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PAYMENT
<br /> Full compensation for performing corrective work; and related work such as traffic control, temporary delineation, and
<br /> permanent delineation, and to maintain insurance coverage and bonds, shall be considered as included in the contract prices
<br /> paid for the various contract items of work and no separate payment will be made therefor.
<br /> 5-1.019 COST REDUCTION INCENTIVE
<br /> Attention is directed to Section 5-1.14,"Cost Reduction Incentive,"of the Standard Specifications.
<br /> Prior to preparing a written cost reduction proposal,the Contractor shall request a meeting with the Engineer to discuss
<br /> the proposal in concept. Items of discussion will also include permit issues, impact on other projects,impact on the project
<br /> schedule,peer reviews,overall merit of the proposal,and review times required by the Department and other agencies.
<br /> If a cost reduction proposal submitted by the Contractor, and subsequently approved by the Engineer, provides for a
<br /> reduction in contract time, 50 percent of that contract time reduction shall be credited to the State by reducing the contract
<br /> working days, not including plant establishment. Attention is directed to "Beginning of Work, Time of Completion and
<br /> Liquidated Damages" of these special provisions regarding the working days.
<br /> If a cost reduction proposal submitted by the Contractor, and subsequently approved by the Engineer, provides for A
<br /> reduction in traffic congestion or avoids traffic congestion during construction, 60 percent of the estimated net savings in
<br /> construction costs attributable to the cost reduction proposal will be paid to the Contractor. In addition to the requirements in
<br /> Section 5-1.14, "Cost Reduction Incentive,"of the Standard Specifications,the Contractor shall provide detailed comparisons
<br /> of the traffic handling between the existing contract and the proposed change, and estimates of the traffic volumes and
<br /> congestion.
<br /> 5-1.02 LABOR NONDISCRIMINATION
<br /> Attention is directed to the following Notice that is required by Chapter 5 of Division 4 of Title 2, California Code of
<br /> Regulations.
<br /> NOTICE OF REQUIREMENT FOR NONDISCRIMINATION PROGRAM
<br /> (GOV.CODE,SECTION 12990)
<br /> Your attention is called to the "Nondiscrimination Clause", set forth in Section 7-1.O1A(4), "Labor Nondiscrimination," of
<br /> the Standard Specifications, which is applicable to all nonexempt State contracts and subcontracts, and to the "Standard
<br /> California Nondiscrimination Construction Contract Specifications" set forth therein. The specifications are applicable to all
<br /> nonexempt State construction contracts and subcontracts of$5000 or more.
<br /> 5-1.022 PAYMENT OF WITHHELD FUNDS
<br /> Payment of withheld funds shall conform to Section 9-1.065, "Payment of Withheld Funds," of the Standard
<br /> Specifications and these special provisions.
<br /> Funds withheld from progress payments to ensure performance of the contract that are eligible for payment into escrow
<br /> or to an escrow agent pursuant to Section 10263 of the California Public Contract Code do not include funds withheld or
<br /> deducted from payment due to failure of the Contractor to fulfill a contract requirement.
<br /> 5-1.03 INTEREST ON PAYMENTS
<br /> Interest shall be payable on progress payments, payments after acceptance, final payments, extra work payments, and
<br /> claim payments as follows:
<br /> A. Unpaid progress payments,payment after acceptance,and final payments shall begin to accrue interest 30 days after
<br /> the Engineer prepares the payment estimate.
<br /> B. Unpaid extra work bills shall begin to accrue interest 30 days after preparation of the first pay estimate following
<br /> receipt of a properly submitted and undisputed extra work bill. To be properly submitted, the bill must be submitted
<br /> within 7 days of the performance of the extra work and in conformance with the provisions in Section 9-1.03C,
<br /> "Records," and Section 9-1.06, "Partial Payments," of the Standard Specifications. An undisputed extra work bill
<br /> not submitted within 7 days of performance of the extra work will begin to accrue interest 30 days after the
<br /> preparation of the second pay estimate following submittal of the bill.
<br /> C. The rate of interest payable for unpaid progress payments, payments after acceptance, final payments, and extra
<br /> work payments shall be 10 percent per annum.
<br /> D. The rate of interest payable on a claim, protest or dispute ultimately allowed under this contract shall be 6 percent
<br /> per annum. Interest shall begin to accrue 61 days after the Contractor submits to the Engineer information in
<br /> sufficient detail to enable the Engineer to ascertain the basis and amount of said claim,protest or dispute.
<br /> Contract No. 10-OM7104
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