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.

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Last modified: July 31, 2008