professional Engineer's stamp and signature on any significant engineering changes.
3.Field Change Sheets. Field change sheets and/or shop drawings. If the VECP results in a field change, and those items affected require the submission of shop drawings, the shop drawings will not be accepted unless accompanied by corresponding field change sheets. Documents shall be developed in compliance with Department requirements. The Department requires a Professional Engineer's stamp and signature on any significant engineering changes.
4.Schedules. The same information requirements as for the conceptual VECP apply, except that a formal, proposed, revised progress schedule in accordance with §108-01 Progress Schedule is required.
5.Cost Analysis. A complete cost analysis indicating quantity changes, unit price changes, and new contract pay items. As a minimum it shall include:
a.An itemized comparison of estimated costs to complete all the contract work with implementing the VECP and without implementing the VECP.
b.Proposed unit prices for any new contract pay items introduced by the VECP and appropriate documentation for review under the Agreed Price process.
c.Proposed unit prices for any existing contract pay items for which agreed prices are sought due to a significant change in character of work (quantity or complexity), see §104-04 Significant Changes in the Character of Work. Appropriate documentation for review under the Agreed Price process is required.
d.The cost of any items with long lead times (e.g., materials ordered) required after conceptual approval and before final approval shall be identified.
6.Differences. Full descriptions of the difference between the existing contract requirements and the proposed changes, and the comparative advantages and disadvantages of each, including considerations of service life, economy of operation, ease of maintenance, traffic flow, safety, desired appearance, progress schedule, and any increase/reduction of environmental impacts.
7.Technical Presentation. The Contractor may be required to conduct a technical presentation as part of the review process.
104-10 Value Engineering Change Proposal (Vecp).
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1
8.Cost Documentation. All formal VECP costs submitted shall be supported by documentation as required by §109-05 Extra Work and Time Related Compensation. The Department will not formally approve any VECP until all required VECP documentation has been submitted and is acceptable to the Department. A formal VECP may be submitted concurrently with the conceptual VECP, however, the Contractor assumes any costs associated with the formal VECP at its own risk. Reimbursable costs will be considered only if the conceptual VECP is approved. Clearly identify whether a VECP is being submitted for conceptual approval, formal approval, or both. Once a formal VECP has been approved, the VECP will then be submitted as an order-on- contract and processed accordingly. If time sensitive, requests for advanced authorization of extra work per §104-02 Changes, Contingencies, Extra Work and Deductions will be considered, but only after formal VECP approval. The Contractor is responsible for submitting all appropriate information to the Engineer in a timely manner.
D.Conditions. The Contractor shall not base any bid prices on the anticipated approval of a VECP and should recognize that any VECP may be rejected. The following terms and conditions apply to VECP:
1.A VECP will only be considered after the contract is awarded.
2.A VECP applies only to the contract for which it was submitted. One VECP shall not be submitted for multiple contracts. Approval or disapproval of a VECP on one contract does not guarantee approval or disapproval on another contract.
3.The VECP becomes the property of the Department and will contain no restrictions imposed by the Contractor on its use or disclosure. The Department will have the right to use, duplicate, and disclose in whole or in part any data necessary for the utilization of the VECP. The Department retains the right to utilize any accepted or rejected VECP or part thereof on any other project without any obligation to the Contractor.
4.Approval of the conceptual VECP in no way obligates the Department to approve the formal VECP. The Contractor will have no claim against the Department as a result of the rejection of any such conceptual or formal VECP except as otherwise provided in §104-10E.4.
5.When the Department is in the process of making design and specification revisions and a Contractor submits a VECP with similar revisions, the Department will reject the VECP and proceed without any obligation to the Contractor.
6.A VECP will be considered only if reasonable, cost-effective options are not provided in the contract documents.
7.The Department will be the sole judge as to whether a VECP qualifies for consideration and evaluation. It may reject any VECP that requires excessive time or costs for design review, evaluation, and/or investigations. The Department will be the sole judge in determining if the proposed VECP will result in a sufficient amount of direct or indirect cost savings to offset the Department's effort to review the VECP.
8.A VECP shall be consistent with the Department's design policies and basic design criteria, provide the same service life or more, facilitate economy of operations, ease of maintenance, and achieve the desired appearance and safety.
104-10 Value Engineering Change Proposal (Vecp).
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1
9.A VECP will not be allowed that changes the type and/or thickness of the pavement structure and material, or solely substitutes one material for another. Examples of materials that may fall into this inappropriate substitution situation are drainage pipes, bridge coatings, pavement markings, etc. The simple elimination of work does not necessarily constitute a VECP, however, a VECP which introduces a simple material substitution, or elimination of work, may be considered if it is accompanied by a design change or change in the construction method. A simple material substitution which introduces a new material to the Department may be also considered.
