Project Manual 11-210C - Ramapo College of New Jersey

operation will only be approved for actual operation for the approved change in work. For
verification of the rate charged, the Contractor shall furnish a comparable rental rate from a
vendor.
3. Direct Labor – The term direct labor shall include working foremen (non-working foremen are
considered overhead), journeymen, apprentices, equipment operators, and/or laborers directly
assigned to the approved change in work by the Contractor. The total hourly rate shall be
calculated and include only the following:
a. Base hourly rate consistent with the requirements of the New Jersey Prevailing Wage
Act law.
b. Labor burden shall only include social security and medicare taxes, federal
unemployment taxes, state unemployment taxes, and workman’s compensation.
c. Fringe costs shall only include, if applicable, welfare, pension, annuity, and
education/training benefits. Costs such as small tools, vacation, etc. are considered
overhead costs)
4. Indirect Costs – Included are costs which are neither direct construction material, equipment, or
labor costs. Allowable indirect costs are for document reproduction of drawings only,
engineering if applicable, premium freight charges if approved by the College, and permits. No
other indirect costs will be considered. Copies of invoices are to be provided for billing
verification.
5. Subcontracted Work – All subcontracted work shall be itemized similar to items 1 through 4
above. The Contractor agrees to incorporate this provision in each of its subcontracts. A
maximum Subcontractor markup of 10% (overhead and profit included) shall be applied to their
total direct material, equipment, labor, and indirect costs. The 10% markup shall apply to
deleted work as well. Subcontractor breakdowns are to be provided for billing verification.
6. Markup – A markup of 5% shall be applied to the subtotal of items 1 through 5. This markup
shall cover overhead costs such as dumpsters, office personal, project managers, field
superintendents, mailing, reproduction, safety, temporary utilities, company vehicles and
mileage, etc. and profit. Costs not defined in items 1 through 5 are considered overhead. The
5% markup shall apply to deleted work as well.
7. Bond and Insurance Premiums – A maximum of 1% shall be applied to the subtotal of items 1
through 6 above.
When more than one tier of subcontracts exists, for the purpose of markups, they shall be treated as on subcontract.
14.2.5 When there is an agreement on equitable adjustment of the contract sum and time, the Construction
Manager will prepare a Change Order which will formally adjust the contract sum and/or milestone dates.
14.2.6 The Contracting Officer in order to avoid delays in the progress of work or when in the best
interest of the College, at its discretion, may direct the Contractor, in writing, to proceed with a change without a
prior agreement on costs or when the work is disputed to be within the contract. Such direction shall be in the form
of a letter of direction. If the Contractor intends to assert a request for an equitable adjustment under this Article, he
must do so to the Contracting Officer or, if instructed, to its designated Construction Manager in sufficient detail and
in accordance with this Article, within seven (7) calendar days after receipt of the letter of direction.
14.2.7 If an agreement cannot be reached on a lump sum change order request, the Contracting Officer
may direct the Contractor, in writing, to proceed with the change on a “time and material” basis, not to exceed the
amount proposed in the change order request. The entire scope of the change must be completed at no additional
cost to the College regardless if the actual cost exceeds the proposed amount.
RCNJ Project No.: 09-270.1C - 54 -