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02-14-13
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3. Other Provisions Concerning Payments: <br />3.1 In the event of termination by OWNER upon the completion of any phase of the Basic Services, progress payments due <br />ENGINEER for services rendered through such phase shall constitute total payment for such services. In the event of <br />such termination by OWNER during any phase of the Basic Services, ENGINEER also will be reimbursed for the <br />charges of independent professional associates and consultants employed by ENGINEER to render Basic Services, and <br />paid for services rendered during that phase on the basis of ENGINEER's Salary Costs times a factor of 2.37 for <br />services rendered during that phase to date of termination by ENGINEER's principals and employees engaged directly <br />on the Project. In the event of any such termination, ENGINEER will be paid for all unpaid Additional Services and <br />unpaid Reimbursable Expenses, plus all termination expenses. Termination expenses mean additional Reimbursable <br />Expenses directly attributable to termination, which, if termination is at Owner's convenience, shall include an amount <br />computed as a percentage of total compensation for Basic Services earned by ENGINEER to the date of termination, <br />as follows: <br />20% if termination occurs after commencement of the Preliminary Design Phase but prior to <br />commencement of the Final Design Phase; or <br />10% if termination occurs after commencement of the Final Design Phase. <br />In the event of any such termination and upon payment for services pursuant to this Section, any completed <br />work product of the Engineer shall be provided immediately to the Owner. <br />3.3 Records of ENGINEER's Salary Costs pertinent to ENGINEER's compensation under this Agreement will be kept in <br />accordance with generally accepted accounting practices. Copies will be made available to OWNER at cost, if <br />requested prior to final payment for ENGINEER's services. <br />3.4 Whenever a factor is applied to Salary Costs in determining compensation payable to ENGINEER, that factor may be <br />adjusted periodically and equitably to reflect changes in the various elements that comprise such factor. All such <br />adjustments will be in accordance with generally accepted accounting practices as applied on a consistent basis by <br />ENGINEER and consistent with ENGINEER's overall compensation practices and procedures. <br />4. Definitions: <br />4.1 The Salary Costs used as a basis for payment mean salaries and wages (basic and incentive) paid to all ENGINEER's <br />personnel engaged directly on the Project, including, but not limited to, engineers, architects, surveyors, designers, <br />draftsmen, specification writers, estimators, other technical and business personnel; plus the cost of customary and <br />statutory benefits including, but not limited to, social security contributions, unemployment, excise and payroll taxes, <br />workers' compensation, health and retirement benefits, sick leave, vacation and holiday pay and other group benefits. <br />The amount of customary and statutory benefits of all personnel of ENGINEER will be considered to be equal to 33% <br />of the salaries and wages, subject to equitable adjustment to reflect changes in ENGINEER's overall compensation <br />procedures and practices. <br />4.2 Reimbursable Expenses mean the actual expenses incurred by ENGINEER or ENGINEER's independent professional <br />associates or consultants directly or indirectly in connection with the Project, such as expenses for: transportation and <br />subsistence incidental thereto; obtaining the bids or proposals from Contractor(s); providing and maintaining field <br />office facilities including furnishings and utilities; subsistence and transportation of Resident Project Representatives <br />and their assistants; toll telephone calls and telegrams; reproduction of Reports, Drawings, Specifications, Bidding <br />Documents and similar Project- related items in addition to those required under Section 1; and if necessary, overtime <br />work required higher than regular rates. <br />Page 2 of 2 <br />1/16/08 <br />
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