Common use of Additional Fee Clause in Contracts

Additional Fee. If the contractor is unable to reduce the hazard points on a contract area to the standards required for a clearance, but has completed some hazard reduction work, that contractor can discharge the remainder of his hazard obligation by returning a portion of his bond to the district and paying an additional fee to transfer liability. Use the following formula: [One minus (the acceptable hazard point or five, divided by the residual, or untreated hazard points)] multiply that ratio times the slash rate. This dollar amount should be multiplied by the total volume removed from the contract area. Add to that the additional fee to transfer liability (for the untreated hazard points, from Table III) times the total volume. When this amount is paid to the state the contract area can be cleared. Which can also be expressed as: (1- (5/U)) * B * V + (A*V) = Formula to transfer liability for a partially completed job. Where: U = Untreated or residual hazard points B = Bond rate (usually $4.00 MBF) Ref. Rule 050, Table I A = Additional fee to transfer liability, Table III V = Total volume removed from the contract areas 131. -- 139. (RESERVED).‌

Additional Fee. If the contractor is unable to reduce the hazard points on a contract area to the standards required for a clearance, but has completed some hazard reduction work, that contractor can discharge the remainder of his hazard obligation by returning a portion of his bond to the district and paying an additional fee to transfer liability. Use the following formula: [One minus (the acceptable hazard point or five, divided by the residual, or untreated hazard points)] multiply that ratio times the slash rate. This dollar amount should be multiplied by the total volume removed from the contract area. Add to that the additional fee to transfer liability (for the untreated hazard points, from Table III) times the total volume. When this amount is paid to the state the contract area can be cleared. Which can also be expressed as: (1- (5/U)) * B * V + (A*V) = Formula to transfer liability for a partially completed job. Archive Where: U = Untreated or residual hazard points B = Bond rate (usually $4.00 MBF) Ref. Rule 050, Table I A = Additional fee to transfer liability, Table III V = Total volume removed from the contract areas 131. -- 139. (RESERVED).‌

Additional Fee. If the contractor is unable to reduce the hazard points on a contract area to the standards required for a clearance, but has completed some hazard reduction work, that contractor can discharge the remainder of his hazard obligation by returning a portion of his bond to the district and paying an additional fee to transfer liability. Use the following formula: [One minus (the acceptable hazard point or five, divided by the residual, or untreated hazard points)] multiply that ratio times the slash rate. This dollar amount should be multiplied by the total volume removed from the contract area. Add to that the additional fee to transfer liability (for the untreated hazard points, from Table III) times the total volume. When this amount is paid to the state the contract area can be cleared. Which can also be expressed as: : (1- (51-(5/U)) * B * V + (A*V) = Formula to transfer liability for a partially completed job. Where: U = Untreated or residual hazard points B = Bond rate (usually $4.00 MBF) Ref. Rule Section 050, Table I A = Additional fee to transfer liability, Table III V = Total volume removed from the contract areas 131. -- 139. (RESERVED).‌