Department Changes Clause Samples

Department Changes. 10.1.1 The Department reserves the right to make alterations or changes in the Work (including reductions in the scope of the Work up to a cap of [10]% of the Design and Construction Costs as set forth in the Schedule of Values) pursuant to [Section of Division ]. 10.1.2 If Developer deems that additional compensation or a time extension is due for Extra Work which is directed by the Department, Developer shall submit a Claim in accordance with Section 9.1. If the Department Change results in a reduction to the scope of the Work, the Department shall be entitled to [50]% of the net reduction in direct labor, material and equipment costs associated with the Department Change, which shall be paid by the Developer to the Department: (a) as periodic payments over the Term; (b) as an adjustment to the MAP over the Term; (c) through a reduction in the Term; or (d) through any combination of the above, as mutually agreed upon by the Parties. The Department shall, by directing Developer to perform Extra Work, reinvest the remaining [50]% of the net reduction in direct labor, materials and equipment costs associated with the Department Change into the Project during the Term in such manner as it may in its discretion deem appropriate.

Department Changes. ‌ 10.1.1 The Department reserves the right to make alterations or changes in the Work (including reductions in the scope of the D&C Work) or in terms and conditions of the Technical Requirements (including changes in the standards applicable to the Work). Such alterations and changes shall be documented through issuance of a Department Change or other written directive signed by the Department’s Authorized Representative or by his/her designee appointed in writing. 10.1.2 If Developer believes it is entitled to additional compensation, a Financial Close Deadline or Completion Deadline extension or other relief for Extra Work which is directed by the Department, Developer shall submit a Claim in accordance with Section 9.1. Compensation and Financial Close Deadline or Completion Deadline extension for Extra Work shall be subject to all terms and conditions of the Contact Documents, provided that such Claims shall not be subject to the deductibles set forth in this Agreement. 10.1.3 If the Department Change results in a reduction to the scope of the Work, the Department shall be entitled to 100% of the net reduction in direct labor, material and equipment costs associated with the Department Change, and 100% of the savings in financing costs associated with any Design and Construction Cost savings, which shall be paid by Developer to the Department: (a) as periodic payments over the Term; (b) as an adjustment to the MAP over the Term; (c) through a reduction in the Term; or (d) through any combination of the above, as mutually agreed upon by the Parties. The Department also may take such reduction in direct labor, material and equipment costs as a credit against the Department’s liability for Extra Work Costs and Delay Costs during the Term.

Department Changes. In the event a Department is eliminated or there is a material change in service levels of the Department during the term of this Agreement, Hospital shall provide Contractor with notice of such change in services, and the Parties shall promptly meet and confer to negotiate in good faith revised terms to this Agreement that are mutually agreeable and practicable to permit the continued provision of necessary Professional Services and Administrative Services in the Department. If such negotiations fail to result in mutually satisfactory amendment within [forty-five (45)] days of Contractor’s receipt of notice provided hereunder, either Party may thereupon terminate this Agreement by providing [thirty (30)] days’ notice of termination to the other.

Department Changes. 10.1.1 The Department reserves the right to make alterations or changes in the Work (including reductions in the scope of the D&C Work) or in terms and conditions of the Technical Requirements (including changes in the standards applicable to the Work). Such alterations and changes shall be documented through issuance of a Department Change or other written directive signed by the Department’s Authorized Representative or by his/her designee appointed in writing. 10.1.2 If Developer believes it is entitled to additional compensation, a Financial Close Deadline or Completion Deadline extension or other relief for Extra Work which is directed by the Department, Developer shall submit a Claim in accordance with Section 9.1. Compensation and Financial Close Deadline or Completion Deadline extension for Extra Work shall be subject to all deductibles set forth in this Agreement and to all other terms and conditions of the Contact Documents. 10.1.3 If the Department Change results in a reduction to the scope of the Work, the Department shall be entitled to 100% of the net reduction in direct labor, material and equipment costs associated with the Department Change, and 100% of the savings in financing costs associated with any Design and Construction Cost savings, which shall be paid by Developer to the Department: (a) as periodic payments over the Term; (b) as an adjustment to the MAP over the Term; (c) through a reduction in the Term; or (d) through any combination of the above, as mutually agreed upon by the Parties. The Department also may take such reduction in direct labor, material and equipment costs as a credit against the Department’s liability for Extra Work Costs and Delay Costs during the Term.

Department Changes