GC-16
ADDITIONAL
WORK
A. General
NIA may, at anytime by written
Change Order or Extra Work Order issue to Contractor or by a Supplemental
Agreement entered into between the NIA and the Contractor, and without
Notice to the Surety(ies), require Contractor to perform Additional Work
which may involve furnishing labor, materials, supplies and equipment.
B. Amount of Additional
Work
Additional Works issued under
a Change Order or Extra Work Order or under a Supplemental Agreement shall
be limited to the following maximum amounts (or ranges):
(1) Change Order - not more
than 25% of the Total Original (CO) Contract Amount (TOCA), excluding the
effects of escalations, provided that no major item (item which represents
at least 20% of the total contract cost) shall be more than 100% of any
of the original major pay items.
(2) Extra Work - not more
than 25% of the Escalated Order (EWO) Total Contract Amount (ETOCA)
(3) Supplemental - not more
than 100% of the ETOCA less the Agreement cost of mobilization for works
under C. (3) d), below.
C. When to Issue Orders
for Additional Works
(1) Change Order - NIA shall,
except as provided under Article GC-62, VARIATIONS IN QUANTITIES, issue
a Change Order to Contractor when:
a) there is an increase
in quantity of work under a particular pay item;
b) there is a decrease in
quantity of work under a particular pay item;
c) there is a deletion of
work item or sections of the project;
d) there is a re-classification
of an existing item like earth excavation to rock excavation due to latent
conditions which were not known before the opening of bids; and
e) there is a damage of
structure, already accepted, and/or destruction due to force majeure beyond
the control of man, which requires restoration.
(2) Extra Work Order - NIA will
issue an Extra Work Order to Contractor when NIA requires additional work
which are needed and necessary for the completion, improvement or protection
of the project which were not included as items of work in the original
Contract.
(3) Supplemental Agreement
- NIA may enter into Supplemental Agreement with the Contractor to cover
either one of the following:
a) Change Order exceeding
25% of the TOCA or
b) Extra Work Order exceeding
25% of the ETOCA or
c) Change Orders plus Extra
Work Orders exceeding 25% of the ETOCA or
d) When there are Works
immediately beyond the project limits but are immediately abutting the
project (under the terms and conditions as the original Contract) provided
that it does not exceed 100% of the ETOCA less the cost of mobilization.
D. Payment for Additional
Work
(1) Change Order
- payment for the additional work under a Change Order shall be made using
the original Contract unit prices.
(2) Extra Work Order - payment
for additional work under an Extra Work Order shall be made using prices
determined by one or more of the following methods:
a) by a Supplemental Bill
of Quantities proposed by the Contractor and approved by NIA;
b) by a reasonable lump
sum proposed by Contractor and approved by NIA;
c) by Cost-plus Percentage
basis where cost represents the expenses actually incurred inclusive of
profit and Contractor's Tax while the plus represents a certain percentage
of cost which shall not exceed 15%. The Contractor shall be reimbursed
for all actual necessary costs, as determined by:
Contractor's direct labor cost,
exclusive of those included in (4) and (5), below;
All materials and equipment
actually procured and furnished by the Contractor and used directly for
the Works;
A reasonable base equipment
rental (or allowance for use of equipment as stipulated in Article GC-54,
EQUIPMENT ALLOWANCES FOR ADDITIONAL WORK for use of the Contractor's equipment;
Current rental rates for the
use of construction equipment not owned by the Contractor;
Fifteen percent (15%) of all
costs specified above.
d) If the parties are unable
to agree on any of the methods for payment specified in a) and b) above,
then such additional work shall be done by a cost-plus percentage basis
as described in item c), above.
(3) Supplemental - payment
for additional work under a Agreement Supplemental Agreement shall be made
using the applicable unit prices in the original Contract for items of
work similar to those in the original Contract. If the Supplemental Agreement
contains items of work not covered under the original Contract, unit prices
shall also be determined as that stipulated in (2), above.
Contractor shall submit
to NIA a statement of the cost of additional work carried out. The statement
shall be submitted to NIA at the end of each month for approval. The statement
shall be accompanied by detailed accounts and records substantiating each
statement satisfactory to NIA. Requests for payment of additional work
done shall be included in the Contractor's monthly or periodic progress
payments, as the case may be.
