ÿWPCÁ wz>°“@Zýª ‰üª êü¥¸ób¦ú[ÛÉæSPðé}ÜHOoSÌ•&-‰Ã˜$"t=ŸìÑ©'#¼iÇú‡ü4ç›i“I ˆóÞ¶m~…f>Ú—ÊÂP¬ÌÃÐ÷RLÄ•í¥°‚VÒµ'ö‘ n*~¿L_3M{ÑÞ5§Î䎆žÚ Ð(0—Ü8•)¨˜åwêF£É&¸ ¢üžYQû˜½L¹¤1µ€r jª.´·;üLQþ›¶—lªçÔ fKÞ¹A¥€âþ‹/ø£Ê]4ù)£;nšÒ3EÅo¡>øS}–„sKÎLüï8‹?bË©|M¶`jž—(­Lÿrº‹TÓ93âà»´´Ã'Q&ªP»­ø£q™ÊzlîEžM˜½-öã å»Òv2ɃŠa£ÄB¸¤ëhm‡Ñïè/ðˆ:ÛÆ>йȖpõ*"–æé×Y±¿ÐÃ×\#jè&„Àú–àÙâIs%×ß™»Ýx?:gp(&~ü„©ÿ^k|¿›,-±y<ò¹|®‚ŽcÔdŸ°à0Swm¤‡XBbMO{\Ä|¦u5Ð*tQ¾Û´ŸgAóJž§’6ºªýáýá#;ã;ã;ã;ã;ã;ã;ãO^ä^äE­å­åDòçòçk6é6é/¡ê¡êIÐëÐë¥íí¾î¾îòÔïÔïDÆñÆñª ó óŽ´ô´ô´ô¬BöBö‚î÷î÷Mpùpùpùpùž½ú½úŸ[ü[ü[ü[ü[ü[ü[ü[ü[üúýúýúýúýúýúý¯ŠÿŠÿŠÿŠÿŠÿ€99~¹¹¦77ÝÝÝÝÝ¡ïï‰           ~  w— — ¨è¶¶wžžžŽ£˜HP LaserJet 5ÈÈ,,,,ÈÈ0(ÖÃ9 Z‹6Times New Roman RegularX(üœ$¡¡ÔUSUS.,Ô<þ6X9`("Courier NewTTô\  `*Times New RomanTT3#37=CIQYag­­1.a.i.(1)(a)(i)1)a)i) bÝ ƒ ½Þ'ÝÔUSUS.,ÔÝ  ÝÔ_ÔÔ‡ô0òXXÔòòÓ  ÓBest€Practices€Procurement€Manual€„€ChapteÔ  Ôr€9€„€Contract€Administrationà0 È àà0 È(#È(#àà x àà0Ð (# (#à€€Page€Ú  Ú1Ú  ÚóóÔ#†Xç¤Xòô0=#ÔаР(#Ð (# Ð(.3½Þ$§§Ý ƒüœ!ÝÔUSUS.,ÔÝ  ÝÛ\3ê:i¢×+00ƒ63  3|x(ÿU‹ÿÀÀÀ}¼ H&&ÿÿ4HyperlinkHyperlinkÔ  ÔÔ  ÔÔ € ÔòòóóÔ  ÔÔ  ÔÔ  Ô<~†ÿÿ.SampleSampleÔ‡XXXÔÔO‡<þ6X9`("Courier NewTTOÔÔ  ÔÔ  ÔÔ  ÔÔ  ÔÔ‡XXXÔÔW‡ô\  `*Times New RomanTTWÔ&‡¦$"ð"ðà0  à d$ÿÿ359=AEIMQ1 8(¨2òp$¤¤Ý ƒüœ!ÝÔUSUS.,ÔÝ  ÝÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô˜òXXç¤ÔÚ  Ú0Ú  Ú€„€(¢˜$òòòòÚ  Ú0Ú  ÚóóóóP—TABLE BTABLE CÀOTABLE ATABLE F\TABLE DÔTABLE Eœ¡¬­®°µºsùÁ37;?CGKOS°°-*+xh~(;3£$´´Ô2#ÔÚ  Ú0Ú  Ú.Ô3  Ôà0  à(Oé;$µµà0  àÔ2#ÔÚ  ÚaÚ  Ú.Ô3  Ôà0` (#(#à(b·¤$¶¶à0  àà0` (#(#àÔ2#ÔÚ  ÚÚ  Ú.Ô3  Ôà0¸ ` (#` (#à(xir$··à0  àà0` (#(#àà0¸ ` (#` (#àÔ2#Ô(Ú  Ú0Ú  Ú)Ô3  Ôà0¸ (#¸ (#à(ŒÜ$¸¸à0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àÔ2#Ô(Ú  ÚaÚ  Ú)Ô3  Ôà0h(#(#à(ŸF$¹¹à0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àÔ2#Ô(Ú  ÚÚ  Ú)Ô3  Ôà0Àh(#h(#à(³Àô$ººà0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àà0Àh(#h(#àÔ2#ÔÚ  Ú0Ú  Ú)Ô3  Ôà0À(#À(#à(ǵ{$»»à0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àà0Àh(#h(#àà0À(#À(#àÔ2#ÔÚ  ÚaÚ  Ú)Ô3  Ôà0p(#(#à(F$ïïà0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àà0Àh(#h(#àà0À(#À(#àà0p(#(#àÔ2#ÔÙ ÙÚ  ÚÚ  ÚÙ Ù)Ô3  Ôà0Èp(#p(#àÙ Ùœ¡¬­®°µºxëlGaeimquy}Bullet ListBullets Lista, b, c,Level 1Level 2Level 3Level 4Level 5ÔTABLE C6#<&4Quick a. ÚƒÂÚÚ  Ú.à0 àÛ€ÂÛ [Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú1Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔSee€ðð€7.Ô_Ôi.Ô_Ô,€FTA€Circular€4220.1E,€and€discussion€in€Section€2.4.1,€"File€Documentation." pÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú2Ú  Ú€„€Ý  ÝÔ_Ôðð€7.k.,€FTA€Circular€4220.1E.€See€also€the€extensive€discussion€of€the€documentation€required€for€the€settlementÐ ° Ðof€claims€and€disputes€found€in€Paragraph€7,€Chapter€I,€FTA€Circular€5010.1C,€"Grant€Management€Guidelines,"Ð tÄ Ðdated€10/1/98.€€As€appropriate,€some€of€these€requirements€will€be€discussed€later€in€the€"Best€Practices"€portion€ofÐ 8ˆ Ðthis€section. ðÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú3Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔFAR€ðð€42.302. &Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú4Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔIt€is€important€that€the€files€stand€on€their€own€because€at€the€time€a€matter€comes€into€controversy€or€at€the€timeÐ ° Ðof€a€post„contract€performance€audit€or€review.€€The€key€characters€may€not€be€available€(dead,€moved€away,Ð tÄ Ðterminated€from€employment,€etc.)€to€respond€to€those€issues. ŸÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú5Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔNational€Transit€Institute,€120€Albany€Street,€Suite€705,€New€Brunswick,€NJ€08901„2163.€€Phone€(732)€932„Ð ° Ð1700.€€Ô_ÔFAXÔ_Ô€(732)€932„1707.€€Ô‡ô†‘òòô0ÔCourses€Ô_ÔincludeÔ_Ô:€òòAn€Effective€Change€Order€Processóó,€€òòManagement€of€TransitÐ tÄ ÐConstruction€Projectsóó€and€òòContract€Administrationóó.Ô#†ô0òòô†‘š#Ô kÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú6Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔMPCÔ_Ô€ðð€R6„101.03€òòChanges€Clauseóó€(supplies),€and€ðð€R5„401.03€òòChanges€Clauseóó€(construction). ,Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú7Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔFreundÔ_Ô€v.€United€States,€260€U.S.€60€(1922). ]Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú8Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔAragonaÔ_Ô€Constr.€Co.€Ô_Ôv.Ô_Ô€United€States,€165€Ct.€Cl.€382€(1964). JÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú9Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔAir„A„Plane€Corp.€Ô_Ôv.Ô_Ô€United€States,€187€Ct.€Cl.€269,€408€F.2d€1030€(1969). Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú10Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔSee€Ô_ÔAragonaÔ_Ô€above. OÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú11Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔPeter€Ô_ÔKiewitÔ_Ô€Sonsðð€Co.€v.€Summit€Constr.€Co.,€422€F.2d€242€(8th€Cir.€1969). MÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú12Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔAtlantic€Dry€Dock€Corp.€Ô_Ôv.Ô_Ô€United€States,€773€F.€Supp.€335€(M.D.€Fla.€1991). CÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú13Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔNeil€Gross€&€Co.,€69€Comp.€Gen.€247€(B„237434),€90„1€Ô_ÔCPDÔ_Ô€ðð€212. yÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú14Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔColeyÔ_Ô€Properties€Corp.,€Ô_ÔPSBCAÔ_Ô€291,€75„2€Ô_ÔBCAÔ_Ô€ðð€11,514. Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú15Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔReliance€Ins.€Co.€v.€United€States,€20€Cl.€Ct.€715€(1990). NÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú16Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔJ.D.€Ô_ÔHedinÔ_Ô€Constr.€Co.€v.€United€States,€171€Ct.€Cl.€70,€347€F.2d€235€(1965). ‚Ô_ÔÔ_ÔÝ ƒBòpÿÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú17Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔLiebertÔ_Ô€Corp.,€70€Comp.€Gen.€448€(B„232234.5),€91„1€Ô_ÔCPDÔ_Ô€ðð€413. iÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú18Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ‡ô†‘òòô0ÔAmerican€Air€Filter€Co.,€78„1€Ô_ÔCPDÔ_Ô€136.Ô#†ô0òòô†‘á#Ô $Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú19Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔMPCÔ_Ô€R5„401.03òò€Changes€Clauseóó. EÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú20Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔA„66501,€15€Comp.€Gen.€573€(1935);€Ô_ÔB„95069,€30€Comp.Ô_Ô€Gen.€34€(1950). /Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú21Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔSaddler€Ô_Ôv.Ô_Ô€U.S.,€287€F.€2d€411€(Ct.€Cl.€1961). £Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú22Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔGeneral€Contracting€&€Constr.€Co.€v.€U.S.,€84€Ct.€Cl.€570€(1937);€Ô_ÔMcMastersÔ_Ô€v.€State,€15€Ô_ÔN.E.Ô_Ô€417€(N.Y.Ð ° Ð1888). wÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú23Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔABA€Model€Procurement€Code€clause€R5„401.06€òòDiffering€Site€Conditions€Clauseóó.€€FAR€52.236„2€òòDifferingÐ ° ÐSite€Conditions.óó oÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú24Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔKenny€Constr.€Co.€v.€Metropolitan€Sanitary€Dist.,€309€Ô_ÔN.E.Ô_Ô€2d€221€(Ill.€Ô_Ô1974).Ô_Ô ¯Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú25Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔCourses€of€this€nature€are€offered€by€Management€Concepts,€Inc.,€the€U.S.€Agriculture€Department€(888/744„Ð ° ÐGRAD),€and€the€National€Transit€Institute€at€Rutgers€University€(732/932„1700). <Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú26Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔFAR€52.236„2€òòDiffering€Site€Conditions€Clauseóó,€and€FAR€52.243„4€òòChanges€Clauseóó. Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú27Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔFAR€52.242Ô_Ô„14.Ô_Ô TÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú28Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔModern€Foods,€Inc.,€Ô_ÔASBCAÔ_Ô€2090,€57„1€Ô_ÔBCAÔ_Ô€ðð€1229. ²Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú29Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔNoblebrookÔ_Ô€Contractors,€Inc.,€Ô_ÔASBCAÔ_Ô€9736,€1964€Ô_ÔBCAÔ_Ô€ðð€4283,€1964€Ô_ÔBCAÔ_Ô€ðð€4408. SÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú30Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔS.N.€Nielsen€Co.,€Ô_Ôv.Ô_Ô€U.S.,€141€Ct.€Cl.€793€Ô_Ô(1958).Ô_Ô ëÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú31Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔB„E„C„K€Christensen€Ô_ÔRaberÔ_Ô„Ô_ÔKiefÔ_Ô€&€Ô_ÔAssocsÔ_Ô.,€Ô_ÔASBCAÔ_Ô€16467,€73„1€Ô_ÔBCAÔ_Ô€ðð€Ô_Ô9884.Ô_Ô ,Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú32Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔGregory€&€Reilly€Assoc.,€Inc.,€Ô_ÔFAACAPÔ_Ô€65„30,€65„2€Ô_ÔBCAÔ_Ô€ðð€4918.€€Ô_ÔHoltzenÔ_Ô€Constr.€Co.,€Ô_ÔAGBCAÔ_Ô€413,€75„2Ð ° ÐÔ_ÔBCAÔ_Ô€ðð€Ô_Ô11,378.Ô_Ô :Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú33Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔBruce€Constr.€Corp.€v.€U.S.,€324€F.2d€516€(Ct.€Cl.€Ô_Ô1963).Ô_Ô 1Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú34Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔL.G.€Ô_ÔLeflerÔ_Ô,€Inc.€v.€U.S.,€6€Cl.€Ct.€514€(1984). uÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú35Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔNagerÔ_Ô€Elec.