Common use of Construction Change Directives Clause in Contracts

Construction Change Directives. (a) A Construction Change Directive is a written order prepared by the Architect/Engineer and signed by the Owner, directing a change in the Work prior to or in the absence of an agreement on adjustment, if any, in the Contract Sum and/or Construction Schedule. The Owner may by Construction Change Directive, and without invalidating the Contract, order changes in the Work. A Construction Change Directive to change the Work will be used when Owner determines that the change must be implemented before the parties will be able to agree on a Change Order for the changed Work; (b) A Construction Change Directive shall be used in the absence of total agreement on the terms of a Change Order. The Construction Change Directive shall include a unilateral change in the Contract Sum and/or Construction Schedule reflecting the Owner’s reasonable view of the appropriate adjustment in the Contract Sum and/or Construction Schedule for the change in the Work covered by the Construction Change Directive. Until agreement is reached by the Owner and Contractor on these issues, the changes in the Contract Sum and/or Construction Schedule set out in the Construction Change Directive shall be used for payment and scheduling purposes. (c) Upon receipt of a Construction Change Directive, the Contractor shall promptly proceed with the change in the Work involved and advise the Project Manager of the Contractor's agreement or disagreement with the method, if any, provided in the Construction Change Directive for determining the proposed adjustment in the Contract Sum and/or Construction Schedule. (d) A Construction Change Directive signed by the Contractor indicates only that the Contractor will proceed therewith, pending later resolution of any adjustment in the Contract Sum and/or Construction Schedule. Such Construction Change Directive shall be effective immediately. (e) In the event that performance of the changed Work is the sole cause for extension of the date of Substantial Completion and the date of Final Completion, Contractor shall be entitled to an equitable time extension. (f) Owner will increase, if Owner deems reasonable and appropriate, the Contract Sum to compensate Contractor for its additional costs incurred in the performance of a Construction Change Directive.

