TranSystems Corporation - LGM Construction

(ii) the Contractor’s “Cost of the Change” will be the sum of (a) the net increase
in the cost categories identified below that Contractor 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 (b) the sum of the Costs of
the Change that the Subcontractors that the extra work or changes in the
Work will affect will respectively realize.
In the context of a Deductive Change Order:
(i) a Subcontractor’s “Cost of the Change” will be the net savings in the cost
categories identified below that the Subcontractor will realize by reason of
the implementation of the changes in the Work described in the Change
Order, and
(ii) the Contractor’s “Cost of the Change” will be the sum of (a) the net savings
in the cost categories identified below that Contractor will realize by reason
of the implementation of the change in the Work described in the Change
Order and (b) the sum of the Costs of the Change that the Subcontractors
that the changes in the Work will affect will respectively realize.
The cost categories that Contractor and each affected Subcontractor may consider in calculating a
“Cost of the Change” include:
(i) Wages paid for labor in the direct employ of Contractor or the
Subcontractor, as the case may be, in the performance of the Work; the
cost of welfare or fringe benefits, if any, furnished to such wage earners;
usual vacation pay that Contractor or the Subcontractor pays to its key
wage-earning employees engaged in the performance of the Work at the
Site and incentive bonuses paid to such key employees to the extent that
FedEx approved the amount of the incentive in advance;
(ii) Salaries of the Project Manager, Superintendent and other supervisory or
administrative personnel that Contractor or the Subcontractor, as the case
may be, engages in the performance of the Work at the field office or,
with FedEx's prior approval, at the central office or at shops or on the
road in expediting the inspection, production or transportation of the
Materials; the cost of welfare or fringe benefits, if any, furnished to such
personnel; usual vacation pay that Contractor or the Subcontractor, as the
case may be, pays to its key salaried employees engaged in the
performance of the Work at the Site and incentive bonuses paid to such
key employees to the extent that FedEx approved the amount of the
incentive in advance;
(iii) Costs of contributions, assessments or taxes for such items as
unemployment compensation insurance and Social Security associated
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