€Co.€v.€U.S.,€442€F.2d€936€(Ct.€Cl.€1971).€€Ô_ÔS.W.Ô_Ô€Ô_ÔElecsÔ_Ô.€&€Mfg.€Corp.€Ô_ÔASBCAÔ_Ô€20698,€77„2€Ô_ÔBCAÔ_Ô€ððÐ ° Ð12,631€(1977),€Ô_ÔaffððdÔ_Ô,€655€F.2d€1078€(Ct€Cl.€Ô_Ô1981).Ô_Ô Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú36Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔBruce€Constr.€Corp.€v.€U.S.,€324€F.2d.€516€(Ct€Cl.€1963). ÌÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú37Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔWunderlichÔ_Ô€Contracting€Co.€v.€U.S.,€351€F.2d€956€(Ct.€Cl.€1965).€€Ô_ÔTurnbullÔ_Ô,€Inc.€v.€U.S.,€389€F.2d€1007€(Ct.€Cl.Ð ° ÐÔ_Ô1967).Ô_Ô [Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú38Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔPaul€Ô_ÔHardemanÔ_Ô,€Inc.€v.€U.S.,€406€F.2d€1357€(ct.€Cl.€Ô_Ô1969).Ô_Ô zÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú39Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔClarke€Ô_ÔBaridonÔ_Ô,€Inc.€v.€Ô_ÔMerittÔ_Ô„Chapman€&€Scott€Corp.,€311€F.2d€389€(4òòthóó€Cir.€1962). ]Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú40Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔLaburnum€Ô_ÔContrsÔ_Ô.€Corp.€v.€U.S.,€325€F.2d€451€(ct.€Cl.€Ô_Ô1963).Ô_Ô 4Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú41Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔCFRÔ_Ô€ðð€18.22€Ô_Ô(b).Ô_Ô Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú42Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔFAR€31.105€and€FAR€Ô_Ô31.2.Ô_Ô EÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú43Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔFTA€Circular€4220.1E€Ô_ÔparagraphÔ_Ô€Ô_Ô10.d.Ô_Ô ;Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú44Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔThis€method€is€named€after€the€landmark€1960€decision€in€Ô_ÔEichleayÔ_Ô€Corp.,€Ô_ÔASBCAÔ_Ô€5183,€60„2€Ô_ÔBCAÔ_Ô€ðð€2688,Ð ° ÐÔ_ÔaffððdÔ_Ô,€61„1€Ô_ÔBCAÔ_Ô€ðð€Ô_Ô2894.Ô_Ô :Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú45Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔCapital€Elec.€Co.€V.€U.S.,€729€F.2d€743€(Fed.€Cir.€Ô_Ô1984).Ô_Ô aÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú46Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔThe€formula€as€stated€in€òòConstruction€Contractingóó,€The€George€Washington€University,€Ô_Ô1991.Ô_Ô %Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú47Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔFTA€Circular€4220.1E€paragraph€Ô_Ô10.e.Ô_Ô ?Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú48Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔFAR€52.211„18.€€Ô_ÔMPCÔ_Ô€R5Ô_Ô„401.04.Ô_Ô ›Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú49Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔBrezinaÔ_Ô€Constr.,€Inc.,€Ô_ÔENGBCAÔ_Ô€3215,€75„1€Ô_ÔBCAÔ_Ô€ðð€10,€Ô_Ô989.Ô_Ô Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú50Ú  Ú€„€Ý  ÝÔ_ÔVictory€Constr.€Co.€v.€€U.S.,€510€F.2d€1379€(Ct.€Cl.€1975). èÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú51Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔBay€Area€Rapid€Transit€District€(BART),€òòGeneral€Conditions€Ô_ÔForÔ_Ô€Construction€Contractsóó,€Articles€GC4.5Ð ° ÐòòIncreased€or€Decreased€Quantitiesóó,€and€GC9.3€òòForce€Ô_ÔAccountóó.Ô_Ô :Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú52Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔFAR€52.249„10,òò€€Default€(Fixed„Price€Ô_ÔConstruction).óóÔ_Ô  Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú53Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔDiconÔ_Ô,€Inc.€v.€Ô_ÔMarbenÔ_Ô€Corp.,€618€F.2d€40€(8òòthóó€Cir.€Ô_Ô1980).Ô_ÔÔ_ÔÔ_Ô „Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú54Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔSouthern€Flooring€&€Insulation€Co.,€Ô_ÔGSBCAÔ_Ô€1360,€1964€Ô_ÔBCAÔ_Ô€ðð€Ô_Ô4480.Ô_Ô ¢Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú55Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔKaufman€Ô_ÔDeDellÔ_Ô€Printing,€Inc.,€Ô_ÔASBCAÔ_Ô€19268,€75„1€Ô_ÔBCAÔ_Ô€ðð€Ô_Ô11,042.Ô_Ô xÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú56Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔPanzieriÔ_Ô„Hogan€Co.€V.€Bender,€143€Ô_ÔN.E.Ô_Ô€739€(N.Y.€Ô_Ô1923).Ô_Ô CÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú57Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔBART,€Clause€GC.8.5.1.4„„€òòAnticipated€Non„Work€Weather€Ô_ÔDaysóó.Ô_Ô ”Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú58Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔPeter€Ô_ÔKiewitÔ_Ô€Sonsðð€Co.€v.€Summit€Constr.€Co.,€422€F2d€242€(8òòthóó€Cir.€Ô_Ô1969).Ô_ÔÔ_ÔÔ_Ô •Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú59Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔDavhoÔ_Ô€Co.,€Ô_ÔVACABÔ_Ô€1005,€72„2€Ô_ÔBCAÔ_Ô€ðð€9683€at€Ô_Ô45,214.Ô_Ô †Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú60Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔU.S.€ex.€Rel.€Heller€Elec.€Co.€v.€William€F.€Ô_ÔKlingensmithÔ_Ô,€Inc.,€670€F2d€1227,€1231€(D.C.€Cir.€Ô_Ô1982).Ô_Ô ¥Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú61Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔAetna€Casualty€&€Sur.€Co.€v.€Butte„Meade€Sanitary€Water€Dist.,€500€F.€Supp.€193,€197€(Ô_ÔD.S.D.Ô_Ô€1980).€Ô_ÔÔ_ÔÔ_ÔÔ_Ô vÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú62Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔCanon€Constr.€Corp.,€Ô_ÔASBCAÔ_Ô€16142,€72„1€Ô_ÔBCAÔ_Ô€ðð€Ô_Ô8622.Ô_Ô tÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú63Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔContracting€&€Material€Co.€v.€City€of€Chicago,€314€Ô_ÔN.E.Ô_Ô€2d€598€(Ill€App.€Ct.€Ô_Ô1974).Ô_Ô œÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú64Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔNorairÔ_Ô€Ô_ÔEngððgÔ_Ô€Corp€v.€U.S.,€666€F.€2d€546€(Ct.€Cl.€Ô_Ô1981).Ô_ÔÔ_ÔÔ_Ô Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú65Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔWilliam€Ô_ÔLagnionÔ_Ô,€Ô_ÔENGBCAÔ_Ô€3778,€78„2€Ô_ÔBCAÔ_Ô€ðð€13,260.€€Lewis€Constr.€Co.,€Ô_ÔASBCAÔ_Ô€5509,€60„2€Ô_ÔBCAÔ_Ô€ðð€Ô_Ô2732.Ô_Ô —Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú66Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔPathmanÔ_Ô€Constr.€Co.,€Ô_ÔASBCAÔ_Ô€14285,€71„1€Ô_ÔBCAÔ_Ô€ðð€8905.€Ô_ÔÔ_Ô Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú67Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔElectrical€Enters.,€Inc.,€Ô_ÔIBCAÔ_Ô€971„8„72,€74„1€Ô_ÔBCAÔ_Ô€ðð€Ô_Ô10,528.Ô_Ô tÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú68Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔPan„Pacific€Corp.,€Ô_ÔENGBCAÔ_Ô€2479,€65„2€Ô_ÔBCAÔ_Ô€ðð€Ô_Ô4984.Ô_Ô mÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú69Ú  Ú€„€Ý  ÝÔ_ÔÔ_ÔÔ_ÔVaroÔ_Ô,€Inc.,€Ô_ÔASBCAÔ_Ô€15000,€72„2€Ô_ÔBCAÔ_Ô€ðð€9717. žÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú70Ú  Ú€„€Ý  ÝÔ_ÔThe€grantee€may€find€it€helpful€to€review€the€Federal€policies€and€procedures€concerning€subcontracting€in€theÐ ° ÐFAR€Part€44.€Grantees€are€not€required€to€follow€these€Federal€procedures. ÞÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú71Ú  Ú€„€Ý  ÝÔ_ÔFAR€44.201„1. mÝ ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú72Ú  Ú€„€Ý  ÝÔ_ÔA€copy€of€this€Qualification€Statement€is€included€in€this€Manual€as€Appendix€B.€17€„€òòStatement€ofÐ ° ÐQualification€of€Subcontractor.óó „Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú73Ú  Ú€„€Ý  ÝÔ_ÔFor€a€complete€contract€clause€and€further€information€dealing€with€Subcontracts,€contact€Stan€Grill€of€Ô_ÔNYCTÔ_Ô€atÐ ° Ð(718)€694„4350. Ý ƒBòp$ÝÔUSUS.,ÔÓ<(° ‚XÝŒ-&Sp€­È‘X°œX<ÓÔ€Xç¤XXXÔÔ€ô0òXXç¤ÔÚ  Ú74Ú  Ú€„€Ý  ÝÔ_ÔSome€states€or€jurisdictions€have€established€minimum€requirements.Ý ƒüœ!ÝÔUSUS.,ÔÝ  ÝÔ_ÔÑаÑò òÓ  ÓÖ€ ÿÿÖChapter€9ó óÐ ( ÐÌò òÓ  Ó9€„€òòContract€Administrationóóó óÐ  Ø ÐÌÓE1°°Ü` ¸ hÀpÈ xÐ (#°œXEÓà Ü à9.1€òòDocumentation€of€Contract€Administrationóó€€(5/96)Ð Ø ° Ðà0 Ü à9.2€òòChangesóó€€(2/99)à  àà h àà À àà  àà p àà È àÐÄ œÜ(#Ü(# ÐÌÓH.°°4` ¸ hÀpÈ xÐ (#°°‚,` ‹XHÓà0 4 à9.2.1€òòContract€Scope€and€Cardinal€Changesóó€€(10/99)Ðœ t4(#4(# Ðà0 4 à9.2.2€òòCost/Price€Analysis€of€Changesóó€€(2/99)Ј`4(#4(# Ðà0 4 à9.2.3€òòConstruction€Changesóó€€(2/99)ÐtL 4(#4(# ÐÌÓE+° °Œ ¸ hÀpÈ xÐ (#°°4` ‹XEÓà0 Œ à9.2.3.1€òòDiffering€Site€Conditionsóó€€(2/99)ÐL$ Œ (#Œ (# Ðà0 Œ à9.2.3.2€òòField€Change€Ordersóó€€(2/99)Ð8 Œ (#Œ (# Ðà0 Œ à9.2.3.3€òòPricing€of€Construction€Changesóó€€(2/99)òòÐ$ü Œ (#Œ (# Ðà Œ àóó9.2.3.4€òòVariations€in€Estimated€Quantitiesóó€€(2/99)òòÐ è  Ðà Œ àóó9.2.3.5€òòDelaysóó€€(2/99)òòÐ üÔ  Ðà Œ àóó9.2.3.6€òòAccelerationóó€€(2/99)Ð èÀ ÐÓcI°°-&Sp€­ÈÚ 4axŽ»Ð è "(#B#ƒ-°°Œ ¸ ŠXcÓÌà Ý à9.3€òòImproving€Vendor€Delivery€Performanceóó€€(10/00)Ð À˜ Ðà Ý à9.4à0  àòòApproval€of€Subcontractorsóó€€(11/03)Ь„ (# (# ÐÌÓg°°Œ ¸ ŠX°°-&Sp€­ÈÚ 4axŽ»Ð è "(#B#ƒ-¡gÓÓH.°°` ¸ hÀpÈ xÐ (#°°Œ ¸ ŠXHÓÝ‚ÿÿÿÝÔ  ÔÔ  ÔÔ€ÔòòÝ  ÝÔ_ÔóóÝ‚ÿqƒÝÔ€ÔÔ  ÔÔ  ÔÝ  Ýò ò9.1€DOCUMENTATION€OF€CONTRACT€ADMINISTRATIONó óÐ „\ ÐÌò òÔ*‹ƒU1Vddd Xdd Xdd X°(#°(#‹ÔÔ,xdd ÔÔ+  ÔÐ \4\4 ÐREQUIREMENTÐ  À˜ Ðó óIn€listing€the€"General€Procurement€Standards€Applicable€to€Third„Party€Ô_ÔProcurementsÔ_Ô,"€FTAÐ @ Ðhas€established€two€standards€that€address€contract€administration€documentation€as€opposedÐ , Ðto€procurement€Ô_Ô׃l ×Ý ƒC¢˜ÝòòòòÚ  Ú1Ú  ÚóóóóÝ  Ý×  ×Ô_Ô€administration€documentation:Ð  ð ÐÌÓE1°°Ü` ¸ hÀpÈ xÐ (#°°XEÓà0 @ àb.à0l@Ä"@Ä"àòòContract€Administration€Systemó󀄀Grantees€shall€maintain€a€contract€administrationÐ ð!È Ðsystem€that€ensures€that€contractors€perform€in€accordance€with€the€terms,€conditions,Ð Ü"´ Ðand€specifications€of€their€contracts€or€purchase€orders.