U.S. Department of Transportation
Federal Highway Administration
1200 New Jersey Avenue, SE
Washington, DC 20590
202-366-4000


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Sample Special Provision
Project No. _____

A+B METHOD

  1. GENERAL

    The process for bidding will take into account not only the contract amount bid but also the bidder's stated delivery time in which the project (or specified phase of the project) {1} will be substantially complete. This method shall only be used to determine the successful bidder. It shall not be used to determine the award amount nor final payment to the contractor when the project is completed.

  2. DEFINITION OF TERMS

    For this project the following definitions apply:

    1. Calendar Day - Any day or portion of a day on the calendar including Saturdays, Sundays, and legal holidays, beginning and ending at midnight.
    2. Contract Amount - The summation of the products of the quantities shown in the bid schedule multiplied by the unit bid prices.
    3. Daily road user cost - The amount which represents the average daily cost of interference and inconvenience to the road user. The daily road user cost is $ (2).
    4. Substantially complete - When all project work (or the work for a specified phase of the project) requiring lane or shoulder closures or obstructions is completed, and traffic is following the lane arrangement as shown on the plans for the finished roadway (or the specified phase of work). All pavement construction, resurfacing, traffic control devices, and pavement markings shall be in their final position (or as called for in the plans for the specified phase of work) at this time.
  3. PREPARATION OF PROPOSAL

    The bidder shall establish the number of calendar days to be used to substantially complete the project (or specified phase of the project).

    The total number of calendar days established by the bidder to substantially complete the project (or specified phase of the project) shall not exceed (3) days. Bids showing time for completion in excess of this amount will be considered non-responsive.

    The product of the number of calendar days proposed by the bidder multiplied by the daily road user cost of $ (2) per calendar day shall be added to the contract amount bid. The sum will be the amount used for consideration of bids for award.

  4. CONSIDERATION OF BIDS

    Each bid submitted shall consist of two parts:

    1. The contract amount.
    2. Total number of calendar days proposed by the bidder to substantially complete the project (or specified phase of the project).

    The successful bid will then be determined by the Department as the lowest combination of (A) and (B) according to the following formula:

    (A) + [(B) x (daily road user cost)] = Bid amount for award consideration

    The preceding formula shall be used only to determine the successful bidder and shall not be used to determine the contract award amount nor final payment to the contractor when the project is completed. Only the unit prices shall be used to determine final payment to the contractor, except as may be adjusted under Sections E and F of this contract provision.

  5. EARLY OPENING OF PROJECT (OR SPECIFIED PHASE OF PROJECT) TO UNRESTRICTED HIGHWAY TRAFFIC

    The Contractor will be paid $ (2) for each calendar day the project (or specified phase of the project) is substantially complete before the number of calendar days stated by the contractor in the bid. The total number of calendar days for incentive payment may not exceed (4) days.

  6. FAILURE TO SUBSTANTIALLY COMPLETE THE PROJECT {OR SPECIFIED PHASE OF THE PROJECT) IN THE TIME BID

    Failure to substantially complete the project (or specified phase of the project) within the established number of calendar days stated by the contractor in the bid will result in the daily road user cost of $ (2) being assessed for every calendar day in excess of the stated number, up to the time in which the project (or specified phase of the project) is substantially complete.

    This assessment will be deducted from any monies due or to become due the contractor.

    The engineer will be the sole authority in determining as to when the project (or specified phase of the project) is substantially complete.

  7. FAILURE TO COMPLETE ALL WORK ON TIME

    Following substantial completion, for each calendar day that any work shall remain uncompleted after the contract time prescribed for the completion of all work, $ (5) will be deducted from any money due the contractor, not as a penalty, but as liquidated damages.

    Notes:

    1. The time element (i.e. B part) of the A+B method can be applied to the project as a whole or to specific critical phase or phases of a project (i.e. bridge(s)).
    2. Amount of the average daily road user costs as justified and documented by the contracting agency. This amount is applied as an incentive for every day the contractor finishes before the number of days stated by the contractor in the bid or as a disincentive for every day the contractor finishes after the number of days stated by the contractor in the bid. The incentive amount which is indicated in the contract must be the same as the disincentive amount.
    3. The maximum number of calendar days allowed by the contracting agency for substantial completion of the project (or specified phase of the project).
    4. A maximum number of calendar days should be included so that the contracting agency has greater control of their expenditures. However, the maximum number of days should be set at a level which encourages the contractor to complete the project (or specified phase of the project) as early as possible.
    5. The liquidated damages rate should be based on construction engineering inspection costs and in cases where there is a public need, may also include road user costs. Since construction engineering inspection costs and road user costs are also included in setting incentive/disincentive (I/D) amounts, in the administration of contracts which include both I/D clauses and liquidated damages, the contracting agency must be sure that the contractor is not charged twice (both as a disincentive and as a liquidated damage) for the same cost being incurred, be it construction engineering inspection or road user costs.

