Common use of Contingencies & Extra Work Clause in Contracts

Contingencies & Extra Work. (a) The PAL will set forth an amount for Contingencies (included with the line item category for Contract Items) which upon written authorization from the DOT shall be available to fund required work or change in costs, as approved by DOT in a Construction Order and in accordance with applicable process and requirements including but not limited to those set forth in the Municipality Manual. (b) The PAL will provide a line item category for Extra Work to set-aside funds that may be requested later by the Municipality to fund the requested additional work if it is deemed, at the DOT’s sole discretion and with the DOT’s written approval, to be necessary for completion of the Construction Project. If the Municipality wishes to pursue any Extra Work, it must request approval in writing from the DOT of the type and scope of the Extra Work and the associated costs prior to the Municipality authorizing performance of the Extra Work by the Prime Contractor, the Consulting Engineer, the Inspection Consultant, or municipal staff, as applicable. The DOT has sole discretion as to approving funding of any Extra Work. If the Municipality fails to request and receive prior approval for Extra Work prior to performing the same, any such performance will be done at its sole risk and expense. (c) Once approved in writing by the DOT, the Extra Work will be funded as follows: (1) If the Extra Work results in an Accumulative Cost less than or equal to the Project Amount specified in the PAL, it will be funded according to the proportional cost sharing set forth in the PAL. (2) If the Extra Work results in an Accumulative Cost greater than the Project Amount specified in the PAL, the DOT determines that the appropriate federal or state government funding is available for the increased costs of the Construction Project, then the DOT will issue a Supplemental PAL to provide for the cost increase to the Construction Project for this Extra Work. If federal or state government funding is not available, the Municipality will be responsible for 100% of the additional cost.