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§ A.5.1.6.3 Costs of repairing or correcting damaged or nonconforming Work executed by the Design -Builder,
<br />Contractors or suppliers, provided that such damaged or nonconforming Work was not caused by negligence or
<br />failure to fulfill a specific responsibility of the Design -Builder and only to the extent that the cost of repair or
<br />correction is not recovered by the Design -Builder from insurance, sureties, Contractors, suppliers, or others.
<br />§ A.5.1.7 Related Party Transactions
<br />§ A.5.1.7.1 For purposes of Section A.5.1.7, the term "related parry" shall mean a parent, subsidiary, affiliate or
<br />other entity having common ownership or management with the Design -Builder; any entity in which any
<br />stockholder in, or management employee of, the Design -Builder owns any interest in excess often percent in the
<br />aggregate; or any person or entity which has the right to control the business or affairs of the Desi n Builder The
<br />term "related party" includes any member of the immediate family of any person identified: above.
<br />§ A.5.1.7.2 If any of the costs to be reimbursed arise from a transaction between the Design Builder and a related
<br />party, the Design -Builder shall notify the Owner of the specific nature of the contemplated �rar§action, including the
<br />identity of the related party and the anticipated cost to be incurred, before any such transaction is consummated or
<br />cost incurred. If the Owner, after such notification, authorizes the proposed transaction, then the cost incurred shall
<br />be included as a cost to be reimbursed, and the Design -Builder shall procure the Work, equfprribnt, goods, or service
<br />from the related parry, as a Contractor, according to the terms of Section A.5.4. If the Owner fails to authonz� the
<br />transaction, the Design -Builder shall procure the Work, equipment, goods or service from some" person or entity
<br />other than a related party according to the terms of Section A.5.4.
<br />§ A.5.2 Costs Not to Be Reimbursed as Part of this Contract
<br />The Cost of the Work shall not include the items listed below:
<br />.1 Salaries and other compensation of the Design -Builder's personnel stationed
<br />principal office or offices other than the site office, except as specifically provided in Section A.5.1.1;
<br />.2 Expenses of the Design -Builder's principal office and offices other than the site office;
<br />.3 Overhead and general expenses, except as may be expressly included in Section A.5.1;
<br />.4 The Design -Builder's capital expenses, including interest on the Design -Builder's capital employed far:
<br />the Work;
<br />.5 Except as provided in Section A.5.1.6.3 of this Agreement, costs due to the negligence ar failure of the
<br />Design -Builder, Contractors and suppliers or anyone directly or indirectly employed` -by any of them br
<br />for whose acts any of them may be liable to fulfill a specific responsibility of tlontract, "
<br />.6 Any cost not specifically and expressly described in Section A.5.1; and
<br />.7 Costs, other than costs included in Change Orders approved by the Owner, that would cause
<br />Guaranteed Maximum Price to be exceeded.
<br />§ A.5.3 Discounts, Rebates, and Refunds
<br />§ A.5.3.1 Cash discounts obtained on payments made by the Design -Builder shall accrue to the Owner if (1). before -
<br />making
<br />the payment, the Design -Builder Builder included them in an Application for Payment and fecer,ed a'`rnent_frm
<br />PY �- PP Y PY
<br />the Owner, or (2) the Owner has deposited funds with the Design -Builder with which to make ayments;Joth&wjse``
<br />cash discounts shall accrue to the Design -Builder. Trade discounts, rebates, refunds and amounts received;fro rr.`-sales
<br />t
<br />of surplus materials and equipment shall accrue to the Owner, and the Design -Builder shall make provisions sb that
<br />they can be obtained.
<br />§ A.5.3.2 Amounts that accrue to the Owner in accordance with Section A.5.3.1 shall be credited to the Owner as a
<br />deduction from the Cost of the Work.
<br />§ A.5.4 Other Agreements `
<br />A.5.4.1 When the Design -Builder has provided a Guaranteed Maximum Price, and a specific bidder 1 is
<br />recommended to the Owner by the Design -Builder; (2) is qualified to perform that portion of the Work;"and (3) has "`
<br />submitted a bid that conforms to the requirements of the Design -Build Documents without reseervat ons or exceptions,
<br />but the Owner requires that another bid be accepted, then the Design -Builder may require tha a mange Order be
<br />issued to adjust the Guaranteed Maximum Price by the difference between the bid of the person ar entity recommended
<br />to the Owner by the Design -Builder and the amount of the subcontract or other agreement actually signed with the
<br />person or entity designated by the Owner.
<br />A.5.4.2 Agreements between the Design -Builder and Contractors shall conform to the aieahl a rrrent .rr::,:. ,.:
<br />provisions of the Design -Build Documents, and shall not be awarded on the basis of cost plus a fee without the prior
<br />AIA Document A14101 - 2014 Exhibit A. Copyright © 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This
<br />AIA.M Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this ALA' 10
<br />Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible
<br />under the law. This draft was produced by AIA software at 06:51:30 ET on 04/14/2020 under Order No.6771434791 which expires on 03/06/2021,
<br />and is not for resale.
<br />User Notes: (1345484614)
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