Liquidated Savings

The liquidated savings concept is to reward the Contractor for each calendar day the contract is completed and accepted prior to the expiration of allowable contract time. Contract time is adjusted for time extensions under this concept.  The amount of incentive or reward will be based on the direct saving to the Department (and thus the public) related to Construction Engineering Inspection and Contract Administration costs. 

The Daily Report of Construction (Form No. 700-010-13) as well as the Engineer Weekly Summary (Form No. 700-010-14) will serve as the support documentation for payment. Each set of the above project forms will show the following statements: 1) “Today is the first day or the beginning milestone day of the Liquidated Saving phase of this contract”; 2) “Today is the last day of the Liquidated Saving phase of this contract.”
(Same information required on a site-manager project)