TranSystems Corporation - LGM Construction

change in the Work that Contractor will be performing through the
use of one or more Subcontractors; and
(ii) In the case of changes that will reduce the scope of the Work, the following
requirements with respect to the adjustments in contract sums payable to
affected Subcontractors and to the adjustment of the Contractor’s Fee will
apply:
(a) Each Subcontractor that intended to perform any part of that portion
of the Work eliminated from the scope of the Work through the use
of its own forces must reduce the overhead and profit encompassed
within the contract sum set forth in its Subcontract by five percent
(5%) of the Subcontractor’s good faith estimate of the Cost of the
Change, as defined below, for that part of the Work to be eliminated;
(b) Each Subcontractor that intended to perform any part of that portion
of the Work eliminated from the scope of the Work through the use
of one or more lower-tier Subcontractors must reduce the overhead
and profit encompassed within the contract sum set forth in its
Subcontract by five percent (5%) of the Subcontractor’s good faith
estimate of the Cost of the Change, as defined below, for that part of
the Work to be eliminated;
(c) Contractor must reduce the overhead and profit encompassed within
the Contractor’s Fee by five percent (5%) of Contractor’s good faith
estimate of the Cost of the Change associated with that part of the
Work to be eliminated that Contractor planned to perform through
the use of its own forces; and
(d) Contractor must reduce the overhead and profit encompassed within
the Contractor’s Fee by five percent (5%) of Contractor’s good faith
estimate of the Cost of the Change associated with that part of the
Work to be eliminated that Contractor planned to perform through
the use of one or more Subcontractors.
The parties will memorialize a change that enlarges the scope of the Work by means of an
“Additive Change Order” and will memorialize a change that reduces the scope of the Work by
means of a “Deductive Change Order”. In the context of an Additive Change Order:
(i) a Subcontractor’s “Cost of the Change” will be the net increase in the cost
categories identified below that the Subcontractor will realize by reason of
the performance of the extra work or the implementation of the changes in
the Work described in the Change Order, and
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