CALIFORNIA'S EXPERIENCE WITH COST REDUCTION INCENTIVE CLAUSE IN HIGHWAY CONSTRUCTION CONTRACTS

California's contract provisions state that the contractor may make a written proposal to modify the provisions of the contract for the sole purpose of reducing construction costs, and the modifications shall not impair the essential functions or characteristics of the project. Since this clause was incorporated into contracts, 164 formal proposals were made of which 97 were accepted. The total construction cost savings to each party for those accepted has been $1,072,000. Seventeen proposals are briefly outlined to illustrate the wide range and types of proposals received. Once a cost reduction incentive proposal that has state-wide application is adopted, it is necessary to immediately adopt a new or revised standard plan or specification to take full financial advantage on all current and future projects.

Media Info

  • Features: Figures;
  • Pagination: p. 109-114
  • Serial:
    • Issue Number: 59

Subject/Index Terms

Filing Info

  • Accession Number: 00129922
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 14 1976 12:00AM