CONTRACT MODIFICATION PROCEDURES
PART 1- GENERAL
1.01 DESCRIPTION
A. General
1. Promptly implement
variation order procedures
a. Provide full written
data required to evaluate variations.
b. Maintain detailed
records of work done on a daily work basis.
c. Provide full
documentation to OWNER on request.
2. Designate in
writing the member of Contractor’s organization:
a. Who is authorized to
accept variations in the work.
b. Who is responsible for
informing others in the contractor’s employ of the authorization of variations
in the work.
B. Related Work
Specified Elsewhere
1. Bill of
Quantities.
2. General Conditions
of Contract: Alterations, Additions and Omissions.
3. Section 01320:
Construction Programs.
1.02 DEFINITIONS
A. Variations order:
See General Conditions of Contract.
B. Construction
Variation Authorization: A written order to the Contractor, signed by Owner
which amends the Contract Documents as described, and authorizes Contractor to
proceed with a variation that affects the Contract Price or the Contract Time
for inclusion in a subsequent variation order.
C. OWNER Supplemental
Instructions: A written order, instructions, or interpretations, signed by
OWNER making minor variations in the work not involving a variation in Contract
Price or Contract Time.
1.03 PRELIMINARY
PROCEDURES
A. Owner may initiate
variations by submitting a proposal/request to Contractor. Request will
include:
1. Detailed
description of the Variations, Products, and locations of the variation in the
project.
2. Supplementary or
revised drawings and specifications.
3. The
project time span for making the variation, and a specific statement as to
whether overtime work is, or is not, authorized.
4. A specific period of time during which
the requested price will be considered valid.
5. Such request is for information only,
and is not an instruction to execute the changes, nor to stop work in progress.
B. Contractor may initiate variations by
submitting a written notice to Owner containing.
1. Description of the proposed changes.
2. Statement of the reason for making the
variations.
3. Statement of the effect on the Contract
Price and the Contract time.
4. Statement of the effect on the work of
separate contractors.
5. Documentation supporting any variation
in Contract Price or Contract Time, as appropriate.
1.04 CONSTRUCTION VARIATION AUTHORIZATION
A. In lieu of Proposal Request, owner may
issue a construction variation authorization for Contractor to proceed with a
variation for subsequent inclusion in a Variation Order.
B. Authorization will describe variations
in the work, both additions and deletions, with attachments of variation, and
will designate the method of determining any variation in the Contract Time.
C. Owner will sign and date the
Construction Variation Authorization as authorization of the contractor to
proceed with the variations.
D. Contractor may sign and date the
Construction Variation Authorization to indicate agreement with the terms
therein.
1.05 DOCUMENTATION OF PROPOSALS AND CLAIMS.
A. Support each quotation for a lump-sum
proposal, and for each unit price which has not previously been established,
with sufficient substantiating data to allow Owner to evaluate the quotation.
B. On request provide additional data to
support time and cost computations:
1. Labor required.
2. Equipment required.
3. Products required.
a. Recommended source of purchase and unit cost.
b. Quantities required.
4. Taxes, insurance and bonds.
5. Credit for work deleted from Contract,
similarly documented.
6. Overhead
and profit.
7. Justification for any variation in
Contract Time.
C. Support each claim for additional costs,
and for work done on a daily work account basis, with documentation as required
for a lump-sum proposal, plus additional information.
1. Name of the person who ordered the
work, and date of the order.
2. Dates and times work was performed, and
by whom.
3. Time record, summary of hours worked,
and hourly rates of use.
4. Receipts and invoices for:
a. Equipment used, listing dates and times of
use.
b. Products used, listing of quantities.
c. Subcontracts.
D. Document requests for substitutions for
products as specified in Section 01600.
1.06 PREPARATION OF VARIATION ORDERS.
A. OWNER will prepare each Variation
order.
B. Variation order will describe variation
in the work both additions and deletions with attachments of revised Contract
Documents to define details of the variation.
C. Variation order will provide an
accounting of the adjustment in the Contract Price and in the Contract Time.
1.07 LUMP-SUM / FIXED PRICE VARIATION ORDER
A. Content of Variation order will be
based on, either:
1. OWNER’s proposal request and
Contractor’s responsive proposal as mutually agreed between Owner and Contractor.
2. Contractor’s proposal for a variation,
as recommended by OWNER.
B. OWNER will sign and date the Variation
Order as authorization for the Contractor to proceed with the variations.
C. Contractor may sign and date the Variation
Order to indicate agreement with the terms therein.
1.08 UNIT COST VARIATION ORDER
A. Content of Variation Order will be
based on, either:
1. OWNER’s definition of the scope of the
required work.
2. Contractor’s proposal for a variation,
as recommended by Engineer.
3. Survey of completed work.
B. The
amount of the unit costs to be:
1. Those stated in the Bill of Quantities
wherever possible.
2. Otherwise those mutually agreed upon
between OWNER and Contractor.
C. When quantities of each of the items
affected by the Variation Order can be determined prior to start of the work.
1. Owner will sign and date the Variation
Order as authorization for Contractor to proceed with the variation.
2. Contractor may sign and date the
Variation Order to indicate agreement with the terms therein.
D. When quantities of the items cannot be
determined prior to start of the work:
1. Engineer will issue a construction
variation authorization directing Contractor to proceed with the variation on
the basis of unit cost, and will cite the applicable unit price.
2. At completion of the variation, OWNER
will determine the cost of such work based on the unit costs and quantities
used.
a. Contractor shall submit documentation to
establish the number of units of each item and any claims for a variation in
Contract Price and in Contract Time.
3. Engineer will sign and date the
Variation Order to establish the variation in Contract Price and in Contract
Time.
4. OWNER and Contractor will sign and date
the Variation Order to indicate their agreement with the terms therein.
1.09 DAYWORK ACCOUNT VARIATION
ORDER/CONSTRUCTION VARIATION ORDER
A. OWNER will issue a Construction
Variation Authorization directing Contractor to proceed with the variations.
B. At completion of the variation,
Contractor shall submit itemized accounting and supporting data as provided in
the clause Documentation of Proposals and Claim for this section.
C. OWNER will determine the allowable cost
of such work, as provided in General Conditions and Supplementary Conditions.
D. OWNER will sign and date the Variation
Order to establish the Variation in Contract Price in Contract Time.
E. OWNER and Contractor will sign and date
the variation order to indicate their agreement therewith.
1.10 CO-RELATION WITH CONTRACTOR’S SUBMITTALS
A. Periodically revise Bills of Quantities
and Request for Payment forms to record each variation as a separate item of
work, and to record the adjusted Contract Price.
B. Periodically revise the construction schedule
to reflect each variation in Contract Time.
1. Revise sub-schedules to show variation
for other items of work affected by the variations.
C. Upon completion of work under a
Variation order, enter pertinent variations in Record Documents.