Appears in 4 contracts

Samples: Construction Contract, Construction Contract, Construction Contract

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Construction Change Directives. (a) a. A Construction Change Directive is a written order prepared by the Architect/Engineer Project Manager and signed by the OwnerHISD General Manager and the Project Manager, directing a change in the Work prior to or in the absence of an agreement on and stating a proposed basis for adjustment, if any, in the Contract Sum and/or Construction ScheduleJob Order amount or completion date, or both. The Owner HISD may by Construction Change Directive, and without invalidating the ContractJob Order, order changes in the Work. A Construction Change Directive to change Work within the Work will be used when Owner determines that general scope of the change must be implemented before Job Order consisting of additions, deletions or other revisions, the parties will be able to agree on a Change Job Order for the changed Work;amount and completion date being adjusted accordingly. (b) b. A Construction Change Directive shall be used in the absence of total agreement on the terms of a Change Supplemental Job Order. . c. The Construction Change Directive shall include a unilateral change in the Contract Sum Job Order amount and/or Construction Schedule completion date reflecting the OwnerHISD’s reasonable view of the appropriate adjustment change in the Contract Sum Job Order amount and/or Construction Schedule completion date for the change in the Work covered by the Construction Change Directive. Until agreement is reached by the Owner HISD and Contractor on these issues, the changes in the Contract Sum and/or Construction Schedule Job Order amount and completion date set out in the Construction Change Directive shall be used for schedule of values, payment and scheduling purposes. (c) d. Upon receipt of a Construction Change Directive, the Contractor shall promptly proceed with the change in the Work involved and advise the Project Manager of the Contractor's ’s agreement or disagreement with the method, if any, provided in the Construction Change Directive for determining the proposed adjustment in the Contract Sum and/or Construction ScheduleJob Order amount or completion date. (d) e. A Construction Change Directive signed by the Contractor indicates only that the agreement of the Contractor will proceed therewith, pending later resolution of any including adjustment in Job Order amount and completion date or the Contract Sum and/or Construction Schedulemethod for determining them. Such Construction Change Directive agreement shall be effective immediatelyimmediately and shall be recorded as a Supplemental Job Order. (e) f. In the event that performance absence of the changed Work is the sole cause for extension of the date of Substantial Completion agreement between Project Manager and the Architect/Engineer on the proper change to the Job Order amount or completion date because of Final Completiona change in the Work, Contractor may treat the matter as a Claim under Article 28. In such event, the Contractor shall be entitled to an equitable recover only the amount by which its direct costs have been reasonably increased over the direct cost of performing the Work without the change in the Work, plus fifteen percent (15%) (5% on Subcontractor’s Work) of direct cost to cover supervision, field office and home office overhead, profit and all other costs. Direct cost shall be limited to the following: (1) Reasonable cost of labor, including social security, old age and unemployment insurance, fringe benefits required by agreement or custom, and Worker’s compensation insurance; (2) Reasonable cost of materials, supplies and equipment including cost of transportation, whether incorporated or consumed; (3) Reasonable rental cost of machinery and equipment, exclusive of hand tools, rented from third parties (not owned by the Contractor), at rates that are no greater than market rates in the locale of the Work at the time extensionof the Work; (4) Reasonable cost of Subcontractor for performing the change Work. The amount allowable for Subcontractors shall be calculated using the same standards set out herein for direct Work by the Contractor. Contractor and each Subcontractor involved shall furnish evidence of costs such as copies of original invoices for materials, payroll vouchers for labor, etc., upon request by the Architect Engineer, HISD, or HISD Project Manager. Any increase in contract time shall be limited to the amount of time by which activities, critical to overall completion of the Project, are delayed by the change in the Work. If it is reasonably possible to perform the change in the Work concurrently with Work that is critical to overall completion, no time extension shall be granted by reason of a change in the Work. (f) Owner will g. Pending final determination of cost to HISD, amounts not in dispute may be included in Applications for Payment. The amount of credit allowed by the Contractor to HISD for a deletion or change which results in a net decrease in the Job Order amount shall be actual net cost as confirmed by the Project Manager. When both additions and credits covering related Work or substitutions are involved in a change, the allowance for overhead and profit shall be figured on the basis of net increase, if Owner deems reasonable and appropriateany, the Contract Sum with respect to compensate Contractor for its additional costs incurred in the performance of a Construction Change Directivethat change.

Appears in 3 contracts

Samples: Master Job Order Contracting Agreement, Master Job Order Contracting Agreement, Master Job Order Contract Agreement

