Common use of Department Changes Clause in Contracts

Department Changes. 10.1.1 The Department reserves the right to make alterations or changes in the Work (including reductions in the scope of the Work up to a cap of [10]% of the Design and Construction Costs as set forth in the Schedule of Values) pursuant to [Section of Division ]. 10.1.2 If Developer deems that additional compensation or a time extension is due for Extra Work which is directed by the Department, Developer shall submit a Claim in accordance with Section 9.1. If the Department Change results in a reduction to the scope of the Work, the Department shall be entitled to [50]% of the net reduction in direct labor, material and equipment costs associated with the Department Change, which shall be paid by the Developer to the Department: (a) as periodic payments over the Term; (b) as an adjustment to the MAP over the Term; (c) through a reduction in the Term; or (d) through any combination of the above, as mutually agreed upon by the Parties. The Department shall, by directing Developer to perform Extra Work, reinvest the remaining [50]% of the net reduction in direct labor, materials and equipment costs associated with the Department Change into the Project during the Term in such manner as it may in its discretion deem appropriate.