CONTRACTUAL CHANGE PROCESS FLOW MODULE
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The document outlines a contractual change process between an Employer and Contractor. It involves the following key steps: 1) If a change is required, the Employer's Representative (ER) can issue a Change Notice or Design Order to advise the Contractor of the change. 2) The Contractor must then respond in writing to the ER within 14 days, either proposing changes or noting compliance. 3) The ER will review and can accept the proposal, reject it, or provide clarification. All changes must be authorized in writing by the ER. 4) If rejected, the Contractor can lodge a formal claim within 14 days as outlined in the contract.
CONTRACTUAL CHANGE PROCESS FLOW MODULE
- 1. NO YES YES 14 DAYS 14 DAYS NO "A" YES NO NO YES * YES NO YES * 14 DAYS NO * 7 DAYS YES NO "A" NOTES 1) 3) 5) 7) 2) 4) 6) * Include change orders, Design Orders etc in Monthly schedule by 7th day of month ER issues "Clarification" under 17.5.3 Challenge DO Incorporate into design as is Contractor responds with "CHANGE REQUEST RESPONSE" under 38.2.2 ER can fix time & cost under Clause 38.5 Contractor change Proposal Rejected See Claim Process CONTRACTUAL CHANGE PROCESS Lodge CL 39 Claim within 14 days Advise ER in writing of Shortfalls + remedies 17.5.4 within 21 days of issue ER MAY reissue, revise or confirm Pursue Claim, Act on Order or request as required All changes must be issued / confirmed by Employer's Representative (ER) ER can reject a proposal change at any time. LAW CHANGE CL 39 CLAIM UNDER 47.7 EMPLOYER Advise ER under 39.4 change executed Advise ER of compliance After Final Design Clause 17.1.2 d Lodge CL 39/40Claim as contractor is becoming aware of a possible delay etc Written change orders required for payment. If L&T does not comply 3rd parties can be engaged. Change - an alteration to Employer's Requirements which is instructed as a change under Clause 38 NO ER issues "CHANGE NOTICE" under 38.2.1 b YES NO CHANGE REQUIREMENT IDENTIFIED (INCLUDING TESTING 34.1.2) CONTRACTOR Issue details of proposed as per "CHANGE NOTICE RESPONSE" Implements "Instruction" immediately & keeps records under 38.5.2 Adjust cost control programme Employer withdraws change notice ER issues "DESIGN ORDER" under CL 17.5 ER issues "CHANGE ORDER" under CL. 38.2.1a Contractor lodges T&C claim under CL. 39/15.11 or 11.4 ER may determine to see cost under 38.5 Complete change order & apply for payment. Includes in Monthly Report BY ? DEFINITIVE DESIGN DESIGN Is Clarification a Change or OK OK to Employer Response from ER within 14 days OK to Employer Is Final Design Complete DO Acceptable