ST9902-CS130328
Halie Hernandez
From:Casey McBroom <CMcBroom@TNPINC.com>
Sent:Thursday, March 28, 2013 8:43 AM
To:Keith Marvin
Subject:Sandy Lake Incentive Language
Keith
We wanted to run the language for the incentive/disincentive by you and get your thoughts. Below are the two sections
as they would read in the spec book:
19. Award of Contract.
19.1 For the purpose of award, each bid submitted shall consist of two parts whereby:
Base Bid (A)
= The correct summation of the products of the estimated quantities shown in the proposal,
multiplied by their bid unit prices.
Time Bid (B)
= (CD x Daily Value) = the product of the number of calendar days (CD) provided by the
Contractor and the Daily Value established by the Owner.
For the purposes of this Contract, the Daily Value is $3,500.00.
The lowest evaluated bid (Total Bid) will be determined by the Owner as the lowest sum of the Base Bid
(A) plus the Time Bid (B) according to the following formula:
Total Bid = Base Bid (A) + Time Bid (B)
Time Bid (B) from the preceding formula will not be used to determine the final payment to the
Contractor. All payments will be based on actual quantities and bid unit prices.
The Owner desires to expedite construction on this contract to minimize the inconvenience to the traveling
public and to reduce the time of construction. In order to achieve this, an incentive provision is established
The total incentive payment shall not exceed $400,000.00.
for this contract. A more detailed
explanation of the incentive provision is given in Item 20 (below). A bid with more than 400 calendar
days will be considered non-responsive and will be rejected.
20. Incentive/Disincentive.
The Owner desires to expedite construction on this contract to minimize the inconvenience to the
traveling public and to reduce the time of construction. In order to achieve this, an
incentive/disincentive provision is established for this contract.
The total incentive payment shall not exceed the amount listed below. However, there shall be
no maximum disincentive.
The maximum time of completion that will be allowed for the construction of West Sandy Lake Road,
Phase 2A & 2B is 400 calendar days. An incentive of $3,500 per calendar day is available for
completion of the project earlier than 400 days. The maximum incentive available is $400,000.
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A disincentive of $3,500 per calendar day shall also apply to this project for any work that exceeds the
“Original Contract Time” as set forth in Item 1.7 of the Specific Project Requirements (Section
4). There is no maximum disincentive.
Additional provisions for the incentive/disincentive are set forth in Item 1.7 of the Specific Project
Requirements (Section 4).
Please take a moment to see if you agree with what this says, and if you feel the potential punishment to the contractor
for missing his bid calendar days is acceptable.
We are also in the process of modeling this construction time to see if we can verify if 400 is an accurate construction
time.
Thanks.
Casey McBroom, P.E.
Project Engineer
17304 Preston Road, Suite 1340
Dallas, Texas 75252
214.461.9867 Phone
972.900.5733 Mobile
214.461.9864 Fax
cmcbroom@tnpinc.com
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