Change Order pricing Case Study Example | Topics and Well Written Essays - 1000 words

Change Order pricing - Case Study good exampleSome states, particularly Washington does not require the local government to pay contractors for higher labor evaluates on vary orders (Sonntag 12).5. If a obscure labor rate, developed on the basis of the overall mix of officiate on the entire contract, was used in the original estimate, should the same composite rate be used in pricing the work associated with the change?Answer Yes. Since the man hours are already extended because of the change, charging the same composite rate for the surplus work to be done is justifiable to be applied. The paid longer working hours will already take care of the cost of the additional work needed.Answer Yes. The contract between the contractor and the buyer has already been established long before the change so the workers assigned for the said job nonplus committed their time to the length of the contract. Therefore, the workers are entitled to be paid throughout the whole time that the agree ment is in effect regardless of all downtime as a result of the change as requested by the buyer.Answer Yes. The contractor can charge the difference to the cost of change in order to recover the losses brought by the downtime. Since the workers are committed to the length of the contract between the contractor and the Air Force, any downtime as caused by the change will not affect the labor rate that they are entitled to receive.Answer Yes. It is appropriate to apply a learning curve, or the period of druthers to become familiar with changed condition (Change Order Protocol 4) to work affected by the change because of the new skills that the workers imbibed through the change.9. Is the contractor entitled to consider the costs associated with the affect of the change on the rate of improvement for the changed work for the units on which none of the changed work has been performed?Answer Yes. Depending on the degree