1991-04-10 Resolution 39 - Laserfiche WebLink

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SECTION 6-CONSTRUCTION COST AND OPINIONS OF COST 6.1. Construction Cost. The construction cost of the entire Project (hereirrreferred to as "Construction Cost") means the total cost to OWNER of those portions of the entire Project designed and specified by ENGINEER, but it will not include ENGINEER'S compensation and expenses, the cost of land, rights-of--way, or compensation for or damages to, properties unless this Agreement so specifies, nor will it include OWNER'S legal, accounting, insurance counseling or auditing services, or interest and financ- ing charges incurred in connection with the Project or the cost of other services to be provided by others to OWNER pursuant to paragraphs 3.7 throughh 3.11, inclusive. [Construction Cost is one of the items com- prising Total Project Costs which is defined in para- graph 1.2.5.) 6.2. Opinions of Cost. 6.2.1. Since ENGINEER has no control over the cost of labor, materials, equipment or services furnished by others, or over the Contractor(s)' methods of deter- mining prices, or over competitive bidding or market conditions, ENGINEER'S opinions of probable Total Project Costs and Construction Cost provided for herein are to be made on the basis ofENGINEER's experience and qualifications and represent ENGINEER'S best judgment as an experienced and qualified professional engineer, familiar with the construction industry; but ENGINEER cannot and does not guarantee that pro- posals, bids or actual Total Project or Construction Costs will not vary from opinions of probable cost prepared by ENGINEER. If prior to the Bidding or Negotiating Phase OWNER wishes greater assurance as to Total Project or Construction Costs, OWNER shall employ an independent cost estimator as provided in paragraph 3.9. 6.2.2. If a Construction Cost limit is established by written agreement between OWNER and ENGINEER and specifically set forth in this Agreement as a -con- dition thereto, 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 Total Project or Construction Costs in excess of the then established cost limit will constitute a corresponding revision in the Construction Cost limit to the extent indicated in such revised opinion. 6.2.2,2. Any Construction Cost limit so estab- lishedwill include a contingency of ten percent unless another amount is agreed upon in writing. 6.2.2.3. ENGINEER will be permitted to deter- mine what types of materials, equipment and com- ponent systems are to be included in the Drawings and Specifications and to make reasonable adjust- ments in the general scope, extent and character 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 Construc- tion Cost limit will not be binding on ENGINEER, and OWNER 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 Design Phase and the date on which proposals or bids are sought. 6.2.2.5. If the lowest bona fide proposal or bid exceeds the established Construction Cost limit, OWNER 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 general scope, extent or character to the extent consistent with the Project's requirements and with sound engineering practices. In the case of (3), ENGINEER shall modify the Con- tract Documents as necessary to bring the Construc- tion Cost within the cost- limit. In lieu of other com- pensation for services in making such modifications, OWNER shall pay ENGINEER, ENGINEER'S cost of such services, all overhead expenses reasonably related thereto and Reimbursable Expenses, but without profit to ENGINEER on account of such services. The providing of such service will be the limit of ENGINEER'S responsibility in this regard. and, having done so, ENGINEER shall be entitled to payment for services in accordance with this Agreement and will not otherwise be liable for dam- ages attributable to the lowest bona fide proposa] or bid exceeding the established Construction Cost. SECTION 7-GENERAL CONSIDERATION 7.1. Termination. The obligation to provide further services under this Agreement may be terminated by either party upon thirty days' written notice in the event of substantial Page 15 of ~_ pages