600 Kar 6:010. Definitions For 600 Kar Chapter 6

Link to law: http://www.lrc.ky.gov/kar/600/006/010.htm
Published: 2015

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      600 KAR 6:010. Definitions for 600 KAR

Chapter 6.


      RELATES TO: KRS 45A.030, 45A.085,

45A.095, 45A.800-45A.835, 45A.838, 23 C.F.R. 172, 23 U.S.C. 112, 121



45A.838(1), (4), and (5) require the Transportation Cabinet to promulgate

administrative regulations relating to the establishment and operation of professional

service firm pools. This administrative regulation establishes the definitions

for terms used in 600 KAR Chapter 6.


      Section 1. Definitions. (1)

"Award" means the presentation of an agreement or contract to a


      (2) "Cabinet" means the

Kentucky Transportation Cabinet.

      (3) "Change order" is defined

in KRS 45A.030(2).

      (4) "Competitive negotiation"

means negotiations that meet the requirements established in KRS 45A.085.

      (5) "Consultant" means a firm

which has been selected to perform engineering or engineering-related services

for the cabinet as the prime or top-ranked firm in accordance with 600 KAR


      (6) "Continuous professional

liability policy" means professional liability insurance coverage which is

maintained without a gap in coverage in order to become and to remain

prequalified with the Transportation Cabinet.

      (7) "Contract" is defined in

KRS 45A.030(7).

      (8) "Contract modification" is defined

in KRS 45A.030(8).

      (9) "Cost per unit of work"

means a price based on a unit if the extent of work cannot be defined but a

cost of the work per unit can be determined in advance with reasonable


      (10) "Cost plus a fixed fee"

means a price based on the actual allowable cost of the work plus any

preestablished fixed amount for operating margin.

      (11) "DBE" means a

disadvantaged business enterprise as defined and certified in accordance with

the provisions of 600 KAR 4:010.

      (12) "Direct salary" means the

salary of a person directly involved with and chargeable to a specific project,

e.g., engineering or draftsperson time spent on a project.

      (13) "Discipline" means an

engineering or related service area with responsibility falling to a specific

user division.

      (14) "Engineer" is defined by

KRS 45A.800(2).

      (15) "Engineering-related

services" is defined by KRS 45A.800(7).

      (16) "Firm" is defined by KRS


      (17) "FHWA" means the Federal

Highway Administration.

      (18) "Lump sum" means a fixed

price, including cost and operating margin, agreed upon between a consultant

and cabinet for a group of tasks without a breakdown of individual values,

i.e., a lot price.

      (19) "Modification" means a

formal revision to the terms of a contract.

      (20) "Noncompetitive

negotiation" means negotiations that meet the requirements established in

KRS 45A.095.

      (21) "Overhead costs" means an

indirect cost that:

      (a) Is not chargeable to a specific

project; and

      (b) Supports:

      1. Personnel salaries;

      2. Accounting;

      3. General maintenance and repair;

      4. Building rent;

      5. Utilities;

      6. Furniture; and

      7. A similar cost related to conducting


      (22) "Overhead submission

packet" means a package of information containing a summary of the:

      (a) Firm's overhead expense accounts;

      (b) Direct and indirect labor; and

      (c) Direct costs of items outlined in 600

KAR 6:080, Section 1(5).

      (23) "Pool" means a group of

firms selected to provide engineering or engineering-related services.

      (24) "Prequalification" means

the evaluation of a professional:

      (a) To determine if he or she is

qualified to contract with the cabinet for engineering or engineering-related

services; and

      (b) By consideration of:

      1. Financial capability;

      2. Technical expertise;

      3. Experience;

      4. Past performance;

      5. Management; and

      6. Similar business factors.

      (25) "Prequalification

category" means a type of project for which engineering or engineering-related

services are contracted.

      (26) "Prime" or "top-ranked"

means a consultant:

      (a) Awarded a contract under 600 KAR

6:070; and

      (b) Performing at least fifty (50)

percent of the dollar value of the work for a project.

      (27) "Principal" means an

individual who:

      (a) Owns directly or indirectly more than

ten (10) percent of the voting interest in a consulting firm; or

      (b) Serves as:

      1. President;

      2. Vice president;

      3. Secretary;

      4. Director; or

      5. Another firm officer.

      (28) "Project-specific professional

liability insurance" means separate professional liability coverage which

provides noncancelable coverage for the duration of a specific project and

continuing through a discovery period after construction is complete.

      (29) "Professional liability

policy" means claims-made insurance coverage for engineering or

engineering-related services which indemnifies a firm, a past or present

partner, an officer, a director, a stockholder, or an employee while acting

within the scope of firm duties, against the following:

      (a) A negligent act;

      (b) An error or omission in performing a

professional service; or

      (c) Failure to provide a service in

accordance with standard of care.

      (30) "Professional services"

means specialized services performed by an individual or consultant of

recognized technical competence.

      (31) "Project" means an

undertaking by the Transportation Cabinet as defined in KRS 45A.800(4).

      (32) "Project manager" means

the director of the user division or person designated by the user division

director to oversee the performance of a consultant to perform contracted

services on a project.

      (33) "Proof of necessity" means

the justification to employ an:

      (a) Engineer;

      (b) Architect;

      (c) Appraiser;

      (d) Attorney; or

      (e) Other professional.

      (34) "Proposal" means an offer

made by a firm to the cabinet as a basis for negotiations for entering into a


      (35) "Salary additives" means

an employer-paid fringe benefit, including:

      (a) The employer portion of FICA;

      (b) Health insurance;

      (c) Group life insurance;

      (d) A state unemployment contribution; or

      (e) A similar employee benefit.

      (36) "Scope of work" means all

services and actions required of the consultant by the contract.

      (37) "Services" is defined in

KRS 45A.030(24).

      (38) "Six (6) year plan" means

the document prepared by the Transportation Cabinet in accordance with the

provisions of KRS 176.419 through 176.440.

      (39) "Standard of care" means

the ordinary and reasonable care required and established by expert testimony

of what a reasonable and prudent professional would have done under the same or

similar circumstances.

      (40) "Subconsultant" means a

second consultant contracted to a prime consultant for the performance of work

contracted by the cabinet to the prime consultant.

      (41) "Termination clause" means

a contract clause which allows the cabinet to terminate, at its own discretion,

the performance of work and to make settlement of the consultant's claims.

      (42) "User division" is defined

in KRS 45A.800(6).

      (43) "Work unit" means an item

on a list of tasks which are required to be accomplished by the consultant in

order to satisfactorily complete the scope of work. (22

Ky.R. 1403; eff. 4-5-96; Am. 24 Ky.R. 1373; 1689; eff. 2-19-98; 25 Ky.R. 1952;

2559; eff. 5-4-99; 33 Ky.R. 539; 1307; eff. 11-9-2006.)