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C. The amounts payable to Engineer for Reimbursable Expenses will be the Project -related internal <br />expenses actually incurred or allocated by Engineer, plus all invoiced external Reimbursable <br />Expenses allocable to the Project, the latter multiplied by a factor of 10 percent. <br />C2.03 Other Provisions Concerning Payment <br />A. Whenever Engineer is entitled to compensation for the charges of Engineer's Consultants, those <br />charges shall be the amounts billed by Engineer's Consultants to Engineer times a factor of 10 <br />percent. <br />B. Factors. The external Reimbursable Expenses and Engineer's Consultants' factors include <br />Engineer's overhead and profit associated with Engineer's responsibility for the administration of <br />such services and costs. <br />C. C. Estimated Compensation Amounts: <br />1. Engineer's estimate of the amounts that will become payable for specified services are only <br />estimates for planning purposes, are not binding on the parties, and are not the minimum or <br />maximum amounts payable to Engineer under the Agreement. <br />2. When estimated compensation amounts have been stated herein and it subsequently <br />becomes apparent to Engineer that the total compensation amount thus estimated will be <br />exceeded, Engineer shall give Owner written notice thereof, allowing Owner to consider its <br />options, including suspension or termination of Engineer's services for Owner's <br />convenience. Upon notice, Owner and Engineer promptly shall review the matter of <br />services remaining to be performed and compensation for such services. Owner shall either <br />exercise its right to suspend or terminate Engineer's services for Owner's convenience, agree <br />to such compensation exceeding said estimated amount, or agree to a reduction in the <br />remaining services to be rendered by Engineer, so that total compensation for such services <br />will not exceed said estimated amount when such services are completed. If Owner decides <br />not to suspend the Engineer's services during the negotiations and Engineer exceeds the <br />estimated amount before Owner and Engineer have agreed to an increase in the <br />compensation due Engineer or a reduction in the remaining services, then Engineer shall be <br />paid for all services rendered hereunder. <br />D. To the extent necessary to verify Engineer's charges and upon Owner's timely request, Engineer <br />shall make copies of such records available to Owner at cost. <br />Page 2 <br />Exhibit C— Basic Services — Standard Hourly Rates Method of Payment <br />EJCDC E-500 Agreement Between Owner and Engineer for Professional Services. <br />Copyright © 2008 National Society of Professional Engineers for EJCDC. All rights reserved. <br />