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Document
Short Term Credit Facility Q2517
Year Created: 2025
DOCUMENT
POL - Incentive Clause - Port St. Lucie 2002
- YEAR CREATED: 2002
- ENTITY TYPE: City/Township
- TYPE OF DOCUMENT: POL - Policies/Procedures
- Finance
The document describes an incentive-disincentive provision in a construction contract. The city aims to expedite the construction process to minimize inconvenience to the public and reduce construction time. The provision states that if the contractor substantially completes the project before the Allowable Substantial Completion Time, they will receive an incentive payment of $2,000 per calendar day. However, the total incentive payment or disincentive deduction cannot exceed $100,000.
The Allowable Substantial Completion Time is the original deadline set for completing the project, and the contract time will not be adjusted for any delays or events except in the case of a catastrophic event. The contractor is responsible for any costs incurred in accelerating the work to overcome delays.
In the event of a catastrophic event, the city and contractor will negotiate an extension of the original substantial completion time. If they cannot agree, the city will unilaterally determine the extension. It is important for the contractor to complete the contract and obtain final acceptance before the expiration of the original contract time to be eligible for the incentive payment. The contractor must also notify the city within 30 days of final acceptance to request the payment. Failure to meet these requirements will result in no payment.
If the contractor fails to achieve substantial completion within the Allowable Substantial Completion Time, the city will deduct $2,000 per calendar day from the payment.