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I <br /> 1 1-04.4(2)B VECP Savings <br /> 2 1-04.4(2)61 Proposal Savings <br /> 3 The incentive payment to the Contractor shall be one-half of the net savings of <br /> 4 the proposal calculated as follows: <br /> 5 <br /> 6 1. (gross cost of deleted work) — (gross cost of added work) = (gross 1 <br /> 7 savings) <br /> 8 <br /> 9 2. (gross savings) — (Contractor's engineering costs) — (Contracting <br /> 10 Agency's costs) = (net savings) <br /> 11 <br /> 12 3. (net savings) / 2 = (incentive pay) <br /> 13 <br /> 14 The Contracting Agency's costs shall be the actual consultant costs billed to <br /> 15 the Contracting Agency and in-house costs.. Costs for personnel assigned to 1 <br /> 16 the Engineer's office shall not be included. <br /> 17 <br /> 18 1-04.4(2)62 Added Costs to Achieve Time Savings <br /> 19 The cost to achieve the time savings shall be calculated as follows: <br /> 20 <br /> 21 1. (cost of added work) + (Contractor's engineering costs - Contracting <br /> 22 Agency's engineering costs) = (cost to achieve time savings) I <br /> 23 <br /> 24 2. (cost to achieve time savings) /2 = (Contracting Agency's share of <br /> 25 added cost) <br /> 26 <br /> 27 If the timesaving proposal also involves deleting work and, as a result, creates <br /> 28 a savings for the Contracting Agency, then the Contractor shall also receive <br /> 29 one-half of the savings realized through the deletion. <br /> 30 <br /> 31 1-04.4(2)C VECP Approval <br /> 32 1-04.4(2)C1 Concept Approval <br /> 33 The Contractor shall submit a written proposal to the Engineer for <br /> 34 consideration. The proposal shall contain the following information: <br /> 35 <br /> 36 1. An explanation outlining the benefit provided by the change(s). <br /> 37 <br /> 38 2. A narrative description of the proposed change(s). If applicable, the111 <br /> 39 discussion shall include a demonstration of functional equivalency or <br /> 40 a description of how the proposal meets the original contract scope of <br /> 41 work. <br /> 42 <br /> 43 3. A cost discussion estimating any net savings. Savings estimates will <br /> 44 generally follow the outline below under the section, "Proposal <br /> 45 Savings". <br /> 46 <br /> 47 4. A statement providing the Contracting Agency with the right to use all <br /> 48 or any part of the proposal on future projects without future obligation <br /> 49 or compensation. <br /> 50 <br /> 51 5. A statement acknowledging and agreeing that the Engineer's I <br /> 52 decision to accept or reject all or part of the proposal is final and not <br /> 1 <br /> AMENDMENTS TO THE 2014 STANDARD SPECIFICATIONS BOOK <br /> Revised: 8/3/15 <br />