2  Contractor Response

2.1  Within five (5) Business Days of receipt of the Low Value Change Request, the Contractor shall in writing either:

(a)  where the Low Value Change is set out in the Catalogue, confirm the cost of implementing the required Low Value Change which shall not exceed the price specified in the Catalogue and the time period for completing or implementing the Low Value Change which shall not exceed the period specified in the Catalogue; or

(b)  where the Low Value Change is not set out in the Catalogue, provide a fixed price for implementing the required Low Value Change which shall be calculated in accordance with paragraph 2.2 together with a period for completion or implementation.

2.2  The cost of implementing any Low Value Change which is not set out in the Catalogue 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 can not be carried out by an existing on-site and suitably qualified employee of a Sub-Contractor, 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 Payment Year exceeds [♦]2.  Any Low Value Changes in excess of this limit, shall be charged at a fee of £[50] (indexed) for each subsequent [♦]3 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 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 refer the matter to the Dispute Resolution Procedure or may withdraw the Low Value Change Request.

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2  Figure to be bid back item.

3  Figure to be bid back item.