Change Order Standard Clauses

The following are examples of standard clauses for specific situations found in various types of change orders. Customize the standard clauses to read what is appropriate for the change order being written. NOTE: Any [items in brackets] are not part of the clause, but are instructions for using the clause.

 

In accordance with Section 9-1.06C, “Decreases of More Than 25 percent,” of the Standard Specifications, as requested, you will receive the following unit price adjustments:

Table 1: Unit price adjustments for a decrease

 

Bid Item No. X

Bid Item No. X


[Item Description]

[Item Description]

Bid I tem List Quantity

 

 

75% Bid I tem List Quantity

 

 

Quantity Performed

 

 

Bid Unit Price

 

 

Total Actual Cost (FA Analysis)

 

 

Actual Unit Cost

 

 

Amount Paid to Date

 

 

Max Allowable Compensation

 

 

Total Item Adjustment

 

 

 

 

 

The agreed lump sum payment adjustment of $XXX, as detailed in Table 1, is full compensation for furnishing the resources and activities required to complete the work involved in each bid item.

Any payment adjustment due in accordance with Sections 4-1.05B, “Work- Character Changes,” of the Standard Specifications, is deferred for the following:

Bid Item No. X, [Item Description]

Bid Item No. X, [Item Description]

[To be used when resolving a potential claim on an ongoing contract.]

Your acceptance of this change order resolves potential claim record number

  , dated [date], regarding [brief description of potential claim], you submitted per Section 5-1.43, “Potential Claims and Dispute Resolution,” of the Standard Specifications.

[To be used when resolving a claim that was received in response to the Proposed Final Estimate. Note the difference between entitlement and settlement of claims.]

You will accept the payment in this change order as full resolution of all claims on this contract in accordance with Section 9-1.17D, “Final Payment and Claims,” of the Standard Specifications.

Or

You will receive [number] working days, reducing the claimed overrun in contract time by [number] calendar days, which you accept as full resolution of all claims on this contract in accordance with Section 9-1.17D, “Final Payment and Claims,” of the Standard Specifications.

Or

Your acceptance of this change order resolves claim number    , dated [date] as listed on your claim statement, regarding [brief description of exception], in accordance with Section 9-1.17D, “Final Payment and Claims,” of the Standard Specifications.

Any payment adjustment due in accordance with Section 9-1.06C, “Decreases of More Than 25 Percent,” of the Standard Specifications, is deferred for the following:

 

Bid Item No. X, [Item Description]

Bid Item No. X, [Item Description]

Any payment adjustment due in accordance with Section 9-1.06B, “Increases of More Than 25 Percent,” of the Standard Specifications, is deferred for the following:

Bid Item No. X, [Item Description]

Bid Item No. X, [Item Description]

In accordance with Section 9-1.06B, “Increases of More Than 25 Percent,” of the Standard Specifications, you will receive the following payment adjustments:

Table 2: Total adjustment for quantity increase

 

Bid Item No. X

Bid Item No. X


[Item Description]

[Item Description]

Bid I tem List Quantity

 

 

125% Bid I tem List Quantity

 

 

Quantity Performed

 

 

Quantity Subject to Adjustment

 

 

Total Actual Cost (FA Analysis)

 

 

Actual Unit Cost

 

 

Bid Unit Price

 

 

Adjusted Unit Price (Actual-Bid)

 

 

Total Item Adjustment

 

 

 

 

 

The agreed lump sum adjustment of $XXX, as detailed in Table 2, is full compensation for furnishing the resources and activities required to complete the work involved in each bid item.

[The District Director has settlement authority up to $200,000. If the settlement is more than $200,000 or includes any working days, it requires approval by the Division Chief of Construction.]

You will accept the payment in this change order as full settlement of all claims on this contract in accordance with Section 9-1.17D, “Final Payment and Claims,” of the Standard Specifications.