€.€.€.ÐÈ# lÄ"lÄ" ÐÌà0 @ àk.à0l@Ä"@Ä"àòòResponsibility€for€Settlement€of€Contract€Issues/Disputesó󀄀Grantees€alone€will€beÐ  %x! Ðresponsible€in€accordance€with€good€administrative€practice€and€sound€businessÐ Œ&d" Ðjudgment€for€the€settlement€of€all€contractual€and€administrative€issues€arising€out€ofÐ x'P # ÐÔ_ÔprocurementsÔ_Ô.€These€issues€include,€but€are€not€limited€to€source€evaluation,€protests,Ð d(I#Ôà0  àà04(#(#àà0` 4(#4(#àð ðA€cost€is€reasonable€if,€in€its€nature€or€amount,€it€does€not€exceed€that€whichÐ ¬„ Ðwould€be€incurred€by€an€ordinary€prudent€person€in€the€conduct€of€competitiveÐ ˜p Ðbusiness.ðð€×ƒÉ ×Ý ƒC¢˜ÝòòòòÚ  Ú36Ú  ÚóóóóÝ  Ý×  ×€Ô‡y¤XXç¤ÔЄ\` (#` (# ÐÔ#†Xç¤Xy¤èJ#Ôò òÌE.€òòMajor€Cost€Elementsó óóóÐ \4 ÐÌà0  àa)à04(#(#àòòLaboró󀄀The€contractor€bears€the€burden€of€demonstrating€that€the€cost€of€itsÐ 4  Ðadditional€labor€effort€has€been€caused€by€the€event€on€which€the€claim€is€based.€€InÐ  ø Ðsome€cases€the€contractor€may€be€able€to€segregate€the€cost€of€the€changed€work€in€itsÐ  ä Ðrecords,€and€thus€demonstrate€the€additional€labor€hours€due€to€the€change.€€However,Ð øÐ Ðwhen€it€is€impossible€to€segregate€the€additional€labor€hours€resulting€from€the€changeÐ ä¼ Ðor€other€action€of€the€owner,€courts€have€accepted€an€approach€to€pricing€the€changeÐШ4(#4(# Ðà0  àà04(#(#àknown€as€the€òòtotal€cost€methodóó.€€By€this€is€meant€òòthe€total€costs€actually€incurredÐ ¼ ” Ðcompared€to€the€original€estimate.€€This€method€can€only€be€used€if:Ш!€4(#4(# ÐÌà0  àóóÝ‚,‡¦ÿÝÝ  Ýà04(#(#àÝ‚,‡¦.OÝð"ðà0` 4(#4(#àÝ  ÝThe€original€labor€estimates€in€the€contractorððs€bid€are€reasonable,€based€onÐ €#X Ðobjective,€external€evidence,€and݃,‡¦.O]OÝŒÐl$D ` (#` (# ÐŒÝ  ÝÌà0  àÝ‚,‡¦ÿÝÝ  Ýà04(#(#àÝ‚,‡¦iPÝð"ðà0` 4(#4(#àÝ  ÝThe€owner€was€solely€responsible€for€the€overrun„„there€must€be€no€concurrentÐ D&" Ðdelays,€etc.݃,‡¦iP˜PÝŒÐ0' #` (#` (# ÐŒÝ  ÝÐ  (ô $ ÐÌà0  àÝ‚,‡¦ÿÝÝ  Ýà04(#(#àÝ‚,‡¦¡QÝð"ðà0` 4(#4(#àÝ  ÝThere€is€no€other€reliable€method€to€establish€the€additional€labor€costs.€€If€there€isÐ ì Ðanother€method,€the€òòtotal€costóó€approach€cannot€be€used.×ƒË ×Ý ƒC¢˜ÝòòòòÚ  Ú37Ú  ÚóóóóÝ  Ý×  ×݃,‡¦¡QÐQ݌РØ` (#` (# ÐŒÝ  ÝÌà0  àà04(#(#àIf€the€change€disrupts€the€labor€effort€on€unchanged€work,€having€a€ð ðripple€effect€orÐ Ø ° Ðimpactðð€on€the€effort€required€to€do€the€unchanged€work,€the€additional€costs€ofÐ Ä œ Ðperforming€the€unchanged€work€are€compensable.×ƒÍ ×Ý ƒC¢˜ÝòòòòÚ  Ú38Ú  ÚóóóóÝ  Ý×  ×€€One€case€of€this€nature€involvedÐ ° ˆ Ða€ð ðdisruption€of€the€work€because€of€the€unexpected€and€excessive€number€of€changeÐ œ t Ðorders.ðð€×ƒÏ ¤×Ý ƒC¢˜ÝòòòòÚ  Ú39Ú  ÚóóóóÝ  Ý×  ×€€Increases€in€labor€costs€are€recoverable€when€a€contractor€incurs€higherÐ ˆ` Ðwage€rates€because€of€compensable€delays€in€performing€the€work.€€Contractors€areÐ tL  Ðalso€entitled€to€compensation€when€there€is€a€disruption€to€the€work€sequence,€thusÐ `8  Ðresulting€in€inefficiencies;€for€example,€disruptions€which€preclude€plannedÐ L$  Ðsimultaneous€work€activities,€or€forced€use€of€overtime€work€paid€at€premium€rates,Ð 8  Ðor€delay€of€work€because€of€unfavorable€weather€conditions.Ð$ü 4(#4(# ÐÌà0  àb)à04(#(#àòòField€Overheadó󀄀òòField€overheadóó€is€the€cost€of€maintaining€the€contractorððs€fieldÐ üÔ  Ðoperations€staff,€facilities€and€equipment€at€the€job€site.€€Field€overhead€includes€theÐ èÀ Ðcost€of€personnel€chargeable€to€the€specific€project,€such€as€the€salaries€for€office€à0@ª!t€of€theàà0@ª!(#(#àÐ Ô¬ Ðclerks,€project€supervisors,€timekeepers€and€engineers.€€It€may€also€include€rental€orÐ À˜ Ðownership€costs€for€on„site€trailers,€office€equipment,€utilities,€telephones,Ð ¬„ Ðautomobiles,€trucks,€etc.òò€€Field€overheadóó€is€different€than€òòHome€Office€Overhead,Ð ˜p Ðóówhich€are€general€costs€of€conducting€the€contractorððs€overall€business€and€cannot€beÐ „\ Ðattributed€directly€to€any€one€project.ÐpH4(#4(# ÐÌà0  àòòDirect€vs.€indirect€costsó󀄀In€any€proposal€for€a€price€adjustment€arising€out€of€a€changeÐ H  Ðorder,€it€is€always€important€to€determine€if€the€costs€being€proposed€are€direct€or€indirectÐ 4  Ð(overhead)€costs.€€If€your€contract€includes€a€clause€specifying€the€markup€for€fieldÐ  ø Ðoverhead„„the€percentage€which€will€be€allowed€in€the€pricing€of€changes„„then€it€is€à0@P!(#(#àÐ  ä Ðcritical€to€ensure€that€the€contractor€is€being€consistent€in€its€treatment€of€direct€vs.Ð ø Ð Ðindirect€costs,€and€that€there€is€no€duplication€of€costs.€€For€example,€if€the€contractorððsÐ ä!¼ Ðnormal€accounting€practice€is€to€include€the€cost€of€its€salaried€general€foreman€in€theÐ Ð"¨ Ðfield€overhead€pool,€then€a€change€order€claim€cannot€propose€this€foremanððs€salary€as€aÐ ¼#” Ðdirect€labor€cost€because€the€cost€is€already€included€in€the€field€overhead€markup€whichÐ ¨$€  Ðis€applied€to€direct€labor€costs.€€It€is€important,€therefore,€for€the€granteeððs€contractÐ ”%l! Ðadministrator€to€have€an€in„depth€knowledge€of€all€of€the€elements€in€the€contractorððsÐ €&X" Ðfield€overhead€pool;€that€is,€a€good€understanding€of€the€various€accounts€which€make€upÐ l'D # Ðthe€pool.€€The€contract€administrator€will€then€be€in€a€position€to€evaluate€the€contractorððs€Ð X(0!$(#(# Ðà0  àcost€proposals€and€ensure€that€there€is€no€duplication€of€costs€because€of€the€improperÐ ( Ðcharging€of€overhead€costs€as€direct€costs.€€An€audit€of€the€Contractorððs€indirect€costÐ ì Ðpools€may€be€necessary€to€obtain€the€required€degree€of€information/knowledgeÐ  Ø Ðconcerning€the€composition€of€the€indirect€cost€pools.Ðì Ä(#(# ÐÌà0  àòòExtended€performanceó󀄀When€the€contractor€is€delayed€or€the€contract€performanceÐ Ä œ Ðperiod€is€extended€by€a€change€order€or€other€action€of€the€owner,€the€contractor€€willÐ ° ˆ Ðincur€additional€job€site€overhead€expenses€which€are€time„related.€€These€will€consist€ofÐ œ t Ðadditional€costs€for€supervision,€maintenance€of€trailers,€telephones,€insurance,€etc.€€ThereÐ ˆ` Ðare€two€ways€to€price€these€additional€overhead€expenses.€€The€first€is€to€total€all€of€theÐ tL  Ðjob€site€overhead€expenses€for€the€entire€project€and€divide€this€total€by€the€number€ofÐ `8  Ðdays€over€which€the€costs€were€incurred€in€order€to€compute€a€daily€overhead€cost.€€ThisÐ L$  Ðaverage€daily€overhead€cost€is€then€multiplied€by€the€number€of€days€of€delay€in€order€toÐ 8  Ðcompute€the€cost€of€the€delay.€€However,€this€method€of€using€the€average€daily€cost€mayÐ $ü  Ðnot€produce€an€equitable€result.€€For€example,€if€the€contractor€is€delayed€in€the€earlierÐ è  Ðstages€of€a€project€when€it€has€a€full€complement€of€supervisory€personnel€and€equipmentÐ üÔ  Ðat€the€job€site,€the€field€overhead€cost€of€a€dayððs€delay€will€be€much€greater€than€if€itÐ èÀ Ðoccurs€at€the€end€of€the€project€when€most€of€the€supervisors€have€been€released€and€theÐ Ô¬ Ðequipment€has€been€removed.€Because€daily€field€overhead€charges€may€vary€materiallyÐ À˜ Ðdepending€on€the€stage€of€the€project€when€the€delay€occurs,€it€may€be€more€equitable€toÐ ¬„ Ðuse€another€method€of€computing€the€field€overhead€delay€costs.€€This€method€computesòòÐ ˜p Ðthe€daily€field€overhead€cost€for€the€time€period€when€the€delay€occursóó.€€In€one€FederalÐ „\ Ðcase€involving€this€issue,€the€Government€argued€that€the€delay€costs€should€be€computedÐ pH Ðusing€the€tail€end€of€the€project;€i.e.,€the€extended€period€of€performance.€€The€court,€à0@š!cted.€×àÐ \4 Ðhowever,€ruled€that€the€delay€damages€should€be€calculated€using€òòthe€specific€timeÐ H  Ðperiods€in€which€the€delay€occurred„„the€actual€period€of€the€work€disruption.óó€€TheÐ 4  Ðaverage€daily€field€overhead€costs€during€this€period€of€actual€work€disruption€wereÐ  ø Ðconsiderably€higher€than€the€daily€costs€at€the€tail€end€of€the€job,€and€the€court€chose€aÐ  ä Ðmore€equitable€method€of€compensating€the€contractor€for€its€actual€costs€during€theÐ ø Ð Ðperiod€of€work€disruption.€×ƒÑ ×Ý ƒC¢˜ÝòòòòÚ  Ú40Ú  ÚóóóóÝ  Ý×  ×Ðä!¼(#(# ÐÓ€ ½œ¡¬­®°µº¼(ëlxx½œ¡¬­®°µºÓÌà0  àc)à04(#(#àòòHome€Office€Overheadò òóó€„ó ó€Home€office€overhead€is€generally€referred€to€as€ð ðGeneralÐ ¼#” Ðand€Administrativeðð€(G&A)€costs,€and€these€costs€include€those€activities€necessaryÐ ¬$„  Ðfor€the€overall€business€of€the€contractor.€€They€would€include€the€salaries€of€theÐ ˜%p! Ðcompanyððs€executives,€legal€counsel,€corporate€liability€insurance,€accounting,Ð „&\" Ðdepreciation,€proposal/bidding€costs,€bad€debts,€etc.€€These€costs€are€usually€fixedÐ p'H # Ðcosts,€not€varying€with€the€volume€of€business,€and€continuing€to€be€incurred€with€theÐ \(4!$ Ðpassage€of€time.€€These€costs€cannot€be€assigned€to€any€specific€project.€€They€are€notÐ H) "% Ðof€the€type€that€can€be€reduced,€or€mitigated,€during€periods€of€project€delaysÐ 4* #& Ðassociated€with€work€stoppages,€change€orders,€etc.€€These€costs€are€allowable€and€€Ð  +ø#'4(#4(# Ðà0  àà04(#(#àrecoverable€by€the€Contractor€as€part€of€its€cost€proposal€for€an€equitable€adjustmentÐ ( Ðarising€out€of€delays€(assuming€the€delays€are€compensable).€€The€method€ofÐ ì Ðcomputing€the€recovery€is€discussed€below.€Ð Ø4(#4(# ÐÌà0  àòòFederal€cost€principlesó󀄀Since€virtually€all€construction€change€order€proposals/claimsÐ Ø ° Ðinvolve€the€submission€of€cost€data/estimates€by€the€contractor,€the€Federal€costÐ Ä œ Ðprinciples€contained€in€FAR€Part€31€would€apply€to€the€determination€of€an€òòallowableÐ ° ˆ Ðcost€for€the€purpose€of€negotiating€these€change€order€proposals€or€claims.