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in writing by the City Manager or his designee in accordance with the value of <br />the change order or the calculated value of the time extension. All change orders <br />must be pre- approved in writing by the City Manager or his designee. <br />13.3 In the event satisfactory adjustment cannot be reached for any item requiring a <br />change in the contract amount, the City reserves the right at its sole option to <br />either terminate the Agreement as it applies to the items in question and make <br />such arrangements as may be deemed necessary to complete the disputed work; <br />or may submit the matter in dispute as set forth in the dispute resolution <br />procedures set forth in this agreement. <br />13.4 To adjust allowance amounts, Contractor shall base each Change Order <br />proposal on the difference between purchase amount and the allowance, <br />multiplied by final measurement of work -in- place. If applicable, Contractor <br />shall also include reasonable allowances for cutting losses, tolerances, mixing <br />wastes, normal product imperfections, and similar margins. Contractor also <br />agrees to the following conditions: <br />• Include installation costs in purchase amount only where indicates as part of <br />the allowance. <br />• If requested, prepare explanation and documentation to substantiate <br />distribution of 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 of <br />Services, whether for the purchase order amount or contractor's handling, labor, <br />installation, overhead, and profit. Contractor shall submit claims within fourteen <br />(14) days of receipt of the change order or construction change directive <br />authorizing work to proceed. The City or its designee will reject claims submitted <br />later than fourteen (14) days after such authorization. Contractor also agrees to <br />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 <br />changed from what could have been foreseen from information in the contract <br />documents. <br />• No change to Contractor's indirect expense is permitted for selection of higher <br />or lower priced materials or systems of the same scope and nature as <br />originally indicated. <br />13.5 On the City's approval of a proposal request, the City or its designee will <br />issue a change order for signatures of the City and the contractor on AlA <br />Document G701 or approved change order form prepared by the City. <br />SIB <br />