01 26 00 Contract Modification Procedures.pdf

Vaults 60, 87 & ET Structural Repair and Grating Replacement

3930 CONTRACT MODIFICATION PROCEDURES

REVISED 05/05/25 01 26 00 - 1

SECTION 01 26 00

CONTRACT MODIFICATION PROCEDURES

PART 1 - GENERAL

1.01 SUMMARY

A. Section Includes:

1. Administrative and procedural requirements for modifying the Contract in accordance with methods allowed in the General Conditions.

2. Under no circumstances shall Owner be liable for any extra work that has not been authorized by a properly executed Change Order.

B. Related Requirements:

1. Document 00 52 13, Agreement

2. Document 00 63 13, Request for Information Form

3. Document 00 63 19, Clarification Form

4. Document 00 63 36, Field Order Form

5. Document 00 63 57, Change Proposal Form

6. Document 00 63 63, Change Order Form

7. Document 00 72 13, General Conditions – Construction Contract

8. Document 00 73 13, Supplementary Conditions – Construction Contract

9. Section 01 29 00, Payment Procedures

10. Section 01 77 00, Closeout Procedures

1.02 REQUEST FOR INFORMATION (RFI)/CLARIFICATIONS

A. Questions and requested interpretations on the Contract Documents are to be submitted by the Contractor to Engineer at any time during the course of the Work.

1. The Request for Information shall include appropriate references, the subject of the request and an adequate and concise description.

2. All Requests for Information shall be submitted in numerical sequence.

3. Request Form: use Document 00 63 13, Request for Information issued by Owner or other form approved by Owner.

4. The Engineer and Owner will review the Request and return it to the Contractor with comments within five (5) working days after the date of receipt.

B. Owner may issue Clarifications or interpretations of the Contract Documents based on a Contractor’s Request for Information, recommendations of the Engineer, or based on their own finding or observations during the course of the Work.

1. Owner will issue such clarifications using Document 00 63 19, Clarification Form

CONTRACT MODIFICATION PROCEDURES 3930

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2. Issuance of such Clarification Form does not authorize a change in Contract Time(s) or Contract Price, and Contractor’s acceptance of any Work due to such Clarification Form shall not entitle them to any change in Contract Time(s) or Contract Price.

1.03 MINOR CHANGES IN WORK/FIELD ORDERS

A. At times, Owner or Engineer may request minor changes in Work that do not result in a change in Contract Time(s) or Contract Price.

B. Such requests shall be submitted to Contractor through Document 00 63 36, Field Order Form. If changes are communicated verbally to Contractor, Contractor is under no obligation to comply with such changes unless followed with an official Field Order Form.

C. If Contractor believes such Field Order Form will result in a change in Contract Time(s) or Contract Price, Contractor shall follow the procedures under Article 1.05 Change Proposal

1.04 PROPOSAL REQUESTS

A. Owner-initiated Proposal Requests: Engineer/Owner will issue a detailed description of proposed changes in the Work that may require adjustment to the Contract Time(s) or Contract Price. If necessary, the description will include supplemental or revised Drawings and Specifications.

1. Requests for Proposals issued by the Owner or Engineer are not instructions either to stop work in progress or to execute the proposed change but are for information only.

2. Within the time specified in the Proposal Form or 14 days, when not otherwise specified, after receipt of Request for Proposal Form, submit a quotation estimating cost adjustments to the Contract Time(s) and/or Contract Price necessary to execute the proposal.

a. Include a list of quantities of items or 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.

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. In the case of lump price work, include all percentages for Contractor’s overhead and profit.

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 Times)

e. Quotation Form: Use Document 00 63 57, Change Proposal Form provided by Owner or another suitable form approved by Owner.

f. Requests for Proposal will include reference number for tracking purposes,

3. Owner may, in anticipation of ordering an addition, deletion, or revision to the Work, request

Contractor to prepare detailed proposal of cost and times to perform contemplated change.

4. Contractor’s written proposal shall be transmitted to Engineer promptly, but not later than deadline specified above. Proposal shall remain firm for a maximum period of 45 days after receipt by Engineer.

5. Owner’s request for proposal or Contractor’s failure to submit such proposal within required time will not justify Claim for an adjustment in Contract Price or Contract Times (or Milestones).

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B. Contractor-initiated Proposal Requests: If latent or changed conditions require modifications to the Contract Times (s) or Contract Price, Contractor may initiate a claim by submitting a Change Proposal request to Owner per the procedures contained in Article Change Proposal.

1.05 CHANGE PROPOSAL

A. As a result of a Field Order, Owner-initiated Request for Proposal, or latent or changed conditions of the Work that Contractor feels would result in a change in Contract Time(s) or Contract Price, Contactor shall submit a Change Proposal.

1. Include specific references including Drawing numbers, specifications sections with article/paragraph number, with appropriate attachments.