10.The VECP will not be experimental in nature, but will have been proven to the Department's satisfaction under similar or acceptable conditions on another Department contract or at another location acceptable to the Department.
11.If the Department requires any additional information to evaluate the VECP, this information shall be provided in a timely manner. Unless otherwise mutually agreed upon, failure to do so will result in the rejection of the VECP. An incomplete or a poor quality VECP which hinders the Department's review may also result in the rejection of the VECP.
12.The Contractor shall encourage submissions of VECP from an approved subcontractor, provided that reimbursement is made by the Department to the Contractor and that the terms of payment to the Subcontractor are satisfactorily negotiated and accepted before the VECP is submitted to the Department. Subcontractors may not submit a VECP except through the Contractor.
13.A VECP approved by the Department is considered to be a revision to the contract documents and progress schedule. Consequently, if unsatisfactory results are being achieved or adjustments are necessary during implementation of a VECP, the rejection of work, removal of work, addition of work, or revision of work shall be evaluated in accordance with the Standard Specifications.
14.All contract pay items and quantities referenced in the VECP construction savings analysis shall be Department-approved contract provisions. Any extra work, inclusion of an omission of work, or other field changes shall be authorized prior to use in VECP savings calculations.
15.No work related to a VECP will be performed under force account. Agreed prices must be reached for any contract pay items related to the VECP before the VECP is approved. If the Contractor is deemed to have taken reasonable diligence in determining the work involved but if during the construction of VECP work a significant change in the character of work occurs, the Department may consider new agreed prices.
16.The Contractor will receive written notification from the Department when the VECP is approved. Material orders placed prior to VECP approval shall be submitted at the Contractor's risk.
17.Once a VECP has been approved, the VECP will then be submitted as a change order and processed accordingly. If time sensitive, requests for advanced authorization of extra work in accordance with §104-02 Changes, Contingencies, Extra Work and Deductions will be considered, but only after formal VECP approval. The Contractor is responsible for submitting all appropriate information to the Engineer in a timely manner.
104-10 Value Engineering Change Proposal (Vecp).
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1
E.Payment. If the VECP is accepted by the Department, the changes and payments will be authorized through a change order. Reimbursement to the Contractor will be made as follows:
1.A VECP introduces two individual payments, one for VECP construction savings, and one for VECP design cost. The contract pay item changes along with the VECP construction savings and design cost reimbursements to the Contractor should be submitted in one change order.
2.The Department will pay to the Contractor 50% of the VECP construction savings. The VECP construction savings is the difference between the actual contract costs with the VECP implemented and a detailed estimate of what it would have cost to complete the contract work without implementing the VECP, based on final construction. If final construction savings differs from the amount estimated in the formal VECP, an adjustment may be made and included in another change order. The VECP construction savings reimbursement to the Contractor will not be paid until the VECP work has been completed (progress payments on the completed VECP work are allowed). The Department may withhold all or a portion of the payment for the Contractor's share of the VECP construction savings until the final contract accounting. In the event that at final contract accountings the implementation of VECP actually results in no construction savings, then the Contractor will receive no VECP construction savings payment. The Department is the sole judge in deciding the construction savings due to the implementation of the VECP. The Department will withhold VECP construction savings reimbursement until the Contractor supplies all required VECP documents.
3.If a design cost is submitted for a VECP, the Department will pay to the Contractor a 50% share of the Contractor's reasonable cost for design incurred after conceptual VECP approval. If the design cost submitted for Department approval is deemed unreasonable, only 50% of the design cost deemed to be reasonable will be reimbursed. Not every VECP will have a design cost associated with it. The Department is the sole judge in determining the reasonableness of the design cost. Reimbursable design costs are for engineering changes. Preparation and submission of the proposal (e.g., savings analysis, progress scheduling, etc.) are not considered design costs and are not reimbursable. Reimbursable VECP design may be performed by a consultant or directly by the Contractor. The Contractor shall not be charged for, nor can the Contractor claim, any VECP design performed by the Department. The design cost shall be submitted as a lump sum item with supporting documentation. The supporting documentation shall include itemized direct salary costs (rates & hours), overhead (only for consultant design), and direct non-salary costs. Payment for direct salary costs and overhead will be limited to the current Department reimbursement policies for Consultant Engineering agreements. For consultant design, reasonable overhead on the direct technical salaries will be reimbursed. For Contractor design, overhead is not reimbursable for direct salary costs. Overhead shall not be charged for direct non-salary costs whether incurred by the Contractor or by a consultant. Payment for direct non-salary costs will be made at actual cost paid. Although for certain direct non-salary costs (lodging, meals, mileage) there are prevailing maximum rates established by the State Comptroller which the reimbursement rates shall not exceed. The subtotal of direct salary costs, overhead, and direct non-salary costs shall be considered a "professional service fee" and reimbursed in accordance with §109-05B.3. Service Charges. A maximum 5% for the Contractor's contract supervision and overhead is allowed, in addition to any overhead submitted for consultant direct salary costs. All design costs are subject to audit. Additional supporting documentation (receipts, time sheets, etc.) shall be supplied in a timely manner if requested by the Department. In the case of a formal VECP being jointly submitted with the conceptual VECP, the Department will pay to the Contractor a 50% share of the Contractor's reasonable cost for design
104-10 Value Engineering Change Proposal (Vecp).
