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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.