€óó×ƒÓ ×Ý ƒC¢˜ÝòòòòÚ  Ú41Ú  ÚóóóóÝ  Ý×  ×€€€These€costÐ œ t Ðprinciples€stipulate€that€certain€costs,€usually€included€in€home€office€overhead€costsÐ ˆ` Ð(G&A)€are€unallowable,€including€entertainment€costs,€contributions,€interest,€and€badÐ tL  Ðdebts.€×ƒÕ T×Ý ƒC¢˜ÝòòòòÚ  Ú42Ú  ÚóóóóÝ  Ý×  ×€€Thus€while€the€contractor€may€have€based€its€original€sealed€bid€price€on€theÐ `8  Ðcompanyððs€full€home€office€overhead€rate,€it€will€not€be€able€to€base€its€change€orderÐ L$  Ðproposals€or€claims€on€this€full€rate„„the€rate€must€be€adjusted€to€remove€unallowableÐ 8  Ðcosts€because€the€proposal€is€being€negotiated€on€the€basis€of€cost€data€and€not€sealedÐ $ü  Ðbidding€as€was€the€original€contract.€×ƒÜ à×Ý ƒC¢˜ÝòòòòÚ  Ú43Ú  ÚóóóóÝ  Ý×  ×€€In€order€to€remove€these€costs,€the€ContractingÐ è  ÐOfficer€may€wish€to€obtain€an€advisory€audit€of€the€indirect€rate€cost€pools€prior€toÐ üÔ  Ðnegotiations,€or€simply€ask€the€Contractor€to€submit€overhead€information€identifying€theÐ èÀ Ðunallowable€portion€of€the€rate€and€accept€the€Contractorððs€submission€as€being€factually€à0@ø"cted.€×àÐ Ô¬ Ðaccurate€without€an€audit.€€The€dollar€value€of€the€negotiations,€(as€well€as€the€futureÐ À˜ Ðpotential€for€changes)€may€be€the€determining€factor€in€deciding€whether€to€audit€the€ratesÐ ¬„ Ðor€not.Иp(#(# ÐÌà0  àòòExtended€performanceó󀄀The€contractorððs€performance€time€may€be€extended€by€owner„Ð pH Ðcaused€disruptions€of€work,€suspensions€or€change€orders.€€Some€of€these€actions€mayÐ \4 Ðhave€a€negligible€effect€on€the€contractorððs€direct€costs,€and€thus€entitle€the€contractor€toÐ H  Ðonly€a€small€amount€of€markup€on€the€direct€costs€for€home€office€overhead.€€This€type€ofÐ 4  Ðsituation€may€leave€the€contractor€with€a€significant€under€recovery€of€its€home€officeÐ  ø Ðoverhead€costs.€€The€courts€have€recognized€that€the€nature€of€construction€projects€isÐ  ä Ðsuch€that€contractors€may€be€entitled€to€recovery€of€extended€home€office€expenses€whenÐ ø Ð Ðtheir€contracts€are€delayed,€and€this€recovery€is€beyond€the€usual€percentage€markup€onÐ ä!¼ Ðthe€direct€costs.€€Where€actual€overhead€cannot€be€demonstrated€or€agreed€upon,€theÐ Ð"¨ ÐòòEichleay€formulaóó€has€been€widely€used€as€a€method€of€calculation.€×ƒÞ l×Ý ƒC¢˜ÝòòòòÚ  Ú44Ú  ÚóóóóÝ  Ý×  ×€€This€formula,Ð ¼#” Ðhowever,€should€be€used€with€caution,€as€it€can€overstate€actual€contractorððs€overhead.€€€Ð¨$€ (#(# Ðà0  àThe€use€of€the€formula€varies€from€State€to€State€and€you€should€consult€with€your€legalÐ ”%l! Ðcounsel€for€guidance€in€the€use€of€this€formula.€€Ð€&X"(#(# Ðà  àÐ l'D # Ðà0  àIn€the€Eichleay€case,€the€Government€had€argued€for€a€percentage€computation€whichÐ ( Ðapplied€the€contractorððs€normal€home€office€overhead€rate€to€the€excess€direct€costsÐ ì Ðincurred€during€the€delay€period.€€The€Government€argued€that€there€was€no€increase€inÐ  Ø Ðthe€overhead€rate€during€the€delay.€€But€the€Board€found€that€the€Governmentððs€methodÐ ì Ä Ðwas€totally€inadequate€because€(1)€the€delay€added€very€little€direct€costs€to€the€contractÐ Ø ° Ðprice;€thus€there€was€very€little€for€the€contractor€to€recover€for€home€office€overheadÐ Ä œ Ðusing€a€recovery€method€of€a€percentage€of€direct€costs€for€overhead,€and€(2)€theÐ ° ˆ Ðcontractorððs€home€office€overhead€costs€continued€throughout€the€delay€period€and€couldÐ œ t Ðnot€be€reduced€(the€costs€were€fixed,€not€variable).€€The€facts€were€that€the€delays€andÐ ˆ` Ðsuspensions€occurred€through€an€extended€series€of€interruptions,€and€it€would€not€haveÐ tL  Ðbeen€prudent€for€the€contractor€to€lay€off€its€Home€Office€personnel€or€to€take€on€otherÐ `8  Ðnew€business€commitments€during€this€delay€period.€€òòThe€Eichleay€formula€is€proper,Ð L$  Ðthen,€if€the€contractor€can€demonstrate€that€it€was€not€ð ðprudent€or€practicalðð€to€reduceÐ 8  Ðits€home€office€staff€or€to€seek€new€business€commitments€during€the€period€of€theÐ $ü  Ðdisruptionóó.׃à ×Ý ƒC¢˜ÝòòòòÚ  Ú45Ú  ÚóóóóÝ  Ý×  ×€€The€Eichleay€formula€is€accepted€in€Federal€and€State€courts,€boards€ofÐ è  Ðcontract€appeals€and€by€arbitrators€as€a€fair€and€reasonable€method€for€compensatingÐ üÔ  Ðconstruction€contractors€for€extended€home€office€expenses€resulting€from€owner„caused,Ð èÀ Ðcompensable€performance€delays.€ÐÔ¬(#(# ÐÌà0  àòòThe€Eichleay€formulaó󀄀The€formula€consists€of€three€calculations:€×ƒâ T×Ý ƒC¢˜ÝòòòòÚ  Ú46Ú  ÚóóóóÝ  Ý×  ×Ь„(#(# ÐÌà0  à1.€òòContract€Billings€During€Performance€óó€€€xà0p(#(#àTotal€Corporate€€€€=à0xp(#p(#àCorporateЄ\x(#x(# Ðà0  à€€€€Total€Billings€During€Performanceà0(#(#àà0p(#(#àOverhead€Duringà0xp(#p(#àOverheadÐpHx(#x(# Ðà  àà 4 àà ` àà ¸ àà  àà h àà À àà  àà p àPerformanceà0  àà0x (# (#àAllocable€toÐ\4x(#x(# Ðà  àà 4 àà ` àà ¸ àà  àà h àà À àà  àà p àà0 È àà  àà x àContractÐH È(#È(# ÐÌà0  à2.€òòContract€Allocable€Corporate€Overheadóóà0(#(#à=à0p(#(#àContract€CorporateÐ øp(#p(# Ðà  à€€€€Total€Calendar€Days€of€Contract€Performanceà0 p àOverhead€Daily€CostÐ äp(#p(# ÐÌà0  à3.€Compensable€Delay€Days€à0h(#(#àà0Àh(#h(#àà0À(#À(#àx€à0p(#(#àCorporate€Overhead€€=€AdditionalÐä!¼p(#p(# Ðà  àà 4 àà ` àà ¸ àà  àà h àà À àà0  àà0p(#(#àDaily€Costà0 p(#p(#àà0x (# (#à€€CorporateÐÐ"¨x(#x(# Ðà  àà 4 àà ` àà ¸ àà  àà h àà À àà  àà0 p àà È àà  àà x à€€Overheadм#”p(#p(# Ðà  àà0 4 àà0` 4(#4(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àà0Àh(#h(#àà0À(#À(#àà0p(#(#àà0Èp(#p(#àà0 È(#È(#àà0x (# (#à€€ExpenseШ$€ x(#x(# Ðà  àà 4 àà ` àà ¸ àà  àà h àà À àà  àà p àà È àà0  àà x à€€DuringД%l! (# (# Ðà  àà 4 àà ` àà ¸ àà  àà h àà À àà  àà p àà È àà  àà0 x à€€ContractЀ&X"x(#x(# Ðà  àà 4 àà ` àà ¸ àà  àà h àà À àà  àà p àà È àà  à€à0 x à€€DelayÐl'D #x(#x(# ÐÌÐ  D)"% Ðà0  àThe€methodology€outlined€above€consists€of€taking€the€total€home€office€overhead€costsÐ ( Ðfor€the€contract€performance€period€and€multiplying€this€total€cost€by€the€ratio€of€contractÐ ì Ðbillings€to€total€company€billings;€this€calculation€produces€the€amount€of€home€officeÐ  Ø Ðoverhead€dollars€allocable€to€the€contract.€That€amount€is€then€divided€by€the€number€ofÐ ì Ä Ðdays€of€contract€performance;€the€result€is€the€daily€home€office€overhead€rate€in€dollarsÐ Ø ° Ðper€day€allocable€to€the€contract.€€That€rate€is€then€multiplied€by€the€number€of€days€ofÐ Ä œ Ðdelay.€€The€final€result€is€the€dollar€amount€of€recovery€for€home€office€overhead€costs.а ˆ(#(# ÐÌà0  àd)à04(#(#àòòProfitó󀄀Profit€is€allowed€as€part€of€any€owner€action€which€entitles€the€contractor€toÐ ˆ` Ðan€ð ðequitable€adjustmentðð€under€the€terms€of€the€contract.€€The€profit€would€be€thatÐ tL  Ðwhich€is€reasonable€and€customary€for€the€type€of€work€being€performed.€€TheÐ `8  Ðcontract€may€include€a€recoverable€profit€rate€on€change€order€work,€but€it€isÐ L$  Ðsuggested€that€the€rate€be€stated€as€maximum€percentage,€negotiable€downward€Ð8 4(#4(# Ðà0  àà04(#(#àonly.€€The€reason€for€this€approach€is€to€avoid€a€cost„plus„percentage„of€costÐ $ü  Ðmethodology,€which€is€prohibited.€×ƒä ×Ý ƒC¢˜ÝòòòòÚ  Ú47Ú  ÚóóóóÝ  Ý×  ×€€In€this€way€the€grantee€can€negotiate€a€lowerÐ è  Ðrate€of€profit€on€changes€where€the€nature€of€the€work€and€the€risks€might€warrant€aÐ üÔ  Ðlower€rate€of€profit€than€for€the€basic€contract.€ÐèÀ4(#4(# Ðà  àà0 4 à€€€€€ÐÔ¬4(#4(# ÐÔ_Ôò ò9.2.3.4€òòVariations€in€Estimated€Quantitiesóóó óÐ À˜ ÐÌMany€construction€contracts€contain€unit€prices€and€estimated€quantities€of€the€various€pay€items.€Ð ˜p ÐThis€procedure€is€used€when€the€quantity€of€work€cannot€be€estimated€with€sufficient€accuracy€soÐ „\ Ðas€to€permit€the€work€to€be€priced€on€a€lump„sum€(total€price)€basis.€€When€it€is€necessary€to€useÐ pH Ðunit€prices€with€estimated€quantities,€owners€frequently€include€a€clause€requiring€adjustment€ofÐ \4 Ðthe€unit€prices€only€when€the€actual€quantities€vary€significantly€from€the€estimates.€€ForÐ H  Ðexample,€both€the€Federal€clause€and€the€Model€Procurement€Code€clauses€require€that€actualÐ 4  Ðquantities€must€vary€by€more€than€15%€(up€or€down)€before€an€adjustment€will€be€made€in€theÐ  ø Ðunit€prices.€×ƒæ T×Ý ƒC¢˜ÝòòòòÚ  Ú48Ú  ÚóóóóÝ  Ý×  ×€€The€adjustment€can€be€at€the€request€of€either€party.€€Ð  ä ÐòòÌRelationship€to€Differing€Site€Conditions€clauseó󀄀The€òòVariation€In€Quantityóó€clause€will€notÐ ä!¼ Ðgovern€the€Contractorððs€entitlement€to€an€equitable€adjustment€when€the€Contractor€encountersÐ Ð"¨ Ðconditions€of€the€type€described€in€the€òòDiffering€Site€Conditions€óóclause.€€In€such€situations,€whereÐ ¼#” Ðthe€Contractor€encounters€materially€differing€physical€conditions€not€anticipated€by€either€party,Ð ¨$€  Ðthe€òòDiffering€Site€Conditions€óóclause€will€take€precedence€and€the€Contractor€will€be€entitled€to€anÐ ”%l! Ðequitable€price€adjustment€even€if€the€final€quantities€vary€by€less€than€the€%€stated€in€theÐ €&X" ÐòòVariation€In€Quantityóó€clause.€×ƒè à×Ý ƒC¢˜ÝòòòòÚ  Ú49Ú  ÚóóóóÝ  Ý×  ×€€In€one€case€the€Board€of€Contract€Appeals€found€a€differing€site€Ð  l'D # Ðcondition€when€the€Contractor€encountered€an€unforeseen€rock€ledge€in€a€river€being€dredged.€Ð ( ÐThe€contract€contained€a€pay€item€for€dredging€loose€rock,€and€the€removal€of€the€rock€ledge€didÐ ì Ðnot€cause€the€Contractor€to€exceed€the€estimated€quantities€of€rock€actually€removed.€€However,Ð  Ø Ðthe€Board€ruled€that€the€methods€required€to€remove€the€rock€ledge€were€not€those€normally€usedÐ ì Ä Ðfor€loose€rock,€and€thus€the€Contractor€was€entitled€to€a€price€adjustment€under€theòò€Differing€SiteÐ Ø ° ÐConditionsóó€clause€even€though€the€total€quantity€of€rock€removed€was€not€in€excess€of€theÐ Ä œ Ðestimated€quantity€in€the€contract.Ð ° ˆ ÐÌòòUnit€price€adjustmentsó󀄀Both€the€Federal€clause€and€the€Ô_ÔMPCÔ_Ô€clause€call€for€a€unit€priceÐ ˆ` Ðadjustment€when€the€Contractorððs€costs€increase€or€decrease€òòdue€solely€to€the€variationóó€aboveÐ tL  Ð115%€or€below€85%€of€€the€estimated€quantity.