Changing the Contract

In PW&S standard contracts, various stipulations allow the GNWT to make changes to the original contract. Changes in the contract are 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 be consistent with the general intent of the original contract. All GNWT contracts require that contract changes must be in writing 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 used to increase the scope of the original contract by more than 30%. Increases beyond this magnitude should be covered under 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

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 involved in 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 to cover damages. Time Extensions/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 by factors 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 may assess 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

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, late approvals 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 Order and the Amendment. Change Order A contract Change Order is used to modify all PW&S standard service, consulting and construction contracts. A change order is 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 the PW&S Project Management Manual. Amendments A Purchase Order contract for goods may be changed by way of a purchase order amendment using the standard Purchase Order form. The original purchase order number, with the addition of the

appropriate amendment number, is used to identify the amendment. The amendment will outline the change or modifications to the original Purchase Order contract 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 received by facsimile or electronic mail.