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Page 4 <br />Exhibit C – Compensation Packet BC-4: Basic Services (other than RPR) – Direct Labor Costs Times a Factor 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 />5.The total estimated compensation for Engineer’s services included in the breakdown by <br />phases as noted in Paragraph C2.01.A.3, incorporates all labor, overhead, profit, <br />Reimbursable Expenses, and Engineer’s Consultant’s charges. <br />6.The portion of the amounts billed for Engineer’s services which are related to services <br />rendered on a Direct Labor Costs times a Factor basis will be billed based on the applicable <br />Direct Labor Costs for the cumulative hours charged to the Project by Engineer’s principals <br />and employees multiplied by the above-designated factor, plus Reimbursable Expenses and <br />Engineer’s Consultant’s charges incurred during the billing period. <br />7.Direct Labor Costs means salaries and wages paid to employees but does not include <br />payroll-related costs or benefits. <br />8.The Direct Labor Costs and the factor applied to Direct Labor Costs will be adjusted <br />annually (as of ) to reflect equitable changes to the compensation payable to Engineer. <br />C2.02 Compensation for Reimbursable Expenses <br />A.Owner shall pay Engineer for all Reimbursable Expenses at the rates set forth in Appendix 1 to this <br />Exhibit C. <br />B.Reimbursable Expenses include the following categories: transportation and subsistence incidental <br />thereto; providing and maintaining field office facilities including furnishings and utilities; toll <br />telephone calls and mobile phone charges; reproduction of reports, Drawings, Specifications, <br />Bidding Documents, and similar Project-related items in addition to those required under Exhibit <br />A. In addition, if authorized in advance by Owner, Reimbursable Expenses will also include <br />expenses incurred for the use of highly specialized equipment. <br />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 . <br />D.The Reimbursable Expenses Schedule will be adjusted annually (as of ) to reflect equitable <br />changes in the compensation payable to Engineer.