HomeMy WebLinkAbout012600 -CONTRACT MODIFICATION PROCEDURES.pdf Giant Eagle Market #6550 The Bridges, Carmel, Indiana
Building Shell Bid & Permit
DLA Project 2014040.00
August 12, 2014
CONTRACT MODIFICATION PROCEDURES 012600 - 1
SECTION 012600 - CONTRACT MODIFICATION PROCEDURES
PART 1 - GENERAL
1.1 RELATED DOCUMENTS
A. Drawings and general provisions of the Contract, including Owner’s General and Supplementary
Conditions and other Division 01 Specification Sections, apply to this Section.
1.2 SUMMARY
A. Section includes administrative and procedural requirements for handling and processing Contract
modifications.
1. Provisions of this Section apply to the Work of the Contractor and each Subcontractor.
B. Related Requirements:
1. Section 012500 "Substitution Procedures" for administrative procedures for handling requests for
substitutions made after the Contract award.
1.3 CHANGE ORDER COSTS, MARK-UP AND DOCUMENTATION
A. Cost of the Work: All costs for additional Work must be supported by a detailed written breakdown
identifying units of measure, quantity of units and cost per unit in a form approved by Owner. The Cost
of the Work shall be limited to the following:
1. Direct costs of materials.
2. Direct costs of labor.
3. Hourly labor rate breakdown.
4. Annualized costs of federal and state unemployment taxes.
5. Rental value of specialty equipment that requires it be obtained from an unaffiliated retail
equipment rental company. Neither the Contractor’s nor the Subcontractor’s tools and equipment
to perform the Work that the trade is regularly engaged in are allowable as rental items.
B. If a Change Order results in an increase in the Cost of the Work, or additions and deletions covering
related work or substitutions are involved in a change and there is a net increase, then in each case, the
fees applicable to the Change Order shall be as follows:
1. For the Contractor:10 percent for direct costs. The Contractor is entitled to 5 percent of the amount
due to the Subcontractor (including labor and material).
2. For Work Performed by the Subcontractor: 10 percent for direct labor costs, 5 percent for direct
material purchased by Subcontractor.
3. For Work Performed by a sub-subcontractor: The sub-subcontractor will be entitled to 10 percent
for direct labor costs, 5 percent for direct material purchased by sub-subcontractor. The
Subcontractor is entitled to 5 percent of the amount due the sub-subcontractor.
C. Required Documentation: The support documentation required for changes in the Work shall be the same
regardless of whether a Proposal is furnished prior to the start of the changed Work or if the changed
Work proceeds on a time and materials basis.
Giant Eagle Market #6550 The Bridges, Carmel, Indiana
Building Shell Bid & Permit
DLA Project 2014040.00
August 12, 2014
CONTRACT MODIFICATION PROCEDURES 012600 - 2
1. Support documentation shall be attached to the Proposal for additional work where the Work has
not begun.
2. Support documentation shall be attached to the invoice where the Work has proceeded on a time
and materials basis.
3. Documentation must be prepared for each individual change in the Work. For each individual
change in the Work, the Contractor and Subcontractor must deliver separate Proposals for Work
that has not been performed or separate invoices for Work that has been performed on a time and
materials basis.
4. If work is being performed on a time and materials basis, it is the Contractor’s and Subcontractor’s
responsibility to prepare daily time and materials work tickets for signature by the Owner on a
daily basis. This signature shall only acknowledge Work performed and will not authorize
payment for the Work.
5. Contractor and Subcontractor will be responsible to review the status of all changes to the Work
with the Owner at each regularly scheduled Job Meeting.
6. It is the Contractor’s and Subcontractor’s responsibility to submit to Owner an invoice with all
required supporting documentation.
7. Upon receipt of a Proposal or an invoice for additional work with acceptable supporting
documentation, the Owner will issue Change Orders to the Contractor and Subcontractor.
8. Payment will only be made for additional work if a Proposal or an invoice has been submitted and
approved and a Change Order has been written.
9. Owner will not be responsible to pay for additional Work performed by the Contractor and
Subcontractor if these outlined procedures are not followed.
10. Unless Contractor and Subcontractor notifies Owner in writing, the change in the Work will have
no effect on the Schedule.
1.4 MINOR CHANGES IN THE WORK (FIELD DIRECTIVES)
A. Architect will issue through Contractor supplemental instructions authorizing minor changes in the Work,
not involving adjustment to the Contract Sum or the Contract Time, on Owner’s form supplied by the
Architect. Contractor shall promptly notify the Construction Representative of costs associated with
Field Directives.
1. Owner may also issue written or oral Field Directives, with supplemental instructions authorizing
minor changes in the Work, not involving adjustment to the Subcontract Sum or Schedule.
a. Architect/Engineer to be notified by the Contractor of all Owner issued Field Directives.
1.5 CHANGE ORDER PROPOSAL REQUESTS
A. Owner-Initiated Proposal Requests: The Architect/Engineer will issue a detailed description of proposed
changes in the Work that may require adjustment to the Contract Sum or the Contract Time, on Owner’s
form supplied by the Architect. If necessary, the description will include supplemental or revised
Drawings and Specifications.
