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B—7.65O—21 Contract changes.

Clause 3. Changes and Clause 4, Changed Hidltlons of General Provisions of SF 23A e supplemented as follows: <a) When requested by the Contracting Beer, the Contractor shall submit pro. -;ls for changes In work to the resident igineer. Proposals shall be In legible form, iglnal and five copies with an Itemized eakdown that will Include material quantl;s and unit prices, labor costs (separated to trades), construction equipment, etc. •.'.'. .r costs are to be Identified with specific aterlal placed or operation performed.)

(b) Allowances not to exceed 10% each for erhead and profit for the party performing ic work will be based upon the value of la>r. material and use of construction equipent required to accomplish the change. As te value of the change Increases, a decllng scale will be used In negotiating the perntage of overhead and profit.

(c) When the work Is done by a subconactor. the prime contractor's fee will be ued upon the net Increased cost to the rime contractor. The fee will be negoti

ed and will follow a declining scale which 111 not exceed 10% on the first SI0.000 of Ib change and not exceed 7%% over 10.000.

(d) Where the contractor or subcontract's portion of a change Involves credit ems. such Items must be deducted prior to Idlng overhead and profit for the party per>rmlng the work. Where a change Involves redlt items only, such items will be net. i.e., '. r-rhead. profit and fee are excluded. The >n tractor's fee is limited to the net Increase

> him of subcontractors' portions computed

> accordance herewith.

(e) Cost of Federal Old Age Benefit iSola! Security) tax and of Workmen's Comensatlon and Public Liability Insurance apertalnlng to changes are allowable. While o percentage will be allowed thereon for verhead or profit, prime contractor's fee will e allowed on such Items In subcontractor's ropotals.

(f) Overhead and contractor's fee percentges shall be considered to Include Insurance ther than mentioned herein, field and office upcrvlsors and assistants, watchman, use of mall tools, incidental job burdens, and genral home office expenses, and no separate llowance will be made therefor.

(g) Bond premium adjustment, conseluent upon changes ordered, will be made as Isewhere specified at the time of final setlement under the contract and will not be Deluded In the individual change.

29 FR 9831, July 22, 1964]

18-7.630-22 Removal of debris and final cleanup.

Upon completion of the work, the contracot shall leave the premises in a neat and lean condition and do all cleaning and

washing required by the several technical sections of the specifications satisfactory to the Contracting Officer. [ 29 F.R. 9831. July 33. 1964]

§ 8-7.650-23 Release of claims.

As a part of the final settlement, the Veterans Administration requires the Contractor to furnish the release referred to in Clause 7, SF 23A General Provisions. This release will be in the following form:

Release Pursuant Clause 7 (SF 23A)

For and In consideration of the payments heretofore made, and payment of the above recited sum now due by reason of performance of the above contract, the undersigned Contractor hereby releases and discharges the United States of America of and from all liabilities, obligations, and claims whatsoever under or arising out of said contract, except the following:

(a) Claims which are the subject of appeal, pending disposition by the Veterans Administration Contract Appeals Board.

(b) Unresolved matters as Indicated In the above statement of account.

(c) Other specific claims: (List below. If none, so state.)

All other terms and conditions of the above mentioned contract remain In full force and effect.

In witness whereof, this release has been

duly executed this day of ,


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§ 8—7.651 Clauses for fixed price construction contracts estimated to exceed $2,000 but not to exceed $10,000.

§ 8—7.651—1 Bond premium adjustment.

Insert the clause set forth in §8-10.5002.

§ 8-7.651-2 Rights reserved.

Rights Reserved

(a) The Government reserves the following rights: To refuse to permit employment on the work or require dismissal from the work any of the Contractor's employees or agents or Subcontractor's, who, by reason of previous unsatisfactory work on VA projects, or for any other reason, are considered by the Contracting Officer to be Incompetent or otherwise objectionable;

(b) To withhold payment until samples, shop drawings, certificates, or such other things as are required by this contract have been properly submitted to the satisfaction of the Contracting Officer.


jbpart 8-7.50—Architect-Engineer Contracts

'. -7.5000 Scope of suhpnrt.

This subpart sets forth contract tuses for use in Architect-Engineer ntracts.

J—7.5O01 Contract clauses.

