Common use of Contract Negotiation Clause in Contracts

Contract Negotiation. The LPA shall prepare a written description of the scope of the proposed services to be used as a basis for negotiations and shall negotiate a contract with the highest qualified consultant at compensation that the LPA determines in writing to be fair and reasonable. In making this decision, the LPA shall take into account the estimated value, scope, complexity, and professional nature of the services to be rendered. An important objective of the negotiation process is to reach a complete and mutual understanding of the scope of professional services to be provided and the degree of performance desired. The general scope of professional services developed in the procurement process should be broad in order to serve as the basis for negotiation. The negotiation process offers the opportunity for refinement, amendment, and complete definition of the services to be rendered, as well as the areas of responsibility and liability for those services. Mutual understanding on these points at the negotiation stage can minimize the possibility of misunderstanding as the project progresses. Special elements of the engineering portion of the project to be established during negotiation include: • project schedule, • manpower requirement and timing, • level of engineering effort, • avenues of research, and • areas of responsibility/liability. BUREAU OF LOCAL ROADS & STREETS Any percentage fee contract should be fully supported by an acceptable estimate of man- hours, anticipated hourly payroll rates by classification of employee for the project, and applicable overhead and burden rates. These rates should be evaluated and, if determined to be acceptable, the percentage fee may be approved by the district. The consultant’s method of dividing the project into work units and calculating related time units are to be such that the estimate can be readily reviewed. The consultant will use its own estimates of man-hours, rates of pay, overhead, profit, and itemized non-salary costs based on the consultant’s work force and past job experience. When the prime consultant requires the services of another consultant to provide expertise, advice, or information to the prime consultant, the prime consultant will complete an analysis of fee for engineering services (including a breakdown of direct salary and direct non-salary costs) or supply specific rate for services (e.g. testing). The prime consultant is responsible for ensuring that Disadvantage Business Enterprises (DBEs) will have an equitable opportunity to compete for subcontracts. See Chapters 8 and 24 for information on DBEs for LPAs. Contracts between LPAs and consultants must be set forth in fully executed agreements. If there is an agreement with the consultant, and if the fee is within range of the budget, then proceed to finalize an agreement. If problems arise with the scope of the project or the fee, further discussion and clarification may be required. Selection of a consultant by qualification provides no guarantee that the LPA and the consultant will come to an agreeable fee. For that reason, the ranking process provides, in addition to the first preference, at least two alternative qualified consultant. If agreement cannot be reached on the scope and fee, the LPA may drop negotiations with the top- ranked consultant and continue the process with the second ranked consultant at Step 5.

Contract Negotiation. The LPA shall prepare a written description of the scope of the proposed services to be used as a basis for negotiations and negotiations. The LPA shall negotiate a contract with the highest qualified consultant at compensation that the LPA determines in writing to be fair and reasonable. In making this decision, the LPA shall take into account the estimated value, scope, complexity, complexity and professional nature of the services to be rendered. BUREAU OF LOCAL ROADS & STREETS An important objective of the negotiation process is to reach a complete and mutual understanding of the scope of professional services to be provided and the degree of performance desired. The general scope of professional services developed in the procurement process should be broad in order to serve as the basis for negotiation. The negotiation process offers the opportunity for refinement, amendment, and complete definition of the services to be rendered, as well as the areas of responsibility and liability for those services. Mutual understanding on these points at the negotiation stage can minimize the possibility of misunderstanding as the project progresses. Special elements of the engineering portion of the project to be established during negotiation include: •  project schedule, •  manpower requirement and timing, •  level of engineering effort, •  avenues of research, and •  areas of responsibility/liability. BUREAU OF LOCAL ROADS & STREETS Any percentage fee contract should be fully supported by an acceptable estimate of man- man-hours, anticipated hourly payroll rates by classification of employee for the project, and applicable overhead and burden rates. These rates should be evaluated and, if determined to be acceptable, the percentage fee may be approved by the district. The consultant’s method of dividing the project into work units and calculating related time units are to be such that the estimate can be readily reviewed. The consultant will use its own estimates of man-hours, rates of pay, overhead, profit, and itemized non-non- salary costs based on the consultant’s work force and past job experience. When the prime consultant requires the services of another consultant to provide expertise, advice, or information to the prime consultant, the prime consultant will complete an analysis of fee for engineering services (including a breakdown of direct salary and direct non-salary costs) or supply specific rate for services (e.g. testing). The prime consultant is responsible for ensuring that Disadvantage Business Enterprises (DBEs) DBEs will have an equitable opportunity to compete for subcontracts. See Chapters 8 and 24 for information on DBEs for LPAs. Contracts between LPAs and consultants must be set forth in fully executed agreements. See Section 5-5.08 for the BLR forms, which must be used for the agreement between the LPA and the consultant when federal funds are used for professional services. If there is an agreement with the consultant, and if the fee is within range of the budget, then proceed to finalize an agreement. If problems arise with the scope of the project or the fee, further discussion and clarification may be required. Selection of a consultant by qualification provides no guarantee that the LPA and the consultant will come to an agreeable fee. For that reason, the ranking process providesprovides at least two alternative qualified consultants, in addition to the first preference, at least two alternative qualified consultant. If agreement cannot be reached on the scope and fee, the LPA may drop negotiations with the top- top-ranked consultant and continue the process with the second ranked consultant at Step 5.9. The LPA shall develop procedures for proper disposal of concealed cost proposals of unsuccessful bidders. The LPA must describe their procedures for contract negotiations, including procedures if a contract cannot be negotiated with the selected consultant along with the proper disposal of sealed cost proposals. BUREAU OF LOCAL ROADS & STREETS

