2.  CONTRACTOR RESPONSE

2.1.  Within five (5) Business Days of receipt of the Low Value Change Request, the Contractor shall in writing provide a fixed price for implementing the required Low Value Change which shall be calculated in accordance with paragraph 2.2 of this Part 2 of this Change Protocol together with a period for completion or implementation.

2.2.  The cost of implementing any Low Value Change shall be calculated on the basis that:

(a)  wherever practicable the Contractor shall procure that such works are carried out by an existing on-site and suitably qualified employee of a Sub-Contractor and no labour element shall be charged to the Authority in respect of such works.  Where the Low Value Change cannot be carried out by an existing on-site and suitably qualified employee of a Sub-Contractor without overtime being payable, , the cost of the labour element shall be calculated in accordance with the Small Works Rates or, where such rates are not applicable, in accordance with rates which are fair and reasonable; and

(b)  the materials element shall be charged at the cost of materials to the Contractor or to the contractor carrying out the work (net of all discounts) and there shall be no management fee, margin, overhead, contingency or other cost applied to such costs.

2.3.  The Contractor shall make no additional charge to the Authority for processing, implementing or managing a Low Value Change [unless the number of Low Value Changes in any Contract Year exceeds [             ]160.  Any Low Value Changes in excess of this limit, shall be charged at a fee of £[50] (indexed) for each subsequent [             ]161 Change].

2.4.  The Authority may, within five (5) Business Days of receipt, object in writing to the Contractor's response given pursuant to paragraph 2.1 of this Part 2 of this Change Protocol and in such circumstances the parties shall act reasonably to agree, as soon as practicable, how the Low Value Change is to be priced and/or implemented.  If the parties cannot agree the Low Value Change, the Authority may withdraw the Low Value Change Request or (if the Authority chooses) carry out the Low Value Change itself or refer the matter to the Dispute Resolution Procedure [in which case paragraph 4.3 of this Part 2 of this Change Protocol shall apply].

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160  Figure to be bid back item.

161  Figure to be bid back item.