Common use of Changes in the Project Clause in Contracts

Changes in the Project. (a) Except for field modifications which are determined by or on behalf of the Project Manager, acting reasonably, to be immaterial in nature and have a cost of $25,000 or less for any one modification and $50,000 or less for a series of related modifications, changes and extras to or affecting the Project (including, for greater certainty, all City Change Orders) must be approved in writing and signed or initialled by the Owner through its authorized Representative. The provisions of this Section 6.1 do not alter, limit or derogate from the provisions of Section 2.2(c). (b) As of this date of this Agreement, the Owner’s authorized representative is the Owner’s General Manager - Infrastructure Services, Infrastructure Services & Community Sustainability Portfolio, or his/her designee in writing (the “Representative”). The Owner shall give written notice to the Project Manager of any change of its Representative. (c) Upon receipt of a request for a change or extra to or affecting the Project, the Project Manager will issue a contemplated change notice (a “CCN”) to the applicable General Contractor for pricing and to the Representative. All CCN pricing will be reviewed by both the applicable Consultant and, if applicable, Sub-consultant and the Project Manager to confirm that it is fair and reasonable. Following receipt and confirmation of the CCN pricing, the Project Manager will then process a draft Change Order. A draft Change Order will become a “Change Order” deemed to be issued by or on behalf of the Owner (i) where the Representative’s approval is required under Section 6.1(a), upon approval by the Representative or if no response is received from the Representative within two (2) Business Days after the draft Change Order, and such other information as is reasonably required by the Representative to review the Change Order, is submitted by the Project Manager (or such longer period as the Project Manager may allow, acting reasonably, upon written notice to the Representative given the exigencies of the Project Schedule), or (ii) where the Representative’s approval is not required under Section 6.1(a), upon processing of the draft Change Order by the Project Manager. (d) If the Project Manager deems the CCN to be critical to the Project Schedule, the Project Manager will request that the Owner authorize the CCN to proceed prior to finalizing the pricing on the understanding that the Project Manager will make all commercially reasonable efforts to negotiate fair and reasonable pricing for the Work contemplated in the CCN. In such a case, the Project Manager may recommend the issuance by the Owner of a change directive (“Change Directive”) stating that the Work set out in the Change Directive is to proceed and that the final cost for such work will be agreed upon using the mechanism identified in the applicable Construction Contract(s). (e) The cost of Change Orders and Change Directives shall be payable in accordance with the terms of the Project Agreement.