Common use of Agreements with Utilities and Railroads Clause in Contracts

Agreements with Utilities and Railroads. When the improvement of a state highway requires the facilities of a railroad or a public utility company to be altered, rearranged or relocated, and when the cost of such alteration, rearrangement or relocation is an obligation of the department, Wisconsin statute 84.06(4) provides that the department may enter into an agreement with the railroad or public utility company for performing this work. The agreement is not based on bids, but is an agreement negotiated between the department and the railroad or public utility company covering performance of the work and basis of payment. The basis of payment may be either an agreed lump sum price, or it may be a time and materials agreement with which the department will pay the actual costs incurred by the railroad or utility company for furnishing labor and materials and for use of equipment in performing work under the agreement. Equipment will be paid for at a rate agreed upon by the department and utility or railroad.