PART 6 - CHANGES IN THE WORK

Question 1

GC 6.1 OWNER’S RIGHT TO MAKE CHANGES

6.1.1

Answer 1

The owner, through the consultant, without invalidating the contract, may make:

1) Changes in the work consisting of additions, deletions or other revisions to the work by change order or change directive.

2) Changes to the contract time for the work, or any part thereof, by change order.

Question 2

GC 6.1 OWNER’S RIGHT TO MAKE CHANGES

6.1.2

Answer 2

The contractor SHALL not perform a change in the work without a change order or a change directive.

Question 3

GC 6.2 CHANGE ORDER

6.2.1

Answer 3

When a change in the work is proposed or required, the consultant will provide the contractor with a written description of the proposed change in the work.

The contractor SHALL promptly present to the consultant, in a form that can be reasonably evaluated, a method or adjustment or an amount of adjustment or an amount of adjustment for the contract price, if any, and the adjustment in the contract time, if any, for the proposed change in the work.

Question 4

GC 6.2 CHANGE ORDER

6.2.2

Answer 4

When the owner and the contractor agree to the adjustments in the contract price and contract time or to the method to be used to determine the adjustments, such agreement SHALL be effective immediately and SHALL be recorded in a change order.

The value of the work performed as the result of a change order SHALL be included in the applications for progress payment.

Question 5

GC 6.3 CHANGE DIRECTIVE

6.3.1

Answer 5

If the owner requires the contractor to proceed with a change in the work prior to the owner and the contractor agreeing upon the corresponding adjustment in the contract price and contract time, the owner, through the consultant, SHALL issue a change directive.

Question 6

GC 6.3 CHANGE DIRECTIVE

6.3.2

Answer 6

A change directive SHALL only be used to direct a change in the work which is within the general scope of the contract documents.

Question 7

GC 6.3 CHANGE DIRECTIVE

6.3.3

Answer 7

A change directive SHALL NOT be used to direct a change in the contract time only.

Question 8

GC 6.3 CHANGE DIRECTIVE

6.3.4

Answer 8

Upon receipt of a change directive, the contractor SHALL proceed promptly with the change in the work.

Question 9

GC 6.3 CHANGE DIRECTIVE

6.3.5

Answer 9

For the purpose of valuing change directives, changes in the work that are not substitutions or otherwise related to each other SHALL NOT be grouped together in the same change directive.

Question 10

GC 6.3 CHANGE DIRECTIVE

6.3.6

Answer 10

The adjustment in the contract price for a change carried out by way of a change directive SHALL be determined on the basis of the cost of the contractor’s actual expenditures and savings attributable to the change directive, valued in accordance with paragraph 6.3.7 and as follows:

1) If the change results in a net increase in the contractor’s cost, the contract price SHALL be increased by the amount of the net increase in the contractor’s cost, plus the contractor’s percentage fee on such net increase.

2) If the change results in a net decrease in the contractor’s cost, the contract price SHALL be decreased by the amount of the net decrease in the contractor’s cost, without adjustment for the contractor’s percentage fee.

3) The contractor’s fee SHALL be as specified in the contract documents or as otherwise agreed by the parties.

Question 11

GC 6.3 CHANGE DIRECTIVE

6.3.7

Answer 11

The cost of performing the work attributable to the change directive SHALL be limited to the actual cost of the following in as much as it contributes directly to the implementation of the change directive.

1) Labor
2) Products, construction equipment and temporary work
3) Sub contract
4) Others

Question 12

GC 6.3 CHANGE DIRECTIVE

6.3.7 (Continued) - LABOUR

Answer 12

LABOUR:

1) Rates that are listed in the schedule or as agreed by the owner and the contractor including wages, benefits, compensation, contributions, assessments, or taxes incurred for such items as employment insurance, provincial or territorial health insurance, workers’ compensation, and Canada or Quebec pension plan for:

a) Trade labor in the direct employ of the contractor;
b) The contractor’s personnel when stationed at the field office;
c) The contractor’s personnel engaged at shops or on the road, in expediting the production or transportation of materials or equipment;
d) The contractor’s office personnel engaged in a technical capacity, or other personnel identified in Article A-3 of the Agreement - CONYTRACT DOCUMENTS for the time spent in the performance of the work.

Question 13

GC 6.3 CHANGE DIRECTIVE

6.3.7 (Continued) - PRODUCTS, CONSTRUCTION EQUIPMENT AND TEMPORARY WORK

Answer 13

PRODUCTS, CONSTRUCTION EQUIPMENT AND TEMPORARY WORK:

2) Cost of all products including cost of transportation thereof;

3) In the absence of agreed rates, cost less salvage value of construction equipment, temporary work and tools, exclusive of hand tools under $1,000 owned by the contractor;

4) Rental cost of construction equipment, temporary work and tools, exclusive of hand tools under $1,000;

5) Cost of all equipment and services required for the contractor’s field office.

