SECTION 5
CONTROL OF WORK
29
hereunder; proposed changes in basic design of a bridge or of a pavement type will
not be considered as an acceptable cost reduction proposal; and the Department will
not be liable to the Contractor for failure to accept or act upon any cost reduction
proposal submitted pursuant to this section nor for any delays to the work
attributable to any cost reduction proposal. If a cost reduction proposal is similar to
a change in the plans or specifications, under consideration by the Department for
the project, at the time the proposal is submitted or if the proposal is based upon or
similar to Standard Specifications, standard special provisions or Standard Plans
adopted by the Department after the advertisement for the contract, the Engineer
will not accept the proposal, and the Department reserves the right to make the
changes without compensation to the Contractor under the provisions of this
section.
• The Contractor shall continue to perform the work in accordance with the
requirements of the contract until an executed change order, incorporating the cost
reduction proposal has been issued. If an executed change order has not been
issued by the date upon which the Contractor's cost reduction proposal specifies
that a decision thereon should be made, or such other date as the Contractor may
subsequently have specified in writing, the cost reduction proposal shall be deemed
rejected.
• The Engineer shall be the sole judge of the acceptability of a cost reduction
proposal and of the estimated net savings in construction costs from the adoption of
all or any part of the proposal. In determining the estimated net savings, the right is
reserved to disregard the contract bid prices if in the judgment of the Engineer,
those prices do not represent a fair measure of the value of work to be performed or
to be deleted.
• The Department reserves the right where it deems such action appropriate, to
require the Contractor to share in the Department's costs of investigating a cost
reduction proposal submitted by the Contractor as a condition of considering the
proposal. Where this condition is imposed, the Contractor shall indicate acceptance
thereof in writing, and that acceptance shall constitute full authority for the
Department to deduct amounts payable to the Department from any moneys due or
that may become due to the Contractor under the contract.
• If the Contractor's cost reduction proposal is accepted in whole or in part the
acceptance will be by a contract change order, which shall specifically state that it
is executed pursuant to this Section 5-1.14. The change order shall incorporate the
changes in the plans and specifications which are necessary to permit the cost
reduction proposal or that part of it as has been accepted to be put into effect, and
shall include any conditions upon which the Department's approval thereof is based
if the approval of the Department is conditional. The change order shall also set
forth the estimated net savings in construction costs attributable to the cost
reduction proposal effectuated by the change order, and shall further provide that
the Contractor be paid 50 percent of that estimated net savings amount. The
Contractor's cost of preparing the cost reduction incentive proposal and the
Department's costs of investigating a cost reduction incentive proposal, including
any portion thereof paid by the Contractor, shall be excluded from consideration in
determining the estimated net savings in construction costs.
• Acceptance of the cost reduction proposal and performance of the work
thereunder shall not extend the time of completion of the contract unless



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