QUESTION

The contractor has currently claimed missing overhead associated with approved Changes as well as unavoidable delays. We had agreed at the beginning of the project to include overhead costs associated with Change Orders in a review at the end of the project if those costs materialized. I am now assessing their claim.

Force Account rates include direct costs, overhead and profit but what is typically included in the overhead portion of the Force Account? Does this overhead portion include office overhead?
What is considered applicable in overhead costs when the Contractor is working Force Account and gets 10% markup on materials/subcontractor work?

Generally speaking, where do site overheads typically fall? Items like portable toilets, trailer heating, electricity, street cleaning, fences, etc? Where do staff overheads fall like Quality Coordinators, Project Managers, etc? They are also an overhead project cost.

COMMENT

GC 1.3.8 refers

Question 2

Is a Change Order required for Extra Work?

Accepted Answer

QUESTION

Is a Change Order required for Extra Work?

COMMENT

The Contract Administrator is the interpreter of the Contract Documents, and the judge both parties to the Contract (GC 3.6.1). However, there are references in the General Conditions of the MMCD to Extra Work. Extra Work is defined in GC 7.1.3. Extra Work is covered in GC 8.0. The Contractor is invited to perform Extra Work by issuing a Contemplated Change Order or Field Memo.(GC 8.1.1).

Change Orders and are covered in GC 9.3

What is included in the Overhead portion of a Force Account?

Is a Change Order required for Extra Work?

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