Or

You will receive [number] working days, reducing the claimed overrun in contract time by [number] calendar days, which you accept as full settlement of all claims on this contract in accordance with Section 9-1.17D, “Final Payment and Claims,” of the Standard Specifications.

You will accept the following payment due under Section 9-1.06D, "Eliminated Items," of the Standard Specifications, for elimination of the following items:

Bid Item No. X, [item description]: $XXX
Bid Item No. X, [item description]: $XXX

Or

No payment is due in accordance with Section 9-1.06D, “Eliminated Items,” of the Standard Specifications, for elimination of the following items: Bid Item No. X, [Item description]
In accordance with Section 4-1.05, “Changes and Extra Work,” of the Standard Specifications, furnish the resources and activities required to complete the extra work described in this change order and as determined necessary by the engineer. Extra work includes: [succinctly describe work to be performed].

You will be paid for all resources and activities to complete this work as specified in Section 9-1.04, “Force Account,” of the Standard Specifications.

Estimate of Extra Work at Force Account = $XXXX

For the work involved in this change order, you agree to credit Caltrans the lump sum $ ___. The credit reflects the savings in the resources and activities required to complete the work.
Or
For the work involved in this change order, you will accept the agreed lump sum payment of $________. Payment is full compensation for furnishing the resources and activities to complete the work.

For the work involved in this change order, you [or Caltrans] agree to accept the following unit price payments. Payment is full compensation for furnishing the resources and activities for all work.

[item description]: $XXX/unit [increase]
[item description]: $XXX/unit [increase]

Estimate of Payment Adjustment at Agreed Unit Price: $XXXXXX

As agreed, there will be no additional payment to you or credit to Caltrans as a result of the work described.

Bid Item No. X, [name]: [unit with measurement] (percent increase) @

$[bid price or unit price] = $[total increase] (total percent increase) Estimate of Increase in Bid Item(s) at Bid Item Price: $XXXX

In accordance with Section 9-1.06, “Changed Quantity Payment Adjustments,” of the Standard Specifications, you will receive no additional payment for the change in quantity on the following items:

Bid Item No. X, [Item Description]

Bid Item No. X, [Item Description]

The revised final quantity for Bid Item No. ______, [item description], will be ___ [unit]. You accept this quantity as the final payment for the quantity shown on the Bid Item List, as modified by this change order and by previous change orders, including dimensions changed by the engineer.

[Note that the date range from a critical delay does not necessarily match the number of working days granted, since a critical path may have float.]

No time adjustment will be made, since the work described in this change order did not result in a critical delay.

Or

Consideration of a time adjustment for a critical delay is deferred until completion of the work described in this change order. The amount of the time adjustment, if any, will be determined in accordance with Section 8-1.07, "Delays," of the Standard Specifications.

Or

A time adjustment is made for the critical delay caused by the work described in this change order. As provided for in Section 8-1.07, "Delays," and in accordance with Section 9-1.11, “Time-Related Overhead,” of the Standard Specifications, you will receive [number] working days for the critical delay from [date] to [date]. You accept the following payment as full compensation for time-related overhead expenses during the critical delay:

Bid Item No. x, Time Related Overhead: X Wday @ $ [Bid Price or Unit Price] = $XXX

Or

A partial time adjustment is made for the critical delay caused by the work described in this change order. As provided for in Section 8-1.07, "Delays," of the Standard Specifications, you will accept [number] working days for the critical delay from [date] to [date]. Any time adjustment for a critical delay after this date remains deferred. You will accept the following payment as full compensation for time-related overhead expenses during the critical delay from [date] to [date]:

Bid Item No. X, Time Related Overhead: X Wday @ $[Bid Price or Unit Price]

= $XXX

Or

[A time adjustment for additional plant establishment or permanent erosion control establishment days.]

A time adjustment is made adding [number] working days to complete the plant establishment (or permanent erosion control establishment) work. You will receive [number] of working days without time-related overhead as provided for in Section 9-1.11, “Time-Related Overhead,” of the Standard Specifications.