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<br />Page 3 <br />Exhibit C –Basic Services (other than RPR and Post-Construction) – Lump Sum 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 /> <br /> <br />6. If amounts billed under this compensation method are within ten percent (10%) of the <br />maximum amount payable prior to the satisfactory completion of the described services, the <br />Engineer shall notify Owner and the status will be evaluated. <br />7. The Standard Hourly Rates and Reimbursable Expenses Schedule will be adjusted annually <br />(as of January 1) to reflect equitable changes in the compensation payable to Engineer. <br />C2.04 Compensation for Reimbursable Expenses <br /> <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 1.05. <br />C2.05 Other Provisions Concerning Payment <br /> <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 1.00. <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. 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 becomes <br />apparent to Engineer that the total compensation amount thus estimated will be exceeded, <br />Engineer shall give Owner written notice thereof, allowing Owner to consider its options, <br />including suspension or termination of Engineer's services for Owner's convenience. Upon <br />notice, Owner and Engineer promptly shall review the matter of services remaining to be <br />performed and compensation for such services. Owner shall either exercise its right to <br />suspend or terminate Engineer's services for Owner's convenience, agree to such <br />compensation exceeding said estimated amount, or agree to a reduction in the remaining <br />services to be rendered by Engineer, so that total compensation for such services will not <br />exceed said estimated amount when such services are completed. If Owner decides not to