Contract Negotiation. The LPA shall prepare a written description of the scope of the proposed services to be used as a basis for negotiations and shall negotiate a contract with the highest qualified consultant at compensation that the LPA determines in writing to be fair and reasonable. In making this decision, the LPA shall take into account the estimated value, scope, complexity, and professional nature of the services to be rendered. An important objective of the negotiation process is to reach a complete and mutual understanding of the scope of professional services to be provided and the degree of performance desired. The general scope of professional services developed in the procurement process should be broad in order to serve as the basis for negotiation. The negotiation process offers the opportunity for refinement, amendment, and complete definition of the services to be rendered, as well as the areas of responsibility and liability for those services. Mutual understanding on these points at the negotiation stage can minimize the possibility of misunderstanding as the project progresses. Special elements of the engineering portion of the project to be established during negotiation include: •  project schedule, •  manpower requirement and timing, •  level of engineering effort, •  avenues of research, and •  areas of responsibility/liability. BUREAU OF LOCAL ROADS & STREETS Any percentage fee contract should be fully supported by an acceptable estimate of man- man-hours, anticipated hourly payroll rates by classification of employee for the project, and applicable overhead and burden rates. These rates should be evaluated and, if determined to be acceptable, the percentage fee may be approved by the district. The consultant’s method of dividing the project into work units and calculating related time units are to be such that the estimate can be readily reviewed. The consultant will use its own estimates of man-hours, rates of pay, overhead, profit, and itemized non-non- salary costs based on the consultant’s work force and past job experience. When the prime consultant requires the services of another consultant to provide expertise, advice, or information to the prime consultant, the prime consultant will complete an analysis of fee for engineering services (including a breakdown of direct salary and direct non-salary costs) or supply specific rate for services (e.g. testing). The prime consultant is responsible for ensuring that Disadvantage Business Enterprises (DBEs) will have an equitable opportunity to compete for subcontracts. See Chapters 8 and 24 for information on DBEs for LPAs. Contracts between LPAs and consultants must be set forth in fully executed agreements. If there is an agreement with the consultant, and if the fee is within range of the budget, then proceed to finalize an agreement. If problems arise with the scope of the project or the fee, further discussion and clarification may be required. Selection of a consultant by qualification provides no guarantee that the LPA and the consultant will come to an agreeable fee. For that reason, the ranking process provides, in addition to the first preference, at least two alternative qualified consultant. If agreement cannot be reached on the scope and fee, the LPA may drop negotiations with the top- top-ranked consultant and continue the process with the second ranked consultant at Step 5.

Contract Negotiation. The LPA shall prepare a written description of the scope of the proposed services to be used as a basis for negotiations and negotiations. The LPA shall negotiate a contract with the highest qualified consultant at compensation that the LPA determines in writing to be fair and reasonable. In making this decision, the LPA shall take into account the estimated value, scope, complexity, complexity and professional nature of the services to be rendered. BUREAU OF LOCAL ROADS & STREETS An important objective of the negotiation process is to reach a complete and mutual understanding of the scope of professional services to be provided and the degree of performance desired. The general scope of professional services developed in the procurement process should be broad in order to serve as the basis for negotiation. The negotiation process offers the opportunity for refinement, amendment, and complete definition of the services to be rendered, as well as the areas of responsibility and liability for those services. Mutual understanding on these points at the negotiation stage can minimize the possibility of misunderstanding as the project progresses. Special elements of the engineering portion of the project to be established during negotiation include: • project schedule, • manpower requirement and timing, • level of engineering effort, • avenues of research, and • areas of responsibility/liability. BUREAU OF LOCAL ROADS & STREETS Any percentage fee contract should be fully supported by an acceptable estimate of man- hours, anticipated hourly payroll rates by classification of employee for the project, and applicable overhead and burden rates. These rates should be evaluated and, if determined to be acceptable, the percentage fee may be approved by the district. The consultant’s method of dividing the project into work units and calculating related time units are to be such that the estimate can be readily reviewed. The consultant will use its own estimates of man-hours, rates of pay, overhead, profit, and itemized non-salary costs based on the consultant’s work force and past job experience. When the prime consultant requires the services of another consultant to provide expertise, advice, or information to the prime consultant, the prime consultant will complete an analysis of fee for engineering services (including a breakdown of direct salary and direct non-salary costs) or supply specific rate for services (e.g. testing). The prime consultant is responsible for ensuring that Disadvantage Business Enterprises (DBEs) DBEs will have an equitable opportunity to compete for subcontracts. See Chapters 8 and 24 for information on DBEs for LPAs. Contracts between LPAs and consultants must be set forth in fully executed agreements. See Section 5-5.08 for the BLR forms, which must be used for the agreement between the LPA and the consultant when federal funds are used for professional services. If there is an agreement with the consultant, and if the fee is within range of the budget, then proceed to finalize an agreement. If problems arise with the scope of the project or the fee, further discussion and clarification may be required. Selection of a consultant by qualification provides no guarantee that the LPA and the consultant will come to an agreeable fee. For that reason, the ranking process providesprovides at least two alternative qualified consultants, in addition to the first preference, at least two alternative qualified consultant. If agreement cannot be reached on the scope and fee, the LPA may drop negotiations with the top- top-ranked consultant and continue the process with the second ranked consultant at Step 5.9. The LPA shall develop procedures for proper disposal of concealed cost proposals of unsuccessful bidders. The LPA must describe their procedures for contract negotiations, including procedures if a contract cannot be negotiated with the selected consultant along with the proper disposal of sealed cost proposals. BUREAU OF LOCAL ROADS & STREETS