Question 14

GC 6.3 CHANGE DIRECTIVE

6.3.7 (Continued) - SUBCONTRACT

Answer 14

6) Subcontract amounts of subcontractor with pricing mechanism approved by the owner.

Question 15

GC 6.3 CHANGE DIRECTIVE

6.3.7 (Continued) - OTHERS

Answer 15

7) Travel and subsistence expenses of the contractor’s personnel described in paragraph 6.3.7.1;

8) Deposits lost provided that they are not caused by negligent acts or omissions of the contractor;

9) Cost of quality assurance such as independent inspection and testing services;

10) Charges levied by authorities having jurisdiction at the place of the work;

11) Royalties, patent license fees, and damages for infringement of patents and cost of defending suits therefor subject always to the contractor’s obligations to indemnify the owner as provided in paragraph 10.3.1 of GC 10.3 - PATENT FEES;

12) Premium for all contract securities and insurance for which the contractor is required, by the contract documents, to provide, maintain and pay in relation to the performance of the work;

13) Losses and expenses sustained by the contractor for matters which are the subject of insurance under the policies prescribed in GC 11.1 - INSURANCE when such losses and expenses are not recoverable because the amounts are in excess of collectible amounts or within the deductible amounts;

14) Taxes and duties, other than value added taxes, income, capital, or property taxes, relating to the work for which the contractor is liable.

15) Charges for voice and data communications, courier services, expressage, transmittal and reproduction of documents, and petty cash items;

16) Cost for removal and disposal of waste products and debris;

17) Legal costs, incurred by the contractor, in relation to the performance of the work provided that they are not:

a) Relating to a dispute between the owner and the contractor unless such costs are part of a settlement or awarded by arbitration or court;
b) The result of the negligent acts or omissions of the contractor,
OR
c) The result of a breach of this contract by the contractor;

18) Cost of auditing when requested by the owner;

19) Cost of project specific information technology in accordance with the method determined by the parties.

Question 16

GC 6.3 CHANGE DIRECTIVE

6.3.8

Answer 16

Notwithstanding any other provisions contained in the general conditions of the contract, it is the intention of the parties that the cost of any item under any cost element referred to in paragraph 6.3.7 SHALL cover and include any and all costs or liabilities attributable to the change directive other than those which are the result of or occasioned by any failure on the part of the contractor to exercise reasonable care and diligence in the contractor’s attention to the work.

Any cost due to failure on the part of the contractor to exercise reasonable care and diligence in the contractor’s performance of the work attributable to the change directive SHALL be borne by the contractor.

Question 17

GC 6.3 CHANGE DIRECTIVE

6.3.9

Answer 17

The contractor SHALL keep full and detailed accounts and records necessary for the documentation of the cost of performing the work attributable to the change directive and SHALL provide the consultant with copies thereof.

Question 18

GC 6.3 CHANGE DIRECTIVE

6.3.10

Answer 18

For the purpose of valuing change directives, the owner SHALL be afforded reasonable access to all of the contractor’s pertinent documents related to the cost of performing the work attributable to the change directive.

Question 19

GC 6.3 CHANGE DIRECTIVE

6.3.11

Answer 19

Pending determination of the final amount of a change directive, the undisputed value of the work performed as the result of a change directive is eligible to be included in progress payments.

Question 20

GC 6.3 CHANGE DIRECTIVE

6.3.12

Answer 20

If the owner and the contractor do not agree on the proposed adjustment in the contract time attributable to the change in the work, or the method of determining it, the adjustment SHALL be referred to the consultant for a finding.

Question 21

GC 6.3 CHANGE DIRECTIVE

6.3.13

Answer 21

When the owner and the contractor reach agreement on the adjustment to the contract price and the contract time, this agreement SHALL be recorded in a change order.

Question 22

GC 6.4 CONCEALED OR UNKNOWN CONDITIONS

6.4.1

Answer 22

If the owner or the contractor discover conditions at the place of the work which are:

1) Subsurface or otherwise concealed physical conditions which existed before the commencement of the work and differ materially from those indicated in the contract documents;

OR

2) Physical conditions, other than conditions due to whether, that are of a nature which differ materially from those ordinarily found to exist and generally recognized as inherent in construction activities of the character provided for in the contract documents.

Then the observing party SHALL give notice in writing to the other party of such conditions before they are disturbed and in no event later than 5 working days after first observance of the conditions.

Question 23

GC 6.4 CONCEALED OR UNKNOWN CONDITIONS

6.4.2

Answer 23

The consultant will promptly investigate such conditions and make a finding. If the finding is that the conditions differ materially and this would cause an increase or decrease in the contractor’s cost or time to perform the work, the owner, through the consultant, SHALL issue appropriate instructions for a change in the work as provided in GC 6.2 - CHANGE ORDER.

Question 24

GC 6.4 CONCEALED OR UNKNOWN CONDITIONS

6.4.3

Answer 24

If the consultant finds that the conditions at the place of the work are not materially different or that no change in the contract price or the contract time is justified, the consultant will promptly inform the owner and the contractor in writing.

