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Section 9 – Changes and Claims

Individual pieces of equipment having replacement value of five hundred dollars ($500) or

less shall be considered tools or small equipment and no payment will be made for those pieces

9-8.03.D Subcontracts

Subcontract costs shall be the actual cost to the Contractor for work performed by a

Subcontractor. The provisions of Section 9-8.03, “Force Account”, in this Section of these

Specifications, apply to the computation of subcontract costs. Subcontractors shall compute

markups per the following Section (Section 9-9, “Markups for Changed Work”).

9-9 MARKUPS FOR CHANGED WORK

Only the direct costs directly attributable to the performance of the changed work shall be

allowed. All other costs shall be included in the allowed markups, including, but not limited to,

profit, home office overhead, jobsite indirect costs, jobsite office personnel, general field

superintendence, general engineering, supervision of labor, bond and insurance premiums, and

general field expense, and shall constitute full compensation for all costs not included as actual

labor, materials, equipment, or Subcontractor costs. Markups for changed work shall not

exceed the following:

The Contractor or Subcontractor, whomever actually performs the changed work, may add

the markups to the total of allowable costs. When a Subcontractor performs work, the

Contractor and any higher tiered Subcontractor may add as mark-up to the total of allowable

costs an amount not to exceed five percent (5%), subject to the limitations of this Section. The

2% for Bonds and Insurance is to be added ONLY to the TOTAL of Labor, Materials, and

Equipment Rental, INCLUDING all subcontractor costs.

When the Agency is entitled to credit for deleted work, a ten percent (10%) credit for deleted

overhead of the Contractor or Subcontractor, as applicable, will be added to such credit.

9-10 COMPENSABLE UNAVOIDABLE DELAYS

Payments will be made as follows for compensable unavoidable delays, as defined in

Section 7-12.02, “Unavoidable Delays”, in these Specifications.

9-10.01 Construction Equipment

Compensation will be paid for construction equipment idle as a result of a compensable

unavoidable delay to the extent costs are incurred. The prices paid for equipment will be those

in the current edition of the Caltrans publication, “Labor Surcharge and Equipment Rental

Rates”, with the following modifications:

The right-of-way delay factor for each classification of equipment will be applied to

Compensation will be provided for the actual time of the delay, but not more than

eight (8) hours per day.

Compensation will be provided for each day or portion of a day, excluding Saturdays,

Sundays and holidays, for the duration of the delay.

9-10.02 Jobsite Indirect Costs

Indirect costs shall be limited to the following: