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Mn/DOT Agreement No, Work Order O 1 <br />Article 3 Scope of Work: <br />3.1 The Providing Party will perform services under this Work Order summarized generally as follows: <br />The State will provide transportation-related routine roadway maintenance and/or professionaUtechnical services <br />to the Local Government. Examples of services are shown on Exhibit B. <br />Article 4 Deliverables by the Providing Party <br />4.1 Upon receipt of a written request form the Local Government, the State will evaluate the request and promptly <br />inform the Local Government if the State will perform the work, either as submitted or with modifications. If <br />accepting the work, the State will identify a project manager for the work to be performed. Any work assignment <br />accepted by the State pursuant to this contract is subject to all terms and conditions of this contract. <br />4.2 After the State accepts a work assignment, the State will promptly perform the work in a professional manner and <br />in accordance with generally accepted government standards. If the Local Government deems that the work is not <br />proceeding in a satisfactory manner, the Local Government will bring such concerns to the State's Project Manager <br />in charge of the particular project. The Parties will endeavor to resolve any disputes concerning work under this <br />contract in the most informal and cost-effective manner reasonably available. <br />Article 5 Items provided or completed by the Requesting Party <br />5.1 The Local Government will submit a brief written request for any services to the State. The request may be in the <br />form of a letter or memorandum and may be transmitted by fax or email. A request may be made via telephone, <br />but will not be considered accepted unless acknowledged in writing by the State.. The request must include <br />sufficient detail on the scope of the work to be performed to afford the State the opportunity to assess the <br />resources necessary to accomplish the work and develop a cost estimate. <br />Article 6 Consideration of Payment: <br />6.1 Payment Basis. The State may, at its option, charge the Local Government on either alump-sum or actual cost <br />basis for performance of the work. <br />6.2 Actual Cost Basis. Unless a lump sum or other payment arrangement is agreed upon, all work performed by the <br />State will be billed on an actual cost basis. For work performed upon an actual cost basis, the State will provide a <br />report showing the actual cost of the services performed by the State under this contract. The State's "Actual <br />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. Such <br />travel expenses will be subject to the limitations contained in the "Minnesota Department of <br />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 o£ <br />(a) The actual hourly wage or salary of State personnel for time pent working on the project; and <br />(b) Labor and overhead additive, at a rate to be determined annually by the appropriate State <br />Financial/Accounting Officer. Labor additive will include fringe benefits, holiday and vacation <br />pay, and applicable workers compensation and payroll tax 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 />Article 7 Terms of Payment: <br />7.1 The State will invoice the Local Government upon completion of the services, or at regular intervals not more <br />than once monthly as agreed upon by the parties. <br />(Rev 09/26/07) - 2 - <br />