The state or any other public entity in any public works contract awarded to the lowest
bidder, may provide for the payment of extra compensation to the contractor for the
cost reduction changes in the plans and specifications for the project made pursuant
to a proposal submitted by the contractor. The extra compensation to the contractor shall be 50 percent of the net savings
in construction costs as determined by the public entity.For projects under the supervision of the Department of Transportation or local or
regional transportation entities, the extra compensation to the contractor shall be
60 percent of the net savings, if the cost reduction changes significantly reduce
or avoid traffic congestion during construction of the project, in the opinion of
the public entity. The contractor may not be required to perform the changes contained in an eligible change proposal submitted
in compliance with the provisions of the contract unless the proposal was accepted by the public entity.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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