Overview
This section governs variations in estimated quantities for unit-priced items in construction contracts, establishing the threshold and procedures for price adjustments and schedule extensions.
Key Rules
- 15% Threshold: An equitable adjustment in the contract price is required if the actual quantity of a unit-priced item differs from the estimate by more than plus or minus 15 percent.
- Mutual Right to Adjust: Both the Government and the contractor have the right to demand an equitable adjustment once the 15 percent threshold is exceeded.
- Time Extensions: Contractors may request a performance period extension if the quantity variation causes a verifiable delay in completion.
- Notice Requirements: Time extension requests must be submitted in writing within 10 days of the start of the delay, though the Contracting Officer (CO) has the authority to extend this deadline until final settlement.
- CO Responsibility: The CO is responsible for investigating the facts of the delay and determining if findings justify an adjustment to the completion date.
Practical Implications
- Contractors must closely monitor actual-versus-estimated quantities to identify when they cross the 15% threshold, as adjustments are not automatic and must be "demanded."
- Maintaining rigorous daily logs is critical for contractors to meet the strict 10-day notice requirement for quantity-related delays to avoid waiving their right to a schedule extension.