Quantcast Contract Modification Estimates

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final estimate reflecting the amendment costs.
If there is no cost impact,
a statement confirming this is still required.
9.4.9  Bid Analysis:  When the final GE exceeds the low bid by +10%, submit
a written explanation listing possible reasons for the variance within 5
calendar days of notification.  Explanation shall consider, but not be
limited to, such factors as:  bidding climate; job conditions; complexity;
unique items; inflation; misinterpretation of drawings and specifications;
conflict between drawings and specifications; methodology of construction;
special requirements; error in quantity take-off; error in unit costs;
error in hourly, overhead, and profit rates; and omission of items of work.
Intent is to establish reasonableness of the GE and to advise the low
bidder of possible errors he may have made.  A revised final GE is required
whenever errors and omissions are discovered in the final GE.
9.4.10  Contract Modification Estimates:  Contract modifications are issued
when changes to contract documents are made after the project has been
awarded.  Prepare estimates on NAVFAC Form 4330/43, Exhibit G.  Prepare
separate estimates of direct costs for deductive and additive costs.  Also
prepare separate estimates for the Prime Contractor's work and for each
Subcontractor involved in modification.  The cognizant ROICC will provide
the division of work between the Prime Contractor and the Subcontractors.
A sample is shown as Exhibit H.  Lump sum items will not be accepted in
either the Prime or Subcontractor's breakdown of direct costs.  The
standard overhead rates shown on Exhibit G may be used.  In addition to the
standard overhead rates, use the following:
Sales Tax on Materials - 0.50%
Sales Tax on Rental Equipment - 4.167%
Profit rate - 6.0%
Prime Contractor's Bond Premium - 1.0%
Hawaii General Excise Tax - 4.167%
The State of Hawaii wage rate schedule, Exhibit I. Use latest labor
costs available.
Sales Tax on Materials - 4.0%
Sales Tax on Rentals - 4.17%
Profit Rate - 6.0%
Prime Contractor's Bond Premium - 1.0%
Guam GE Tax - 4.17%
Johnston, Wake and Diego Garcia:
Sales Tax on Materials - 0.0%
Sales Tax on Rentals - 0.0%
Profit Rate - 6.0%
Prime Contractor's Bond Premium - 1.0%
GE Tax - 0.0%
An example of a contract modification estimate is shown in Exhibit J.  For
large or complex modifications, meetings between the estimator, ROICC, PDE
and contractor personnel are generally required.  Such meetings, after
design of the modification work but before or during the estimate
preparation period, will clarify the scope of the modification work for all
parties and outline the format of the contractor's proposal and the
independent GE.
for projects in foreign countries to show the effect if the following are


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