1. Work Change Proposal Requests issued by Architect/Engineer are not instructions either to stop
work in progress or to execute the proposed change.
2. Within five (5) calendar days after receipt of Proposal Request, submit a quotation estimating cost
adjustments to the Contract Sum and the Contract Time necessary to execute the change.
a. Include a list of quantities of products required or eliminated and unit costs, with total
amount of purchases and credits to be made. If requested, furnish survey data to
substantiate quantities.
Giant Eagle Market #6550 The Bridges, Carmel, Indiana
Building Shell Bid & Permit
DLA Project 2014040.00
August 12, 2014
CONTRACT MODIFICATION PROCEDURES 012600 - 3
b. Indicate applicable taxes, delivery charges, equipment rental, and amounts of trade
discounts.
c. Include costs of labor and supervision directly attributable to the change.
d. Include an updated Contractor's construction schedule that indicates the effect of the
change, including, but not limited to, changes in activity duration, start and finish times,
and activity relationship. Use available total float before requesting an extension of the
Contract Time.
e. Quotation Form: Use forms acceptable to Owner.
B. Contractor-Initiated Proposals: If latent or changed conditions require modifications to the Contract,
Contractor may initiate a claim by submitting a request for a change to Owner.
1. Include a statement outlining reasons for the change and the effect of the change on the Work.
Provide a complete description of the proposed change. Indicate the effect of the proposed change
on the Contract Sum and the Contract Time.
2. Include a list of quantities of products required or eliminated and unit costs, with total amount of
purchases and credits to be made. If requested, furnish survey data to substantiate quantities.
3. Indicate applicable taxes, delivery charges, equipment rental, and amounts of trade discounts.
4. Include costs of labor and supervision directly attributable to the change.
5. Include an updated Contractor's construction schedule that indicates the effect of the change,
including, but not limited to, changes in activity duration, start and finish times, and activity
relationship. Use available total float before requesting an extension of the Contract Time.
6. Comply with requirements in Section 012500 "Substitution Procedures" if the proposed change
requires substitution of one product or system for product or system specified.
7. Proposal Request Form: Use forms acceptable to Owner.
C. Proposal Request Form: When Applicable, Use Change Order Request Form issued by Owner.
1.6 ADMINISTRATIVE CHANGE ORDERS
A. Allowance Adjustment: See Section 012100 "Allowances" for administrative procedures for preparation
of Change Order Proposal for adjusting the Contract Sum to reflect actual costs of allowances.
B. Unit-Price Adjustment: See Section 012200 "Unit Prices" for administrative procedures for preparation of
Change Order Proposal for adjusting the Contract Sum to reflect measured scope of unit-price work.
1.7 CHANGE ORDER PROCEDURES
A. On Owner's approval of a Work Changes Proposal Request, Construction Representative will issue a
Change Order for signatures of Owner and Contractor on AIA Document G701 or equivalent.
1.8 CONSTRUCTION CHANGE DIRECTIVE
A. Construction Change Directive: Architect may issue a Construction Change Directive on
AIA Document G714 or equivalent. Construction Change Directive instructs Contractor to proceed with a
change in the Work, for subsequent inclusion in a Change Order.
1. Construction Change Directive contains a complete description of change in the Work. It also
designates method to be followed to determine change in the Contract Sum or the Contract Time.
Giant Eagle Market #6550 The Bridges, Carmel, Indiana
Building Shell Bid & Permit
DLA Project 2014040.00
August 12, 2014
CONTRACT MODIFICATION PROCEDURES 012600 - 4
B. Documentation: Maintain detailed records on a time and material basis of work required by the
Construction Change Directive.
1. After completion of change, submit an itemized account and supporting data necessary to
substantiate cost and time adjustments to the Contract.
1.9 ALLOWANCES
A. Allowance Adjustment: For allowance cost adjustment, base each Change Order Proposal on the
difference between the actual purchase amount and the allowance, multiplied by the final measurement of
work in place. Where applicable, include reasonable allowances for cutting losses, tolerances, mixing
wastes, normal product imperfections, and similar margins.
1. Include installation costs in the purchase amount only where indicated as part of the allowance.
2. When requested, prepare explanations and documentation to substantiate the margins claimed.
3. Submit substantiation of a change in scope of Work claimed in the Change Orders related to unit
cost allowances.
4. Owner reserves the right to establish the actual quantity of work in place by independent quantity
survey, measure, or count.
B. Submit claims for increased costs because of a change in scope or nature of the allowance described in
the Contract Documents, whether for the purchase order amount or the Contractor’s or Subcontractor's
handling, labor, installation, overhead, and profit. Submit claims within 14 days of receipt of the Change
Order authorizing Work to proceed. OWNER will reject claims submitted later than 14 days.
1. Do not include the indirect expense in the Change Order cost amount unless it is clearly shown
that the nature or extent of Work has changed from what could have been foreseen from
information in Contract Documents.
2. No change to the Contractor’s or Subcontractor's indirect expense is permitted for selection of
higher or lower priced materials or systems of the same scope and nature as originally indicated.
PART 2 - PRODUCTS (Not Used)
PART 3 - EXECUTION (Not Used)
END OF SECTION 012600