In addition to the required clauses set rth In this section, contracting officers ay include clauses on such other subct matter as may be considered necesry. The use of clauses inconsistent ,th the required clauses is controlled

• the deviation procedure set forth in J-1.108, except that in using clauses t forth in FPR, the words "architect igineer" and "Administrator of Vet•ans Affairs" will be substituted for sntractor and Secretary, respectively, herever they appear.

8-7.5001-1 Definitions.


The Term Contracting Officer as used here. :!• 11 include his duly appointed succesr or his authorized representative.

8-7.5001-2 Disputes.

Insert the clause set forth in FPR -7.101-12.

8—7.5001—3 INondiscrimination in employment.

Insert the clause set forth in FPR -7.101-18.

8-7.5001-4 Suspension of the project.

Suspension of Project

The Government reserves the right to susend. effective as of a stated date after serv

* of notice In writing thereof to the archl*ct engineer all or any part of the work rovlded for hereunder, whenever It Is deemed y the Government to be necessary for the urposes or advantage of the work. In the vent of any such suspension, the architect aglneer shall perform no further services mtll further notified by the Government. 3ie contract time for completion, as hereQbefore stipulated, In this contract shall, ipon the lifting of the suspension order, fhen the work as a whole Is suspended, be 'xtended for a period of time equal to the

-. cl of time during which the work was impended, or In the event of suspension of t part of the work, the contract time for xanpletlon shall be extended for a period of time equal to such part of the suspension

period as the relationship of the suspended work bears to the whole.

§ 8-7.5001-5 Termination of contract.

Termination of Contract

(a) The Government reserves the right at any time on ten days' notice in writing to the architect engineer, computed from the date of mailing of such notice, to terminate this contract In whole or In part for the convenience of the Government. In the event the contract as a whole Is terminated, the Government shall make an equitable adjustment In contract price for the value of all satisfactory services rendered by the architect engineer to the effective date of such termination and all such satisfactory work performed shall thereupon become the sole property of the Government. In the event the contract is terminated in part, the Government shall make an equitable adjustment for the value of all satisfactory services rendered on the part so terminated to the effective date of the partial termination, such work to become the property of the Government, and the contract shall be modified accordingly.

(b) If through any cause the architect engineer shall fall to submit within a reasonable time drawings and other documents meeting the approval of the Government or if the architect engineer shall violate any of the covenants, agreements, or stipulations of this contract, the Government shall thereupon have the right to terminate this contract by giving three days' notice to the architect engineer In writing of the fact and time of such termination. In such event, all finished or unfinished documents prepared by the architect engineer under this contract shall at the option of the Government become the property of the Government, and the architect engineer shall be entitled to just and equitable compensation for any satisfactory work on such documents.

(c) If the parties hereto fail to agree upon the adjustment herein provided for In subsections "a" or "b" hereof, the decision thereon of the Contracting Officer shall govern subject only to appeal by the architect engineer as provided In this contract.

§ 8-7.5001—6 Breach of contract.

Breach of Contract

Notwithstanding the above, the architect engineer shall not be relieved of liability to the Government for damages sustained by the Government by virtue of any breach of the contract by the architect engineer and at the Government's option, the Government may withhold any payments to the architect engineer for the purpose of set-off until such time as the exact amount of damages due the Government from the architect engineer Is determined.

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bid guarantees in connection with projects the estimated cost of which is in excess of $2,000, but not more than $10,000, the amount of such guarantee shall be not less than 20 percent of the bid price.

§ 8-10.102-3 Amount required.

Bid guarantee in an amount not less than 20 percent of the bid price shall be required in connection with projects estimated to cost in excess of $10,000. The maximum amount required shall be $3,000,000.

S 8-10.102-50 Safekeeping and return of bid guaranty.

(a) Certified checks or other negotiable security furnished as bid security with the three lowest acceptable bids will be retained in a safe. These will be returned by certified mail after contract and bonds have been signed and approved.

(b) Certified checks or other negotiable security furnished in support of other than the three lowest acceptable bids should be returned promptly to the respective bidders by certified mail.

(c) Commercial bid bonds are not returned unless specifically requested by the bidders, and, even if requested by any of the three low bidders, are not returned until contract and bonds have been executed by the successful bidder, or all bids have been rejected.

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