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<br />AIA Document A201 – 2017. Copyright © 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997, 2007 and 2017. All rights
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<br />User Notes: (1345795138)
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<br />§ 7.3 Construction Change Directives
<br />§ 7.3.1 A Construction Change Directive is a written order prepared by the Owner or Architect and signed by the
<br />Owner , directing a change in the Work prior to agreement on adjustment, if any, in the Contract Sum or Contract
<br />Time, or both. The Owner may by Construction Change Directive, without invalidating the Contract, order changes in
<br />the Work within the general scope of the Contract consisting of additions, deletions, or other revisions, the Contract
<br />Sum and Contract Time being adjusted accordingly.
<br />§ 7.3.2 A Construction Change Directive shall be used in the absence of total agreement on the terms of a Change
<br />Order.
<br />§ 7.3.3 The Construction Change Directive shall provide for an adjustment to the Contract Sum, the adjustment shall
<br />be based on one of the following methods:
<br />.1 Mutual acceptance of a lump sum properly itemized and supported by sufficient substantiating data to
<br />permit evaluation;
<br />.2 Unit prices stated in the Contract Documents or subsequently agreed upon;
<br />.3 Cost to be determined in a manner agreed upon by the parties and a mutually acceptable fixed or
<br />percentage fee; or
<br />.4 As provided in Section 7.3.4.
<br />§ 7.3.4 If the Contractor does not respond promptly or disagrees with the method for adjustment in the Contract Sum,
<br />the Owner shall determine the adjustment on the basis of reasonable expenditures and savings of those performing the
<br />Work attributable to the change, including, in case of an increase in the Contract Sum, an amount for overhead and
<br />profit as set forth in the Agreement, or if no such amount is set forth in the Agreement, a reasonable amount. In such
<br />case, and also under Section 7.3.3.3, the Contractor shall keep and present, in such form as the Owner may prescribe,
<br />an itemized accounting together with appropriate supporting data. Unless otherwise provided in the Contract
<br />Documents, costs for the purposes of this Section 7.3.4 shall be limited to the following:
<br />.1 Costs of labor, including applicable payroll taxes, fringe benefits required by agreement or custom,
<br />workers’ compensation insurance, and other employee costs ;
<br />.2 Costs of materials, supplies, and equipment, including cost of transportation, whether incorporated or
<br />consumed;
<br />.3 Rental costs of machinery and equipment, exclusive of hand tools, whether rented from the Contractor
<br />or others;
<br />.4 Costs of premiums for all bonds and insurance, permit fees, and sales, use, or similar taxes, directly
<br />related to the change; and
<br />.5 Costs of supervision and field office personnel directly attributable to the change.
<br />§ 7.3.5 If the Contractor disagrees with the adjustment in the Contract Time, the Contractor may make a Claim in
<br />accordance with applicable provisions of Article 15.
<br />§ 7.3.5.1 The Owner’s determination, as specified above, shall not be less than the actual costs expended by the
<br />Contractor in performing the changed Work. If the Owner’s determination is believed by the Contractor to be less
<br />than its actual costs, whether incurred or projected, in performing the Work, the Contractor may make a Claim in
<br />accordance with applicable provisions of Article 15.
<br />§ 7.3.6 Upon receipt of a Construction Change Directive, the Contractor shall promptly proceed with the change in the
<br />Work involved and advise the Owner of the Contractor’s agreement or disagreement with the method, if any, provided
<br />in the Construction Change Directive for determining the proposed adjustment in the Contract Sum or Contract Time.
<br />§ 7.3.7 A Construction Change Directive signed by the Contractor indicates the Contractor’s agreement therewith,
<br />including adjustment in Contract Sum and Contract Time or the method for determining them. Such agreement shall
<br />be effective immediately and shall be recorded as a Change Order.
<br />§ 7.3.8 The amount of credit to be allowed by the Contractor to the Owner for a deletion or change that results in a net
<br />decrease in the Contract Sum shall be actual net cost as confirmed by theOwner. When both additions and credits
<br />covering related Work or substitutions are involved in a change, the allowance for overhead and profit shall be figured
<br />on the basis of net increase, if any, with respect to that change.
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