Guild of Project Controls: Compendium | Roles | Assessment | Certifications | Membership

Tips on using this forum..

(1) Explain your problem, don't simply post "This isn't working". What were you doing when you faced the problem? What have you tried to resolve - did you look for a solution using "Search" ? Has it happened just once or several times?

(2) It's also good to get feedback when a solution is found, return to the original post to explain how it was resolved so that more people can also use the results.

Change Order Mark-up on Federal Projects?

1 reply [Last post]
John Reeves
User offline. Last seen 2 days 9 hours ago. Offline
Joined: 10 May 2013
Posts: 286
Groups: None

Federal Money projects all have a change clause that uses Part 31 Federal Acquisition Regulation ("FAR") 48 C.F.R. Part 31.  Do those projects have a standard or required % for Mark-ups for change orders? - I have been looking at a contract that refers to that Regulation, but have seen no "allowable" mark-ups in either the regulation or the contract.  Is that un-usual?  Is there a mark-up on Federal projects?  I think there are some general one's in legal claims but I do not know where those come from.  



Rodel Marasigan
User offline. Last seen 1 week 23 hours ago. Offline
Joined: 25 Oct 2006
Posts: 1692

Typically, the variation rates already includes marked ups.

48 CFR 31.102 - Fixed-price contracts also stated, “cost and other factors are considered”.

31.102 Fixed-price contracts.

The applicable subparts of part 31 shall be used in the pricing of fixed-price contracts, subcontracts, and modifications to contracts and subcontracts whenever (a) cost analysis is performed, or (b) a fixed-price contract clause requires the determination or negotiation of costs. However, application of cost principles to fixed-price contracts and subcontracts shall not be construed as a requirement to negotiate agreements on individual elements of cost in arriving at agreement on the total price. The final price accepted by the parties reflects agreement only on the total price. Further, notwithstanding the mandatory use of cost principles, the objective will continue to be to negotiate prices that are fair and reasonable, cost and other factors considered.”

 See below for more information:

FAR 48 C.F.R. Part 31