Common use of Cost Determination Clause in Contracts

Cost Determination. Except as otherwise modified herein, pursuant to Section 4-3 of the F.D.O.T. Standard Specifications, the cost or credit to the Owner resulting from a change in Work shall be determined as follows: 1. by cost to be determined in a manner agreed upon by the parties and a mutually acceptable fixed or percentage fee; or 2. If none of the methods set forth in Subparagraphs (1) or (2) of Paragraph 14.03 is agreed upon, the Contractor, provided he receives a written order signed by the Owner, shall promptly proceed with the Work involved. The cost of such Work shall then be determined by the Engineer, in consultation with the County Contact Person, on the basis of the reasonable expenditures and savings of those performing the Work attributable to the change, including, in the case of an increase in the Contract Sum, an allowance for overhead and profit. On self-performed work, the allowance shall be 10% plus cost of the bond. On subcontracted work, the allowance shall be 10% of subcontractor cost plus 5% for general contractor plus cost of bond. In such cases, and also under Subparagraphs (1) and (2) of Paragraph 14.03, the Contractor shall keep and present in such form as the Owner, the County Contact Person, or Engineer may prescribe, an itemized accounting together with appropriate supporting data for inclusion in a Change Order. Unless otherwise provided in the Contract Documents, cost shall be limited to the following: 1) cost of labor, including social security, old age and unemployment insurance, and fringe benefits required by agreement or custom; 2) workers’ or workmen’s compensation insurance; 3) bond premiums; and 4) rental value of equipment and machinery. Pending final determination of cost to the Owner payments on account shall be made on the Engineer’s Certificate of Payment, unless otherwise provided in the Contract. The amount of credit to be allowed by the Contractor to the Owner for any deletion or change which results in a net decrease in the Contract Sum will be the amount of the actual net cost as confirmed by the Engineer, after consultation with the County Contact Person. When both additions and credits covering related Work or substitutions are involved in any one change, the allowance for overhead and profit shall be figured on the basis of net increase, if any, with respect to the change, unless otherwise provided in the agreement.

Cost Determination. Except as otherwise modified herein, pursuant to Section 4-3 of the F.D.O.T. Standard Specifications, the The cost or credit to the Owner resulting from a change in the Work shall be determined as followsin one or more of the following ways: 1. by mutual acceptance of a lump sum properly itemized and supported by sufficient substantiating data to permit evaluation; 2. by cost to be determined in a manner agreed upon by the parties and a mutually acceptable fixed or percentage fee; or 23. If none of the methods set forth in Subparagraphs (1) or (2) of Paragraph 14.03 is agreed upon, the Contractor, provided he receives a written order signed by the Owner, shall promptly proceed with the Work involved. The cost of such Work shall then be determined by the Engineer, in consultation with the County Contact Person, on the basis of the reasonable expenditures and savings of those performing the Work attributable to the change, including, in the case of an increase in the Contract Sum, an allowance for overhead and profit. On self-performed work, the allowance shall be 10% plus cost of the bond. On subcontracted work, the allowance shall be 10% of subcontractor cost plus 5% for general contractor plus cost of bond. In such cases, and also under Subparagraphs (1) and (2) of Paragraph 14.03, the Contractor shall keep and present in such form as the Owner, the County Contact Person, or Engineer may prescribe, an itemized accounting together with appropriate supporting data for inclusion in a Change Order. Unless otherwise provided in the Contract Documents, cost shall be limited to the following: (1) cost of labor, including social security, old age and unemployment insurance, and fringe benefits required by agreement or custom; (2) workers’ workers‟ or workmen’s workmen‟s compensation insurance; (3) bond premiums; and (4) rental value of equipment and machinery; and (5) the additional cost of supervision and field office personnel directly attributable to the change. Pending final determination of cost to the Owner payments on account shall be made on the Engineer’s Engineer‟s Certificate of Payment, unless otherwise provided in the ContractAgreement. The amount of credit to be allowed by the Contractor to the Owner for any deletion or change which results in a net decrease in the Contract Sum will be the amount of the actual net cost as confirmed by the Engineer, after consultation with the County Contact Person. When both additions and credits covering related Work or substitutions are involved in any one change, the allowance for overhead and profit shall be figured on the basis of net increase, if any, with respect to the change, unless otherwise provided in the agreement.

Cost Determination. Except as otherwise modified herein, pursuant to Section 4-3 of the F.D.O.T. Standard Specifications, the cost or credit to the Owner resulting from a change in Work shall be determined as follows: 1. by cost to be determined in a manner agreed upon by the parties and a mutually acceptable fixed or percentage fee; or 2. If none of the methods set forth in Subparagraphs Subparagraph (1) or (2) of Paragraph 14.03 is not agreed upon, the Contractor, provided he receives a written order signed by the Owner, shall promptly proceed with the Work involved. The cost of such Work shall then be determined by the Engineer, in consultation with the County Contact Person, on the basis of the reasonable expenditures and savings of those performing the Work attributable to the change, including, in the case of an increase in the Contract Sum, an allowance for overhead and profit. On self-performed work, the allowance shall be 10% plus cost of the bond. On subcontracted work, the allowance shall be 10% of subcontractor cost plus 5% for general contractor plus cost of bond. In such cases, and also under Subparagraphs Subparagraph (1) and (2) of Paragraph 14.03, the Contractor shall keep and present in such form as the Owner, the County Contact Person, or Engineer may prescribe, an itemized accounting together with appropriate supporting data for inclusion in a Change Order. Unless otherwise provided in the Contract Documents, cost shall be limited to the following: cost of 1) cost of labor, including social security, old age and unemployment insurance, and fringe benefits required by agreement or custom; 2) workers’ or workmen’s compensation insurance; 3) bond premiums; and 4) rental value of equipment and machinery. Pending final determination of cost to the Owner payments on account shall be made on the Engineer’s Certificate of Payment, unless otherwise provided in the Contract. The amount of credit to be allowed by the Contractor to the Owner for any deletion or change which results in a net decrease in the Contract Sum will be the amount of the actual net cost as confirmed by the Engineer, after consultation with the County Contact Person. When both additions and credits covering related Work or substitutions are involved in any one change, the allowance for overhead and profit shall be figured on the basis of net increase, if any, with respect to the change, unless otherwise provided in the agreement.