Payment for Changes. 1. The Design-Builder shall designate a single individual authorized to receive Field Orders and Change Orders who will be responsible for informing others of changes to the Work. When directed in writing by a Field Order signed by the Commission Representative, the Design-Builder will proceed promptly in accordance with such Field Order. Any adjustment to the Contract Price that may be required by a Field Order will be determined by one of the following methods: a. Method 1 - Unit Price and/or Lump Sum Adjustment 2. The Design-Builder must submit promptly to the Commission Representative for approval and acceptance by the Commission a written proposal for changes in the Work. Such proposal will be in a format acceptable to the Commission and based on Contract unit prices, or, in their absence, a detailed cost estimate of labor, all insurance, payroll taxes, itemized material, itemized equipment, and bond of the changed Work. If after receipt of the Design- Builder’s proposal the parties can agree on an equitable lump sum adjustment of the Contract Price, a Change Order will be signed establishing such adjustment. 3. Where the change in the Work involves items for which Contract unit prices have been established and where the net aggregate quantity of such items is in excess of the Contract requirements, payment for such items will be at the established unit prices. When the net aggregate quantity is less than the Contract requirement, the credit will be the established unit price less 10%. Where the established unit price is a unit price bid on estimated quantities, the Commission may, at its option, demand a readjustment of such established unit price in any case where the requirements for the particular unit price item exceeds one hundred 125% of the estimated quantity bid. 4. Where the change in the Work involves items for which agreed-upon unit prices have not been established, the Design-Builder’s proposal will be in a format acceptable to the Commission and based upon the estimated fair cost of the Design-Builder’s labor, material, equipment, insurance and any applicable taxes. In submitting such proposal, the Design-Builder will use its ability and buying power to obtain the best possible prices from suppliers of material and equipment and from Subcontractors consistent with its general responsibility for the performance and completion of the Work. To this end, the Design-Builder, when submitting such a proposal, will be deemed to have represented by the submittal that it has used the lowest prices obtained or obtainable from suppliers of material and equipment and from Subcontractors and that nothing has been added to such prices unless indicated in the proposal or billing. Should the Design-Builder at any time, without disclosing the fact, add any amount to the bill or proposal of any supplier of material or equipment or to the bill or proposal of any Subcontractor, and should the Commission act on the same or make payment on any Work covered by such proposal or billing, then, and in that event, the Commission will have the right to recover from the Design-Builder any such amounts as may have been so added and not disclosed. Such recovery may be made by deducting the undisclosed additions from any payments due the Design-Builder, or by any and all other means available to the Commission. 5. For the cost of items of Work not covered by agreed-upon unit prices on additional Work ordered, the Design-Builder will be allowed 15% for overhead and profit on labor performed by his own forces and material purchases. Subcontractors, likewise, will be permitted an allowance of 15% for overhead and profit on their own work. The Design-Builder will further be allowed 6% on all of his subcontractor’s work. The Subcontractor is not allowed any additional markup if the work is further subcontracted. The Design-Builder may include in its labor proposal only those workers and foremen directly involved in the Work. All other supervision is included in the 15% overhead and profit allowed. The Design-Builder will be entitled to payment for labor, union fringe benefits, insurance, unemployment insurance, social security, and taxes paid on labor. No overhead or profit will be allowed on social security, unemployment insurance, or other insurance or premium time. The Design-Builder’s material costs will include invoiced costs, transportation, applicable sales or use taxes, and actual rental costs. 6. Overhead and profit charges referred to above will constitute full reimbursement for all costs of field and office supervision, engineering, field and main office expense, premium on bonds, small tools, and incidental job burdens, general building and excess liability insurance, and transportation. a. Method 2 - Cost Plus Fee Adjustment (1) Where the change in the Work involves items in whole or in part for which a unit price determination cannot be made under Method 1 and where the parties are unable to determine and agree upon an equitable lump sum adjustment of the Contract Price for such items, a Field Order will be issued and the Design-Builder will proceed with the Work on a cost plus fee basis. Cost means the Design-Builder’s actual cost of labor, material, equipment, insurance, and applicable taxes, as reviewed by the Architect and Commission Representative for the approval of the Commission. To the Design-Builder’s cost so computed will be added overhead and profit as defined under Method 1 above, which shall be Design-Builder’s fee for such change to the Work. (2) The Design-Builder and Subcontractors must keep and present in such form as the Commission Representative may direct a correct accounting of the costs of all labor, material, equipment, insurance, and applicable taxes, together with supporting vouchers, receipts, and payroll records. (3) Upon completion of the change to the Work, and final determination of the cost plus fee price for such change, a Change Order will be issued, if needed, to appropriately adjust the Contract Price. 