Can a VECP provision be used to pay a contractor extra for a concept that reduces the time it takes to complete a project, but does not result in direct contract costs savings?
Paying a contractor extra for reducing the time it takes to complete a project is allowed under an incentive/disincentive (I/D) clause in a contract. How a contractor reduces (through a VECP or other process) the time it takes to complete a project is not a factor in determining the incentive paid, only the time involved is used. On projects without I/D clauses, the State has made a determination the project is not of a critical nature requiring an incentive payment for early completion. Therefore, contractors submitting VECPs that simply reduce the time needed to complete a project should not receive special compensation under the VECP special provision. Instead, critical projects should incorporate a contract time mechanism (liq. damages incorporating RUC, I/D, or A+B bidding) to provide the financial incentive to complete work in a timely manner.
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