Construction Change Directives. (a) A Construction Change Directive is a written order prepared by directed to the Architect/Engineer Contractor and signed by the OwnerOwner and Engineer, directing a change in the Work prior to or in the absence of an agreement on and stating a proposed basis for adjustment, if any, in the Contract Sum and/or Construction Scheduleor Contract Time, or both. The Owner may by Construction Change Directive, and without invalidating the Contract, order changes in the WorkWork within the general scope of the Contract consisting of additions, deletions, or other revisions, the Contract Sum and Contract Time being adjusted accordingly. 1. A Construction Change Directive to change the Work will be used when Owner determines that the change must be implemented before the parties will be able to agree on a Change Order for the changed Work; (b) A Construction Change Directive shall be used in the absence of total agreement on the terms of a Change Order. 2. The Construction Change Directive shall include a unilateral change in the Contract Sum and/or Construction Schedule reflecting the Owner’s reasonable view of the appropriate adjustment in the Contract Sum and/or Construction Schedule for the change in the Work covered by the Construction Change Directive. Until agreement is reached by the Owner and Contractor on these issues, the changes in the Contract Sum and/or Construction Schedule set out in If the Construction Change Directive provides for an adjustment to the Contract Sum, the adjustment shall be used for payment based on one of the following methods: a. By mutual acceptance of a lump sum properly itemized and scheduling purposessupported by sufficient substantiating data to permit evaluation; b. By unit prices stated in the Contract Documents or subsequently agreed upon; c. By cost to be determined in a manner agreed upon by the parties and a mutually acceptable fixed or percentage fee; or d. By the method provided in Subparagraph (C)(3)(5). (c) 3. Upon receipt of a Construction Change Directive, the Contractor shall promptly proceed with the change in the Work work involved and advise the Project Manager Engineer and Owner of the Contractor's ’s agreement or disagreement with the method, if any, provided in the Construction Change Directive for determining the proposed adjustment in the Contract Sum and/or Construction Scheduleor Contract Time. (d) 4. A Construction Change Directive signed by the Contractor indicates only that the agreement of the Contractor will proceed therewith, pending later resolution of any including adjustment in Contract Sum and Contract Time or the method for determining them. Such agreement shall be effective immediately and shall be recorded as a Change Order. 5. If the Contractor does not respond promptly to the Construction Change Directive or disagrees with the method for adjustment in the Contract Sum, the method and the adjustment shall be determined by the Engineer on the basis of reasonable expenditures and savings of those performing the work attributable to the change, including, in case of an increase in the Contract Sum, a percentage fee for overhead and profit not to exceed five percent (5%) of such work’s actual cost for Contractor and ten percent (10%) of such work’s actual cost to be apportioned between any and all subcontractors and sub-subcontractors. For work performed by Contractor’s own forces, Contractor’s xxxx-up shall be limited to actual cost plus a percentage fee for overhead and profit not to exceed ten percent (10%). In such case, the Contractor shall keep and present, in such form as the Engineer may prescribe, an itemized accounting of actual costs together with appropriate supporting data. For the purposes of this Subparagraph, actual costs shall be defined as and limited to the following: a. Costs of labor, including Social Security, old age and unemployment insurance, fringe benefits required by agreement or custom, and workers’ compensation insurance; b. Costs of materials, supplies, and equipment, including costs of transportation, whether incorporated or consumed; c. Reasonable rental costs of machinery and equipment, exclusive of hand tools, obtained and used specifically for such work, whether rented from the Contractor or others; and d. Costs of premiums for all bonds (if any), permit fees, and sales, use or similar taxes directly attributable to such work. Actual cost does not include any item which could be deemed to be a general conditions cost or overhead, such as but not limited to, the cost of Contractor and Subcontractor supervisory personnel assigned to the Work, and field office and related expenses. 6. Pending final determination of actual cost to the Owner, amounts not in dispute may be included in applications for payment. The amount of credit to be allowed by the Contractor to the Owner for a deletion or change which results in a net decrease in the Contract Sum and/or Construction Scheduleshall be actual net cost as confirmed by the Engineer. Such Construction Change Directive When both additions and credits covering related work or substitutions are involved in a change, the allowance for overhead and profit shall be figured on the basis of net increase, if any, with respect to that change. 7. If the Owner and Contractor do not agree with the adjustment in Contract Time or the method for determining it, the adjustment or the method shall be determined in accordance with Article 5 hereof. 8. When the adjustments in the Contract Sum and Contract Time are determined as provided herein, such determination shall be effective immediately. (e) In the event that performance of the changed Work is the sole cause for extension of the date of Substantial Completion immediately and the date of Final Completion, Contractor shall be entitled to recorded by preparation and execution of an equitable time extensionappropriate Change Order. (f) Owner will increase, if Owner deems reasonable and appropriate, the Contract Sum to compensate Contractor for its additional costs incurred in the performance of a Construction Change Directive.

Appears in 3 contracts

Samples: Trade Contractor Agreement, Trade Contractor Agreement, Trade Contractor Agreement

