[Code of Federal Regulations]
[Title 23, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 23CFR635.102]

[Page 171-172]
 
                           TITLE 23--HIGHWAYS
 
 CHAPTER I--FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 635--CONSTRUCTION AND MAINTENANCE--Table of Contents
 
                     Subpart A--Contract Procedures
 
Sec. 635.102  Definitions.

    As used in this subpart:
    Administrator means the Federal Highway Administrator.
    Calendar day means each day shown on the calendar but, if another 
definition is set forth in the State contract specifications, that 
definition will apply.
    Certification acceptance means the alternative procedure which may 
be used for administering certain highway projects involving Federal 
funds pursuant to 23 U.S.C. 117.
    Contract time means the number of workdays or calendar days 
specified in a contract for completion of the contract work. The term 
includes authorized time extensions.
    Division Administrator means the chief FHWA official assigned to 
conduct business in a particular State. A State is as defined in 23 
U.S.C. 101.
    Force account means a basis of payment for the direct performance of 
highway construction work with payment based on the actual cost of 
labor, equipment, and materials furnished and consideration for overhead 
and profit.
    Formal approval means approval in writing or the electronic 
transmission of such approval.
    Incentive/disincentive for early completion as used in this subpart, 
describes a contract provision which compensates the contractor a 
certain amount of money for each day identified critical work is 
completed ahead of schedule and assesses a deduction for each day the 
contractor overruns the incentive/disincentive time. Its use is 
primarily intended for those critical projects where traffic 
inconvenience and delays are to be held to a minimum. The amounts are 
based upon estimates of such items as traffic safety, traffic 
maintenance, and road user delay costs.
    Liquidated damages means the daily amount set forth in the contract 
to be deducted from the contract price to cover additional costs 
incurred by a State highway agency because of the contractor's failure 
to complete the contract work within the number of calendar days or 
workdays specified. The term may also mean the total of all daily 
amounts deducted under the terms of a particular contract.
    Local public agency means any city, county, township, municipality, 
or other political subdivision that may be empowered to cooperate with 
the State highway agency in highway matters.
    Major change or major extra work means a change which will 
significantly affect the cost of the project to the Federal Government 
or alter the termini, character or scope of the work.
    Materially unbalanced bid means a bid which generates a reasonable 
doubt that award to the bidder submitting a mathematically unbalanced 
bid will result in the lowest ultimate cost to the Federal Government.
    Mathematically unbalanced bid means a bid containing lump sum or 
unit bid items which do not reflect reasonable actual costs plus a 
reasonable proportionate share of the bidder's anticipated profit, 
overhead costs, and other indirect costs.
    Public agency means any organization with administrative or 
functional responsibilities which are directly or indirectly affiliated 
with a governmental body of any nation, State, or local jurisdiction.
    Publicly owned equipment means equipment previously purchased or 
otherwise acquired by the public agency involved primarily for use in 
its own operations.
    Specialty items means work items identified in the contract which 
are not normally associated with highway construction and require highly 
specialized knowledge, abilities or equipment not ordinarily available 
in the type of contracting organizations qualified and expected to bid 
on the contract; in general, these items are to be limited to minor 
components of the overall contract.
    State highway agency (SHA) means that department, commission, board, 
or official of any State charged by its laws with the responsibility for 
highway construction. The term ``State'' should be considered equivalent 
to ``State highway agency'' if the context so implies.
    Workday means a calendar day during which construction operations 
could

[[Page 172]]

proceed for a major part of a shift, normally excluding Saturdays, 
Sundays, and State-recognized legal holidays.

[62 FR 6873, Feb. 14, 1997]