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1 specific to the development of the formal VECP (nothing toward the conceptual VECP) if the conceptual VECP is approved.
4.In the event of the Department's conceptual approval of a direct cost savings VECP, and the Contractor is directed to proceed with the VECP implementation steps and final approval is not reached, regardless of whether due to the actions of the Department or the Contractor, 50% of the total reasonable design costs will still be reimbursed to the Contractor. If "advance" written approval was given to proceed with the work, procure materials, and begin fabrication; and rejection occurs, the work and fabrication costs will be reimbursed in accordance with §109-05 Extra Work and Time Related Compensation. Only those materials not incorporated and unique to the contract (i.e., not restockable) will be evaluated for payment.
5.There will be no reimbursement for any costs incurred for the conceptual VECP or prior preparations.
6.If more than one VECP is approved for a contract, construction savings and design costs shall be tracked separately for each VECP.
7.When multiple submittals of information for a VECP are required to satisfy the information needs of the conceptual or formal VECP procedure, and contract timing will be negatively impacted before review and subsequent approval can be given by the Department, then the VECP may be rejected. In such cases, there will be no claim by the Contractor for design costs or loss of anticipated savings and/or profits.
8.VECP payments only involve direct savings or costs. Indirect savings or costs (time, user delay, contract delay, etc.) are not included in VECP payment calculations. The calculations of VECP payments are independent from the payments or penalties for contract time related issues. If a VECP revises the progress schedule, the contract milestones upon which time related provisions are based may be affected. Time savings resulting from a VECP may be realized in a time related contract provision. Conversely, if a VECP negatively affects a progress schedule, time related contract provisions may be negatively affected.
F.Time Savings. The Department will consider proposals that result in time savings and at the same time may increase the cost of the contract. The Department will be the sole judge as to whether the benefits of completing the contract or a phase before the scheduled completion date or milestone offsets any increase in cost. These submittals, while not constituting a Value Engineering Change Proposal, will be reviewed using the VECP approval process. In addition to information required in §104-10 B. Submittal of Conceptual VECP and §104-10 C. Submittal of Formal VECP, the Contractor shall provide the Department the anticipated amount of time to be saved and sufficient information to enable the Department to calculate and evaluate the cost benefit of the savings in user delay. Time savings generated by the VECP may be claimed under an existing time related contract provision. If the time savings VECP increases the cost of the contract, the additional cost shall not be subtracted from any time related contract provision payments.
G.Significant Changes. The description of what will be considered a "significant change" associated with a VECP are identified in §104-04 Significant Changes in the Character of Work. Once a VECP is approved, any future significant change is no longer based on the original contract bid conditions (quantity, nature or kind of a material involved), but rather on the conditions as adjusted by the VECP (adjusted quantities, anticipated site conditions and materials, etc.). Any item that was identified as a Major Item in the original contract documents is still considered a Major Item, regardless of the change in quantity or price due to the VECP.
105-01 Engineer'S Authority.
NEW YORK STATE DEPARTMENT OF TRANSPORTATION Section 100 STANDARD SPECIFICATIONS (USC) January 1, 2026 Volume 1 All significant changes shall be agreed upon prior to formal VECP approval. If after formal VECP approval, an unforeseen change in the VECP work causes a significant change in the character of work, quantities and prices may be adjusted and the VECP savings shall be adjusted accordingly.
Referenced in this section
Scope of Work in other states
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Source: Standard Specifications (US Customary Units), 2026 (Jan) Edition. Pages 87–102 of 1,489. View official source ↗