1991 - 11-18-91 Regular Meeting - Laserfiche WebLink

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coon g_l SECTION 6-CONSTRUCTION COSTAND OPINIONS OF COST' 6.1. Construction Cost. 'Pile construction cost of tile entire Project (helciu re- ferred to as "Construction Cost") means the total cost of the entire Project to OW NEIL, but it will not include ENGINEER's compensation and expenses, the cost of land, rights-of-way, orcompensation foroi damages to, properties unless this Agreement so specifics, not will it include OWNER's legal, accounting, insurance counseling or auditing services, or interest and financ- ing charges incurred in connection with the project. [Construction Cost is one of the items comprising Proj- ect Costs which is defined in paragraph 1.2.5.1 When Construction Cost is used as a basis for payment it will be based on one of the following sources with prece- dence in the order listed for work designed cu specified by ENGINEER: 6.1.1. For completed construction work the total costs of all work performed as designed or specified by ENGINEER. 6.1.2. For work designed or specified but not con- structed, the lowest bona fide bid received from a qmd- ifieel bidder fur such work: or, if the work is 1101 bid, the lowest bona lido negotiated proposal for such work. 6.1.3. For work designed or specified but not con- structed upon which no such bid or proposal is re- ceived, the most recent estimate of Construction Cost, or, if none is available, ENGINFER's most recent opinion of probable Construction Cost. Labor furnished by OWNER fur the I'roject will be included in the Construction Cost at current market rates including a reasonable allowance fur overhead and profit. Materials and equipment furnished by OWNER will be included at cuncnt market prices. No deduction is to be made from ENGINEER's compen- sation on account of any penally, liquidated damages, or other amounts withheld from paymcuts to Contrac- tor(s). 6.2. Opinions of Cost. 6.2.1. Sincc ENGINEER has nocunlrol over the cost of labor, materials, cgnipmenl or set vices fill lusiled by others, or over file Contractor(s)' methods of deter- mining prices, or over competitive bidding or market conditions, his opinions of pnrbahle Project Cost and Construction Cost provided for herein arc to be made tJr 14 9, on the basis of his experience and qualifications and represent his best judgment as an experienced and qual- Hied professional engineer, familiar with the construc- tion industry; but ENGINEER cannot and does not guarantee that proposals, bids oractual ProjeetorCon- structiun Cost will not vary from opinions of probable cost prepared by him. If prior to the Bidding or Nego- tiating phase OWNER wishes greater assmance as to Project III Conso action Cost he shall employ an inde- pendent cost estimator as provided in paragraph 3.8. 6.2.2. If a Construction Cost limit is established by written agreement between OWNER and ENGI- NEER, the following will apply: 6.2.2.1. The acceptance by OWNER at any time during the Basic Services of a revised opinion of probable Project or Construction Cost in excess of the then established cost limit will constitute a cor- responding revision in the Construction Cost limit to the extent indicated in such revised opinion. 6.2.2.2. Any Construction Cost limit so established will include a contingency of ten percent unless an- other amount is agreed upon in writing. 6.2.2.3. ENGINEER will be permitted to deter- mine what materials, equipment, component sys- tems and types of construction arc to be included in the Drawings and Specifications and to make reason- able adjusUnents in the extent of the Project to bring it within the cost limit. 6.2.2.4. If the Bidding or Negotiating Phase has not commenced within six months after completion of the Final Design Phase, the established Construction Cuss limit will not be binding on ENGINEER, and OWN ER shall consent to an adjustment in such cost limit commensurate with any applicable change in the general level of prices in the construction indus- try between the date of completion of the Final De- sign Phase and (he date on which proposals or bids are sought. 6.2.2.5. If the lowest bona fide proposal or bid ex- ceeds the established Construction Cost limit, OWNI.;R shall (1) give written approval to increase such cost limit, (2) authorize negotiating or rebidding the Project within a reasonable time, or (3) cooperate in revising the Project's extent or quality. In the case of (1), ENGINEER shall, without additional charge, _ ntodify the Contract Documents as necessary to bring the Construction Cost within the cost limit. 'Ihe providing of such service will be file limit of ENGINEER's responsibility in this regard and, hav- Page 1I of 20 pages