2. 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 Time(s) and the Contract Price.

3. Include a list of quantities of items or 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.

4. Indicate applicable delivery charges, equipment rental, and amounts of trade discounts.

5. Include costs of labor and supervision directly attributable to the change. In the case of lump price work, include all percentages for Contractor’s overhead and profit.

6. 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(s).

7. Comply with Owner’s requirements if the proposed change requires substitution of one item, product or system for item, product or system specified.

8. Proposal Form: Use Document 00 63 57, Change Proposal Form provided by Owner or other form approved by Owner.

1.06 CHANGE ORDER PROCEDURES

A. Designate during preconstruction phase the Contractor’s representative who is authorized to accept Change Proposals and who is responsible for coordinating approved Change Orders with Contractor’s employees and Subcontractors.

B. Promptly implement change order procedures as follows:

1. Provide details as required for Owner and/or Engineer to evaluate Change Proposal including scope of change, labor costs, material costs, equipment costs, and percentage of overhead and profit applied.

2. Maintain detailed records of Work performed on time and material/force account basis.

3. Provide additional documentation upon request.

C. Procedure:

1. Change Proposals must be submitted on proper form. Contact Owner’s representative, and they will provide the Contractor with Document 00 63 57, Change Proposal Form containing a

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spreadsheet to be completed, or Owner can agree to a similar document provided by the Contractor.

a. If Contractor-initiated, Contractor shall submit signed copies of Change Proposal to Engineer.

b. If Owner-initiated or Engineer-initiated, Engineer will submit first to Contractor for signature.

1) Contractor shall, upon receipt, either: (i) promptly sign copies, retaining one for its file, and return remaining copies to Engineer for Owner’s signature, or (ii) return unsigned copies with written justification for not executing Change Order.

2. Engineer will, upon receipt of Contractor signed copies, promptly forward Engineer’s written recommendation and partially executed copies for Owner’s signature, or if Contractor fails to execute the Change Order, Engineer will promptly so notify Owner and transmit Contractor’s justification to Owner.

3. Upon receipt of Contractor-executed Change Proposal, Owner will promptly:

a. Execute Change Order, retaining one copy for its file and returning copies to Engineer; or

b. Return to Engineer unsigned copies with written justification for not executing Change Order;

or

c. Negotiate all or part of the Change Proposal in expectation of executing a Change Order acceptable to all parties.

4. Upon receipt of Owner-executed Change Order, Engineer will transmit copies to Contractor, one copy to Resident Project Representative or other field representative, and retain one copy, or if Owner fails to execute the Change Order, Engineer will promptly so notify Contractor and transmit Owner’s justification to Contractor.

5. Upon receipt of Owner-executed Change Order, Contractor shall:

a. Perform Work covered by Change Order.

b. Revise Schedule of Values to adjust Contract Price and submit with next Application for

Payment.

c. Revise Progress Schedule to reflect changes in Contract Times, if any, and to adjust times for other items of Work affected by change.

d. Enter changes in Project record documents after completion of change related Work.

D. In signing a Change Order, Owner and Contractor acknowledge and agree that:

1. Stipulated compensation (Contract Price or Contract Times, or both) set forth includes payment for

(i) the Cost of the Work covered by the Change Order, (ii) Contractor’s fee for overhead and profit,

(iii) interruption of Progress Schedule, (iv) delay and impact, including cumulative impact, on other Work under the Contract Documents, and (v) extended overheads.

2. Change Order constitutes full mutual accord and satisfaction for the change to the Work.

3. Unless otherwise stated in the Change Order, all requirements of original Contract Documents apply to the Work covered by Change Order

1.07 COST OF THE WORK

A. In determining supplemental costs allowed in Paragraph 13.01.B.5 of the General Conditions for rental equipment and machinery, the following will apply.

B. Rental of construction equipment and machinery and parts thereof having replacement value in excess of $1,000, whether owned by Contractor or rented or leased from others, shall meet the following requirements:

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1. Full rental costs for leased equipment shall not exceed rates listed in the Rental Rate Blue Book published by Equipment Watch,, as adjusted to the regional area of the Project. Owned equipment costs shall not exceed the single shift rates established in the Cost Reference Guide (CRG) published by Equipment Watch. The most recent published edition in effect at commencement of actual equipment use shall be used.

2. Rates shall apply to equipment in good working condition. Equipment not in good condition, or larger than required, may be rejected by Engineer, or accepted at reduced rates.

3. Leased Equipment:

a. For equipment leased or rented in arm’s length transactions from outside vendors, maximum rates shall be determined by the following actual usage/Payment Category:

1) Less than 8 Hours: Hourly rate.

2) 8 or More Hours but Less Than 7 Days: Daily rate.

3) 7 or More Days but Less Than 30 Days: Weekly rate.

