01260-CONTRACT_MOD_(per_Addendum_1).pdf

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DHA COMM. NO. 22003 PROCEDURES

SECTION 01260

CONTRACT MODIFICATION PROCEDURES

NEW SECTION PER ADDENDUM #1

PART 1 - GENERAL

1.1 SUMMARY

A. This Section specifies administrative and procedural requirements for handling and processing Contract modifications.

1.2 CHANGES PRIOR TO CONTRACT

A. ADDENDA

1. Addenda are changes or clarifications issued to GC’s or bidders prior to contract award, typically during a bidding period. These may include new or revised drawings, specifications, narratives, answers to RFI’s, or other similar documents.

2. GC’s are to acknowledge all Addenda issued in their bid submission.

3. Following issuance of an Addendum, all documents issued, including the Addendum document itself, become incorporated into the project’s Contract Documents.

1.3 TYPES OF CHANGES TO CONTRACT. THE FOLLOWING DOCUMENTS MAY BE

ISSUED BY THE ARCHITECT TO DIRECT CHANGES TO THE WORK.

A. ARCHITECT’S SUPPLEMENTAL INSTRUCTIONS (ASI’S)

1. ASI’s are used when changes are necessary not involving potential changes to Contract Sum or Contract Time, such as dimensional clarifications and other similar minor instructions.

2. In such cases, the Architect will issue supplemental instructions on AIA Document G710, "Architect's Supplemental Instructions" or on an alternative form as may be determined appropriate by the Architect.

B. CONSTRUCTION CHANGE DIRECTIVES (CCD’S)

1. CCD’s are used when changes are necessary involving potential changes to Contract Sum or Contract Time and the Owner wishes the GC to proceed immediately with the work. The Architect will issue a detailed description of proposed changes in the Work, including, if necessary, supplemental or revised Drawings and Specifications. Architect will use AIA Document G714 for CCD’s or an alternative form as may be determined appropriate by the Architect

2. Within one week of submitting the CCD, GC is to submit a PCO quotation estimating cost adjustments to the Contract Sum and the Contract Time necessary to execute the change.

a. Provide the information listed in this section 1.5.A.

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C. PROPOSAL REQUESTS (PR’S)

1. Proposal Requests issued by Architect are for the purpose of requesting pricing from the GC prior to authorizing the work to proceed. They are not to be considered instructions either to stop work in progress or to execute the proposed change.

2. The Architect will issue a detailed description of proposed changes in the Work that may require adjustment to the Contract Sum or the Contract Time. If necessary, the description will include supplemental or revised Drawings and Specifications. Architect will use AIA Document G709 for Proposal Requests or an alternative form as may be determined appropriate by the Architect

3. Within time specified in Proposal Request after receipt of Proposal Request, GC is to submit a PCO quotation estimating cost adjustments to the Contract Sum and the Contract Time necessary to execute the change.

a. Provide the information listed in this section 1.5.A.

1.4 CONTRACTOR INITIATED PCO’S

A. If latent or unforeseen conditions require modifications to the Contract, Contractor may propose changes by submitting a PCO request for a change to Architect.

B. 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.

1. Provide the information listed in this section 1.5.A.

C. Comply with requirements in Division 1 Section "Product Requirements" if the proposed change requires substitution of one product or system for product or system specified.

1.5 ALLOWANCES

A. Allowance Adjustment: To adjust allowance amounts, base each PCO proposal on the difference between purchase amount and the allowance, multiplied by final measurement of work-in-place. If applicable, include reasonable allowances for cutting losses, tolerances, mixing wastes, normal product imperfections, and similar margins.

1. Include installation costs in purchase amount only where indicated as part of the allowance.

2. If requested, prepare explanation and documentation to substantiate distribution of overhead costs and other margins claimed.

3. Submit substantiation of a change in scope of work, if any, claimed in Change Orders related to unit-cost allowances.

4. Owner reserves the right to establish the 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 Contractor's handling, labor, installation, overhead, and profit. Submit claims within 7

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days of receipt of the Change Order or Construction Change Directive authorizing work to proceed. Owner will reject claims submitted later than 7 days after such authorization.

1. Do not include Contractor's or subcontractor's 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 the Contract Documents.

2. No change to Contractor's indirect expense is permitted for selection of higher- or lower-priced materials or systems of the same scope and nature as originally indicated.

1.6 CHANGE ORDER PROCEDURES

A. PCO (Potential Change Order): Upon receipt of one of the above Change Directives, or upon encountering conditions warranting a change to the contract cost or schedule, the GC shall issue to the Owner and Architect a PCO, which shall contain a breakdown of cost and time related to a change for evaluation by the Owner and the Architect. At a minimum, the following shall be included:

1. 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.

2. Backup quotations from subcontractors.

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. Contractor’s fees

6. Include schedule impact as a number of calendar days. Use available total float before requesting an extension of the Contract Time.

7. For work requested to be done on a Time and Material basis, submit costs within one week of completing the work.

a. Maintain detailed records on a time and material basis of work required by the Change. After completion of change, submit an itemized account and supporting data necessary to substantiate cost and time adjustments to the Contract.

B. CHANGE ORDERS:

1. Upon Owner's approval of a PCO, or other cost proposal, GC will issue a Change Order for signatures of Owner and Contractor on AIA Document G701 “Change Order”, or similar form.

2. Issuance of a single Change Order to include multiple individual PCO’s is acceptable and preferable.

C. CHANGE ORDER MARKUP

1. Acceptable General Contractor markup on change orders shall not exceed the fee established in the project contract, and in no situation shall exceed 10%.

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PART 2 - PRODUCTS (Not Used)

PART 3 - EXECUTION (Not Used)

END OF SECTION 01 2600