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DocuSign Envelope ID: 12DCC4E1-4D61-4DOE-A2A2-7C6E689613AC <br /> 34 <br /> Designer, whether an increase in Contract Price is warranted, and the amount of such increase <br /> shall be determined as provided in paragraph 15.4 through 15.5, below. Any change in the <br /> Contract Price resulting from any such claim shall be incorporated in a Change Order. <br /> The Owner shall advise the Contractor of its decision with respect to the claim within fourteen <br /> (14) days of its receipt, or of the receipt of additional documentation or information if the <br /> absence of such has previously been the basis of rejection of the claim; provided, however, that <br /> if, in its sole discretion, the Owner deems that review or consideration of any part of the claim or <br /> any matter related thereto by its governing Board is necessary or appropriate, it shall so advise <br /> the Contractor and shall provide its decision to the Contractor within seven (7) days after such <br /> Board consideration, review or action. Any claim on which the Owner has not provided its <br /> decision to the Contractor within the applicable time period shall be deemed denied. If the <br /> Contractor is not satisfied with the decision of the Owner, the Contractor may within seven (7) <br /> days of receipt of the Owner's decision initiate the mediation process as described in Appendix <br /> A to the General Conditions of the Contract for Construction. <br /> 15.3 In determining the amount of a Contract Price adjustment, the parties shall apply the <br /> following methods, as appropriate: <br /> (A) Change in Work: The Owner and Contractor shall negotiate in good faith and attempt to <br /> agree upon the value of any change (extra or decrease) in Work prior to the issuance of a <br /> Change Order covering said Work. Such Change Order shall set forth the corresponding <br /> adjustment to the Contract Price. In the event the Owner and the Contractor are unable to <br /> agree, the Owner shall grant an equitable adjustment in the Contract Price. <br /> (B) Emergency Work: In the event of emergency endangering life or property, the <br /> Contractor may be directed by the Designer to proceed on a time and material basis, <br /> whereupon the Contractor shall so proceed and keep accurately, in such form as may be <br /> required by the Designer, a correct account of costs together with all proper invoices, payrolls, <br /> and supporting data therefore. <br /> 15.4 Where the Contract Price is to be adjusted, the following limitations shall apply in <br /> determining the amount of adjustment: <br /> (A) In the case of extra or emergency work, the Contract Price shall not be increased by more <br /> than the reasonable, actual, and documented net cost of the extra or emergency work plus ten <br /> percent (10%) of such net cost on Work performed by the Contractor and five percent (5%) <br /> thereof on any subcontracted Work for overhead and profit combined. <br /> (B) In the case of a decrease in Work, the Contract Price shall not be decreased by less than <br /> the net cost of the deleted Work plus five percent (5%) of such direct net cost for profit and <br /> overhead. <br /> The term 'net cost' as used herein shall include, as applicable, and shall be limited to, all direct <br /> labor, direct material, direct equipment, labor burden, sales taxes, shipping and handling <br /> charges, permits and fees, and insurance and bond premium adjustments, if any, attributable to <br /> the change. All other items of cost shall be considered as overhead and covered by the <br /> percentages allowed in sections A and B of this paragraph. <br /> Revised 12/18 <br />