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14.4 To adjust allowance amounts, Contractor shall base each Change Order proposal <br />on the difference between purchase amount and the allowance, multiplied by final <br />measurement of work -in- place. If applicable, Contractor shall also include reasonable <br />allowances for cutting losses, tolerances, mixing wastes, normal product imperfections, <br />and similar margins. Contractor also agrees to the following conditions: <br />• Include installation costs in purchase amount only where indicates as part of the <br />allowance. <br />• If requested, prepare explanation and documentation to substantiate distribution of <br />overhead costs and other margins claimed. <br />• Submit substantiation of a change in scope of work, if any, claimed in change <br />orders related to unit -cost allowances. <br />• The City reserves the right to establish the quantity of work -in -place by <br />independent quantity survey, measure, or count. <br />Contractor must submit claims for increased costs because of a change in scope or nature <br />of the allowance described in the contract documents, whether for the purchase order <br />amount or contractor's handling, labor, installation, overhead, and profit. Contractor <br />shall be required to submit claims within fourteen (14) days of receipt of the change order <br />or construction change directive authorizing work to proceed. The City or its designee <br />shall reject claims submitted later than fourteen (14) days after such authorization. <br />Contractor also agrees to the following conditions: <br />• Do not include Contractor's or subcontractor's indirect expense in the change <br />order cost unless it is clearly shown that the nature or extent of work has changed <br />from what could have been foreseen from information in the contract documents. <br />• No change to Contractor's indirect expense is permitted for selection of higher or <br />lower priced materials or systems of the same scope and nature as originally <br />indicated. <br />14.5 On the City's approval of a proposal request, the City or its designee will issue a <br />change order for signatures of the City and the contractor on AIA Document G701 or <br />approved change order form prepared by the City Manager or his designee. <br />Article 15: Defective Work <br />15.1 The City or its designee shall have the authority to reject or disapprove Work <br />which is found to be defective. If defective work is found, Contractor shall promptly <br />either correct all defective work or remove such defective Work and replace it with non- <br />defective Work. Contractor shall bear all direct and indirect costs of such removal or <br />corrections including cost of testing laboratories, personnel and architect or engineer <br />of record. <br />15.2 Should Contractor fail or refuse to remove or correct any defective Work or to <br />make any necessary repairs in accordance with the requirements of the Contract <br />Documents within the time indicated in writing by the City or its designee, the City shall <br />C1011 -055 NAMIN CONSTRUCTION CO. INC. Page 10 of 15 <br />d:�s� <br />