A subcontractor works weekend overtime to recover its own delay and then submits a change request for premium time. The owner did not direct acceleration. What is the proper contract review focus?
Correct Answer
D) Require contract entitlement and written authorization before paying premium-time cost
Premium-time recovery normally depends on contract entitlement and authorization, not merely the fact that overtime was worked. Other choices pay without entitlement or change contract terms after the fact.
Why This Is the Correct Answer
Premium-time recovery normally depends on contract entitlement and authorization, not merely the fact that overtime was worked. Other choices pay without entitlement or change contract terms after the fact.
Why the Other Options Are Wrong
Option A: Add the cost to every subcontractor's pay application
In procurement and contracting, Add the cost to every subcontractor's pay application is the wrong selection for Unauthorized overtime: the option answers a paperwork, payment, or bonding issue.
Option B: Pay automatically because the work occurred on a weekend
The trap in B is Pay automatically because the work occurred on a weekend. That selection is wrong because it shifts the question into contract administration money flow.
Option C: Convert the subcontract to cost-plus after the fact
Choice C gives Convert the subcontract to cost-plus after the fact. Its specific error: the option does not produce the required Unauthorized overtime outcome, Require contract entitlement and written authorization before paying premium-time cost.
Memory Technique
Use the phrase "problem, control, result" for unauthorized overtime; the result side is Require contract entitlement and written authorization before paying premium-time cost.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Change entitlement and acceleration cost" to confirm that Premium-time recovery normally depends on contract entitlement and authorization, not merely the fact that overtime was worked.
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