Legal Aspects of Performance-Based Specifications for Highway Construction and Maintenance Contracts (2013) / Chapter Skim
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Pages 24-32
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24 emissions)
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25 price adjustment clauses.80 Observing that, "Price adjustment clauses and schedules are an important and effective component of QA specifications," FHWA states: In the past there was some sentiment that price adjustments were punitive in nature. However, negative price adjustments can provide a basis for accepting and paying for work that does not fully meet specifications and removal and replacement is not justified.
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26 "noncompliance" points are used to measure the concessionaire's O&M services. For example, relative to incident responses (i.e., crashes, emergencies, or lifethreatening conditions)
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27 and design-build contracting. FHWA decided that warranty clauses were suitable for operational use through an interim final rule on August 25, 1995, adopted as a final rule on April 19, 1996, as 23 C.F.R.
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28 State Highway 44 (SH44) .95 SH44 consisted of a 118-mi reconstruction and widening project and was delivered under a $314 million design-bid-constructionmanagement-maintain contract awarded in 1998 by the State of New Mexico Highway and Transportation Department to Mesa PDC, LLC, a division of Materials Company.
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29 this type of control, the concession contractor can assume greater risk if something goes awry. In short, agencies interested in using warranty clauses for performance specifications need to think through the associated commercial ramifications.
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30 The SFAA white paper noted that to compensate for the increased risk due to the diminished certainty of underwriting and the method of payment, sureties typically raised their underwriting standards and provided long-term bonds only to the largest and most financially sound contractors -- sometimes shutting out smaller contractors who were otherwise qualified to do the work from bidding on these projects. To mitigate these issues, the SFAA white paper recommended that: • Warranties be limited to 1 year.
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31 By integrating design and construction, and specifying that the entire work will be in accordance with the contract documents (i.e., achieving performance specifications contained in the contract documents) , this clause creates a responsibility for both the design and construction teams to do the work necessary to achieve those results.
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32 cium chloride test to determine the vapor transmission rate. The court was persuaded by testimony that the "terrazzo installer should have known more about the specifications than anyone else on the job, that the installer should have been aware of the tests, and that the installer should have done more tests and made further inquiries."105 The court also confirmed that the architect's 20-percent liability was appropriate, as it used performance specifications without further investigating the requirements of an epoxy terrazzo floor before writing the specifications.
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