Construction Change Directives. (a) A Construction Change Directive is a written order prepared by the Architect/Engineer and signed by the Owner, directing a change in the Work prior to or in the absence of an agreement on adjustment, if any, in the Contract Sum and/or Construction SchedulePrice or Contract Time, or both. The Owner City may by Construction Change Directive, and without invalidating the Contract, order changes in the WorkWork within the general scope of the Contract consisting of additions, deletions, or other revisions, the Contract Price and Contract Time being adjusted accordingly. A Construction Change Directive to change the Work will be used when Owner determines that the change must be implemented before the parties will be able to agree on a Change Order for the changed Work; (b) A Construction Change Directive shall be used in the absence of total agreement on the terms of a Change Order. The If the Construction Change Directive shall include a unilateral change in provides for an adjustment to the Contract Sum and/or Construction Schedule reflecting Price, the Owner’s reasonable view of adjustment shall be made as provided in Section VIII below. If Contractor disagrees with the appropriate adjustment in the Contract Sum and/or Construction Schedule for the change Price or Contract Time, Contractor may make a Claim in the Work covered by the Construction Change Directiveaccordance with applicable provisions of Section VIII(6). Until agreement is reached by the Owner and Contractor on these issues, the changes in the Contract Sum and/or Construction Schedule set out in the Construction Change Directive shall be used for payment and scheduling purposes. (c) Upon receipt of a Construction Change Directive, the Contractor shall promptly proceed with the change in the Work involved and advise the Project Manager Engineer of the Contractor's ’s agreement or disagreement with the method, if any, provided in the Construction Change Directive for determining the proposed adjustment in the Contract Sum and/or Price or Contract Time. When the City and Contractor agree with a determination made by the Engineer concerning the adjustments in the Contract Price and Contract Time, or otherwise reach agreement upon the adjustments, such agreement shall be effective immediately and the Engineer shall prepare a Change Order. Change Orders may be issued for all or any part of a Construction Schedule. (d) Change Directive. A Construction Change Directive signed by the Contractor indicates only that the Contractor will proceed Contractor’s agreement therewith, pending later resolution of any including adjustment in Contract Price and Contract Time or the Contract Sum and/or Construction Schedulemethod for determining them. Such Construction Change Directive agreement shall be effective immediately. (e) In the event that performance of the changed Work is the sole cause for extension of the date of Substantial Completion immediately and the date of Final Completion, Contractor shall be entitled to an equitable time extensionrecorded as a Change Order. (f) Owner will increase, if Owner deems reasonable and appropriate, the Contract Sum to compensate Contractor for its additional costs incurred in the performance of a Construction Change Directive.