Question 25

GC 6.4 CONCEALED OR UNKNOWN CONDITIONS

6.4.4

Answer 25

If such concealed or unknown conditions relate to toxic and hazardous substances and materials, artifacts and fossils, or mold, the parties will be governed by the provisions of,

GC 9.2 - TOXIC AND HAZARDOUS SUBSTANCES,
GC 9.3 - ARTIFACTS AND FOSSILS and GC
9.5 - MOLD

Question 26

GC 6.5 DELAYS

6.5.1

Answer 26

If the contractor is delayed in the performance of the work by the owner, the consultant, or anyone employed or engaged by them directly or indirectly, contrary to the provisions of the contract documents, then the contract time SHALL be extended for such reasonable time as the consultant may recommend in consultation with the contractor.

The contractor SHALL be reimbursed by the owner for reasonable costs incurred by the contractor as the result of such delay.

Question 27

GC 6.5 DELAYS

6.5.2

Answer 27

If the contractor is delayed in the performance of the work by a stop work order issued by a court or other public authority and providing that such order was not issued as the result of an act or fault of the contractor or any person employed or engaged by the contractor directly or indirectly, resulting in the failure of the contractor to attain ready-for-takeover by the date stipulated in article A1 of the agreement - THE WORK, then the contract time SHALL be extended for such reasonable time as the consultant may recommend in consultation with the contractor.

The contractor SHALL be reimbursed by the owner for reasonable costs incurred by the contractor as the result of such delay.

Question 28

GC 6.5 DELAYS

6.5.3

Answer 28

If the contractor is delayed in the performance of the work by:

1) Labor disputes, strikes, lock-outs (including lock-outs decreed or recommended for its members by a recognized contractors’ association, of which the contractor is a member or to which the contractor is otherwise bound).

2) Fire, unusual delay by common carriers or unavoidable casualties.

3) Abnormally adverse weather conditions, or

4) Any cause beyond the contractor’s control other than one resulting from a default or breach of contract by the contractor then the contract time SHALL be extended for such reasonable time as the consultant may recommend in consultation with the contractor.

The extension of time SHALL NOT be less than the time lost as the result of the event causing the delay, unless the contractor agrees to a shorter extension.

The contractor SHALL NOT be entitled to payment for costs incurred by such delays unless such delays result from actions by the owner, the consultant or anyone employed or engaged by them directly or indirectly.

Question 29

GC 6.5 DELAYS

6.5.4

Answer 29

No extension SHALL be made for delay unless Notice in writing of the cause of delay is given to the consultant not later than 10 working days after the commencement of the delay. In the case of a continuing cause of delay only one notice in writing SHALL be necessary.

Question 30

GC 6.5 DELAYS

6.5.5

Answer 30

If no schedule is made under paragraph 2.2.12 of GC 2.2 - ROLE OF THE CONSULTANT, then no request for extension SHALL be made because of failure of the consultant to furnish instructions until 10 working days after demand for such instructions has been made.

Question 31

GC 6.6 CLAIMS FOR A CHANGE IN CONTRACT PRICE

6.6.1

Answer 31

If the contractor intends to make a claim for an increase to the contract price, or if the owner intends to make a claim against the contractor for credit to the contract price, the party that intends to make the claim SHALL give timely notice in writing of intent to claim to the other party and to the consultant.

Question 32

GC 6.6 CLAIMS FOR A CHANGE IN CONTRACT PRICE

6.6.2

Answer 32

Upon commencement of the event or series of events giving rise to a claim, the party intending to make the claim SHALL:

1) take all reasonable measures to mitigate any loss or expense which may be incurred as a result of such event or series of events, and

2) Keep such records as may be necessary to support the claim.

Question 33

GC 6.6 CLAIMS FOR A CHANGE IN CONTRACT PRICE

6.6.3

Answer 33

The party making the claim SHALL submit within a reasonable time to the consultant a detailed account of the amount claimed and the grounds upon which the claim is based and the consultant will make a finding upon such claim.

Question 34

GC 6.6 CLAIMS FOR A CHANGE IN CONTRACT PRICE

6.6.4

Answer 34

Where the event or series of events giving rise to the claim has a continuing effect, the detailed account submitted under paragraph 6.6.3 SHALL be considered to be an interim account and the party making the claim SHALL, at such intervals as the consultant may reasonably require, submit further interim accounts giving the accumulated amount of the claim and any further grounds upon which it is based. The party making the claim SHALL submit a final account after the end of the effects resulting from the event or series of events.

Question 35

GC 6.6 CLAIMS FOR A CHANGE IN CONTRACT PRICE

6.6.5

Answer 35

The consultant’s findings, with respect to a claim made by either party, will be given by notice in writing to both parties within 30 working days after receipt of the claim by the consultant, or within such other time period as many as may be agreed by the parties.

Question 36

GC 6.6 CLAIMS FOR A CHANGE IN CONTRACT PRICE

6.6.6

Answer 36

If such finding is not acceptable to either party, the claim SHALL be settled in accordance with part 8 of the general conditions - DISPUTE RESOLUTION.