CHANGES REQUIRING AN INCREASE IN CONTRACT SUM Sample Clauses
The "Changes Requiring an Increase in Contract Sum" clause defines the process by which modifications to the scope of work that result in additional costs are handled within a contract. Typically, this clause outlines the procedures for requesting, approving, and documenting changes that will increase the total contract price, such as when the client requests extra work or unforeseen conditions arise. Its core practical function is to ensure that both parties have a clear, agreed-upon method for adjusting the contract sum, thereby preventing disputes over payment for additional work and maintaining transparency in project costs.
CHANGES REQUIRING AN INCREASE IN CONTRACT SUM. 4.8.1 If the AGENCY elects to have the Change in Work performed pursuant to the Firm Fixed Price Method, its election shall be based on a lump sum proposal which shall be submitted by CONTRACTOR to the AGENCY within five (5) workdays of the AGENCY’s request, but the AGENCY’s request for a lump sum proposal shall not be deemed an election by the AGENCY to have the Change in Work performed on a lump sum basis.
4.8.2 If the AGENCY elects to have the Change in Work performed pursuant to the Unit Price Method, its election shall be based on a unit price proposal which shall be submitted by CONTRACTOR to the AGENCY within five (5) workdays of the AGENCY’s request, but the AGENCY’s request for a unit price proposal shall not be deemed an election by the AGENCY to have the Change in Work performed on a unit price basis.
4.8.3 If the AGENCY elects to have the Change in the work performed pursuant to the Time and Materials Method, its election shall be based on a time and materials price proposal which shall be submitted by CONTRACTOR within five (5) workdays of the AGENCY’s request, but the AGENCY’s request for a time and materials price proposal shall not be deemed an election by the AGENCY to have the Change in Work performed on a time and materials basis.
4.8.4 Nothing herein contained shall preclude the AGENCY from requesting a lump sum proposal, a unit price proposal, and a time and materials price proposal, or any two of those, with respect to the same Change in Work, in which event, CONTRACTOR shall submit all proposals requested.
4.8.5 Until such time as the AGENCY makes it election under this paragraph, CONTRACTOR shall submit daily time and material tickets to the AGENCY as required under subparagraph 4.5.3, which shall be subject to authentication as therein provided. At such time as the AGENCY makes its election under this paragraph, an appropriate Change Order will be issued; provided however, that until such time, the AGENCY shall pay to CONTRACTOR up to the AGENCY’s reasonable estimated value of the Change in Work.
CHANGES REQUIRING AN INCREASE IN CONTRACT SUM. If any Change in the Work will result in an increase in the Contract Sum, the Owner shall have the right to require the performance thereof on a lump sum basis, a unit price basis or a time and material basis, all as hereinafter more particularly described.