€€The€phrase€ð ðdue€solely€to€variationðð€means€thatÐ `8  Ðthe€amount€of€the€equitable€adjustment€is€determined€solely€from€the€difference€in€costs€which€isÐ L$  Ðdue€to€the€larger€or€smaller€quantity,€rather€than€from€a€complete€repricing€of€the€work€based€onÐ 8  Ðactual€incurred€costs€for€the€excess€quantity.€€Furthermore,€the€party€demanding€the€adjustmentÐ $ü  Ðhas€the€burden€of€proving€that€costs€have€variedòò€because€of€a€difference€in€quantityóó.׃ê ×Ý ƒC¢˜ÝòòòòÚ  Ú50Ú  ÚóóóóÝ  Ý×  ×€€Ð è  ÐÌThe€typical€òòVariation€In€Quantityóó€clause€entitles€the€Contractor€to€a€price€adjustment€for€under„Ð èÀ Ðruns€as€well€as€over„runs€in€quantities.€€This€presumes€the€Contractor€can€demonstrate€that€itsÐ Ô¬ Ðunit€costs€have€risen€because€of€the€under„runs.€€Typically€the€Contractorððs€fixed€costs€per€unitÐ À˜ Ðwill€be€higher€because€of€fewer€units€over€which€to€amortize€the€fixed€costs.€€In€the€case€of€over„Ð ¬„ Ðruns€to€the€estimated€quantity,òò€the€repricing€would€apply€to€only€those€quantities€falling€outsideÐ ˜p Ðthe€range€specified.óó€€In€the€case€of€under„runs,€the€repricing€would€apply€to€the€entire€actualÐ „\ Ðquantity€produced/delivered.Ð pH ÐÌòòPayment€on€basis€of€actual€costsó󀄀Some€transit€agencies€have€adopted€contract€provisions€payingÐ H  Ðcontractorsðð€òòactual€costs,€óóon€a€ð ðforce€accountðð€basis,€for€quantities€outside€the€range€specified€inÐ 4  Ðthe€estimated€quantities€clause.€€In€such€cases€the€methodology€is€different€than€that€describedÐ  ø Ðabove€where€the€contractorððs€starting€point€for€establishing€an€equitable€price€adjustment€is€theÐ  ä Ðunit€price€in€the€original€contract,€adjusted€for€cost€increases€or€decreases€due€solely€to€theÐ ø Ð Ðvariation€in€quantities.€€In€those€cases€where€the€price€adjustment€is€to€be€based€on€actual€costsÐ ä!¼ Ðfor€the€increased/decreased€quantities,€the€contract€terms€may€describe€in€detail€the€methodology€Ð Ð"¨ Ðfor€determining€payments,€including€the€establishment€of€ceiling€rates€to€cover€such€costs€asÐ ¼#” Ðhome€office€overhead,€field€office€overhead,€equipment€rental,€etc.€€Where€ceiling€rates€are€used,Ð ¨$€  Ðthey€are€subject€to€a€final€audit,€and€may€be€adjusted€downward€after€audit€to€reflect€theÐ ”%l! Ðcontractorððs€actual€costs€for€the€various€individual€cost€elements€(e.g.,€home€office€overhead).€Ð €&X" ÐThe€rates€are€not€fixed,€predetermined€percentages€applied€to€actual€costs€of€labor,€materials,Ð l'D # Ðetc.„„such€an€arrangement€would€be€an€impermissible€cost„plus„percentage„of„construction„costÐ X(0!$ Ðmethod€which€is€prohibited€by€FTA€Circular€4220.1E€Ô_Ô10e.Ô_Ô׃ì T×Ý ƒC¢˜ÝòòòòÚ  Ú51Ú  ÚóóóóÝ  Ý×  ×Ô_ÔÔ_ÔÐ D)"% ÐÌò òÐ  +ô#' Ð9.2.3.5€òòDelaysóóó óÐ ( ÐÌThere€are€many€events€which€can€occur€to€delay€a€contractorððs€performance.€€Delays€can€be€ofÐ  Ø Ðthree€generic€types:Ð ì Ä ÐÌÓ0°°` ŠX°°‚,¸ ‰X0Óà0  à(1)à0(#(#àThose€where€the€contractor€bears€the€risk€of€both€time€and€cost„„these€are€delaysÐ Ä œ Ðwithin€its€control.€€These€delays€areòò€non„excusable.óóа ˆ(#(# ÐÌà0  à(2)à0(#(#àThose€for€which€the€owner€is€responsible€for€both€time€and€cost€impacts„„these€areÐ ˆ` Ðdelays€for€which€the€owner€agrees€to€be€responsible€or€which€are€caused€by€it.€€TheseÐ tL  Ðare€òòcompensableóó€delays.Ð`8 (#(# ÐÌà0  à(3)à0(#(#àThose€for€which€neither€party€is€responsible€to€the€other„„these€are€delays,€such€asÐ 8  Ðòòconcurrentóó€delays,€where€both€parties€have€caused€delays€which€have€an€equalÐ $ü  Ðimpact€on€completion,€and€it€is€impossible€to€apportion€or€separate€the€delays.€€InÐ è  Ðsuch€cases,€the€contractor€may€not€recover€its€increased€costs€and€the€owner€may€notÐ üÔ  Ðenforce€liquidated€damages.€€ÐèÀ(#(# ÐÌThe€following€provides€typical€examples€of€these€types€of€delays.€€However,€there€are€manyÐ À˜ Ðvariations€used€in€contracts€and€grantees€must€make€their€own€determination€as€to€how€the€risksÐ ¬„ Ðassociated€with€delays€are€allocated€between€themselves€and€their€contractors.Ð ˜p ÐÌòòExcusable€delaysó󀄀The€primary€purpose€of€an€òòexcusable€delayóó€provision€is€to€protect€theÐ pH Ðcontractor€from€sanctions€for€late€performance€(e.g.,€default€termination,€liquidated€damages,€andÐ \4 Ðactual€delay€damages).€€òòExcusableóó€delays€may€not€be€òòcompensableóó.€€Whether€a€delay€isÐ H  Ðconsidered€òòexcusableóó€depends€on€the€language€of€the€particular€clause€in€the€contract.€€TheÐ 4  ÐFederal€clause€for€construction€contracts€names€a€number€of€events€which€can€give€rise€to€anÐ  ø Ðòòexcusable€delayóó,€but€there€are€òòthree€elements€which€are€critical€in€determining€whether€anÐ  ä Ðexcusable€delay€has€occurredóó.€×ƒî ×Ý ƒC¢˜ÝòòòòÚ  Ú52Ú  ÚóóóóÝ  Ý×  ×€€The€three€elements€are:Ð ø Ð ÐÌà0  à(1)à0(#(#àThe€delay€must€arise€from€òòunforeseeable€causesóó.€€If€circumstances€which€are€knownÐ Ð"¨ Ðwhen€the€contract€is€entered€into€make€certain€delays€foreseeable,€then€courts€haveÐ ¼#” Ðheld€the€contractor€responsible€and€refused€to€grant€relief.€×ƒð T×Ý ƒC¢˜ÝòòòòÚ  Ú53Ú  ÚóóóóÝ  Ý×  ×Ш$€ (#(# ÐÌà0  à(2)à0(#(#àThe€event€must€beòò€beyond€the€control€of€the€contractor.€óó€If€a€contractor€cannotÐ €&X" Ðprevent€an€event€from€occurring,€that€event€is€beyond€the€contractorððs€control.€€Also,Ð l'D # Ðthe€standard€applied€is€one€of€reasonable€economic€practice.€€For€example,€where€Ð X(0!$(#(# Ðà0  àà0(#(#àthere€has€been€unusually€severe€weather,€the€contractor€is€not€obligated€to€institute€aÐ ( Ðtwo„shift€operation€to€overcome€the€delays€caused€by€the€weather.€×ƒò ×Ý ƒC¢˜ÝòòòòÚ  Ú54Ú  ÚóóóóÝ  Ý×  ×€Ðì(#(# ÐÌà0  à(3)à0(#(#àThe€delay€must€be€òòwithout€the€fault€or€negligence€of€the€contractoróó.€€Fault€orÐ ì Ä Ðnegligence€deals€with€either€acts€or€omissions€of€the€contractor€that€cause€delays.€€AÐ Ø ° Ðcontractor€was€not€granted€relief€when€its€subcontractor€failed€to€perform€because€theÐ Ä œ Ðcontractor€was€negligent€for€failing€to€assure€itself€of€the€subcontractorððs€ability€toÐ ° ˆ Ðperform.€×ƒõ T×Ý ƒC¢˜ÝòòòòÚ  Ú55Ú  ÚóóóóÝ  Ý×  ×Ðœ t(#(# ÐÌIf€the€excusable€delay€provision€lists€a€type€of€event€relieving€the€contractor€from€responsibility,Ð tL  Ðthen,€under€the€Federal€clause,€€the€three€criteria€discussed€above€are€applied€to€the€event€toÐ `8  Ðdetermine€the€issue€of€Ô_Ôexcusability.Ô_Ô€€It€should€be€noted,€however,€that€private€contracts€may€orÐ L$  Ðmay€not€contain€the€same€language€as€the€Federal€clause,€and€thus€the€proper€interpretation€of€theÐ 8  Ðclause€should€be€sought€from€the€granteeððs€in„house€legal€counsel.€€The€types€of€events€usuallyÐ $ü  Ðincluded€in€these€provisions€would€include:Ð è  ÐÌÝ‚,‡¦ÿÝÝ  Ýà0  àÝ‚,‡¦!ÇÝð"ðà0(#(#àÝ  Ýà0` (#(#àòòStrikesó󀄀To€obtain€an€excusable€delay€for€a€strike€òòunder€the€Federal€clauseóó,€aÐ èÀ Ðcontractor€must€prove€that€it€acted€reasonably€and€did€not€wrongfully€precipitateÐ Ô¬ Ðor€prolong€the€strike,€and€it€must€take€steps€to€avoid€its€effect.€€In€other€words,€theÐ À˜ Ðthree„fold€criteria€of€being€unforeseeable,€beyond€the€contractorððs€control,€andÐ ¬„ Ðwithout€the€fault€or€negligence€of€the€contractor,€must€be€met.€€òòIn€privateÐ ˜p Ðcontractsóó€which€do€not€contain€this€language,€however,€a€court€may€well€excuse€aÐ „\ Ðdelay€even€where€the€strike€is€precipitated€by€the€contractorððs€actions,€such€asÐ pH Ðreducing€its€workersðð€wages.€Ô_ÔÔ_Ô׃÷ à×Ý ƒC¢˜ÝòòòòÚ  Ú56Ú  ÚóóóóÝ  Ý×  ×Ô_ÔÔ_Ô݃,‡¦!ÇHÇÝŒÐ\4` (#` (# ÐŒÝ  ÝÌÝ‚,‡¦ÿÝÝ  Ýà0  àÝ‚,‡¦mËÝð"ðà0(#(#àÝ  Ýà0` (#(#àòòWeatheró󀄀Most€contracts€will€contain€excusable€delay€provisions€concerningÐ 4  Ðadverse€weather.€€Generally,€adverse€weather€is€òòabnormal€in€comparison€to€theÐ  ø Ðprevious€weather€patterns€at€the€same€location€for€the€same€time€of€year.óó€SomeÐ  ä Ðgrantee€construction€contracts€contain€provisions€noting€the€anticipated€non„workÐ ø Ð Ðweather€days€for€each€month€of€the€year,€and€contractors€are€advised€to€bid€withÐ ä!¼ Ðthis€information€and€to€plan€their€schedules€accordingly.€×ƒù l×Ý ƒC¢˜ÝòòòòÚ  Ú57Ú  ÚóóóóÝ  Ý×  ×€€€The€usual€method€ofÐ Ð"¨ Ðproving€€that€weather€is€unusually€severe€is€to€obtain€comparative€data€from€theÐ ¼#” ÐU.S.€weather€bureau€for€past€periods€in€the€area€with€those€recorded€during€theÐ ¨$€  Ðperiod€of€performance.€€Ýƒ,‡¦mË”Ë݌Д%l!` (#` (# ÐŒÝ  ÝÐ  €&X" ÐÌÝ‚,‡¦ÿÝÝ  Ýà0  àÝ‚,‡¦ÓÏÝð"ðà0(#(#àÝ  Ýà0` (#(#àòòSubcontractor€and€supplier€delaysó󀄀Where€the€delay€is€caused€by€a€subcontractorÐ ì Ðor€supplier,€and€the€excusable€delay€clauses€mention€this€as€an€excusable€cause,Ð  Ø Ðthere€is€usually€the€added€requirement€that€the€subcontractorððs€or€supplierððs€delayÐ ì Ä Ðbe€excusable€based€on€the€same€three„fold€criteria€as€discussed€above€inÐ Ø ° Ðconnection€with€other€causes€of€delay;€i.e.,€it€must€have€been€due€to€circumstancesÐ Ä œ Ðunforeseen€by€the€subcontractor,€beyond€the€subcontractorððs€control,€and€withoutÐ ° ˆ Ðthe€subcontractorððs€fault€or€negligence.€Ýƒ,‡¦ÓÏúÏ݌М t` (#` (# ÐŒÝ  ÝÌÝ‚,‡¦ÿÝÝ  Ýà0  àÝ‚,‡¦ÓÝð"ðà0(#(#àÝ  Ýà0` (#(#àòòOwner€conductó󀄀To€be€excused€for€owner€conduct,€contractors€must€show€that€theÐ tL  Ðcontractual€acts€or€omissions€of€the€owner€were€wrongful€(e.g.,€an€improperÐ `8  Ðfailure€to€pay€for€services€performed,€or€improper€interference€with€the€work€ofÐ L$  Ðthe€contractor).€€But€where€delays€are€due€to€owner€acts€properly€taken,€there€is€noÐ 8  Ðbasis€for€an€excusable€delay€(e.g.,€where€owner€rightly€insists€on€compliance€withÐ $ü  Ðspecifications,€or€properly€rejects€subcontractors€who€do€not€meetÐ è  Ðqualification/experience€requirements).