Appears in 2 contracts

Samples: Contract for Local Improvement, Contract for Local Improvement

Construction Change Directives. (a) A Construction Change Directive is a written order prepared by the Architect/Engineer and signed by the OwnerDistrict, directing a change in Work pursuant to a Work Order or Change Order where there is a dispute as to the terms of the Work prior to Order or in the absence of an agreement on adjustment, if anyChange Order. A Construction Change Directive for a Work Order authorizing payment from a Specific Allowance shall be signed, in writing, by District’s Director of Engineering and Construction. A Construction Change Directive for a Work Order authorizing payment from the Contract Sum and/or General Allowance shall be signed, in writing, by both the District’s Director of Engineering and Construction Scheduleand District’s Executive Director. A Construction Change Directive for a Change Order shall be authorized in writing by District’s Executive Director and approved, by resolution, by District’s Board of Trustees. The Owner District may by Construction Change Directive, and without invalidating the Contract, order changes authorize a Work Order or Change Order consisting of additions, deletions or other revisions with a change in the WorkBase Contract Price, the General Allowance, Specific Allowance(s), Contract Sum and/or time of Completion being adjusted accordingly. A Construction Change Directive to change the Work will be used when Owner determines that the change must be implemented before the parties will be able to agree on a Change Order for the changed Work; (b) A Construction Change Directive shall be initiated by the District and used in the absence of total agreement on the terms of a Work Order or Change Order. The Construction Change Directive shall include a unilateral change in An adjustment to the Contract Sum and/or Construction Schedule reflecting the Owner’s reasonable view cost of the appropriate adjustment in the Contract Sum and/or Construction Schedule for the change in the Work covered by the Construction Change Directive. Until agreement is reached by the Owner and Contractor on these issues, the changes in the Contract Sum and/or Construction Schedule set out in the resulting from a Construction Change Directive shall be used for payment and scheduling purposes. (c) documented in a signed written agreement. The cost of the Work shall be determined as set forth in Article 12 of this Agreement. All Construction Change Directives shall be signed first by the District followed by the Design-Builder, respectively. Upon receipt of a Construction Change DirectiveDirective signed by District, the Contractor Design-Builder shall promptly proceed with the change in the Work Order or Change Order involved and advise the Project Manager District of the Contractor's Design-Builder’s agreement or disagreement with the method, if any, provided in the Construction Change Directive for determining the proposed adjustment in to the Contract Sum and/or Construction Schedule. (d) Work Order or Change Order. A Construction Change Directive signed by Design-Builder indicates the Contractor indicates only that agreement of Design-Builder to its terms. Such agreement shall be effective immediately and shall be followed-up by a written Work Order signed by District’s Director of Engineering and Construction authorizing payment from a Specific Allowance(s), or a written Work Order signed by both District’s Director of Engineering and Construction and District’s Executive Director authorizing payment from the Contractor will proceed therewithGeneral Allowance or a written Change Order signed by District’s Executive Director and authorized, pending later resolution by resolution, by District’s Board of any Trustees. Except as otherwise agreed by the District and Design-Builder, the method and the adjustment shall be initially determined by the District on the basis of reasonable expenditures and savings of those performing the Work attributable to the Work Order or Change Order, including expenditures for design services and revisions to the Contract Documents. If the Design-Builder does not respond promptly or disagrees with the method for adjustment, Design-Builder shall keep and present, in such form as District may prescribe, an itemized accounting together with appropriate supporting data to substantiate the accounting to the reasonable satisfaction of District. Pending final determination of cost to the District for a Work Order or Change Order, amounts not in dispute may be included in Applications for Payment. The amount of credit to be allowed by Design-Builder to the District for a deletion or change which results in a net decrease in the Contract Sum and/or Construction Schedule. Such Construction Change Directive shall be effective immediately. (e) In the event that performance of the changed actual net cost. When both additions and credits covering related Work is the sole cause for extension of the date of Substantial Completion and the date of Final Completionor substitutions are involved in a Work Order or Change Order, Contractor Design-Builder’s Markup Fee shall be entitled to an equitable time extension. (f) Owner will figured on the basis of net increase, if Owner deems reasonable any, with respect to that change. When the District and appropriateDesign-Builder, subsequent to the Contract Sum to compensate Contractor for its additional costs incurred in the performance issuance of a Construction Change Directive, agree concerning the adjustments to the Work Order or Change Order, such agreement shall be effective immediately and shall be recorded by preparation and execution of an appropriate written Work Order signed by District’s Director of Engineering and Construction and the Design- Builder authorizing payment from a Specific Allowance(s), or an appropriate written Work Order signed by both District’s Executive Director of Engineering and Construction and District’s Executive Director and the Design-Builder authorizing payment from the General Allowance or a Change Order signed by District’s Executive Director and the Design-Builder and authorized, by resolution, by District’s Board of Trustees.

