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Standard Consultant Agreement:
(1) For basic design and construction services, a ��ҹӰԺ (SCA) is used. This agreement is a contract between the Owner (University) and the consulting firm. This agreement is maintained by UM Facilities Planning & Development.
(2) The agreement contains two major segments: the body of the agreement and the agreement exhibits. The body of the agreement identifies the responsibilities of both the owner and consultant. The exhibits include:

• the name of the Project Manager
• the scope of services
• amount available for construction
• the project schedule
• the fee and billing rates
• other project specific requirements (e.g., Board of Curators presentations or visits, site visits, number of brochures needed, etc.)

(3) The Project Manager prepares the agreement. The agreement is sent to the Consultant along with a transmittal letter that requests the firm’s representative to: (1) sign the Agreement; (2) send a Certificate of Insurance; (3) direct all correspondence to the Project Manager and (4) return the agreement to the Project Manager. Normally, three signed copies of the agreement are required: one each for the Project Manager, the contracting official’s file, and the consultant.
(4) After the consultant returns the signed copies of the agreement, the appropriate University official executes the agreement. See BPM 24001 for delegations. For required documents for the UM Contracting Officer to sign the agreement, see the . Once the agreement is fully executed and returned to the Consultant, the Consultant may proceed with the project.
(5) The Project Manager prepares the .

Policy
(1) A is a written agreement executed between the University and the Contractor, after execution of the Contract authorizing a change in the work (any additions, deletions or modifications); contract amount, or contract completion date. Change Orders can be issued at any time during the contract period. The Owner's Representative must provide documentation to support all Change Orders.
(2) Limitations on Change Orders:

• (a) Campus Approval:

  • (i) When aggregate project Change Orders do not exceed $100,000 on an original contract under $500,000 and are within the original project scope.
    (ii) When aggregate project Change Orders do not exceed 10 percent of the original contract amount on an original contract over $500,000 or if they are individually less than $250,000; and within the original project scope.

  (b) System Approval:

  • (i) When aggregate project Change Orders exceed $100,000 on an original contract under $500,000.
    (ii) When aggregate project Change Orders exceed 10 percent of the original contract amount on an original contract over $500,000.
    (iii) When a Change Order is individually greater than $250,000.
    (iv) When a Change Order is outside the original project's scope or significantly expands project scope.
    (v) When a Change Order requires significant design modifications. The UM Executive Director of Facilities Planning and Development will also determine if Board of Curator's approval is required. Once the Change Orders exceed 10% of the original contract amount, the UM Executive Director of Facilities Planning & Development will determine which future Change Orders will require UM approval.

(3) Field Orders or Letters of Authorization to Proceed may be issued by the CPM for work changes within the scope of work. These orders/authorizations shall be promptly followed up with a formal Change Order.
(4) Optional Change Orders: An optional change order is not required, or necessary, for the completion of the original contract. Any change for work not covered in, or unrelated to, the original project is optional. Optional Change Orders will not be used unless the University gains no advantage from competitively bidding the work.
(5) Design Requirements: Design is required when the change alters a diagramed, sketched or drawn detail or arrangement, or when a drawing, sketch or other specific technical input is necessary from the Consultant. Design is typically not required when the change affects specified items, unforeseen conditions, or items of a minor nature which can be noted on an as-built drawing. Additional design fees may be paid for change orders requiring additional design work.

Change Order Procedures:
(1) Purpose - The Change Order’s usual purpose is to facilitate the completion of work as intended by the original plans and specifications. Deviations from the original project intent must be approved by the Contracting Officer who signed the original contract.
(2) Types - Change Orders may be of four types:

• (a) Required (with design)
  (b) Required (without design)
  (c) Optional (with design)
  (d) Optional (without design)

(3) Amount - The total amount for all project Change Orders should not exceed ten percent (10%) of the original contract.
(4) Methods of Costing - There are four methods of costing:

• (a) “Lump sum”, for which support data are submitted, evaluated, negotiated and approved prior to writing the Change Order;
  (b) Time and material, for which work is authorized with the contractor supplying detailed, actual time and material cost information to be signed each day by the CPM and submitted with the payment request after completion of the work;
  (c) Time and material with fixed maximum, which is the same as 2 above, except that a cost limit is negotiated prior to the start of the work; and
  (d) Unit cost, for which an authorization to proceed is given based on the agreed upon unit cost negotiated in the original contract.
  
  Exhibit IX-7 is an example of the Cost Estimate for Change Order form. It can be used as a worksheet for estimating Change Orders. It can be attached to the Change Order Request (see below) after completion.
  
  The Consultant is to estimate any Change Order Requests requiring design. Independent estimates are required on all Change Order Requests expected to exceed $50,000. These estimates may be performed by the Consultant or the Construction Project Manager.