4) 30 Days or More: Monthly rate.

4. Arm’s length rental and lease transactions are those in which firm involved in the rental or lease of equipment is not associated with, owned by, have common management, directorship, facilities and/or stockholders with firm renting equipment.

5. Financial arrangements associated with rental and lease transactions that provide Contractor remuneration or discounts not visible to the Owner must be disclosed and integrated with charged rates.

6. Leased Equipment in Use: Actual equipment use time documented by Engineer shall be basis equipment was on and use at the Project Site. In addition to leasing rate above, equipment operational costs shall be paid at estimated hourly operating cost rate set forth in Rental Rate Blue Book if not already included in lease rate. Hours of operation shall be based upon actual equipment usage to nearest quarter hour, as recorded by Engineer.

7. Leased Equipment, When Idle (Standby): Idle or standby equipment is equipment onsite or in transit to and from the Work Site and necessary to perform the Work under modification, but not in actual use. Idle equipment time, as documented by Engineer, shall be paid at leasing rate determined above, excluding operational costs.

8. Owned and Other Equipment in Use: Equipment rates for owned equipment or equipment provided in other than arm’s length transaction shall not exceed the single shift total hourly costs rate developed in accordance with the CRG and as modified herein for multiple shifts. This total hourly rate will be paid for each hour equipment performs Work. Hours of operation shall be based upon actual equipment usage as recorded by Engineer. Rate shall represent payment in full for Contractor’s direct costs.

9. Owned and Other Equipment, When Idle (Standby): Equipment necessary to be onsite to perform the Work on single shift operations, but not used, shall be paid for at ownership hourly expense rate developed in accordance with CRG, provided its presence and necessity onsite has been documented by Engineer. Payment for idle time of portions of a normal workday, in conjunction with original contract Work, will not be allowed. In no event shall idle time claimed in a day for piece of equipment exceed normal Work or shift schedule established for the Project. It is agreed that this rate shall represent payment in full for Contractor’s direct costs. When Engineer determines that the equipment is not needed to continuously remain at the Work Site, payment will be limited to actual hours in use.

10. Owned and Other Equipment, Multiple Shifts: For multiple shift operations, the CRG single shift total hourly costs rate shall apply to the operating equipment during the first shift. For subsequent

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shifts, up to two in a 24-hour day, operating rate shall be the sum of the total hourly CRG operating cost and 60 percent of the CRG ownership and overhaul expense. Payment for idle or standby time for second and third shifts shall be 20 percent of the CRG ownership and overhaul expense.

11. When necessary to obtain owned equipment from sources beyond the Project limits, actual cost to transfer equipment to the Site and return it to its original location will be allowed as an additional item of expense. Move-in and move-out allowances will not be made for equipment brought to the Project if equipment is also used on original Contract or related Work.

12. If move-out destination is not to original location, payment for move-out will not exceed payment for move-in.

13. If move is made by common carrier, allowance will be amount paid for freight. If equipment is hauled with Contractor’s own forces, rental will be allowed for hauling unit plus hauling unit operator’s wage. If equipment is transferred under its own power, rental will be 75 percent of the appropriate total hourly costs for the equipment, without attachments, plus equipment operator’s wage.

14. Charges for time used in servicing equipment to ready it for use prior to moving and similar charges will not be allowed.

15. When a breakdown occurs on any piece of owned equipment, payment shall cease for that equipment and any other owned equipment idled by breakdown.

16. If any part of the Work is shut down by Owner, standby time will be paid during nonoperating hours if diversion of equipment to other Work is not practicable. Engineer reserves the right to cease standby time payment when an extended shutdown is anticipated.

17. If a rate has not been established in CRG for owned equipment, Contractor may:

a. If approved by Engineer, use rate of most similar model found, considering such characteristics as manufacturer, capacity, horsepower, age, and fuel type, or

b. Request Equipment Watch to furnish a written response for a rate on the equipment, which shall be presented to Engineer for approval; or

c. Request Engineer to establish a rate.

1.08 CORRELATION WITH OTHER CONTRACT SUBMITTALS AND CONTRACT DOCUMENTS

A. No applications for payment for Work under this Contract will be processed until the Contractor’s Progress Schedule and Schedule of Values are updated to reflect approved changes in Contract Price and Contract Times.

B. Revise Progress Schedule to reflect each change in Projects Milestones and projected Substantial Completion date.

C. Upon completion of work under a Field Order or Change Order, enter pertinent changes to the Record Documents and As-built Drawings.

PART 2 - PRODUCTS (NOT USED)

PART 3 - EXECUTION (NOT USED)

END OF SECTION

B. Contractor-initiated Proposal Requests: If latent or changed conditions require modifications to the Contract Times (s) or Contract Price, Contractor may initiate a claim by submitting a Change Proposal request to Owner per the procedures contained...