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SHSC HVAC and Roof Replacement Smith Sinnett / 2020072 <br />Orange County, North Carolina <br /> <br /> <br />ALLOWANCES 01 21 00 - 2 <br />1.4 SUBMITTALS <br />A. Submit proposals for purchase of products or systems included in allowances, in the form specified for <br />Change Orders. <br />B. Submit invoices or delivery slips to show actual quantities of materials delivered to the site for use in <br />fulfillment of each allowance. <br />C. Coordinate and process submittals for allowance items in same manner as for other portions of the Work. <br />1.5 COORDINATION <br />A. Coordinate allowance items with other portions of the Work. Furnish templates as required to coordinate <br />installation. <br />1.6 ALLOWANCES <br />A. Refer to Schedule of Allowances for Amounts and Quantities <br />B. Quantity & Lump Sum Allowances <br />1. Allowance shall include cost to Contractor of specific products and materials ordered by Owner <br />under allowance and shall include taxes, freight, and delivery to Project site. <br />2. Contractor's costs for receiving and handling at Project site, labor, installation, overhead and <br />profit, and similar costs related to products and materials ordered by Owner under allowance shall <br />be included as part of the Contract Sum and not part of the allowance. <br />C. Unit-Cost Allowances <br />1. Each change order amount for unit-cost type allowances shall be based solely on the difference <br />between the actual unit purchase amount and the unit allowance, multiplied by the final measure <br />or count of work-in-place, with reasonable allowances, where applicable, for cutting losses, <br />tolerances, mixing wastes, normal product imperfections and similar margins. <br />2. Include installation costs in the purchase amount only where indicated as a part of the allowance. <br />When requested, prepare explanations and documentation to substantiate the margins as claimed. <br />Prepare and submit substantiation of a change in the scope of work (if any) claimed in the change <br />orders related to unit-cost type allowances. The Owner reserves the right to establish the actual <br />quantity of work- in-place by an independent quantity survey, measure or count. <br />D. Contingency Allowances <br />1. Use the contingency allowance only as directed by Architect for Owner's purposes and only by <br />Change Orders that indicate amounts to be charged to the allowance. <br />2. Contractor's related costs for products and equipment ordered by Owner under the contingency <br />allowance are included in the allowance and are not part of the Contract Sum. These costs include <br />delivery, installation, taxes, insurance, equipment rental, and similar costs. <br />3. Allowances for overhead and profit shall be provided within the contract price and not included as <br />part of any change order till the allowance amount has been spent. <br />1.7 CHANGE ORDER MARK-UP <br />A. Except as otherwise indicated, comply with provisions of General Conditions and other requirements <br />stated in this section. For each allowance, Contractor's claims for increased costs (for either purchase <br />order amount or Contractor's handling, labor, installation, overhead, and profit), because of a change in <br />scope or nature of the allowance work as described in contract documents, must be submitted within 60 <br />days of initial change order authorizing work to proceed on that allowance; otherwise, such claims will be <br />rejected. <br />B. As a procedural restriction no mark-up (increase or decrease) shall be included in the change order <br />amount for Contractor's increase or decrease in handling, labor, installation, overhead or profit unless <br />purchase order amount varies from allowance. <br />DocuSign Envelope ID: 17058488-BE46-4277-9E77-433E3054E269