Common use of Owner’s Right to Make Changes Clause in Contracts

Owner’s Right to Make Changes. Add new 6.1.3: With respect to the valuation of any adjustment in the Contract Price, subject to any different or additional requirements contained in the Specifications, the following shall apply: If applicable, unit prices included in the Contract, or prices pro rata thereto, will be used to value changes; Proposed methods of adjustment should contain itemized breakdowns describing the net actual value of the Work (excluding Value Added Taxes), the Contractor‟s xxxx-up for overhead and profit, the xxxx-up for overhead and profit of Subcontractors, and where appropriate, detailed quotations or cost vouchers from Subcontractors and Suppliers; All overhead costs are deemed to include both site and head office overhead costs, as well as any applicable insurance and bonding costs; Labour costs shall be the actual labour costs based upon rates prevailing at the Place of the Work and payable to workers, plus applicable statutory charges such as WSIB, Employment Insurance, Canada Pension, vacation pay, and hospitalization and medical insurance; If a change involves both additions and deletions to the Work, the value of the change will be determined based upon the net difference to the Work occasioned by the change. For greater certainty, the Contractor‟s xxxx-up for overhead and profit only will be applied to the net value of the change. Add new paragraph 6.1.4: The Owner, through the Consultant, reserves the right to authorize payment for a change in the Work by means of Cash Allowance. For greater certainty, the Contractor is not entitled to any xxxx-up for overhead and profit on such amounts. Add new paragraph 6.1.5: In the event that any change to the Work results in a reduction in the Contract Price, the Contractor shall not be entitled to claim for any lost revenue, lost profit or loss of anticipated profit related thereto. Add new 6.2.3: If a change in the Work, not covered by unit prices or by estimate and acceptance in a lump sum, results in a new increase in the Contract Price, the charge to the Owner shall be the cost of the work plus: Contractor‟s xxxx-up on its own work: Overhead Profit Change Value 10% 10% Between $0 to $999.00 10% 7% Between $1,000.00 to $4,999.99 10% 5% Over $5,000.00 Contractors Xxxx-up on each individual Subcontractor‟s work: Overhead Profit Change Value 5% 10% Between $0 to $999.00 5% 7% Between $1,000.00 to $4,999.99 5% 5% Over $5,000.00 Subcontractor‟s xxxx-up on its own work Overhead: 10% Profit: 5% Subcontractor‟s xxxx-up on Subcontractor‟s work: Overhead: 5% Profit: 5% If Subcontractor‟s retains another subcontractor (“sub-subcontractor”), no additional xxxx-up shall be charged to the Owner for the sub-subcontractor

Owner’s Right to Make Changes. Add new 6.1.3: With respect to the valuation of any adjustment in the Contract Price, subject to any different or additional requirements contained in the Specifications, the following shall apply: If applicable, unit prices included in the Contract, or prices pro rata thereto, will be used to value changes; Proposed methods of adjustment should contain itemized breakdowns describing the net actual value of the Work (excluding Value Added Taxes), the Contractor‟s xxxxmark-up for overhead and profit, the xxxxmark-up for overhead and profit of Subcontractors, and where appropriate, detailed quotations or cost vouchers from Subcontractors and Suppliers; All overhead costs are deemed to include both site and head office overhead costs, as well as any applicable insurance and bonding costs; Labour costs shall be the actual labour costs based upon rates prevailing at the Place of the Work and payable to workers, plus applicable statutory charges such as WSIB, Employment Insurance, Canada Pension, vacation pay, and hospitalization and medical insurance; If a change involves both additions and deletions to the Work, the value of the change will be determined based upon the net difference to the Work occasioned by the change. For greater certainty, the Contractor‟s xxxxmark-up for overhead and profit only will be applied to the net value of the change. Add new paragraph 6.1.4: The Owner, through the Consultant, reserves the right to authorize payment for a change in the Work by means of Cash Allowance. For greater certainty, the Contractor is not entitled to any xxxxmark-up for overhead and profit on such amounts. Add new paragraph 6.1.5: In the event that any change to the Work results in a reduction in the Contract Price, the Contractor shall not be entitled to claim for any lost revenue, lost profit or loss of anticipated profit related thereto. Add new 6.2.3: If a change in the Work, not covered by unit prices or by estimate and acceptance in a lump sum, results in a new increase in the Contract Price, the charge to the Owner shall be the cost of the work plus: Contractor‟s xxxxmark-up on its own work: Overhead Profit Change Value 10% 10% Between $0 to $999.00 10% 7% Between $1,000.00 to $4,999.99 10% 5% Over $5,000.00 Contractors XxxxMark-up on each individual Subcontractor‟s work: Overhead Profit Change Value 5% 10% Between $0 to $999.00 5% 7% Between $1,000.00 to $4,999.99 5% 5% Over $5,000.00 Subcontractor‟s xxxxmark-up on its own work Overhead: 10% Profit: 5% Subcontractor‟s xxxxmark-up on Subcontractor‟s work: Overhead: 5% Profit: 5% If Subcontractor‟s retains another subcontractor (“sub-subcontractor”), no additional xxxxmark-up shall be charged to the Owner for the sub-subcontractor