Common use of Allowable Costs for Change Orders Clause in Contracts

Allowable Costs for Change Orders. All proposed cost requests by Contractor for a Change Order shall include a complete itemized breakdown with the following detail, which are the only costs that will be allowed for these items. Direct Labor Costs. Compensation for Contractor’s and/or Subcontractor(s)’ labor shall include only the necessary payroll cost for labor, including first level supervision, directly engaged in performance of the work of the Change Order ("Direct Labor Costs"). Direct Labor Costs shall not exceed the current prevailing wages in the locality for performance of the changes; and the labor burden or labor charges, which shall only include documented FICA, Medicare, unemployment, and Workers’ Compensation charges and no other charges. Use of a classification which would increase labor costs will not be permitted. Exceptions will be permitted only when the Contractor establishes, to the satisfaction of the Judicial Council, the necessity for payment at higher rates or classifications.