N.J. Admin. Code § 7:14-2.7

Current through Register Vol. 56, No. 21, November 4, 2024

Section 7:14-2.7 - Construction, overhead and profit factors for Extra Work compensation

(a) The contractor is entitled to all identifiable direct job costs associated with Extra Work excluding subcontractor's costs. For Extra Work not in excess of $ 10,000 the contractors may add up to 10 percent overhead factor to their identifiable direct job costs, but excluding the cost of any subcontracting, plus up to a 10 percent profit factor to their identifiable direct costs plus overhead amount.

(b) As general policy, these overhead and profit factors may be accepted by owners as reasonable in lieu of requiring the submission of additional supporting data. However, the owner must reserve its right to review any cost or profit element on a case-by-case basis, where the submission for overhead and profit is in excess of the 10 percent overhead and 10 percent profit indicated above.

(c) Cost increase in subcontracted work may be similarly handled and a prime contractor may add up to 10 percent to the total cost (including overhead and profit factors) incurred by the subcontractor. In such cases, the same reservations for rights shall apply.

(d) For Extra Work in the amount of $ 10,000 to $ 100,000, the above factors may be included initially for equitable adjustments but will be subject to negotiation, cost and pricing data, and owner review requirements. Federally funded projects will be governed by Federal regulations.

N.J. Admin. Code § 7:14-2.7