Building Design and Construction Handbook - Merritt - Ventech!

17.38 SECTION SEVENTEEN
When work is done on a cost-plus-markup basis, the contractor must maintain
an accurate daily tabulation of all field costs. This document should be agreed to
and signed by all parties responsible for the record keeping for the change. It will
form an agreed-on certification that the work has been performed and of the quantities
of labor and material used. A daily work-report certification is shown in Fig.
17.17.
Negotiation by Lump Sum. If the owner desires to have changes or extra work
performed and does not want it done on a cost-plus or unit-price basis, owner and
contractor may negotiate a lump-sum payment. In this situation, a cost estimate is
prepared by the contractor or subcontractor involved, and a breakdown of costs is
submitted, together with the estimate total. If the owner accepts the lump sum, the
owner or the architect writes a change order, and the work is performed. Such a
change order is shown in Fig. 17.18 as issued to a subcontractor.
17.14.2 Claims
Sometimes a dispute may arise as to whether or not the work is part of the contract
documents and hence the obligation of the contractor. Such a dispute may result in
FIGURE 17.18 Order issued by a general contractor to a subcontractor to proceed with a change
in work not covered by the contract documents.