Lump Sum Proposal. If the District elects to have the Change in the Work performed on a lump sum basis, such election shall be based on a lump sum proposal which shall be submitted by the Contractor within ten (10) calendar days of the District’s request therefor. Request for a lump sum proposal shall not be deemed an election to have the work performed on a lump sum basis. The Contractor’s proposal shall be itemized and segregated by labor and materials for the various components of the change (no aggregate labor total will be acceptable) and shall be accompanied by signed proposals of any subcontractors which will perform any portion of the change, and of any persons who will furnish materials or equipment for incorporation therein. The proposal shall also include the contractor’s estimate of the time required to perform said changes or additional work. The portion of the proposal relating to labor, whether by the Contractor’s forces or the forces of any of its Subcontractors, may include reasonably anticipated gross wages of Job Site labor, including foremen, who will be directly involved in the Change in the Work (for such time as they will be so involved), plus payroll costs (including premium costs of overtime labor, if overtime is anticipated, Social Security, federal or State unemployment insurance taxes and fringe benefits required by collective bargaining agreements entered into by the Contractor or any Subcontractor in connection with such labor) and up to fifteen percent (15%) of such anticipated gross wages, but not payroll costs, as field and home office overhead, and profit for the Contractor or any Subcontractor, as applicable (said overhead and profit to include all supervision except foremen). But in no case will the aggregate mark-up for the Contractor and Subcontractor total more than 15% of the direct material costs, and 5% of the equipment rental costs, as defined above. These costs shall not include charges for listed equipment or major tools with a new cost of $500.00 or less. No time charges shall be allowed except for equipment actually used for the proper and efficient performance or completion of the authorized change in the Work. The portion of the proposal relating to materials may include the reasonably anticipated direct costs to the Contractor or its Subcontractors for materials to be purchased for incorporation in the Change in the Work, plus transportation and applicable sales or use taxes and up to fifteen percent (15%) of said direct material costs as overhead and profit for the Contractor or any Subcontractor (said overhead and profit to include all small tools). The lump sum proposal may further include the Contractor’s and any Subcontractors’ reasonably anticipated rental costs in connection with the Change in the Work (either actual rates or discounted local published rates), plus up to five percent (5%) thereof as overhead and profit for the Contractor or any Subcontractors, as applicable. The lump sum proposal may not include charges for listed equipment or major tools with a new cost of $500.00 or less. If any of the items included in the lump sum proposal are covered by the unit prices contained in the Contract Documents, the District may, if it requires the Change in the Work to be performed on a lump sum basis, elect to use the unit prices in lieu of the similar items included in the lump sum proposal in which event an appropriate deduction will be made in the lump sum amount prior to the application of any allowed overhead and profit percentages. No overhead and profit shall be applied to any unit prices. The lump sum proposal may include up to six percent (6%) of the amount which the Contractor will pay to any of its Subcontractors for the Change in the Work as a commission to the Contractor.
