Sample Supplemental Agreement – Value Engineering
WHEREAS: This Contract provides for, among other things, fill in the general project description from the title page of the Contract; and
WHEREAS: This Contract further provides for, fill in the item or type of work that will be affected by the SA; and
WHEREAS: The Contractor has submitted a Value Engineering proposal to fill in the change in accordance with Mn/DOT Specification 1408; and
WHEREAS: The Engineer has approved this Value Engineering proposal.
NOW, THERFORE IT IS HEREBY MUTUALLY AGREED AND UNDERSTOOD THAT:
The Contractor will fill in what work the Contractor will be doing. Include any form of direction such as “as directed by the Engineer”, “in accordance with Mn/DOT Specification XXXX”, etc
Payment for this work will be at the Negotiated unit price(s) as shown in the Estimate of Cost. A Prime Contractor’s Allowance in the amount of 10% of the first $10,000.00 of Sub-contractor work and 2% of the remaining balance of Sub-contractor work will also be paid. use this last only if applicable
A Value Engineering Incentive will be paid in the amount of 50% of the calculated savings as shown in the Estimate of Cost.
Contract time will not be revised except as may be provided in Mn/DOT Specification 1806.
The Contractor will not make claim of any kind or character whatsoever for any other costs or expenses that he may have incurred or that may be hereafter incurred in performing the work and furnishing the materials required by this Agreement.
ESTIMATE OF COST
Item No. Item Unit Unit Price Quantity Amount Group
Decrease Contract Items
Increase Negotiated Items
Net Decrease
Value Engineering Incentive
Minnesota Dept of Transportation
Office of Construction