(5) Consultant Support Data - The CPM requests the following support data from the Consultant for all Change Orders requiring design:

• (a) all design documents required by the contractor for the implementation of the Change Order Request;
  (b) detailed cost estimate (not just approval of the contractor’s estimate).

(6) Contractor Support Data - The CPM requests the following support data for all Lump Sum Change Orders from the Contractor:

• (a) labor, a breakdown by item and hours required for each craft with rate (employer’s cost, including fringe benefits);
  (b) materials, a breakdown by item, including quantities and unit costs;
  (c) overhead and profit, markups consistent with the General Conditions; an
  (d) time extension, if applicable. See General Conditions, for a more comprehensive breakdown of contractor support data requirements.

(7) Initiation of Change Order Request - The Change Order Request Form is originated by the CPM. The CPM may be asked to initiate a Change Order Request by the consultant, client, campus staff or the contractor. A Change Order Request for more than $50,000 must be accompanied by an independent detailed cost estimate prepared by the CM or the Consultant
(8) Completion of Change Order Request Form - Line-by-line instructions follow for completing the Change Order Request Form. The items in the instructions are numbered in correspondence with the line numbers on Exhibit IX -10, and in the order in which they should be completed. <

• (a) Contractor: Enter contractor’s company name
  (b) Project Name and Campus: Enter Project Name and Campus
  (c) Architect/Engineer: Enter consultant’s company nam
  (d) University Authorization: Write in the name of the Construction Administrator after receiving verbal approval to proceed
  (e) Description of Change: Enter a detailed description of the change requested and include drawings, if appropriate
  (f) Reason for Change: Write a brief, but specific, explanation of the reason(s) for the change (scope change, design error, site condition change, etc.
  (g) Change Order Request Number: Enter number which is automatically assigned by computerized construction management system and can be found on data entry scree
  (h) Date: Enter date of initiation of the Change Order Request For
  (i) Requested By: Enter name of person who requested the Change Order
  (j) Project Number: Enter Project Number
  (k) Estimated Cost of Change Order: Enter estimated cost if Change Order is Estimated at over $50,00
  (l) Type of Change: Indicate Change Order Type and obtain Project Manager’s initials for those Change Orders classified as requiring design
  (m) Method of Costing: Complete method of costing
  (n) Source of Funds: Enter source of funds
  (o) Time Extension: Enter number of days that original contract will be extended. (Only those changes involving activities on the critical path of the project should result in a time extension.) Enter “NA” for those Change Orders that do not impact the project schedule
  (p) Actual Cost of Change: Enter actual cost of the change, as documented by contractor’s quote
  (q) Construction Project Manager: Sign here signifying receipt, review, approval and attachment of all required submittals (contractor’s quote, consultant’s estimate, source of funding letter, if required, and any other appropriate documentation
  (r) Consultant: Initial for consultant and refer to attached consultant’s letter detailing cost estimate and conveying approval if design change needed
  (s) Architect/Engineer Fee: Enter Fee (if applicable
  (t) Other Charges/Fees: Enter other charges/fees (outside consultant fees, tests, surveys, etc.
  (u) Construction Project Manager Fee: Construction Administrator enters Construction Project Manager fee.
  (v) Administration Fee: Construction Administrator enter administration fee
  (w) Total Cost of Change Order
  (x)  Construction Administrator: Obtain signature indicating review of Change Order Request and supporting documentation
  (y) Campus Facilities Administrator: Obtain signature indicating review of Change Order Request and supporting documentation.

(9) Processing of Change Order Request/Issuance of Formal Change Order - Upon receipt of the completed Change Order Request Form, the Campus Facilities Administrator initiates and signs a formal and sends it to the Contractor. The Contractor signs it, returns a copy and keeps the original, which serves as authorization to proceed in writing by the CPM.
(10) Field Orders or Letters of Authorization to Proceed may be issued by the CPM for work changes within the scope of work. These orders/authorizations shall be promptly followed up with a formal Change Order.

Payroll Records
(1) The Contractor is responsible for paying prevailing wage rates and benefits and keeping supporting payroll records. The Contractor shall submit certified payroll records with each monthly application for payment (see General Conditions).
(2) Examples of situations requiring payroll inspection include:

• (a) Resolving questions on payment of proper wage rates.
  (b) Checking support data for time and material change orders.
  (c) Verifying Contractor’s certification that all wage rates and benefits have been paid.

(3) The Owner’s Representative should contact the Prevailing Wage Coordinator with any questions regarding prevailing wage. Wage rate disputes shall be forwarded to the UM Executive Director of Facilities Planning and Development for resolution.