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Page | 35 <br />Revised 12/24 <br /> <br />32.12. All change orders shall be supported by a breakdown showing method of arriving at net cost as <br />defined below. The Owner and Project Designer will review the CMAR’s analysis and cost data <br />and advise the CMAR of their findings. The CMAR will provide such supporting data in suitable <br />format. The Project Designer shall verify correctness. Within fourteen (14) days after receipt of the <br />CMAR’s proposal, the Project Designer shall prepare the change order and forward to the CMAR <br />for its signature or otherwise respond, in writing, to the CMAR’s proposal. Within seven (7) days <br />after receipt of the change order executed by the CMAR, the Project Designer shall certify the <br />change order by its signature, and forward the change order and all supporting data to the Owner <br />for the Owner’s signature. The Owner shall endeavor to execute the change order within seven (7) <br />days of receipt, or in accordance with the Owner’s standard procedures when Board approval is <br />required. Upon approval by the Owner, copies of the change order will be sent to the Project <br />Designer and the CMAR and its surety. In case of emergency or extenuating circumstances, <br />approval of changes may be obtained verbally by telephone or field orders approved by all parties, <br />then shall be substantiated in writing as outlined under normal procedure. <br />32.13. The portions of the proposal relating to labor and materials may include the reasonably anticipated <br />direct costs to any of the CMAR’s Subcontractors for labor and materials to be purchased for <br />incorporation in the change in the Work, plus transportation and applicable sales and use taxes. The <br />term “direct cost” as used herein shall mean the difference between all proper cost additions and <br />deductions. The “cost” as used herein shall be limited to the following: <br /> <br />32.13.1. The actual costs of materials and supplies incorporated or consumed as part of the <br />Project; <br /> <br />32.13.2. The actual costs of labor expended on the Project site; <br /> <br />32.13.3. The actual costs of labor burden, limited to the costs of social security (FICA) and <br />Medicare/Medicaid taxes; unemployment insurance costs; health/dental/vision insurance <br />premiums; paid employee leave for holidays, vacation, sick leave, and/or petty leave, not to exceed <br />a total of 30 days per year; retirement contributions; worker’s compensation insurance premiums; <br />and the costs of general liability insurance when premiums are computed based on payroll <br />amounts; the total of which shall not exceed forty percent (40%) of the actual costs of labor; <br /> <br />32.13.4. The actual costs of rental for tools, excluding hand tools; equipment; machinery; and <br />temporary facilities required for the Project; <br /> <br />32.13.5. The actual costs of premiums for bonds, insurance, permit fees, and sales or use taxes <br />related to the Project; <br /> <br />32.13.6. Overtime and extra pay for holidays and weekends may be a cost item only to the extent <br />approved by the Owner; <br /> <br />32.14. The CMAR may include up to fifteen percent (15%) of said costs as overhead and profit for its <br />Subcontractors. In the case of deductible change orders, the CMAR shall deduct no less than (5%) <br />profit for its Subcontractors, but no allowances for overhead. <br /> <br />32.15. If any of the items included in the lump sum proposal are covered by unit prices, the Owner may, if <br />it requires the change in the Work to be performed on a lump sum basis, elect to use these unit <br />prices in lieu of the similar items included in the lump sum proposal, in which event an appropriate <br />deduction will be made in the lump sum amount prior to the application of any allowed overhead <br />and profit percentages. No additional Subcontractor overhead and profit shall be applied to any unit <br />prices. <br /> <br />32.16. In the event that the CMAR fails to submit its proposal or obtain approval of an extension of time <br />within the designated period, the Owner may order the CMAR to proceed with the change or <br />addition to the Work and the CMAR shall so proceed. The Owner shall unilaterally de termine the <br />Docusign Envelope ID: 5A9E3BC2-EAE1-4C35-82D9-B4D6A375FA78