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Sent By: PENCE KE~LY; 503 364 5383; <br />To: Marion County At: 5885495- <br /> <br />PENCE/KELLY <br />CONSTRUCTION, INC. <br />P.O. Box 4109 <br />2747 Pence Loop SE <br />SaEem. OR 9~302-8109 <br />Jun-4-99 16:06; Page 1/2 <br />V,~; Sier,,~~'•. <br />: ~~ ~ <br />~ : <br />. <br />{5Q3) 399-7223 '~ ~ru~` <br />(503) 585-7477 Fax <br />(503) 224-8681 Partiand ccs ~s <br />Junc 4, 1999 <br />Mr. Billy Wassun <br />Project Mnnager - Courthouse Squaze <br />Mariun County <br />3 I SO Lanc~tcr Drive NE <br />5nlcm, OR 9~305-13~)8 <br />lt~: Prupose.~3 percentAge fee mark-up for chacige ord~Ys <br />Uear Billy, <br />Pursuent to A RTIC[.E 7.3.3.3 of our contract, I propose the following ce~tit aciju5tment procedures for <br />cl~ange order,t. Pence/Kelly has had the followinb pricing guidelines in eontracts on the lact three pubtic <br />rmjects we have constructexf and found them to be fair to all parties. The defiaicion of tcrms will allow <br />everyone to easily revtew cost changes, remove some of the ~ray sres and generate confidence in pricing <br />• that is presented. Please consider the fotlowing: <br />Definitioe of Terms <br />CON'T1L~C:TUR means the individual, firni, or corporation awarded the Contract for the Work <br />contemplaced. <br />D1ItECT COS'i'S - Unic~.~ othcrwise pro~ided in the Conuact Documents, llir~ecc (:ost sshall be limited to <br />the following: cost of materials, including ~calex txx and cost of delivery; cost of labor, including sociat <br />security, old age and unemploymeat in3urance, and frinbe benefits required by a~eement or custom; <br />worker's campensation insurance; bond ptemiums; renTal value of equipmcnt, and machinery: and the <br />additional eosts of field pc:rsonnrl dir~e:ctly attributable to the chunge. <br />_ UvBRHEAD ~~- The following items shall be included in Contractor's markup (general and administrative <br />exp~:nse, uverhead and profit) and s6a11 not be charged as ditect cost of ~e Work: Personnel abov~ cho level <br />of foreman (i.e., supcrintcncicnts and projcct managers}; equipment owned or leased by che Contr~cwr (i,e., <br />job trailers, small tools); e~:penses of Conuactor'3 offic;cs includin~ persoi~nel; and o~erhead and general <br />and adn~inistrative cxpenses. <br />SUBCONRACTOR means the individual, firm, of cotpOra[ion hevin~ a direct contraCL wtth the COIIt[aCtOt, <br />or ~other subcontractor, to perf"orm a portion of one or more items of the W ork. <br />hen c. Order Cosi <br />In tl~e event there are any ehangec or extra work of a class not covered by th~ pri~es included in the <br />C•ontr4cc llocuttlents, the b~~is of pxyments Shail be agteed upon in wriling b~tween the Parties to the <br />• Coactact before lhc: Work is done. 1f basis of payment cannot bc agrcui upon Prior to the beginning of the <br />Work, xnd if so directed by the Owner's Authori2ed R~~resenfiative: then work ~I1a11. be parfotmc;ei un chc <br />baxis of fumishing direct l~hor, equipment, and m:+terial costs an all work pe~formeel, ln cithc:r case, in <br />N/'~~~~+'-- ~ -' ~- - • • ~ <br />