€€Of€course€when€the€owner€issues€ChangeÐ üÔ  ÐOrders€(which€are€not€wrongful€acts),€the€contractor€is€entitled€to€both€a€price€andÐ èÀ Ðschedule€adjustment€in€accordance€with€the€terms€of€the€Changes€clause.€Ýƒ,‡¦ÓFÓÝŒÐÔ¬` (#` (# ÐŒÝ  ÝòòÌCompensable€delaysó󀄀These€are€delays€for€which€theòò€contractor€is€entitled€toóó€òòcompensationóó,€notÐ ¬„ Ðmerely€an€extension€of€time,€as€with€many€of€the€òòexcusable€delaysóó.€€Entitlement€to€compensationÐ ˜p Ðmay€be€expressly€stated€in€a€specific€contract€clause,€but€if€not,€òòthere€is€an€implied€duty€of€eachÐ „\ Ðparty€not€to€hinder,€delay€or€make€more€expensive€the€performance€of€the€other€party.óó€€Thus,Ð pH Ðeven€in€the€absence€of€a€specific€contract€clause€granting€the€contractor€compensation€for€owner„Ð \4 Ðcaused€delays,€many€courts€find€an€implied€owner€duty€not€to€hinder€or€delay,€and€they€will€grantÐ H  Ðcompensation€to€contractors€for€such€delays.€Ô_ÔÔ_Ô׃ý ×Ý ƒC¢˜ÝòòòòÚ  Ú58Ú  ÚóóóóÝ  Ý×  ×Ô_ÔÔ_Ô€€This€implied€duty€has€been€used€as€justificationÐ 4  Ðfor€compensation€in€a€wide€variety€of€circumstances.€€Ð  ø ÐÌCompensable€delays€may€arise€because€of€òòexpress€orders€of€the€owneróó€(e.g.,€suspensions€of€workÐ ø Ð Ðfor€ownerððs€convenience,€written€Change€Orders,€etc.€),€or€because€of€so„called€òòconstructiveÐ ä!¼ Ðchangesóó;€i.e.,€some€act€of€the€owner€or€failure€to€act€which€causes€a€compensable€suspension€ofÐ Ð"¨ Ðwork€(e.g.,€€delay€in€the€availability€of€the€site,€delay€in€issuing€approvals€where€prior€approval€isÐ ¼#” Ðrequired€before€starting€work,€delays€in€the€inspection€process,€or€ownerððs€interference€with€theÐ ¨$€  Ðcontractorððs€work).€Ð ”%l! ÐÌIn€order€to€be€compensated€for€delays,€òòa€contractor€must€demonstrate€that€the€delay€isóóÐ l'D # Ðòòunreasonable€in€durationóó.€€It€is€important€to€determine€if€the€delay€is€the€result€of€the€ownerððsÐ X(0!$ Ðfault€or€whether€it€results€from€an€action€taken€by€the€owner€pursuant€to€a€contractual€right.€€IfÐ D)"% Ðthe€delay€results€from€an€ownerððs€fault,€the€courts€have€generally€held€that€the€entire€period€of€theÐ 0*#& Ðdelay€is€unreasonable€and€therefore€compensable.€€If,€on€the€other€hand,€the€delay€arises€out€of€an€Ð  +ô#' Ðaction€taken€pursuant€to€an€ownerððs€contractual€right,€the€contractor€will€be€compensated€only€forÐ ( Ðthe€unreasonable€portion€of€the€delay.€Ô_ÔÔ_Ô׃ÿ ×Ý ƒC¢˜ÝòòòòÚ  Ú59Ú  ÚóóóóÝ  Ý×  ×Ô_ÔÔ_Ô€€Ð ì ÐÌDelays€where€the€total€delay€period€has€been€found€unreasonable€include:Ð ì Ä ÐÔ€ô0òXXç¤ÔÌÝ‚,‡¦ÿÝÝ  Ýà0  àÝ‚,‡¦)âÝð"ðà0(#(#àÝ  ÝÝ‚*ÿÿÿÝÔ€Xç¤Xòô0ÔÔ€Xç¤XXXç¤ÔÔ€X1 XXXç¤ÔÔ€X1 XXX1 ÔÔ€X1 XXX1 ÔÔ€X7¥XXX1 ÔÔ  ÔÔ  ÔÝ  ÝÝ‚*ÿÿÿ†âòòòÝÔ  ÔÔ  ÔÔ€ôÖ¯òXX7¥ÔÔ€ôÖ¯òòôÖ¯ÔÔ€ô0òòôÖ¯ÔÔ€ô0òòô0ÔÔ€ô0òòô0ÔÔ€ô0òòô0ÔÝ  ÝÔ€Xç¤Xòô0ÔDelay€in€issuing€notice€to€proceed€beyond€date€needed€by€contractor€to€perform€workÐ œ t Ðefficiently.݃,‡¦)âPâ݌Ј `(#(# ÐŒÝ  ÝÌÝ‚,‡¦ÿÝÝ  Ýà0  àÝ‚,‡¦?åÝð"ðà0(#(#àÝ  ÝDelays€because€of€conflicting€or€defective€specifications.€Ýƒ,‡¦?åfåÝŒÐ`8(#(# ÐŒÝ  Ýà0  àÔ€ô0òXXç¤ÔÐ (#(# ÐÝ‚,‡¦ÿÝÝ  Ýà0  àÝ‚,‡¦\æÝð"ðà0(#(#àÝ  ÝÔ€Xç¤Xòô0ÔDelays€in€obtaining€city€€authorizations€which€could€only€be€obtained€by€the€owner.݃,‡¦\æƒæÝŒÐè (#(# ÐŒÝ  ÝÔ_ÔÔ_ÔÌDelays€which€have€been€found€to€be€reasonable€include:Ð èÀ  ÐÌÓlO°°r` S ¸ 4 ‚áh×À¸™‚áÈ< xþ‚á(#¡$‚&°°` ŠXlÓà  àððà0 r àDelays€in€awarding€the€contract€arising€out€of€compliance€with€bid€protestÐ À˜  Ðprocedures.Ь„ r(#r(# ÐÌÓ±XÜܽ4ž Œ  ä ` ‚á”ìäDÅ‚áôhLI¤* ü! "ì#T$Í%®'°°r` S ¸ 4 ‚áh×À¸™‚áÈ< xþ‚á(#¡$á±Óà ‘ àà0  àÓµO°°r` S ¸ 4 ‚áh×À¸™‚áÈ< xþ‚á(#¡$áÜܽ4ž Œ  ä ` ‚á”ìäDÅ‚áôhLI¤* ü! "ì#T$Í%áíèµÓððà0r(#(#àDelays€in€issuing€changes€which€were€not€attributable€to€defective€specifications.Є\r(#r(# ÐÌòòConcurrent€delaysó󀄀When€both€parties€contribute€to€a€delay,€the€issue€arises€as€to€how€to€resolveÐ \4 Ðthe€question€of€responsibility€for€the€delay.€€The€courts€have€resolved€this€issue€by€assessing€theÐ H  Ðlosses€attributable€to€each€partyððs€delay€and€apportioning€the€damages€accordingly.€Ô_ÔÔ_Ô׃ T×Ý ƒC¢˜ÝòòòòÚ  Ú60Ú  ÚóóóóÝ  Ý×  ×Ô_ÔÔ_Ô€€The€caseÐ 4  Ðlaw€in€this€area€focuses€on€apportioning€the€delay€to€its€appropriate€category€of€owner„caused,Ð  ø Ðcontractor„caused,€and€caused€by€neither„„ððexcusableðð€per€the€contract€terms.€€What€this€means€isÐ  ä Ðthat€if€one€party€contributed€in€part€to€the€delay,€it€will€not€be€barred€from€recovering€damagesÐ øÐ Ðfrom€the€other€party€(e.g.,€an€owner€who€is€òòpartly€responsibleóó€for€the€delay€will€not€be€precludedÐ ä¼ Ðfrom€recovering€liquidated€damages).€Ô_ÔÔ_Ô׃ à×Ý ƒC¢˜ÝòòòòÚ  Ú61Ú  ÚóóóóÝ  Ý×  ×Ô_ÔÔ_Ô€€Where€it€is€impossible€to€allocate€or€separate€the€delays,РШ Ðor€where€the€delays€are€truly€concurrent€(where€each€party€has€had€an€equal€impact€onÐ ¼” Ðcompletion,€the€following€rules€would€apply:Ð ¨ € ÐÌÓ±XÜܽ4ž Œ  ä ` ‚á”ìäDÅ‚áôhLI¤* ü! "ì#T$Í%®'°°r` S ¸ 4 ‚áh×À¸™‚áÈ< xþ‚á(#¡$á±ÓÝ‚,‡¦ÿÝÝ  Ýà ‘ àÝ‚,‡¦JñÝð"ðà0 r àÝ  ÝWhere€contractor„caused€delay€is€concurrent€with€owner„caused€delay,€the€contractorÐ €"X Ðmay€not€recover€its€increased€costs€resulting€from€the€delay.€Ýƒ,‡¦JñqñÝŒÐl#Dr(#r(# ÐŒÝ  ÝÌÝ‚,‡¦ÿÝÝ  Ýà ‘ àÝ‚,‡¦‰òÝð"ðà0 r àÝ  ÝWhereòò€Ô_ÔnoncompensableÔ_Ôóó€delays€are€concurrent€with€owner„caused€delays,€a€contractorÐ D%! Ðmay€not€recover€its€increased€costs€resulting€from€the€delay.݃,‡¦‰ò°òÝŒÐ0&"r(#r(# ÐŒÝ  ÝÌÝ‚,‡¦ÿÝÝ  Ýà ‘ àÝ‚,‡¦ëóÝð"ðà0 r àÝ  ÝWhere€the€owner€has€contributed€to€the€project€delay,€and€such€contribution€cannotÐ (à $ Ðbe€separated€from€other€causes€of€delay,€liquidated€damages€cannot€be€enforced€byÐ ô(Ì!% Ðthe€owner.݃,‡¦ëóôÝŒÐà)¸"&r(#r(# ÐŒÝ  ÝÓµO°°r` S ¸ 4 ‚áh×À¸™‚áÈ< xþ‚á(#¡$áÜܽ4ž Œ  ä ` ‚á”ìäDÅ‚áôhLI¤* ü! "ì#T$Í%á™ðµÓÌò ò9.2.3.6€òòAccelerationó óóóÐ ì ÐÌAcceleration€is€the€speeding€up€of€the€rate€of€performance€in€order€to€complete€the€contractÐ ì Ä Ðearlier€than€would€be€the€case€if€the€contractor€pursued€the€effort€in€a€normal€manner.€€There€areÐ Ø ° Ðtwo€situations€where€contractors€are€entitled€to€compensation€for€acceleration€costs.Ð Ä œ ÐÌòòOwner„caused€delayó󀄀When€an€owner€causes€a€delay€which€would€entitle€a€contractor€to€recoverÐ œ t Ðits€increased€costs€(see€òòcompensable€delaysóó€in€section€9.2.3.5),€the€contractor€may€attempt€toÐ ˆ` Ðmitigate€the€costs€of€the€delay€by€voluntarily€accelerating€its€efforts.€€In€this€case€the€contractor€isÐ tL  Ðentitled€to€recover€the€costs€of€accelerating€the€effort€and€these€increased€costs€are€actuallyÐ `8  Ðrecoverable€as€part€of€the€delay€costs€because€they€were€incurred€in€mitigation€of€those€delayÐ L$  ÐÔ_Ôcosts.€×ƒ ×Ý ƒC¢˜ÝòòòòÚ  Ú62Ú  ÚóóóóÝ  Ý×  ׀Р8  ÐÌòòOwner„directed€accelerationó󀄀When€an€owner€orders€the€contractor€to€complete€the€work€earlierÐ è  Ðthan€the€contract€requires,€the€contractor€is€entitled€to€recover€the€costs€of€acceleration.€€TheÐ üÔ  Ðowner€may€expressly€order€the€contractor€to€accelerate€performance,€thus€creating€a€compensableÐ èÀ Ðacceleration,€but€in€the€majority€of€cases€the€acceleration€is€òòconstructiveóó€rather€than€expressed;Ð Ô¬ Ði.e.,€the€owner€orders€the€contractor€to€meet€the€contract€completion€date€even€though€there€hasÐ À˜ Ðbeen€an€òòexcusable€delayóó€which€would€entitle€the€contractor€to€an€extension€in€the€completionÐ ¬„ Ðdate.€€(See€òòexcusable€delaysóó€in€section€9.2.3.5€).€€The€effect€of€this€order€by€the€owner€is€toÐ ˜p Ðrequire€a€rate€of€performance€which€is€faster€than€the€contract€requires,€and€this€is€equivalent€toÐ „\ Ðan€express€order€to€accelerate.€×ƒ T×Ý ƒC¢˜ÝòòòòÚ  Ú63Ú  ÚóóóóÝ  Ý×  ×Ð pH ÐÌòòElements€required€for€constructive€accelerationóó€:€„€In€order€to€recover€for€constructiveÐ H  Ðacceleration,€it€is€generally€held€that€the€contractor€must€demonstrate€three€elements:Ð 4  ÐÌà0  à(1)€€the€delays€which€occasioned€the€order€to€accelerate€were€excusable.Ð ä(#(# Ðà0  à(2)€€the€contractor€was€ordered€to€accelerate.Ðø Ð(#(# Ðà0  à(3)€€the€contractor€in€fact€accelerated€performance€and€incurred€extra€costs.€×ƒ à×Ý ƒC¢˜ÝòòòòÚ  Ú64Ú  ÚóóóóÝ  Ý×  ×Ðä!¼(#(# ÐÌòòOrder€to€accelerateó󀄀An€order€to€accelerate€does€not€have€to€be€a€specific€command.€€If€theÐ ¼#” Ðowner€ð ðrequestsðð€the€contractor€to€accelerate,€it€has€the€same€effect€as€an€ð ðorder.ðð€€Further,€itÐ ¨$€  Ðmakes€no€difference€whether€the€contractor€complies€willingly€or€unwillingly.€€If€the€initiativeÐ ”%l! Ðcomes€from€the€owner€and€the€work€is€done€in€a€manner€different€than€the€contract€requires,€thenÐ €&X" Ðthe€contractor€will€be€entitled€to€compensation.€Other€circumstances€giving€rise€to€constructive€Ð  l'D # Ðacceleration€would€be:€(a)€a€wrongful€threat€to€terminate€for€default€where€the€delays€wereÐ ( Ðexcusable€×ƒ ×Ý ƒC¢˜ÝòòòòÚ  Ú65Ú  ÚóóóóÝ  Ý×  ×€and€(b)€a€threat€to€assess€liquidated€damages€where€delays€were€excusable.€×ƒ T×Ý ƒC¢˜ÝòòòòÚ  Ú66Ú  ÚóóóóÝ  Ý×  ×Ð ì ÐÌòòAcceleration€orders€where€both€excusable€and€non„excusable€delays€existó󀄀The€Federal€casesÐ ì Ä Ðhave€held€that€when€the€owner€directs€the€contractor€to€accelerate€in€order€to€recover€the€non„Ð Ø ° Ðexcusable€delay,€the€acceleration€costs€are€not€recoverable.€×ƒ à×Ý ƒC¢˜ÝòòòòÚ  Ú67Ú  ÚóóóóÝ  Ý×  ×€€It€has€also€been€held€that€whereÐ Ä œ Ðboth€excusable€and€non„excusable€delays€exist,€and€the€contractor€accelerates€performanceÐ ° ˆ Ðpursuant€to€an€order€of€the€owner,€the€acceleration€costs€are€not€compensable€when€the€timeÐ œ t Ðrecovered€is€less€than€the€amount€of€the€non„excusable€delay.€×ƒ+ l×Ý ƒC¢˜ÝòòòòÚ  Ú68Ú  ÚóóóóÝ  Ý×  ×Ð ˆ` ÐÌòòRecovery€of€acceleration€costs€not€dependent€on€recovery€of€lost€timeó󀄀When€the€owner€ordersÐ `8  Ðcompletion€ahead€of€schedule,€and€the€contractor€uses€its€ð ðbest€effortsðð€to€accelerate€completionÐ L$  Ðof€the€project€but€fails€to€recover€the€lost€time,€the€contractor€is€permitted€to€recover€theÐ 8  Ðincreased€costs€associated€with€its€efforts€to€accelerate.