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20 costs, termination costs, and other shut-down costs. A 3. Independent expert. termination by DTP does not entitle DTP to any un- 4. Submission of certified claim (recommendation by earned profits, unabsorbed overhead, opportunity costs, MWAA representative; DTP has 30 days to agree or or other damages as a result of owner default. seek further action). MWAA has the right to terminate the contract prior 5. Mediation. to full notice to proceed, but must compensate DTP for 6. Legal proceedings. any costs due for work performed pursuant to any lim- ited notices to proceed and any costs due according to Any false claims entitle MWAA to full recovery of the CA or CA Supplement. In the event of an owner- any costs incurred in the dispute resolution process. induced termination with no DTP default, MWAA and During the dispute resolution process, both DTP and DTP work together to establish a close-out plan within MWAA are contractually obligated to maintain their 60 days of the notice for termination. Should MWAA legal commitments and roles and responsibilities for the terminate the work owing to DTP default, DTP bears project. the cost for the remainder of the work, including any additional contractors hired by MWAA. Schedule-Related Issues The DB contract has a robust scheduling specifica- Contractor Proposed Changes in Standards or tion (Division 01322) that identifies how baselines will Requirements be developed and updated. The commercial terms also If DTP perceives the need for a change order it must include daily liquidated damages (staged at $25,000 to 1) detail the facts and circumstances underlying the $100,000 per day at various points and capped at $60 need for the change order, 2) provide information sup- million) and an early completion incentive per month porting any proposed changes in the contract price, and for each month that substantial completion is achieved 3) provide information detailing the proposed change's earlier than the agreed-upon substantial completion impact on the project schedule. Should MWAA deem date. The incentive amounts are displayed in Table 4. the change reasonable, the owner adjusts the contract price accordingly. If MWAA determines the scope and Table 4. Dulles Metrorail Early Completion In- extent of the change prior to performing the changed centives work, it can negotiate a new fixed-price lump-sum agreement with DTP. If MWAA cannot perceive the Month Incentive Value extent of the change before its execution, MWAA can First $1,000,000 compensate DTP on a time and material basis. Second $2,000,000 The contract also includes provisions for DTP- Third $3,000,000 initiated VECPs. MWAA encourages DTP to voluntarily Fourth $2,000,000 propose value engineering changes, accompanied by Fifth $2,000,000 proof of cost savings and an outline of changes to the contract and project schedule. In the event that MWAA accepts a VECP, the net cost savings is distributed as The incentive schedule is additive--therefore a sub- 30 percent to DTP and 70 percent to MWAA. stantial completion 3 months in advance would trans- late to a $6,000,000 incentive. The incentive is not to Inclusion of Disadvantaged Business Enterprises exceed $10,000,000, so there is no additional monetary incentive for reaching substantial completion more than In the contract's supplemental exhibits, MWAA de- 5 months in advance. tails the plan to include DBEs in the project, establish- ing 10 percent DBE participation. The contract requires Project Performance DTP to make good faith efforts towards including DBE participation in the project. Once DTP identifies DBE At the time of this digest, Phase 1 of the project was subcontractors or suppliers participating in the project, well into construction and, by reports from the project the contributions of those DBE participants are con- personnel interviewed, there had been no significant verted to monetary measurements to determine the claims. Phase 1 of the project appeared to be on sched- adherence to the 10 percent performance goal. ule as well. It appeared that the delivery system for Phase 2 of the project would be design/build, but that Dispute Resolution had not been finalized. DTP and MWAA established a Conflict Resolution Plan as part of the Project Management Plan for the V. AIRTRAIN JFK SYSTEM Dulles Metrorail Project. The plan consists of the fol- lowing steps: Project Overview AirTrain JFK is a light-rail transport system de- 1. Negotiations (field level with DTP and MWAA repre- signed to provide easier access from New York City to sentatives). John F. Kennedy International Airport (JFK Airport). 2. Elevated negotiations (DTP and MWAA senior repre- The AirTrain system consists of three service loops sentatives).