Changes in the Subcontract Work Clause Samples

Changes in the Subcontract Work. 1. Contractor shall have the right by written order, to direct changes, additions, deletions, or alterations to the Subcontract Work or the time of performance. Contractor shall have this right without notice to Subcontractor's surety, if any. Should Subcontractor claim any such order or any act by Contractor or others would cause additional costs, or if Subcontractor otherwise believes it is entitled for any reason to an adjustment in the Subcontract Price or Subcontract time, Subcontractor shall submit written notice to Contractor within seven (7) calendar days of said claim arising, and prior to commencing such work; otherwise, such claim shall be deemed waived, and Subcontractor shall have no right to maintain an action in court or arbitration to recover for extra work. In no event shall Subcontractor be entitled to a change order or an equitable adjustment unless authorized in writing by Contractor. Should the parties be unable to agree as to the value of any work to be added, deleted or altered, Subcontractor shall proceed with the work promptly, but only upon written order of Contractor, and the amount due for the disputed work shall be resolved as provided, in this Article and pursuant to Article T. 2. The value of any work added, deleted or altered from the Subcontract Work shall be determined by one or more of the following methods, or combinations thereof, as Contractor may elect: (1) mutual acceptance of a lump sum with properly itemized costs; (2) unit prices established in this Subcontract or subsequently agreed upon (unit prices shall be deemed to include an allowance for all of Subcontractor's direct or indirect costs, including, without limitation, office and shop expense, overhead, profit taxes, insurance, and bond); or (3) the actual field costs necessarily incurred in the proper performance of the work. “Actual field costs” are defined as actual wages paid for labor in the direct employ of subcontractor plus actual payroll markup to cover all overhead items; the net cost of all subcontracts, materials, supplies or equipment; third party rental charges; plus an allowance for overhead and profit as defined in paragraph K.3 below. 3. Subcontractor’s markup for overhead and profit shall be limited to the allowable markups as stated in the Contract Documents. If such markups are not addressed in the Contract Documents, Subcontractor’s total markup for overhead and profit on extra work properly authorized and performed shall not exceed 5% for...