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ARTICLE 5
<br />CONSTRUCTION COST
<br />5.1 DEFINITION
<br />5.1.1 The Conscniction Cosc shall be the rotal cost or esti-
<br />matcd cost to the Owner of all elements of the Project designed
<br />or specified Uy [he Archi[ect.
<br />5.1.2 The Constttiction Cost shall inclucte [he cost at curren[
<br />market r.ttes of labor and materials furnished bv the Owner and
<br />cquipment designcd, specified, selccted or specially provided
<br />for by the Archicect, plus a reasonable allon•:tnce Por the Con-
<br />tractor's overhead and proFit. In addi[ion, a re:uonable allo,?v-
<br />ance for concingencies shall be included for market condicions
<br />at the time of bidding and for changes in [he Work during
<br />construc[ion.
<br />5.1.3 Constiuction Cost does no[ include che compensation of
<br />the Archi[ect iuld Architecc's consulcan[s, the cosis of the land,
<br />rights-of-way, financing or other costs which are the respon-
<br />sibility of the Owner as provided in Article 4.
<br />5.2 RESPONSIBILITY FOR CONSTRUCTION COST
<br />5.2.1 Evaluations of the Owner's Yrojec[ budget, preliminary
<br />escimates of Construction Cost and detailed estimates of Con-
<br />struction Cost, if any, prepared by the Architect, represent the
<br />Architect's best judgment as a design professional familiar wich
<br />the construction industn•. It is recognized, ho,;vever, that nei-
<br />ther the Architect nor the Owner has concrol over the cost of
<br />labor, materials or equipment, over the Con[racror's methods
<br />of determining bid prices, or over competitive bidding, market
<br />or negociating conditions. Accordingly, the archicect cannoc
<br />and does not warrant or represent that bids or nego[iated prices
<br />will no[ vary from the Owner's Project budgec or From any
<br />escimare of Construction Cosi or evaluation prepared or agreed
<br />to bv the Architect.
<br />5.2.2 No flsed limit of Construction Cost shall be established
<br />as a condition of this Agreement by the fumishing, proposal or
<br />establishmeiu of a Project budget, unless such fised limit has
<br />been agreed upon in writing and signed by the parties hereto. If
<br />such a fixed limic has been established, the Architec[ shall be
<br />permicced to include contingencies for design, bidding and
<br />price escalation, to determine what materials; equipmen[, com-
<br />ponenc syscems and types of conscruccion are to be included in
<br />the Con[ract Document.s, to make reasonable adjuscments in
<br />the scope of the Projec[ and to include in the Contract Docu-
<br />ments :iltemate bids to adjust the Construction Cost to the fixed
<br />limit. Fixed limi[s, if any, shall be increased in the :unount of an
<br />increase in the Contract Sum occurring af[er execution of the
<br />Contract for Construction.
<br />5.2.3 If the Bidding or Negotiation Phase has not commenced
<br />wi[hin 90 days after Ehe Architect submits che Conscruc[ion
<br />Documents [o the Owner, any Projecc budget or fixed limit of
<br />Construction Cost shall be adjusted to reflecc changes in the
<br />general level of prices in [he construction industry between the
<br />date of submission of [he Construccion Documents [o the
<br />Owner and the date on which proposals are sought.
<br />5.2.4 If a fixed limit of Construction Cost (adjusted as pro-
<br />vided in Subparagraph 52.3) is exceeded b}• the lowest bona
<br />Fide bid or negotiated proposal, the Owner shall:
<br />give wri[ten approv:il of an increase. in such Fxed
<br />limit; '
<br />au[horize rebidding or renegotia[ing of the Project
<br />within a reasoruble tiine;
<br />.3 if the Project is abandoned, terminate in accordance
<br />with Paragraph 8.3; or
<br />.4 cooperate in revising the Project scope and quality as
<br />required ro rcduce the Construction Cosc.
<br />5.2.5 If the Owner chooses to proceed under Clause 5.2.4.4,
<br />the Archicect, without additional charge, shall modiCy che Con-
<br />trac[ Documents as necessary [o comply wich the fixed limit, if
<br />established as a condition of this Agreemeni. The inodificacion
<br />of Contract Documents shall be [he limi[ of the Architect's
<br />responsibility arising out of the establishment of a fixed limit.
<br />The Architect shall be entided to compensation in accordance
<br />,wich dlis Agreemenc for :ill services performed whe[her or not
<br />the Cons[ruction Phase is commenced.
<br />ARTICLE 6
<br />USE OF ARCHITECT'S DRAWINGS,
<br />SPECIFICATIONS AND OTHER DOCUMENTS
<br />6.1 The Drawings, SpeciFca[ions acld other documents pre-
<br />pared by the Architea for chis Project are instruments of the
<br />Architect's service for use solety with respec< <o ihis Projec[
<br />and, unless o[hernise provitied, the Archi[ect shall be deemed
<br />the author of these documents and shall retain all common lam,
<br />s[a[utory and o[her reserved righ[s, including the copyright.
<br />The Owner shall be permicted to retain copies, including repro-
<br />ducible copies, oF the Architect's Drawings, Specificacions and
<br />ocher docuinents for information and reference in connection
<br />with the Owner's use and occupancy of the Projecc. The Archi-
<br />[ecc's Drawings, Specifications or other docucnencs shall not be
<br />used by the Owner or others on ocher projec[s, for additions to
<br />this Project or for completion of this Project by others, unless
<br />the architect is adjud8td to be in default under this Agreement;
<br />except by agreement in writing and with appropriate compen-
<br />sation to the Architect.
<br />6.2 Submission or distribution of documents to meet ofFicial
<br />regu!atory requirements or for similar purposes in connection
<br />R-ich che Project is no< <o be construed as publication in deroga-
<br />tion of the Archirect's resen•ed rights.
<br />ARTICLE 7
<br />ARBITRATION
<br />7.1 Clauns, disputes or o[her matters in quescion between the
<br />parcies to chis AgreemenE arising out of or rela[ing to this Agree-
<br />menu or breach thereof shall be subject to and decided by arbi-
<br />tration in accordance with the Construction Indus[rv Arbitra-
<br />tion Rules of the American Arbitration Association currendy in
<br />effect unless the parties mutuaily agree ochernise.
<br />7.2 Demand for arbitration shall be filed in writing wi[h the
<br />other party to this Agreemeni and with the American Arbitra-
<br />tion Association. A demand for arbitration shall be made within
<br />a reasonable time after the claim, dispute or other matter in
<br />quescion has arisen. In no even[ shall the demand for arbitration
<br />be made after the date when institution of legal or equitable
<br />proceedings based on such claim, dispute or other matter in
<br />ques-ion would Ue barred by che applicable sracutes of limitauons.
<br />7.3 No arbitration arising out of or re(ating to this Agreemeni
<br />shall include, by consolidacion, joinder or in any other manner,
<br />an addicional person or enticy not a party, to this Agreement,
<br />AIA DOCUMENT B141 • OWNER-ARCHITECT AGREEIMENT • FOURTEENTH EDITION - AIA's • 0 1987
<br />THE AMERlCAN IfYSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006 B141-1987 6
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