Common use of Final Disposition Clause in Contracts

Final Disposition. Once the Estimate and Contractor’s quote are compared by the CEI, and negotiations are completed, the CEI will prepare a listing of agreed costs/time and a statement to explain how the final costs and time due were determined. Examples: ▪ Contractor agreed to costs/time proposed by the Department. ▪ After negotiations the Department agreed to accept the contractor’s price/time OR agreed to accept a price/time above the Engineer Estimate in order avoid delay or further cost/time impact to the project. ▪ Department agreed to pay for change based on actual costs. Documenting the Entitlement Analysis: In the Entitlement Analysis, the preparer should mention each of the contract change issues as follows. For each issue, state description and reason for each change A copy of project correspondence must be attached to and made a part of the Entitlement Analysis. This can be an email from the Engineer of Record as an example. The Entitlement Analysis should be signed and dated by the Engineer producing it.

Final Disposition. Once the Estimate and Contractor’s quote are compared by the CEI, and negotiations are completed, the CEI will prepare a listing of agreed costs/time and a statement to explain how the final costs and time due were determined. Examples: ▪ Contractor agreed to costs/time proposed by the Department. ▪ After negotiations the Department agreed to accept the contractor’s ’ s price/time OR agreed to accept a price/time above the Engineer Estimate in order avoid delay or further cost/time impact to the project. ▪ Department agreed to pay for change based on actual costs. Documenting the Entitlement Analysis: In the Entitlement Analysis, the preparer should mention each of the contract change issues as follows. For each issue, state description and reason for each change A copy of project correspondence must be attached to and made a part of the Entitlement Analysis. This can be an email from the Engineer of Record as an example. The Entitlement Analysis should be signed and dated by the Engineer producing it.