Appears in 1 contract

Samples: Design Build Agreement

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Construction Change Directives. (a) a. A Construction Change Directive is a written order prepared by the Architect/Engineer Project Manager and signed by the OwnerHISD General Manager and the Project Manager, directing a change in the Work prior to or in the absence of an agreement on and stating a proposed basis for adjustment, if any, in the Contract Sum and/or Construction ScheduleJob Order amount or completion date, or both. The Owner HISD may by Construction Change Directive, and without invalidating the ContractJob Order, order changes in the Work. A Construction Change Directive to change Work within the Work will be used when Owner determines that general scope of the change must be implemented before Job Order consisting of additions, deletions or other revisions, the parties will be able to agree on a Change Job Order for the changed Work;amount and completion date being adjusted accordingly. (b) b. A Construction Change Directive shall be used in the absence of total agreement on the terms of a Change Supplemental Job Order. . c. The Construction Change Directive shall include a unilateral change in the Contract Sum Job Order amount and/or Construction Schedule completion date reflecting the OwnerHISD’s reasonable view of the appropriate adjustment change in the Contract Sum Job Order amount and/or Construction Schedule completion date for the change in the Work covered by the Construction Change Directive. Until agreement is reached by the Owner HISD and Contractor on these issues, the changes in the Contract Sum and/or Construction Schedule Job Order amount and completion date set out in the Construction Change Directive shall be used for schedule of values, payment and scheduling purposes. (c) d. Upon receipt of a Construction Change Directive, the Contractor shall promptly proceed with the change in the Work involved and advise the Project Manager of the Contractor's ’s agreement or disagreement with the method, if any, provided in the Construction Change Directive for determining the proposed adjustment in the Contract Sum and/or Construction ScheduleJob Order amount or completion date. (d) e. A Construction Change Directive signed by the Contractor indicates only that the agreement of the Contractor will proceed therewith, pending later resolution of any including adjustment in Job Order amount and completion date or the Contract Sum and/or Construction Schedulemethod for determining them. Such Construction Change Directive agreement shall be effective immediatelyimmediately and shall be recorded as a Change Order. (e) f. In the event that performance absence of the changed Work is the sole cause for extension of the date of Substantial Completion agreement between Project Manager and the Architect/Engineer on the proper change to the Job Order amount or completion date because of Final Completiona change in the Work, Contractor may treat the matter as a Claim under Article 28. In such event, the Contractor shall be entitled to an equitable recover only the amount by which its direct costs have been reasonably increased over the direct cost of performing the Work without the change in the Work, plus fifteen percent (15%) (5% on Subcontractor’s Work) of direct cost to cover supervision, field office and home office overhead, profit and all other costs. Direct cost shall be limited to the following: (1) Reasonable cost of labor, including social security, old age and unemployment insurance, fringe benefits required by agreement or custom, and Worker’s compensation insurance; (2) Reasonable cost of materials, supplies and equipment including cost of transportation, whether incorporated or consumed; (3) Reasonable rental cost of machinery and equipment, exclusive of hand tools, whether rented from the Contractor or others at rates that are no greater than market rates in the locale of the Work at the time extensionof the Work; (4) Reasonable costs of premiums for all bonds and insurance (General Contractor only), permit fees and sales, use or similar taxes related to the Work; and (5) Reasonable cost of Subcontractor for performing the change Work. The amount allowable for Subcontractors shall be calculated using the same standards set out herein for direct Work by the Contractor. Contractor and each Subcontractor involved shall furnish evidence of costs such as copies of original invoices for materials, payroll vouchers for labor, etc., upon request by the Architect Engineer, HISD, or HISD Project Manager. Any increase in contract time shall be limited to the amount of time by which activities, critical to overall completion of the Project, are delayed by the change in the Work. If it is reasonably possible to perform the change in the Work concurrently with Work that is critical to overall completion, no time extension shall be granted by reason of a change in the Work. (f) Owner will g. Pending final determination of cost to HISD, amounts not in dispute may be included in Applications for Payment. The amount of credit allowed by the Contractor to HISD for a deletion or change which results in a net decrease in the Job Order amount shall be actual net cost as confirmed by the Project Manager. When both additions and credits covering related Work or substitutions are involved in a change, the allowance for overhead and profit shall be figured on the basis of net increase, if Owner deems reasonable and appropriateany, the Contract Sum with respect to compensate Contractor for its additional costs incurred in the performance of a Construction Change Directivethat change.

