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<br /> Page 2 <br />Exhibit C – Compensation Packet BC-5: Basic Services (other than RPR) – Direct Labor Costs Plus Overhead Plus a Fixed Fee <br />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 />6. The portion of the amounts billed for Engineer’s services will be based on the applicable <br />Direct Labor Costs for the cumulative hours charged to the Project during the billing period <br />by Engineer’s employees plus overhead, Reimbursable Expenses, Engineer’s Consultant’s <br />charges, and the proportionate portion of the fixed fee. <br />7. Direct Labor Costs means salaries and wages paid to employees but does not include <br />payroll-related costs or benefits. <br />8. Overhead includes the cost of customary and statutory benefits including, but not limited <br />to, social security contributions, unemployment, excise and payroll taxes, workers’ <br />compensation, health and retirement benefits, bonuses, sick leave, vacation, and holiday <br />pay applicable thereto; the cost of general and administrative overhead which includes <br />salaries and wages of employees engaged in business operations not directly chargeable to <br />projects, plus non-Project operating costs, including but not limited to, business taxes, <br />legal, rent, utilities, office supplies, insurance, and other operating costs. Overhead shall be <br />computed as a percentage of Direct Labor Costs. Fixed fee is the lump sum amount paid to <br />Engineer by Owner as margin or profit and will only be adjusted by an amendment to this <br />agreement. <br />9. Direct Labor Costs and Overhead applied to Direct Labor Costs will be adjusted annually <br />(as of ____________) to reflect equitable changes in the compensation payable to <br />Engineer. <br />C2.02 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 . <br />D. The Reimbursable Expenses Schedule will be adjusted annually (as of ____________) to reflect <br />equitable changes in the compensation payable to Engineer. <br /> <br />C2.03 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 .