Common use of Directive Letters Clause in Contracts

Directive Letters. If the parties: (a) agree that a change in the Work has occurred but have not been able to agree upon the amount of any adjustment to the Contract Price or the Scheduled Substantial Completion Date; (b) disagree over whether a change in the Work has occurred; or (c) disagree over whether Contractor is entitled to any adjustment to the Contract Price or the Scheduled Substantial Completion Date for any alleged change, then Owner’s Contracting Officer may, in its sole discretion, direct Contractor to proceed with the change or alleged change by issuing a Directive Letter to Contractor. In all such cases, Contractor shall comply with such Directive Letter. In the event of clause (a) above, Owner shall compensate Contractor for performing such work on a time and material basis as set forth in Section 19.4.3, until such time as the parties reach an agreement on a Change Order. If the parties cannot reach agreement on a Change Order for such change, or in the case of clause (b) or (c) above, the parties shall resolve such dispute in accordance with Article 28.