€×ƒ- ø×Ý ƒC¢˜ÝòòòòÚ  Ú69Ú  ÚóóóóÝ  Ý×  ×Ð $ü  ÐÌò ò9.3€IMPROVING€VENDOR€DELIVERY€PERFORMANCEó óÐ üÔ  ÐÌLate€deliveries€from€vendors€can€be,€and€often€are,€a€serious€problem€for€many€agencies,Ð Ô¬ Ðespecially€those€that€are€awarding€and€administering€many€thousands€of€purchases€annually.€Ð À˜ ÐNew€York€City€Transit€(NYCT)€is€an€agency€that€has€faced€this€problem€with€respect€to€itsÐ ¬„ Ðmaintenance€materials€and€developed€some€innovative€solutions€to€deal€with€it.€This€agency€hasÐ ˜p Ðfaced€all€of€the€normal€difficulties€in€dealing€with€vendors,€including€late€deliveries,€quality€andÐ „\ Ðquantity€problems€as€well€as€difficulties€in€motivating€its€suppliers€to€grasp€the€significance€ofÐ pH Ðimproved€performance.€€The€following€summarizes€some€of€the€methods€NYCT€has€used€toÐ \4 Ðaddress€vendor€performance€problems.Ð H  ÐÌòòVendor€Performance€Moduleóó€ð!ð€The€first€step€in€addressing€poor€vendor€delivery€performanceÐ  ø Ðwas€to€develop€a€computer€software€program€or€module€that€would€accurately€gather€and€reportÐ  ä Ðdifferent€measurements€of€vendor€performance.€€Ð ø Ð ÐÌThis€permits€NYCTððs€procurement€and€receiving€functions€to€be€electronically€linked,€therebyÐ Ð"¨ Ðenabling€receiving€personnel€to€enter€the€data€summarizing€the€details€of€each€inventory€receiptÐ ¼#” Ðtransaction.€€For€example,€the€data€recorded€includes€the€actual€date€of€delivery€in€comparison€to€Ð  ¨$€  Ðthe€date€promised€by€the€vendor,€purchase€order€quantity€vs.€actual€quantity€received€and€qualityÐ ( Ðassurance€rejections.€€The€module€accumulates€this€data€on€a€vendor€specific€basis€and€providesÐ ì Ðperformance€information.€€Using€this€performance€information,€NYCT€has€implemented€severalÐ  Ø Ðprograms€to€improve€on„time€delivery€performance.€Ð ì Ä ÐÌòòð ð100€Worstðð€Programóó€ð!ð€Utilizing€the€vendor€performance€data,€NYCT€can€identify€the€ð ðvitalÐ Ä œ Ðfewðð€vendors€who€are€generally€responsible€for€the€greatest€number€of€late€deliveries€and€areÐ ° ˆ Ðhaving€the€most€significant€impact€on€NYCTððs€ability€to€support€maintenance€and€productionÐ œ t Ðefforts.€€Presently€NYCT€has€directed€its€focus€on€the€100€firms€having€the€highest€number€ofÐ ˆ` Ðlate€deliveries€through€open,€non„adversarial€meetings€between€agency€procurement€staff€and€theÐ tL  Ðchief€executives€of€the€companies€in€question.€€Specific€emphasis€is€placed€upon€the€expansionÐ `8  Ðof€the€vendorððs€understanding€of€the€significance€of€late€deliveries.€€Individualized€action€plansÐ L$  Ðare€developed€with€clearly€defined€remedial€steps€and€corresponding€milestone€dates.€€For€theÐ 8  Ðmost€part€this€approach€has€been€successful;€however,€in€those€rare€instances€where€a€vendor€isÐ $ü  Ðcompletely€unable€to€improve,€determinations€of€non„responsibility,€suspensions,€defaults€andÐ è  Ðdebarments€are€invoked.Ð üÔ  ÐÌòòTop€100€Suppliersóó€ð!ð€This€program€looks€at€the€100€best€suppliers.€€NYCT€holds€an€annualÐ Ô¬ Ðvendor€conference€and€invites€senior€management€officials€from€these€suppliers.€Awards€areÐ À˜ Ðpresented€to€the€very€best€companies€for€excellent€on„time€performance,€with€special€emphasisÐ ¬„ Ðon€companies€showing€marked€improvement.€€These€awards€are€perceived€as€prestigious€withinÐ ˜p Ðthe€industry€and€are€anticipated€to€have€an€extremely€positive€effect€on€a€vendorððs€ability€toÐ „\ Ðattract€future€business€with€other€transit€properties.€Goals€and€strategies€are€discussed€forÐ pH Ðcontinued€improvement€and€the€attendees€are€given€a€complete€understanding€of€the€majorÐ \4 Ðinitiatives€that€NYCT€has€embarked€upon€which€will€require€the€support€of€the€vendorÐ H  Ðcommunity€through€timely€performance.Ð 4  ÐÌòòð ðSTATUSðð€Programóó€ð!ð€òòòòSóóystem€òòTóóo€òòAóóutomatically€òòTóórack€òòUóóntimely€òòSóóhipmentsóóÐ  ä ÐThe€STATUS€program€is€a€standard€method€of€late€delivery€notification€to€any€vendor.€€At€setÐ ø Ð Ðtime€periods,€letters€detailing€a€missed€delivery€date€are€mailed€to€the€vendor.€€The€system€Ð ä!¼ Ðofficially€notifies€each€vendorððs€sales€representative€and€chief€officer€of€late€deliveries,€advisingÐ Ð"¨ Ðthem€of€potential€action€and€affording€the€company€an€opportunity€to€respond.Ð ¼#” ÐÌòòProgram€Resultsó󀄀€The€programs€adopted€by€NYCT€(Vendor€Performance€Module,€ð ð100€WorstððÐ ”%l! ÐProgram,€€ð ðSTATUSðð€Program,€and€ð ðTop€100€Suppliersðð)€have€proven€to€be€highly€successful€inÐ €&X" Ðimproving€vendor€performance.€€Ð l'D # ÐÌAnother€program€that€has€proven€successful€at€MARTA€involves€linking€€employee€performanceÐ D)"% Ðto€on€time€vendor€deliveries.Ð 0*#& Ðò òÐ  +ô#' ÐÌ9.4€òòApproval€of€Subcontractorsó óóóÐ ì Ðò òÌÔ*eƒÏ1Òddxdd xk1l°(#°(#eÔÔ,xdd ÔÔ+  ÔÐ ì Äì Ä ÐòŒòREQUIREMENTóŒóÐ  P ( €€Ðó óFTA€Circular€4220.1E€paragraph€16€requires€grantees€to€evaluate€Federal€statutory€andÐ Ð ¨ Ðregulatory€requirements€for€relevance€and€applicability€to€a€particular€procurement.€Ð ¼ ” ÐÌAppendix€A.1€-€òòFederally€Required€and€Other€Model€Contract€Clausesóó,€and€Chapter€8€-Ð ”l ÐòòContractóó€òòClausesóó,€contain€a€discussion€of€many€contract€clause€requirements,€including€theÐ €X  Ðapplicability€to€subcontracts.Ð lD  ÐÌ49€CFR€Part€26€sets€forth€the€requirements€of€the€Federal€Department€of€TransportationÐ D  Ðconcerning€Disadvantaged€Business€Enterprise€(DBE)€participation€in€FTA€programs.€€AÐ 0  Ðdiscussion€of€these€requirements€may€be€found€in€Chapter€7€of€this€Manual.Ðô    ÐÌò òDISCUSSIONó óÐ $ü ÐÌò òThe€management€of€subcontracts€usually€involves€three€areas:€Ð üÔ ÐÌÓ¨O°°Ê` S ¸ 4 ‚áh×À¸™‚áÈ< xþ‚á(#¡$‚&°°r` S ¸ 4 ‚áh×À¸™‚áÈ< xþ‚á(#¡$á¨Óà  à(1)à0 Ê àAssurance€that€the€prime€contractor€has€included€the€required€"flow-down"Ð Ô¬ Ðprovisions€(clauses)€from€the€prime€contract€in€the€subcontract.€A€discussion€ofÐ À˜ Ðthe€requirements€related€to€the€flow-down€of€Federal€contract€clauses€may€beÐ ¬„ Ðfound€in€Chapter€8€-€òòContract€Clausesóó,€and€Appendix€A.1€-€òòFederallyóó€òòRequiredÐ ˜p Ðand€Other€Model€Contract€Clauses.€€óóЄ\Ê(#Ê(# ÐÌà0  àà0Ê(#(#àà  à(2)€à Ê àThe€prime€contractor's€compliance€with€the€Disadvantaged€BusinessÐ X0 ÐEnterprise€(DBE)€requirements€in€its€prime€contract.€Guidance€related€to€theÐ D  ÐDOT€requirements€concerning€DBE€matters€may€be€found€in€Chapter€7€-Ð 0! ÐòòDisadvantaged€Business€Enterpriseóó.€ó óÐ"ôÊ(#Ê(# ЀÌò òà  à(3)à0 Ê àAssurance€that€the€prime€contractor€has€selected€its€critical€subcontractors€in€aÐ ô#Ì Ðprudent€fashion,€so€as€to€protect€the€grantee's€program€interests.€€Ðà$¸Ê(#Ê(# ÐÓ¬O°°r` S ¸ 4 ‚áh×À¸™‚áÈ< xþ‚á(#¡$á°°Ê` S ¸ 4 ‚áh×À¸™‚áÈ< xþ‚á(#¡$á¸#¬ÓÌThe€purpose€of€this€section€relates€to€the€third€objective€above€-€it€is€to€furnish€guidanceÐ ¸&! Ðconcerning€those€circumstances€when€grantees€may€wish€to€require€their€prime€contractorsÐ ¤'| " Ðto€submit€certain€subcontracts€for€the€grantee's€consent€prior€to€award€of€the€subcontractÐ (h!# Ðby€the€prime.€òò׃/ ×Ý ƒC¢˜ÝòòòŽòÚ  Ú70Ú  ÚóŽóóóÝ  Ý×  ×óó€€Ð |)T"$ ÐÌòòWhen€the€prime€contract€is€CPFF€or€T&M€óó-€Under€a€cost-plus-fixed-fee€contract€(CFPP)Ð T+,$& Ðand€a€time-and-materials€(T&M)€contract,€the€grantee€bears€the€burden€of€allowable€costsÐ @,%' Ðincurred€by€the€prime€contractor,€including€amounts€spent€for€supplies€and€services€onÐ ( Ðpurchase€orders€or€subcontracts.€€It€behooves€the€grantee,€therefore,€to€exercise€diligence€inÐ ì Ðthe€management€and€administration€of€these€types€of€prime€contracts€with€respect€to€theÐ  Ø Ðprimes'€selection€of€its€major€subcontractors€or€suppliers.€€If€the€cost€incurred€by€the€primeÐ ì Ä Ðis€greater€than€necessary€(for€example,€because€of€inadequate€competition€or€a€poorlyÐ Ø ° Ðnegotiated€subcontract),€it€is€the€grantee€that€will€bear€the€higher€than€necessary€costs.€€IfÐ Ä œ Ðthe€selected€subcontractor€performs€poorly,€it€will€be€the€grantee€that€will€bear€the€cost€ofÐ ° ˆ Ðcorrecting€the€problems€or€be€put€in€a€position€of€having€to€accept€a€product€that€isÐ œ t Ðsubstandard.€Ð ˆ` ÐÌòòWhen€the€subcontract€involves€a€critical€component€or€subsystemóó€-€This€situation€is€moreÐ `8  Ðlikely€to€arise€when€the€contract€involves€the€procurement€of€a€major€system€or€involvesÐ L$  Ðnew€technology.€€Here€the€issue€is€not€so€much€the€cost€risk€that€accrues€to€the€granteeÐ 8  Ðunder€every€CPFF€or€T&M€type€of€contract,€but€the€risk€of€failure€of€the€system€beingÐ $ü  Ðprocured€due€to€problems€with€subcontracted€components€or€subsystems€that€are€critical€toÐ è  Ðthe€system's€successful€performance.€€For€example,€on€a€large€contract€for€rehabilitating€aÐ üÔ  Ðsubway€station,€a€prime€contractor€with€civil€engineering€experience€may€have€toÐ èÀ Ðsubcontract€the€electrical€system€work.€€You€may€very€well€require€the€prime€to€submit€itsÐ Ô¬ Ðproposed€subcontractor€for€electrical€work€for€your€approval,€and€you€will€want€to€do€aÐ À˜ Ð"responsibility"€type€of€review€of€that€particular€subcontractor.€€If€you€have€evidence€ofÐ ¬„ Ðpoor€prior€work€by€that€subcontractor,€or€evidence€of€marginal€financial€resources,€youÐ ˜p Ðmay€require€the€prime€to€select€a€different€company€with€a€better€track€record€ofÐ „\ Ðperformance€or€a€stronger€balance€sheet.ó óÐ pH ÐÌòòò òWhen€the€subcontract€exceeds€a€certain€dollar€thresholdóó€-€Grantees€may€require€theirÐ H  Ðprimes€to€submit€all€subcontracts€over€a€certain€stated€value€for€consent.€€New€York€CityÐ 4  ÐTransit,€for€example,€requires€its€prior€approval€of€all€subcontractors€whose€subcontractsÐ  ø Ðwill€exceed€$1,000,000€or€10%€of€the€total€contract€price.