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Mn /DOT Contract No. <br />CFMS Contract No. <br />2.2 Upon receipt of a written request from the Local Government Unit, the State will evaluate the request <br />and promptly inform the Local Government Unit if the State will perform the work, either as <br />submitted or with modifications. If accepting the work, the State will identify a project manager for <br />the work to be performed. Any work assignment accepted by the State pursuant to this contract is <br />subject to all terms and conditions of this contract. <br />2.3 After the State accepts a work assignment, the State will promptly perform the work in a professional <br />manner and in accordance with generally accepted government standards. If the Local Government <br />Unit deems that the work is not proceeding in a satisfactory manner, the Local Government Unit will <br />bring such concerns to the State's Project Manager in charge of the particular project. The Parties <br />will endeavor to resolve any disputes concerning work under this contract in the most informal and <br />cost - effective manner reasonably available. <br />3 Consideration and Payment <br />3.1 Payment Basis. The State may, at its option, charge the Local Government Unit on either a lump -sum <br />or actual cost basis for performance of the work. <br />3.2 Actual Cost Basis. Unless a lump sum or other payment arrangement is agreed upon, all work <br />performed by the State will be billed on an actual cost basis. For work performed upon an actual cost <br />basis, the State will provide a report showing the actual cost of the services performed by the State <br />under this contract. The State's "Actual Cost" will consist of all of the following elements: <br />(1) The actual cost of any materials provided by the State; and <br />(2) Travel expenses reasonably and necessarily incurred by the State in the performance of the work. <br />Such travel expenses will be subject to the limitations contained in the "Minnesota Department <br />of Transportation Travel Regulations" in effect at the time the work is performed; and <br />(3) Labor costs incurred by the State in performance of the work. Such labor costs will consist of <br />(a) The actual hourly wage or salary of State personnel for time spent working on the <br />project; and <br />(b) Labor and overhead additive, at a rate to be determined annually by the appropriate <br />State Financial /Accounting Officer. Labor additive will include fringe benefits, <br />holiday and vacation pay, and applicable workers compensation and payroll tax <br />expenses. <br />(4) Equipment costs incurred by the State in the performance of the work. Such cost will consist of: <br />(a) The hourly rental rate of the equipment; and <br />(b) Fuel and other direct operational costs not included in the equipment rental rate. <br />3.3 Payment <br />(A) The State will invoice the Local Government Unit upon completion of the services, or at regular <br />intervals not more than once monthly as agreed upon by the parties: <br />Rev. (12 /00) Page 2 <br />5 <br />