Change Pricing Clause Samples
The Change Pricing clause defines how adjustments to the contract price are handled when changes to the scope of work or deliverables occur. Typically, this clause outlines the process for proposing, reviewing, and approving price modifications, such as requiring written change orders or mutual agreement before any price increase or decrease takes effect. Its core practical function is to ensure that both parties have a clear, agreed-upon method for managing and documenting price changes, thereby preventing disputes and maintaining transparency when project requirements evolve.
Change Pricing. The changed work will be priced in the same manner as the original work; actual time and materials costs plus the approved markups. If the net value of a change results in a credit from the Contractor or subcontractor, the credit shall be the actual cost plus the markups, if those were included in the original cost.
Change Pricing. All proposed changes and Claims by Subcontractors shall be evaluated and approved by the Design/Builder prior to submission to the Owner. The maximum allowance for overhead and profit of the Design/Builder or a Subcontractor of any tier performing changed work solely with its own forces under a lump sum agreement shall be 10%. Whether the Work is performed on the basis of a GMP or lump sum, the maximum cumulative allowance to the Owner for overhead and profit of the Design/Builder and Subcontractors of all tiers, including the Design/Builder’s Construction Fee, for changed work shall be 15%.
Change Pricing. In the absence of applicable unit prices or other agreement, the changed work will be priced in accordance with the following provisions:
i. In no case shall the sum of the individual markups applied to a General Contractor’s Modification exceed fifteen percent (15%), regardless of the number of Subcontractor tiers involved in performing the Work.
ii. The total combined ▇▇▇▇-up for a Subcontractor and his lower-tier Subcontractor shall not exceed ten percent (10%). Costs of tax and insurance shall not be marked up.
iii. For work performed by a subcontractor, the subcontractor will receive 10% markup for direct costs. The General Contractor shall receive a five percent (5%) of the subcontractor's direct costs for processing.
iv. For self-performed work by the General Contractor, the markup shall equal fifteen percent (15%) of the direct cost as defined herein.
v. Bonding may be increased a maximum of one percent (1%) provided the Contractor demonstrates to the District a requirement to increase bonding.
vi. If the net value of a change results in a credit from the Contractor or subcontractor, the credit shall be the actual net cost, plus five percent (5%) for overhead and profit. 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 the net increase or decrease, if any, with respect to the change.
Change Pricing. In the absence of agreement, the final cost of a change will consist of:
11.4.1 Reimbursement of the net cost of the change, consisting of: .1 the net additional costs to Contractor of all necessary materials, including transportation to the Project Site; .2 cost of all necessary labor, in accordance with established wage rates, as evidenced by payroll records;
Change Pricing. All pricing information provided by Contractor in connection with a Change Directive or Proposed Change shall include itemized amounts for at least the following categories of costs (as applicable):
5.5.1 material quantities and unit prices by division;
5.5.2 labor costs based on stated estimated hours and hourly rates for each classification of labor;
5.5.3 field supervision costs;
5.5.4 costs of construction equipment;
5.5.5 insurance and bond premiums;
5.5.6 Social Security tax and other payroll and unemployment taxes; and
5.5.7 overhead and profit (based on the same percentage of Direct Hard Costs used to compute the Construction Fee, or, if the Construction Fee is an agreed lump sum, based on the same ratio that the originally agreed Construction Fee bears to the originally scheduled Direct Hard Costs). When both additions and credits are involved in any one change, the change in the Contractor Fee (if the same is a percentage of the Direct Hard Costs) shall be figured on the basis of the net increase or decrease, if any. In no event shall the combined amount of overhead and profit for Subcontractors, Sub-subcontractors, and Contractor with respect to any additive change exceed fifteen percent (15%) of costs of labor and materials associated with the change that are payable under the Contract.
Change Pricing. In the absence of applicable unit prices or other agreement, the changed work will be priced in accordance with the following provisions:
6.1.3.1. In no case shall the sum of the individual markups applied to a General Contractor’s Modification exceed fifteen percent (15%), regardless of the number of Subcontractor tiers involved in performing the Work.
6.1.3.2. The total combined mark-up for a Subcontractor and his lower-tier Subcontractor shall not exceed ten percent (10%). Costs of tax and insurance shall not be marked up.
6.1.3.3. For work perform by a subcontractor, the subcontractor will receive 10% markup for direct costs. The General Contractor shall receive a five percent (5%) of the subcontractor's direct costs for processing.
6.1.3.4. For self-performed work by the General Contractor, the markup shall equal fifteen percent (15%) of the direct cost as defined herein.
6.1.3.5. Bonding may be increased a maximum of one percent (1%) provided the Contractor demonstrates to the City a requirement to increase bonding.
6.1.3.6. If the net value of a change results in a credit from the Contractor or subcontractor, the credit shall be the actual net cost, plus five percent (5%) for overhead and profit. 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 the net increase or decrease, if any, with respect to the change.