Appears in 1 contract

Samples: Master Job Order Contract Agreement

Construction Change Directives. (a) A Construction Change Directive is a written order prepared by directed to the Architect/Engineer Contractor and signed by the OwnerXXXX and Engineer, directing a change in the Work prior to or in the absence of an agreement on and stating a proposed basis for adjustment, if any, in the Contract Sum and/or Construction Scheduleor Contract Time, or both. The Owner NURA may by Construction Change Directive, and without invalidating the Contract, order changes in the WorkWork within the general scope of the Contract consisting of additions, deletions, or other revisions, the Contract Sum and Contract Time being adjusted accordingly. 1. A Construction Change Directive to change the Work will be used when Owner determines that the change must be implemented before the parties will be able to agree on a Change Order for the changed Work; (b) A Construction Change Directive shall be used in the absence of total agreement on the terms of a Change Order. 2. The Construction Change Directive shall include a unilateral change in the Contract Sum and/or Construction Schedule reflecting the Owner’s reasonable view of the appropriate adjustment in the Contract Sum and/or Construction Schedule for the change in the Work covered by the Construction Change Directive. Until agreement is reached by the Owner and Contractor on these issues, the changes in the Contract Sum and/or Construction Schedule set out in If the Construction Change Directive provides for an adjustment to the Contract Sum, the adjustment shall be used for payment based on one of the following methods: a. By mutual acceptance of a lump sum properly itemized and scheduling purposessupported by sufficient substantiating data to permit evaluation; b. By unit prices stated in the Contract Documents or subsequently agreed upon; c. By cost to be determined in a manner agreed upon by the parties and a mutually acceptable fixed or percentage fee; or d. By the method provided in Subparagraph (C)(3)(5). (c) 3. Upon receipt of a Construction Change Directive, the Contractor shall promptly proceed with the change in the Work work involved and advise the Project Manager Engineer and NURA of the Contractor's ’s agreement or disagreement with the method, if any, provided in the Construction Change Directive for determining the proposed adjustment in the Contract Sum and/or Construction Scheduleor Contract Time. (d) 4. A Construction Change Directive signed by the Contractor indicates only that the agreement of the Contractor will proceed therewith, pending later resolution of any including adjustment in Contract Sum and Contract Time or the method for determining them. Such agreement shall be effective immediately and shall be recorded as a Change Order. 5. If the Contractor does not respond promptly to the Construction Change Directive or disagrees with the method for adjustment in the Contract Sum, the method and the adjustment shall be determined by the Engineer on the basis of reasonable expenditures and savings of those performing the work attributable to the change, including, in case of an increase in the Contract Sum, a percentage fee for overhead and profit not to exceed five percent (5%) of such work’s actual cost for Contractor and ten percent (10%) of such work’s actual cost to be apportioned between any and all subcontractors and sub-subcontractors. For work performed by Contractor’s own forces, Contractor’s mark-up shall be limited to actual cost plus a percentage fee for overhead and profit not to exceed ten percent (10%). In such case, the Contractor shall keep and present, in such form as the Engineer may prescribe, an itemized accounting of actual costs together with appropriate supporting data. For the purposes of this Subparagraph, actual costs shall be defined as and limited to the following: a. Costs of labor, including Social Security, old age and unemployment insurance, fringe benefits required by agreement or custom, and workers’ compensation insurance; b. Costs of materials, supplies, and equipment, including costs of transportation, whether incorporated or consumed; c. Reasonable rental costs of machinery and equipment, exclusive of hand tools, obtained and used specifically for such work, whether rented from the Contractor or others; and d. Costs of premiums for all bonds (if any), permit fees, and sales, use or similar taxes directly attributable to such work. Actual cost does not include any item which could be deemed to be a general conditions cost or overhead, such as but not limited to, the cost of Contractor and Subcontractor supervisory personnel assigned to the Work, and field office and related expenses. 6. Pending final determination of actual cost to NURA, amounts not in dispute may be included in applications for payment. The amount of credit to be allowed by the Contractor to NURA for a deletion or change which results in a net decrease in the Contract Sum and/or Construction Scheduleshall be actual net cost as confirmed by the Engineer. Such Construction Change Directive When both additions and credits covering related work or substitutions are involved in a change, the allowance for overhead and profit shall be figured on the basis of net increase, if any, with respect to that change. 7. If NURA and Contractor do not agree with the adjustment in Contract Time or the method for determining it, the adjustment or the method shall be determined in accordance with Article 5 hereof. 8. When the adjustments in the Contract Sum and Contract Time are determined as provided herein, such determination shall be effective immediately. (e) In the event that performance of the changed Work is the sole cause for extension of the date of Substantial Completion immediately and the date of Final Completion, Contractor shall be entitled to recorded by preparation and execution of an equitable time extensionappropriate Change Order. (f) Owner will increase, if Owner deems reasonable and appropriate, the Contract Sum to compensate Contractor for its additional costs incurred in the performance of a Construction Change Directive.

Appears in 1 contract

Samples: Trade Contractor Agreement

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