Appears in 2 contracts
Sources: Construction Contract, General Conditions
Lump Sum Proposal. If the District elects Should GLWA elect to have the Change in the changed Work performed on a lump sum basisLump Sum Proposal, such election it will so indicate in the Construction Change Directive or Request for Proposal and the Contractor will, with reasonable promptness but in any event within the time periods set forth in Subparagraph 12.2.3 hereof, transmit its Lump Sum Proposal detailing the proposed adjustment to the Contract Price (and the various components thereof). The Lump Sum R A F T Proposal shall be based solely upon the affected Subcontractors’ estimated net cost for labor (including union fringe benefits, insurance, employment insurance, Social Security and taxes paid on a lump sum proposal which shall be submitted by labor) and materials and excluding increased bond premiums, plus the Contractor within ten (10) calendar days of the District’s request therefor. Request percentages for a lump sum proposal shall not be deemed an election to have the work performed on a lump sum basisoverhead and profit as hereinafter set forth. The Contractor’s proposal Lump Sum Proposal shall be itemized (itemized costs will not be from Section 00300, Article 7, Schedule of Change Order prices in the bid document) and segregated by labor and materials material for the various components of the change (changed Work and no aggregate figures for labor total and material will be acceptable) . The Contractor shall furnish, with its Lump Sum Proposal, supporting data consisting of Contractor (self-performing), Subcontractor, Sub-Subcontractor and vendor executed proposals. The Contractor (self-performing), Subcontractor or Sub-Subcontractor actually performing the changed Work shall be accompanied by signed proposals permitted to include in the estimate not more than fifteen (15%) percent for overhead and profit; The Contractor and Subcontractors of any subcontractors which will perform any portion a higher tier shall be permitted to include in the estimate a handling charge of the change, and of any persons who will furnish materials or equipment for incorporation thereinnot more than five (5%) percent. The proposal shall also include the contractor’s estimate of the time required to perform said changes or additional work. The portion of the proposal relating to labor, whether by the Contractor’s forces or the forces of any of its Subcontractors, Subcontractors may include reasonably anticipated gross wages of Job Site labor, including foremen, who will be in their labor proposal only those workmen directly involved in the Change changed Work. All other supervision is included in the Work percentages for overhead and profit allowed the Subcontractors, unless (for such time as they will be so involved), plus payroll costs (including premium costs of overtime labor, if overtime is anticipated, Social Security, federal or State unemployment insurance taxes and fringe benefits i) additional foremen are required by collective bargaining agreements entered into by the Contractor or any Subcontractor in connection with such laborthe changed Work who were not otherwise on the Project site; or (ii) and up to fifteen percent (15%) of such anticipated gross wages, but not payroll costs, the total Contract Time is extended as field and home office overhead, and profit for the Contractor or any Subcontractor, as applicable (said overhead and profit to include all supervision except foremen). But in no case will the aggregate mark-up for the Contractor and Subcontractor total more than 15% a result of the direct material costschanged Work, and 5% of the equipment rental costs, as defined above. These costs shall not include charges for listed equipment or major tools with a new cost of $500.00 or less. No time charges in which event an equitable amount shall be allowed except for equipment actually used for supervision during the proper and efficient performance or completion of the authorized change in the Workextended period. The portion of the proposal relating to materials may Subcontractor’s material costs will include the reasonably anticipated direct costs to the Contractor or its Subcontractors for materials to be purchased for incorporation in the Change in the Workinvoiced costs, plus transportation and applicable sales or use taxes and up to fifteen percent (15%) taxes. Use of said direct material costs as small tools is included in the overhead and profit profit. Equipment rental may be included only if the equipment will be required on the Project site for a longer duration solely because of the Contractor or any Subcontractor (said overhead changed Work. Overhead and profit to include all small tools). The lump sum proposal may further include the Contractor’s and any Subcontractors’ reasonably anticipated rental costs in connection with the Change in the Work (either actual rates or discounted local published rates), plus up to five percent (5%) thereof as overhead and profit for the Contractor or any Subcontractorsprofit, as applicable. The lump sum proposal may not include charges for listed equipment or major tools with a new cost of $500.00 or lessoutlined above, includes all other costs whatsoever beyond those enumerated. If any of the items changed Work included in the lump sum proposal are Lump Sum Proposal is covered by the unit prices contained in the Contract DocumentsUnit Prices, the District may, if it requires the Change in the Work to be performed on a lump sum basis, GLWA may elect to use these Unit Prices within the unit prices in lieu of the similar items included in the lump sum proposal in which event an appropriate deduction will be made in the lump sum amount prior to the application of any allowed overhead and profit percentagesLump Sum Proposal. No overhead and profit shall may be applied to Unit Prices. No person performing any unit prices. The lump sum proposal may include up to six percent (6%) portion of the amount which the Contractor will pay to any of its Subcontractors for the Change change in the Work as will be allowed a commission to fee for overhead and profit on the premium time wages paid for overtime, shift time or other similar types of work conditions on which premium time wages may be paid. Also, the overhead and profit of the Contractor, Subcontractor, Sub-Subcontractor shall always be calculated on the cost of performing the work. Markups for the upper tier Contractor/Subcontractor/Sub-Subcontractor will not be calculated on the lower tier Subcontractor/Sub-Subcontractors’ markups.
Appears in 1 contract
Sources: Construction Agreement