November 15, 1991

Sample Special Provision
Product No. _____

LANE RENTAL FOR CONSTRUCTION - DAILY BASIS

  1. GENERAL

    Monetary assessments will be made against the contractor for each calendar day there are restrictions or a reduction in the number of available travel lanes or shoulder width.

  2. DEFINITION OF TERMS

    For this contract the following definitions apply:

    1. Calendar Day - Any day or portion of a day on the calendar including Saturdays, Sundays and legal holidays, beginning and ending at midnight.
    2. Rental Charge - The amount, as shown in the proposal, which represents the average daily cost of interference and inconvenience to the road user for each lane and/or shoulder closure or obstruction.
    3. Obstruction - When the contractor's operations have resulted in the useable lane width of the travelway or shoulder to be less than that specified in the plan documents.
  3. LANE RENTAL

    This contract includes a lane rental procedure under which the contractor is assessed a rental charge for each lane and/or shoulder closure or obstruction from the time of Notice to Proceed until such time that the project is complete.

    One lane of the roadway shall remain open for each direction of traffic at all times. The rental charge to be assessed for each lane or shoulder closure or obstruction per direction of traffic per calendar day is as follows:

    Closure and/or obstruction ChargeDaily(1) Rental
    one lane$ 20,000
    one shoulder$ 5,000
    one lane and shoulder$ 25,500
    two lanes$ 45,000
    two lanes and shoulder$ 50,000

    The applicable lane rental charges will be deducted from any monies due the contractor for work performed. The deduction will be made based on the applicable rate for any and all closures or obstructions whether work is being performed or not. This deduction will be done on each progress payment.

  4. FAILURE TO COMPLETE WORK ON TIME

    All contract work shall be completed by (2). For each calendar day that any contract work remains uncompleted after the contract time prescribed for the completion of all work, $ (3) will be deducted from any money due the Contractor, not as a penalty, but as liquidated damages.

    On those days when the contractor is to be charged the liquidated damages fee, but the contractor has closed or obstructed a lane and/or shoulder, the contractor will be charged the greater amount, either the appropriate lane rent or the liquidated damages fee indicated.

    This assessment will be deducted from any monies due or to become due the contractor.

    Notes:

    1. This sample specification has been written in a manner such that rent is to be charged for every calendar day which a lane and/or shoulder is closed or obstructed, with any portion of a calendar day treated as a whole calendar day. The rental rates included in this example are included only for example purposes. Rental rates need to be determined for each project based on actual user costs for that project. As an option, portions of calendar day could be handled as fractional periods (i.e. 6 hrs. or 12 hrs.) and the daily rental charge applied proportionally.
    2. A maximum number of calendar days should be specified to encourage the contractor to complete the project as early as possible.
    3. The liquidated damages rate should be based on construction engineering inspection costs and in cases where there is a public need may also include road user costs. Since construction engineering inspection costs and road user costs may be included in setting lane rental rates, in the administration of contracts which include both lane rental and liquidated damages, the contracting agency must be sure that the contractor is not charged twice (both as rent of a lane or shoulder and also as a liquidated damage) for the same cost being incurred, be it construction engineering inspection or road user costs.

Sample Special Provision
Project No. _____

LANE RENTAL FOR CONSTRUCTION - HOURLY BASIS

  1. GENERAL

    Monetary assessments will be made against the contractor for each hour there are restrictions or a reduction in the number of available travel lanes or shoulder width.

  2. DEFINITION OF TERMS

    For this contract the following definitions apply:

    1. Calendar Day - Any day on the calendar including Saturdays, Sundays and legal holidays, beginning and ending at midnight.
    2. Hour - Any continuous 60-minute period or portion of a continuous 60-minute period beginning at that point when a lane and/or shoulder is closed or obstructed by the contractor's operation.
    3. Rental Charge - The amount, as shown in the proposal, that represents the average hourly cost of interference and inconvenience to the road user for each lane and/or shoulder closure or obstruction.
    4. Obstruction - When the contractor's operations have resulted in the useable lane width of the travelway or shoulder to be less than that specified in the plan documents.
  3. LANE RENTAL

    This contract includes a lane rental procedure under which the contractor is assessed a rental charge for each lane and/or shoulder closure or obstruction from the time of Notice to Proceed until such time that the project is complete.