7. The Design-Builder’s agreement to a Change Order constitutes a waiver and release by the Design-Builder for any claim for additional payment or a time extension associated with the changes as stated in Section 17.05. 8. The Design-Builder will include any claim for a time extension in the submission of his proposal. Such claim will only be considered upon demonstration by the Design-Builder that a disruption to Critical Path activities has occurred. Design-Builder is required to furnish documentation in the form of proposed schedule revisions indicating impact in Critical Path activities and events previously approved by the Commission. 9. he Design Builder will be re uired to use E hibit O Contractors Proposal for Change Order for an Change Order re uests an all Change Order Re uests shall conform to the following a. The Design-Builder shall provide sufficient information for evaluation of proposed changes within fourteen (14) days following receipt of a Field Order. The Design-Builder shall immediately advise the Commission in writing if any requested Bulletin cannot be priced and submitted to the Architect within fourteen (14) days of receipt. The Commission Representative will determine if additional time is warranted, and will so notify the Design-Builder of its determination. In no case shall the Design-Builder be allowed more than (21) days for pricing of a Bulletin. The Design-Builder shall not be entitled to a time extension should its proposal not be received by the Architect prior to the required time. Such information shall include: (1) The amount of change in the Base Contract Price, if any. (2) The amount of change in the Contract time, if any, with explanation. (3) Cost breakdown, using Schedule of Values line items, separated into material and labor costs, additions and deletions, and with overhead and profit handled in the same manner as specified for the Schedule of Values. (4) The period of time within which the proposed changes in Base Contract Price or time will be held. At a minimum, the pricing shall be held until the next Commission meeting. Should said proposal be received by the Architect or Commission Representative beyond the cut-off date established by them for the upcoming Commission meeting, then the Design-Builder shall maintain its proposed price and schedule impact until the next Commission meeting. (5) Quantities and unit costs of products, labor, and equipment. (6) Taxes, insurance, and bonds. (7) Impact on MBE/WBE, Local Subcontractor and Community Hiring compliance (8) Overhead and profit. b. The Design-Builder may propose changes pursuant to Section 17.03. (1) Do not use change order form. (2) Provide the information required for Change Proposal Requests. (3) Describe reasons for change.
Appears in 2 contracts
Sources: Design Build Agreement, Design Build Agreement
Payment for Changes. 1. The Design-Builder shall designate a single individual authorized to receive Field Orders and Change Orders who will be responsible for informing others of changes to the Work. When directed in writing by a Field Order signed by the Commission Representative, the Design-Builder will proceed promptly in accordance with such Field Order. Any adjustment to the Contract Price that may be required by a Field Order will be determined by one of the following methods:
a. Method 1 - Unit Price and/or Lump Sum Adjustment
2. The Design-Builder must submit promptly to the Commission Representative for approval and acceptance by the Commission a written proposal for changes in the Work. Such proposal will be in a format acceptable to the Commission and based on Contract unit prices, or, in their absence, a detailed cost estimate of labor, all insurance, payroll taxes, itemized material, itemized equipment, and bond of the changed Work. If after receipt of the Design- Builder’s proposal the parties can agree on an equitable lump sum adjustment of the Contract Price, a Change Order will be signed establishing such adjustment.
3. Where the change in the Work involves items for which Contract unit prices have been established and where the net aggregate quantity of such items is in excess of the Contract requirements, payment for such items will be at the established unit prices. When the net aggregate quantity is less than the Contract requirement, the credit will be the established unit price less 10%. Where the established unit price is a unit price bid on estimated quantities, the Commission may, at its option, demand a readjustment of such established unit price in any case where the requirements for the particular unit price item exceeds one hundred 125% of the estimated quantity bid.
4. Where the change in the Work involves items for which agreed-upon unit prices have not been established, the Design-Builder’s proposal will be in a format acceptable to the Commission and based upon the estimated fair cost of the Design-Builder’s labor, material, equipment, insurance and any applicable taxes. In submitting such proposal, the Design-Builder will use its ability and buying power to obtain the best possible prices from suppliers of material and equipment and from Subcontractors consistent with its general responsibility for the performance and completion of the Work. To this end, the Design-Builder, when submitting such a proposal, will be deemed to have represented by the submittal that it has used the lowest prices obtained or obtainable from suppliers of material and equipment and from Subcontractors and that nothing has been added to such prices unless indicated in the proposal or billing. Should the Design-Builder at any time, without disclosing the fact, add any amount to the bill or proposal of any supplier of material or equipment or to the bill or proposal of any Subcontractor, and should the Commission act on the same or make payment on any Work covered by such proposal or billing, then, and in that event, the Commission will have the right to recover from the Design-Builder any such amounts as may have been so added and not disclosed. Such recovery may be made by deducting the undisclosed additions from any payments due the Design-Builder, or by any and all other means available to the Commission.
