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Article 38. CLAIMS FOR EXTRA COST <br /> If the CONTRACTOR claims that any instructions, by drawings or otherwise, involve extra cost <br /> under this Contract, he shall give the Principal Representative written Notice thereof within a <br /> reasonable time after the receipt of such instructions. In any event, before proceeding to execute <br /> the work, except in emergency endangering life or property, the procedure shall be as provided for <br /> under Article 35, CHANGES IN THE WORK. No such claim shall be valid unless so made. <br /> In all such cases, the CONTRACTOR shall keep a correct account of the extra cost, in such form <br /> as the Principal Representative may direct, and shall present such account, supported by receipts. <br /> The Principal Representative shall be entitled to reject any claim for extra cost whenever the <br /> foregoing procedure is not followed. <br /> The payments to the CONTRACTOR in respect of such extra costs shall be limited to <br /> reimbursement for the current additional expenditure by the CONTRACTOR made necessary by <br /> the change in the work, plus a reasonable amount of overhead and profit, determined solely with <br /> reference to the additional work, if any, required by the change, at or prior to the time of making the <br /> change. <br /> Any claim by the CONTRACTOR arising by virtue of the Contract which is not disposed of by <br /> agreement shall be submitted in writing, together with any written and oral evidence in support <br /> thereof, to the Principal Representative for decision. Before making a decision the Principal <br /> Representative may notify the CONTRACTOR that additional written and/or oral evidence in <br /> support of the claim is required. If such notice is given, CONTRACTOR shall provide additional <br /> evidence to the Principal Representative within the time specified by the Principal Representative <br /> in the notice. The Principal Representative shall make his decision in writing and mail or otherwise <br /> furnish a signed copy to the CONTRACTOR. Pending the decision of the Principal <br /> Representative, the CONTRACTOR shall proceed diligently with the performance of the Contract. <br /> Article 39. LIQUIDATED DAMAGES <br /> If the CONTRACTOR shall neglect, fail or refuse to complete the work within the time agreed upon <br /> in this Agreement or any extension thereof, the CONTRACTOR shall be liable to the Principal <br /> Representative in the amount specified in the Special Conditions for this project for each and every <br /> calendar day the completion of the work is delayed beyond the time provided in this Agreement, as <br /> fixed and agreed liquidated damages, and not as a penalty. The liquidated damages set forth in <br /> the Special Conditions is an amount, agreed to by the CONTRACTOR and the Principal <br /> Representative, as reasonably representing additional construction engineering and administration <br /> costs incurred by the Principal Representative due to the CONTRACTOR'S delay. If the Principal <br /> Representative terminates the CONTRACTOR'S right to proceed, the resulting damage will consist <br /> of liquidated damages until such reasonable time as may be required for final completion of the <br /> work. If the Principal Representative does not terminate the CONTRACTOR'S right to proceed, <br /> the resulting damage will consist of liquidated damages until the work is completed or accepted. <br /> The Principal Representative shall have the right to deduct from and retain out of monies which <br /> may be due or which may become due and payable to the CONTRACTOR, the amount of such <br /> liquidated damages; and if the amount so retained by the Principal Representative is insufficient to <br /> pay in full such liquidated damages, the CONTRACTOR shall pay to the Principal Representative <br /> the amount necessary to effect payment in full of such liquidated damages. Any assessment of <br /> liquidated damages under this subsection shall not relieve the CONTRACTOR from additional <br /> liability for any actual damages or costs resulting from delays to other contractors on the project or <br /> other projects caused by a failure of the assessed CONTRACTOR to complete the work within the <br /> time provided in this Agreement. <br /> Colorado Division of Reclamation, Mining and Safety <br /> Page 14 of 21 Pages <br /> Revised: 9/17/2019 <br />