Common use of Assessment Costs Clause in Contracts

Assessment Costs. If it becomes necessary during the course of construction to issue change orders which increase the cost of the Project because of the Professional’s errors or omissions, and the total of all Error or Omission change orders exceeds 2.5% of the contract award amount, the Professional will be assessed the following on each Error or Omission Change Order: 1. For omission change orders, the Professional will be assessed 10% of the change order amount which will cover all associated costs owed to the Department due to the omission. 2. For error change orders, the Professional will be assessed the cost of removing and replacing the work to remedy the error, plus an Administrative Cost of 10% of the change order amount, plus any other costs resulting from the error, which may include but not be limited to inefficiencies, acceleration and delay costs.