5. For the cost of items of Work not covered by agreed-upon unit prices on additional Work ordered, the Design-Builder will be allowed 15% for overhead and profit on labor performed by his own forces and material purchases. Subcontractors, likewise, will be permitted an allowance of 15% for overhead and profit on their own work. The Design-Builder will further be allowed 6% on all of his subcontractor’s work. The Subcontractor is not allowed any additional markup if the work is further subcontracted. The Design-Builder may include in its labor proposal only those workers and foremen directly involved in the Work. All other supervision is included in the 15% overhead and profit allowed. The Design-Builder will be entitled to payment for labor, union fringe benefits, insurance, unemployment insurance, social security, and taxes paid on labor. No overhead or profit will be allowed on social security, unemployment insurance, or other insurance or premium time. The Design-Builder’s material costs will include invoiced costs, transportation, applicable sales or use taxes, and actual rental costs.
6. Overhead and profit charges referred to above will constitute full reimbursement for all costs of field and office supervision, engineering, field and main office expense, premium on bonds, small tools, and incidental job burdens, general building and excess liability insurance, and transportation.
a. Method 2 - Cost Plus Fee Adjustment
(1) Where the change in the Work involves items in whole or in part for which a unit price determination cannot be made under Method 1 and where the parties are unable to determine and agree upon an equitable lump sum adjustment of the Contract Price for such items, a Field Order will be issued and the Design-Builder will proceed with the Work on a cost plus fee basis. Cost means the Design-Builder’s actual cost of labor, material, equipment, insurance, and applicable taxes, as reviewed by the Architect and Commission Representative for the approval of the Commission. To the Design-Builder’s cost so computed will be added overhead and profit as defined under Method 1 above, which shall be Design-Builder’s fee for such change to the Work.
(2) The Design-Builder and Subcontractors must keep and present in such form as the Commission Representative may direct a correct accounting of the costs of all labor, material, equipment, insurance, and applicable taxes, together with supporting vouchers, receipts, and payroll records.
(3) Upon completion of the change to the Work, and final determination of the cost plus fee price for such change, a Change Order will be issued, if needed, to appropriately adjust the Contract Price.
7. The Design-Builder’s agreement to a Change Order constitutes a waiver and release by the Design-Builder for any claim for additional payment or a time extension associated with the changes as stated in Section 17.05.
8. The Design-Builder will include any claim for a time extension in the submission of his proposal. Such claim will only be considered upon demonstration by the Design-Builder that a disruption to Critical Path activities has occurred. Design-Builder is required to furnish documentation in the form of proposed schedule revisions indicating impact in Critical Path activities and events previously approved by the Commission.
9. he Design Builder will be re uired to use E hibit O Contractors Proposal for Change Order for an Change Order re uests an all Change Order Re uests shall conform to the following
a. The Design-Builder shall provide sufficient information for evaluation of proposed changes within fourteen (14) days following receipt of a Field Order. The Design-Builder shall immediately advise the Commission in writing if any requested Bulletin cannot be priced and submitted to the Architect within fourteen (14) days of receipt. The Commission Representative will determine if additional time is warranted, and will so notify the Design-Builder of its determination. In no case shall the Design-Builder be allowed more than (21) days for pricing of a Bulletin. The Design-Builder shall not be entitled to a time extension should its proposal not be received by the Architect prior to the required time. Such information shall include:
(1) The amount of change in the Base Contract Price, if any.
(2) The amount of change in the Contract time, if any, with explanation.
(3) Cost breakdown, using Schedule of Values line items, separated into material and labor costs, additions and deletions, and with overhead and profit handled in the same manner as specified for the Schedule of Values.
(4) The period of time within which the proposed changes in Base Contract Price or time will be held. At a minimum, the pricing shall be held until the next Commission meeting. Should said proposal be received by the Architect or Commission Representative beyond the cut-off date established by them for the upcoming Commission meeting, then the Design-Builder shall maintain its proposed price and schedule impact until the next Commission meeting.
(5) Quantities and unit costs of products, labor, and equipment.
(6) Taxes, insurance, and bonds.
(7) Impact on MBE/WBE, Local Subcontractor and Community Hiring compliance
(8) Overhead and profit.
b. The Design-Builder may propose changes pursuant to Section 17.03.
(1) Do not use change order form.
(2) Provide the information required for Change Proposal Requests.
(3) Describe reasons for change.
Appears in 1 contract
Sources: Design Build Agreement