€€For€Federal€contracts,€theÐ  ä Ðthreshold€for€subcontract€consent€is€5%€of€the€prime€contract€value€when€the€primeÐ ø Ð Ðcontract€is€a€CPFF€or€T&M€type€of€contract.€òò׃4 ×Ý ƒC¢˜ÝòòòŽòÚ  Ú71Ú  ÚóŽóóóÝ  Ý×  ×óóó óÐ ä!¼ ÐÌò òBest€Practicesó óÐ ¼#” ÐÌòòò òDetermining€Subcontractor€Responsibility€-€Sealed€Bidsó óóó€-€You€may€wish€to€consider€aÐ ”%l! Ðstandard€provision€in€your€solicitations€that€would€require€the€bidders€to€submit€certainÐ „&\" Ðsubcontractor€information€for€your€review€prior€to€contract€award.€€This€information€wouldÐ p'H # Ðenable€you€to€make€a€determination€that€a€proposed€subcontractor€or€supplier€was€technically€andÐ \(4!$ Ðfinancially€qualified€to€perform€the€work.€This€determination€would€be€part€of€yourÐ H) "% Ð"responsibility"€determination€for€awarding€the€contract.€€New€York€City€Transit€uses€a€standardÐ 4* #& Ðprovision€in€its€Invitation€for€Bids€(IFB's)€entitled€"Bidder's€Qualifications/Responsibility."€€Ð  +ø#' ÐÐ   ,ä$( ÐThis€clause€requires€the€bidder€to€demonstrate€to€the€satisfaction€of€NYCT€that€it€has€theÐ ( Ðintegrity,€skill,€experience,€facilities€and€financial€resources€necessary€to€perform€the€contract.€Ð ì ÐThe€clause€covers€major€subcontractors€as€well€as€the€prime€contractor.€€The€pertinent€part€of€thisÐ  Ø Ðclause€concerning€subcontractors€reads€as€follows:Ð ì Ä ÐÌà0  àà0r(#(#àà  àòò(h)à r àExcept€to€the€extent€set€forth€in€subparagraph€(i)€below,€Authority€approval€of€allÐ Ä œ ÐSubcontractors€and€Suppliers€is€required.€€In€order€to€assist€the€Authority€in€itsÐ ° ˆ Ðevaluation€of€Bidder's€qualifications,€the€Bidder€shall€supply€to€the€ProcurementÐ œ t ÐRepresentative€within€three€(3)€working€days€after€the€opening€of€bids,€or€withinÐ ˆ` Ðthree€working€days€after€notification,€in€the€case€of€a€subsequently€identifiedÐ tL  Ðapparent€low€bidder,€a€detailed€list€of:€(i)€proposed€Subcontractors€supplying€€€Ð `8  Ðlabor€or€labor€and€materials,€with€a€value€exceeding€the€lesser€of€$1,000,000€or€€€Ð L$  Ðten€percent€(10%)€of€the€Total€Contract€Price€as€bid€by€the€apparent€low€Bidder;Ð 8  Ðand€(ii)€Proposed€Subcontractors€and€Suppliers€of€the€following€equipment,Ð $ü  Ðmaterials€or€labor:Ðè r(#r(# ÐÌà  àà r à(See€Information€for€Bidders€Data€Sheet)Ð èÀ ÐóóÌà0  àà0r(#(#àòòBidder's€submission€is€to€also€include€the€completed€form€titled€"Statement€ofÐ À˜ ÐQualification€of€Subcontractor,"€a€copy€of€which€is€available€from€the€ProcurementÐ ¬„ ÐRepresentative.€òò׃6 ×Ý ƒC¢˜ÝòòòŽòÚ  Ú72Ú  ÚóŽóóóÝ  Ý×  ×óó€€€These€requirements€are€in€addition€to,€and€not€in€lieu€of,Ð ˜p Ðsubmission€requirements€pertaining€to€subcontractor's€proposal€to€meet€DBE€orÐ „\ ÐMBE/WBE€or€affirmative€action€requirements.ÐpHr(#r(# ÐóóÌà0  àà0r(#(#àòòThe€Bidder€shall€state€in€writing€to€the€Authority€the€name€and€place€of€business€ofÐ H  Ðeach€proposed€Subcontractor€or€Supplier,€the€portion€of€the€work€which€suchÐ 4  ÐSubcontractor€is€to€do€or€the€equipment/materials€which€such€supplier€is€to€furnishÐ  ø Ðand€such€other€information€as€the€Authority€may€reasonably€require€tending€toÐ  ä Ðestablish€that€the€proposed€Subcontractor€or€Supplier€has€the€necessary€skill,Ð ø Ð Ðfacilities,€integrity,€experience€and€financial€resources€to€perform€the€work€or€supplyÐ ä!¼ Ðthe€equipment€in€a€satisfactory€manner€and€in€accordance€with€the€Contract.€€To€beÐ Ð"¨ Ðconsidered€skilled€and€experienced,€the€proposed€Subcontractor€or€Supplier€mustÐ ¼#” Ðshow€that€he€has€satisfactorily€performed€work,€or€supplied€equipment,€of€the€sameÐ ¨$€  Ðgeneral€type€that€he€is€proposing€to€perform€for€the€Bidder€under€this€Contract.€€TheÐ ”%l! ÐAuthority€may€require€such€proposed€Subcontractor€or€Supplier€to€submit€proof€ofÐ €&X" Ðfinancial€or€other€qualification€to€do€the€Work.€€In€addition€to€submitting€forÐ l'D # Ðapproval€the€above-mentioned€categories€of€Subcontractors€and€Suppliers,€BidderÐ X(0!$ Ðmay€submit€any€other€proposed€Subcontractor€or€Supplier€for€approval€prior€toÐ D)"% Ðcontract€award.óóÐ0*#&r(#r(# ÐÐ  +ô#' ÐÌà0  àà0r(#(#àòòThe€Authority€will€notify€the€Bidder€within€a€reasonable€time€whether€use€of€theÐ ì Ðproposed€Subcontractor€or€Supplier€has€been€approved.€€Where€use€of€a€proposedÐ  Ø ÐSubcontractor€or€Supplier€has€not€been€approved,€the€Bidder€may€propose€anotherÐ ì Ä ÐSubcontractor€or€Supplier,€or€propose€to€perform€the€work€himself.ÐØ °r(#r(# ÐóóÌà  à(i)à0 r àòòWith€respect€to€any€Subcontractor(s)/Supplier(s),€the€successful€Bidder€will€beÐ ° ˆ Ðrequired€to€obtain€approval€of€such€Subcontract(s)/Supplier(s)€in€accordance€withÐ œ t Ðthe€provisions€of€Article€1.08.Ј`r(#r(# ÐóóÌThe€contract€Article€No.€1.08€referenced€above€in€the€solicitation€provision€requires€the€Bidder€toÐ `8  Ðuse€the€Subcontractors/Suppliers€that€were€approved€by€NYCT.€€The€contract€clause€reads,€Ô_ÔinÐ L$  Ðpart:Ð 8  ÐÌòòò òà  àARTICLE€1.08€€-€€SUBCONTRACTSó óóóÐ è  ÐÌà  àòò(a)à0 r àAny€Subcontractor€or€Supplier€which€required€and€received€pre-award€approval€inÐ ä¼ Ðaccordance€with€paragraph€16€of€the€Information€for€Bidders,€must€be€utilized€by€theРШ ÐContractor€for€the€portion€of€the€Work€for€which€they€were€approved.€€The€AuthorityÐ ¼” Ðwill€generally€not€entertain€any€post-award€substitutes€of€any€such€Subcontractor€orÐ ¨€ ÐSupplier€in€the€absence€of€compelling€circumstances€to€do€so.€òòóó׃9 ×Ý ƒC¢˜ÝòòòŽòÚ  Ú73Ú  ÚóŽóóóÝ  Ý×  ×óóДlr(#r(# ÐÌSeveral€points€can€be€noted€concerning€the€above€solicitation€provision€and€contract€clause:Ð lD ÐÌà0  àà0r(#(#àà  àa.€à0rr(#r(#àEvery€subcontract€greater€than€10%€of€the€bid€price€will€automatically€be€capturedÐ D Ðfor€review.Ð0r(#r(# ÐÌØ€ÂØÝ‚“<&ÿÝÝ  Ýà  àÝ‚“<&³QÝÚƒÂÚbÚ  Ú.à0 r àÝ  ÝThe€provision€is€tailored€on€a€case-by-case€basis€to€capture€any€subcontract€deemedÐ  à Ðimportant€or€critical€by€the€grantee€regardless€of€dollar€value.€€You€would€simplyÐ ô Ì Ðinsert€the€equipment,€materials€or€labor€in€your€"Bidders€Data€Sheet"€(or€whereverÐ à!¸ Ðyou€wish€to€note€the€items)€so€as€to€require€your€review€and€approval€of€thoseÐ Ì"¤ Ðsubcontractors.݃“<&³QÚQÝÛ€Âیи#r(#r(# ÐŒÝ  ÝÌÝ‚“<&ÿÝÝ  Ýà  àÝ‚“<&#TÝÚƒÂÚcÚ  Ú.à0 r àÝ  ÝThe€Bidder€will€be€required€by€the€contract€Article€1.08€-€òòSubcontractsóó,€to€use€theÐ %h! ÐSubcontractors/Suppliers€that€were€proposed€and€approved€unless€there€areÐ |&T" Ð"compelling€circumstances"€that€preclude€the€Bidder€from€doing€so.݃“<&#TJTÝÛ€ÂÛŒÐh'@ #r(#r(# ÐŒÝ  ÝÌò òòòConsenting€to€Subcontracts€When€the€Prime€Contract€is€Cost€Plus€Fixed€Fee€(CPFF)€orÐ @)"% ÐTime€&€Materials€(T&M)óóó ó€-€For€these€types€of€contracts,€grantees€may€wish€to€require€the€primeÐ ,*#& Ðcontractor€to€submit€the€proposed€subcontract€for€the€grantee's€consent€prior€to€award€by€theÐ +ô#' Ðprime,€especially€if€the€subcontract€is€significant€in€dollar€terms,€involves€a€critical€component,Ð ,à$( Ðor€is€itself€a€CPFF€or€T&M€subcontract.€If€the€grantee€determines€that€any€subcontracts€should€beÐ ( Ðsubmitted€for€consent,€the€grantee€will€want€to€identify€the€types€of€information€that€the€primeÐ ì Ðshould€submit€with€its€request€for€consent.€€The€type€of€information€that€will€usually€be€relevantÐ  Ø Ðas€part€of€an€advance€notification€for€consent€package€would€consist€of:Ð ì Ä ÐÌÓ€ 2(ÿÿ4x½œ¡¬­®°µº¼Óà  à1.à0 r àA€description€of€the€supplies€or€services€to€be€subcontracted.€€The€best€descriptionÐ Ä œ Ðwould€be€the€actual€subcontract€specifications€and/or€statement€of€work.а ˆr(#r(# ÐÌà  à2.à0 r àIdentification€of€the€type€of€subcontract€to€be€used.€€The€actual€subcontract€documentÐ ˆ` Ðitself€would€be€best€since€it€would€give€you€all€the€terms€and€conditions€which€youÐ tL  Ðcan€then€review€to€ensure€that€all€required€flow-down€clauses€are€incorporated€in€theÐ `8  Ðsubcontract.€€The€Ô_ÔBPPMÔ_Ô€Appendix€A.1€contains€the€required€Federal€clauses€andÐ L$  Ðidentifies€those€that€have€flow-down€requirements.Ð8 r(#r(# ÐÌà  à3.à0 r àAn€explanation€of€how€and€why€the€proposed€subcontractor€was€selected,€includingÐ è  Ðan€identification€of€the€competitive€proposals€obtained,€and€their€relative€strengthsÐ üÔ  Ðand€weaknesses.ÐèÀr(#r(# ÐÌà  à4.à0 r àThe€subcontractor's€cost€or€price€proposal,€together€with€the€prime€contractor's€costÐ À˜ Ðor€price€analysis€of€the€subcontractor's€proposal.Ь„r(#r(# ÐÌà  à5.à0 r àEvidence€from€a€competent€auditor€that€the€subcontractor's€accounting€system€isÐ „\ Ðadequate€for€cost-type€subcontracts€(if€the€subcontract€is€cost-type)€and€that€theÐ pH Ðproposed€labor€and€indirect€expense€rates€are€reasonable€in€light€of€recent€actual€ratesÐ \4 Ðincurred€and€the€best€available€business€projections€for€the€company.ÐH r(#r(# ÐÌà  à6.à0 r àThe€Prime€contractor's€explanation€of€how€the€subcontract€price€was€determined.Ð ør(#r(# Ðà  àÌà  à7.à0 r àThe€Prime€contractor's€assessment€of€the€subcontractor's€"responsibility,"€includingÐ ø Ð Ðthe€subcontractor's€performance€record€on€prior€jobs€of€a€similar€magnitude.Ðä!¼r(#r(# ÐÌòòò òDegree€of€Work€that€is€Subcontractedó óóó€-€Grantees€may€consider€requiring€the€prime€contractorÐ ¼#” Ðto€perform€certain€tasks€on€a€project€or€a€minimum€percentage€of€the€work,€to€insure€that€theÐ ¬$„  Ðprime€contractor€maintains€a€certain€degree€of€control€over€the€project.€For€instance,€where€a€jobÐ ˜%p! Ðis€primarily€civil/structural€work,€bidders€may€be€allowed€to€subcontract€associated€electricalÐ „&\" Ðwork,€but€may€be€required€to€perform€the€civil/structural€work€with€their€own€forces.€€€In€anyÐ p'H # Ðevent,€where€a€significant€amount€of€the€work€is€subcontracted,€the€agency€may€wish€to€take€aÐ \(4!$ Ðmore€active€role€in€approving€subcontractors.€òò׃D ×Ý ƒC¢˜ÝòòòŽòÚ  Ú74Ú  ÚóŽóóóÝ  Ý×  ×óó€Ô_ÔÔ_Ô