104Scope of Work

Scope of Work

104.1Intent of Contract

1 The intent of the contract is to state the roles and obligations of the department and the contractor.

104.1.1 Voluntary Partnering

1 The department seeks to encourage a cooperative partnership with the contractor and its principal subcontractors and suppliers. This partnership should draw on the strengths of each organization to identify and achieve mutual goals. Its objectives are effective and efficient contract performance.

2 Partnerships are voluntary, with each participant considered the equal of the other. Participants will agree to and share equally the costs associated with partnering meetings.

3 Before the preconstruction conference (specified in Subsection 108.3.3, Preconstruction Conference), the contractor’s management personnel and the engineer should plan and hold a workshop to initiate the partnership and agree on a charter. The engineer, the contractor’s on site project manager, and key project personnel from all parties, including subcontractors and suppliers, are encouraged to attend. Follow-up workshops may be held, as agreed to by the contractor and the department.

4 The establishment of a partnership charter does not change the legal relationship of the parties or relieve either from any terms of the contract.

104.2Contract Amendments

104.2.1 General

1 The department reserves the right to amend the contract at any time. Amendments do not invalidate the contract or release the surety, and the contractor agrees to perform the work as amended. The department will implement contract amendments by issuing a “Contract Amendment” (Form E-61). Do not begin any amended work until the engineer provides authorization or the “Contract Amendment” is signed.

2 The department will consider requests from the contractor for an amendment to the contract amount or time only when the engineer is notified in accordance with Subsection

105.15, Contract Amendment and Dispute Resolution

3 The department will pay for amendments at contract unit bid prices unless the contractor’s cost of production or the character of the work is materially changed, in which case the department may adjust the contract as specified in Subsection109.4, Extra and

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Force Account Work. The department will not pay for lost or anticipated profits resulting from an amendment to the contract.

4 The department will process contract amendments/change orders through the Construction Management System (CMS) using a secure electronic approval process.

104.2.2 Differing Site Conditions

1 Before the conditions are disturbed or the affected work performed or continued, notify the engineer in accordance with Subsection 105.15 , Contract Amendment and Dispute Resolution, if either of the following are encountered:

or

and generally recognized as inherent in the work provided for in the contract.

2 The department will not grant or consider contract amendments based on differing site conditions if it does not receive timely written notice in accordance with Subsection

, Contract Amendment and Dispute Resolution

104.2.3 Engineer-Ordered Suspensions

1 The engineer may suspend all or part of the work. If a contract amendment appears warranted because of a suspension that is unreasonably long (not anticipated, customary, or inherent to the construction industry), notify the engineer in accordance with Subsection 105.15, Contract Amendment and Dispute Resolution.

2 The department will not grant or consider contract amendments based on an engineer- ordered suspension:

Amendment and Dispute Resolution;

delay due to any other cause, including delays caused by the contractor;

r which an amendment is already addressed by another contract requirement

104.2.4 Significant Changes in the Character of Work

1 The engineer may alter contract quantities, the work, or both as necessary to complete the project. The department will make appropriate amendments to the contract if such alterations significantly change the character of the work.

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2 Before performing significantly changed work, reach agreement with the department concerning the basis for the amendment as specified in Subsection 109.4, Extra and Force Account Work, and Subsection 108.6, Extension to the Contract Completion Date. If the department disagrees as to whether an alteration constitutes a significant change, use the notification procedures specified in Subsection 105.15, Contrac t Amendment and Dispute Resolution.

3 If alterations do not significantly change the character of the work specified in the contract, the department will pay for the altered work at the contract unit price.

4 Either of the following constitutes a “significant change”:

that specified in the contract or

pay item is changed by more than 25 percent, in which case the department will adjust unit prices in accordance with the following:

2.1In the case of an increase, adjustment in the unit price applies only to the

portion greater than 125 percent of the original quantity.

2.2In the case of a decrease to less than 75 percent of the original quantity,

adjustment applies only to the actual quantities used. The department will not pay a total for the item that exceeds 75 percent of the original extension.

104.

2.5Extra Work

1 When necessary or desirable to complete the project, the engineer may direct the contractor to perform unforeseen work for which there is no pay item or unit price in the contract. The department will pay for such work in accordance with Subsection 109.4, Extra and Force Account Work, based on an approved “Contract Amendment” (Form E- 61).

104.2.6 Exception

1 The department will not consider any condition at an available source of local materials whether furnished by the department or the contractor , as meeting the requirements of Subsections 104.2.2, Differing Site Conditions, or 104.2.4, Significant Changes in the Character of Work.

104.3Value Engineering Contractor Proposals

104.3.1 General

1 The contractor may submit a written Value Engineering Contractor Proposal (VECP)

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for contract modifications that are likely to benefit the department. The department encourages VECPs for any aspect of a project but reserves the right to reject any submission with or without review. The department will notify the contractor in writing of its decision to accept or reject a VECP in whole or in part. This decision is final and not subject to appeal.

2 VECPs apply only to an executed contract. Do not base bid prices on the anticipated approval of a VECP. If a VECP is rejected, complete the contract as bid and specified.

3 The department will notify the contractor promptly in writing if the response date indicated on a VECP (as specified in Subsection 104.3.4(6), Submitting a VECP) allows insufficient time for review. The department bears no liability for monetary damages or delays based on a failure to respond by the date indicated on the VECP.

4 Approved or rejected, a VECP applies only to the contract referenced. The department retains the right to use, duplicate, or disclose, in whole or in part, any information needed to implement a VECP. The department also retains the right to use in whole or in part any accepted VECP on other contracts without obligation to the contractor.

5 The department bears no liability for costs or delays resulting from the rejection of a VECP, including but not limited to development costs, loss of anticipated profits, increased material, or labor costs.

104.

3.2Preliminary VECP Meeting

1 Meet with the engineer before formally submitting a VECP to discuss the proposed change and its potential benefits.

104.3.3 Conditions

1 The department may reject any VECP that requires excessive time or cost for review. The department will use the following conditions to determine if a VECP qualifies for consideration:

Execution of Contract.

characteristics of a project, including but not limited to service life, economy of operation, maintenance, appearance, and safety.

contractor do not qualify for submission as a VECP.

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department’s design policies and criteria for the contract.

options.

warrant review and processing.

invites and encourages VECPs from subcontractors but will only consider those submitted through the contractor.

104.3.4 Submitting a VECP

1 To submit a VECP, give the engineer two copies of the following:

change and the comparative advantages and disadvantages of each. Where applicable, include effects on service life, economy of operations, maintenance, appearance, and safety.

performance bond, with and without the proposed changes. Break the estimates down by pay item numbers, and indicate quantity increases or decreases and deleted pay items. Use current department pay item names and numbers to identify proposed work not covered by the existing contract. In preparing the estimates, include overhead and profit within each affected pay item.

Include an itemization of details, sheets, design standards, and specifications that would require changes or additions if the VECP were adopted.

would require change if the VECP were adopted. Support design changes with engineered-elements by computations sealed by a professional engineer in the appropriate discipline. Provide a discussion of how these changes can be accomplished, and assess their effect on other contract elements.

be executed to obtain the maximum benefit.

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circumstances and results. If submitted on another department project, indicate the date, project number, and the action taken by the department.

additional information needed by the department. The department will consider the contractor’s failure to do so as cause for rejection.

104.3.5 Payment

1 The department will use a “Contract Amendment” (Form E-61) to incorporate changes resulting from an adopted VECP and to authorize payment. Payment will be determined and made as follows:

items, eliminate pay items, or change pay item unit prices, as agreed.

calculated as the difference between the total contract amount with and without the VECP.