Vermont Agency of Transportation
No Excuse Bonus
May 19, 2006
Project Name: South Burlington
Federal Aid Number IM 089- 3(37)
Length of Project: 0.407 Miles
Brief Description: Widening of I 89 Exit 14 Ramp C and US Rte. 2 (Williston Road) With New Traffic Control Signal
Contract Cost: $2,116,000.00 (Estimated Construction Cost w/o E & C))
The Vermont Agency of Transportation submits this work plan for review and approval as a no excuse bonus (NEB) in the amount of $100,000.00 for this project under the provisions of Special Experimental Project No. 14 (SEP14) for the use of innovative contracting practices. VTrans has used incentive/disincentive (I/D) clauses in order to accelerate construction of highway and bridge projects. However, road user costs were too low for this project to provide a significant I/D amount. In this situation, we feel the NEB may be a more effective method to accelerate construction of this project.
The purpose of this NEB contracting method is to ensure the work necessary to I 89 Ramp C and US Rte 2 to eliminate traffic backups extending onto the I 89 mainline is completed in the shortest time possible to end the current unsafe conditions to the traveling public and to minimize the impacts on safety associated with an extended construction period. Therefore, VTrans sees the use of this bonus as the best available method to achieve this purpose.
This work will consist of widening of both I 89 Ramp C and US Rte 2 to include grading, drainage, paving and signals, for a distance of 0.407 mile. Plan preparation was done as with normal procedures.
This project was originally schedule to be constructed in the summer of 2007. The concern for safety has resulted in advancing the schedule with an advertising date of May 24, 2006 and a bid opening date of June 16, 2006. The Substantial Completion Date for payment of the NEB will be October 20, 2006.
The project Special Provisions will specify the work that will be required to be complete by the Substantial Completion Date in order to for the Contractor to qualify for the NEB. VTrans' Resident Engineer will make the determination as to whether all work necessary for Substantial Completion has been satisfactorily completed.
An initial/final report will be submitted to FHWA after the completion of the project. The report will include an evaluation of the technique used, the industry and Agency reactions and issues, and a recommendation as to whether or not to use this construction method on future projects.
No Excuse Bonus Speical Provision Sample
4. NOTICE TO BIDDERS - NO EXCUSE BONUS. The Agency wants the work under this Contract substantially completed as soon as possible. In return for the Contractor achieving substantial completion by the No Excuse Bonus Date defined below, the Agency will pay a bonus to the Contractor.
- No Excuse Bonus Date. The No Excuse Bonus Date is defined as October 20, 2006.
The No Excuse Bonus Date is an absolute, fixed date and will not be changed for any reason whatsoever, including, but not limited to, weather, Acts of God, acts or omissions by any individual or entity, material supply difficulties, direction(s) of the Engineer, pay item quantity underruns and/or overruns, Extra Work required pursuant to the Contract, extensions of time to complete the contract for any reason, and force majeure.
- Identified Work for No Excuse Bonus. All work and pay items in the Contract necessary to substantially complete the project, excepting the 30-Day Test Control Period for the Traffic Control Signal System - Intersection as defined in Section 678.11 INSTALLATION AND COMPLETION.
- Pay Schedule for No Excuse Bonus. Contractor will be paid in the next bi-weekly estimate if an when the Contractor has satisfactorily achieved substantial completion of the contract by the No Excuse Bonus Date.
- UNDERRUNS AND OVERRUNS. The proposal indicates an estimated quantity for each pay item. As with all other possible reasons, the fact that the actual quantities used in the construction of this project vary from the estimated quantities shall not be a basis or cause for changing any of the conditions for No Excuse Bonus.
- Extra Work. The Agency and the Contractor recognize that Extra Work, beyond the work indicated in the Plans, is always possibile in a construction contract. The Agency will pay for Extra Work in accordance with the terms and requirements of the Contract. However, only for purposes of the No Excuse Bonus, the Contractor shall absorb all additional construction time beyond the original project schedule and CPM Schedules regardless of the reason(s) for the additional construction time.
- No Changes to No Excuse Bonus Date and/or the No Excuse Bonus Amount. Further, no adjustments shall be proposed by the Contractor to the No Excuse Bonus Date and/or the No Excuse Bonus, and no such adjustments will be made.
- PAYMENT. Payment will be made as specified in Section 995 of these Special Provisions.
SECTION 995 - NO EXCUSE BONUS
81. SECTION 995 - NO EXCUSE BONUS, is hereby made a new Section of the Specifications as follows:
The payment of monies for performance under the NO EXCUSE BONUS specifications contained in these Special Provisions shall be as follows:
For the incentive payment as described in Special Provision No. 4, the Contractor will be paid in the next bi-weekly estimate if, and only if, the Contractor has satisfactorily met all of the requirements for the No Excuse Bonus.
Payment will be made under:
Pay Item - 995.11 No Excuse Bonus (N.A.B.I.)
Pay Unit - Lump Sum