6.6 changing the contract

8/12/2019 6.6 Changing the Contract

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Changing the Contract

In PW&S standard contracts, various stipulations allow the GNWT

to make changes to the original contract. Changes in the contractare used to formally delete, modify, of introduce new conditions to

the original contract.

Principles

Although every contract change must be individually evaluated,

the following basic principles apply:

Legal principles dictate that changes to a contract must beconsistent with the general intent of the original contract.

All GNWT contracts require that contract changes must be inwriting and approved by the GNWT contract authority.

Acceptance and signature by the contractor are preferable, but

not legally required for most PW&S contracts.

Internal PW&S policy dictates that changes should not be usedto increase the scope of the original contract by more than

30%. Increases beyond this magnitude should be coveredunder a separate, competitively priced contract

Changes should be documented and processed as soon as practical,and ideally before the work affected has started.

Reasons for Changes

Countless reasons for changes may impact any contract. The

reasons for changes will fall roughly into one of three possible

categories: scope, logistics, or error. Some of the more typical

reasons include:

Change to the work site or the known conditions of the site

Change to the delivery destination or the terms of delivery


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Ambiguous definition of the contract scope (specifications,plans, etc.)

Change to the magnitude, design or scope of the work

Change in regulatory requirements

Late or defective owner-supplied material or equipment

Interference or lateness of another PW&S contractor involvedin the work

Poor contract administration by the owner (late approvals,decisions, or inspections)

When these causes are due to actions or lack of action by the

GNWT, the contractor may receive additional reimbursement tocover damages.

Time Extensio ns/Delays

In addition to influencing the cost of the contract, many changes

may also influence the time required to complete the work.

Similarly, in some circumstances, time is the only aspect of the

contract to be affected.

Time extensions are normally not granted for delay caused byfactors within the contractors control and responsibility, such as

the following:

poor planning and organizing

inadequate resources (labour, equipment)

insufficient weather protection

In situations where the contractor causes a delay, the GNWT mayassess the contractor costs incurred because of the delay.

Time extensions may be granted when completion of the contract

has been delayed due to circumstances beyond the contractors


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control. For example:

strike at the work site or manufacturers plant

change in the work that affects magnitude or delivery

delay caused directly by the GNWT (work suspensions, lateapprovals or decisions)

delay caused by other GNWT contractors

extraordinary weather conditions

Format for Changes

Two formats are used to change PW&S contracts: the Change

Orderand theAmendment.

Change Order

A contract Change Orderis used to modify all PW&S standardservice, consultingandconstruction contracts. Achange orderis

prepared on the standard PW&S form (see Section 1.7).

The change order outlines the details of the modification to the

contract scope, price, and completion date as appropriate. Change

orders are normally signed for acceptance by the contractor,recommended by the consultant if applicable, and approved by the

PW&S Contract Authority.

Specific details on the administration of change orders in different

contract applications may be found in thePW&S Project

Management Manual.

Amendments

APurchase Ordercontract for goods may be changed by way of a

purchase order amendment using the standardPurchase Order

form. The original purchase order number, with the addition of the


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appropriate amendment number, is used to identify the

amendment.

The amendment will outline the change or modifications to the

originalPurchase Ordercontract and indicate the revised total

contract price.

Facsimile/Email Changes

Contract amendments and change orders may be issued by

facsimile transmission or electronic mail. It is good practice to

verify receipt of the transmission. Similarly, formal acceptance of

the change order or amendment by the contractor may be receivedby facsimile or electronic mail.


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6.6 changing the contract

Documents