    One lane of the roadway shall remain open for each direction of traffic at all times. The rental charge to be assessed for each lane and/or shoulder closure or obstruction per direction of traffic per hour (1) is as follows:

    Closure and or obstructionHourly(2)
    Rental Charge
    6:30 - 9:00 AM
    3:00 - 6:00 PM
    Hourly(2)
    Rental Charge
    All other hours
    of the day
    one lane$ 2,000$ 500
    one shoulder$ 500$ 125
    one lane and shoulder$ 2,500$ 625
    two lanes$ 4,500$ 1,250
    two lanes and shoulder$ 5,000$ 1,375

    The applicable lane rental charges will be deducted from any monies due the contractor for work performed. The deduction will be made based on the applicable rate for any and all closures whether work is being performed or not. This deduction will be done on each progress payment.

  4. FAILURE TO COMPLETE WORK ON TIME

    All contract work shall be completed by (3). For each calendar day that any contract work remains uncompleted after the contract time prescribed for the completion of all work, $ (4) will be deducted from any money due the contractor, not as a penalty, but as liquidated damages.

    On those days when the contractor is to be charged the liquidated damages fee, but the contractor has closed or obstructed a lane and/or shoulder, the contractor will be charged the greater amount, either the appropriate lane rent or the liquidated damages fee indicated.

    This assessment will be deducted from any monies due or to become due the contractor.

    Notes:

    1. In some unusual situations, where opening the roadway to traffic is extremely critical, having rental rates for portions of an hour, such as 15-minute increments may be considered.
    2. This sample specification has been written in a manner such that rent is to be charged for every hour a lane and/or shoulder is closed or obstructed, with any portion of an hour treated as a whole hour. The rental rates included in this example are included only for example purposes. Rental rates need to be determined for each project based on actual user costs for that project.
    3. A maximum number of calendar days should be specified to encourage the contractor to complete the project as early as possible.
    4. The liquidated damages rate should be based on construction engineering inspection costs and in cases where there is a public need may also include road user costs. Since construction engineering inspection costs and road user costs are also included in setting lane rental rates, in the administration of contracts which include both lane rental and liquidated damages, the contracting agency must be sure that the contractor is not charged twice (both as rent of a lane or shoulder and also as a liquidated damage) for the same cost being incurred, be it construction engineering inspection or road user costs.

CONTINUOUS SITE RENTAL

  1. GENERAL

    A monetary assessment will be made against the contractor for each day of this contract.

  2. DEFINITION OF TERMS

    For this contract the following definitions apply:

    1. Calendar Days or Rental Days - Any day on the calendar including Saturdays, Sundays and legal holidays.
    2. Rental Charge - an amount that interference and inconvenience to highway traffic will cost the road user for each calendar day or any portion of a calendar day. The daily rental charge for this contract is __*__.

      (* For each project, these rates need to be determined, based on actual user costs for that project).

    3. Contract Amount - This amount is the summation of the products of the quantities shown in the bid schedule multiplied by the unit bid prices, as bid by the contractor.
    4. Unrestricted Traffic Flow in its Ultimate Location -When all work requiring lane and shoulder closures or detours is completed, and traffic is following the lane arrangement as shown on the plans for the finished roadway. All pavement construction, resurfacing, and traffic control devices are in their final position.
  3. CONTINUOUS SITE RENTAL

    This contract includes a continuous site rental procedure under which the contractor is charged a daily rental fee for each calendar day from the Notice to Proceed date until such time that this project is open to unrestricted traffic flow in its ultimate location. Rent is charged for every day, after the Notice to Proceed has been given. This charge will be deducted from any monies due to or to become due the contractor on each progress payment.

  4. NOTICE TO PROCEED

    Notice to Proceed will be given ( ) days after award of contract to allow for mobilization and procurement of materials. No work is to be undertaken on the roadway until the Notice to Proceed has been issued.

  5. COMPLETION OF CONTRACT

    This project must be completed such that it is open with unrestricted traffic flow by _____; all remaining work must be completed by _____. The daily rental charge specified above will be assessed until the project is open with unrestricted traffic flow. Once the project has been open with unrestricted traffic flow, the contractor will be charged a liquidated damages of _____ for every day the all remaining work is not completed after the date specified of _____, in accordance with GP _____ of the Standard Specifications dated _____.

Updated: 06/27/2017
Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000