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ARTICLE 5
<br />CONSTRUCTION COST
<br />5.1 DEFINITION
<br />5.1.1 The Construction Cost shall be the cotal cost or esci-
<br />mated cos[ to the Owner of all elements of the Project designed
<br />or specified by the Architec[.
<br />5.1.2 The Construction Cost shall include the cost a[ curren[
<br />marhet rates of labor and ma[erials fumished by the Owner and
<br />equipment designecl, specified, selected or specially provided
<br />for Uy the rlrchitect, plus a rea.sonable allon-ance for the Con-
<br />tractor's overhead and profit. In addition, a reasonable allow-
<br />ance for con[ingencies shall be included for market condi[ions
<br />at the time of bidding and for changes in the Work during
<br />construction.
<br />5.1.3 Construction Cosc does no[ include [he compensation of
<br />the Archiiect and Architect's consul[an[s, the costs of the land,
<br />rights-of-way, Financing or other costs which are the respon-
<br />siUili[y of the Owner as provided in Article 4.
<br />5.2 RESPONSIBILITY FOR CONSTRUCTION COST
<br />5.2.1 Evaluations of the Owner's Yroject budget, preliminary•
<br />estimates of Construc[ion Cosc and detailed estimates of Con-
<br />struction Cost, if any, prepared by the Architect, represeni [he
<br />Archirect's best judgment as a design professional familiar with
<br />tlie consiniccion industry. It is recognized, however, that nei-
<br />ther the Architect nor the Owner has con[roI over che cost of
<br />labor, materials or equipment, over the Contractor's methods
<br />of decermining bid prices, or over competitive bidding, market
<br />or negotiating conditions. Accordingly, the Architect cannot
<br />and does not warrant or represen[ that bids or negotiaced prices
<br />will not vary from the Owner's Project budget or from any
<br />esdunace of Conscruc[ion Cost or evaluation prepared or agreed
<br />to bv the Architect.
<br />5.2.2 No fized limit of Conscruciion Cosi shall be established
<br />as a condiiion of this Agreemen[ by the fumishing, proposal or
<br />establishment of a Project budge[, unless such fixed limic has
<br />been agreed upon in writing and signed by [he parties hereto. If
<br />such a fixed limit has been established, the Architect shall be
<br />permicted to include contingencies for design, bidding and
<br />price escalation, ro derermine what marerials, equipment, com-
<br />ponent sys[ems and types of construc[ion are ro be included in
<br />the Contract Documents, to make reasonable adjustments in
<br />the scope of [he Project and to include in the Coniract Docu-
<br />ments alternate bids ro adjust [he Construction Cost to the Fixed
<br />limit. Fixed limits, iF any, shall be increased in the unount of an
<br />increase in che Contract Sum occurring after execution of the
<br />Contract for Construction.
<br />5.2.3 If the Bidding or Negotiation Phase has not commenced
<br />within 90 days after the Architec[ submits the Construction
<br />Documents [o Ehe Owner, any Projec[ budget or Fixed limi[ of
<br />Construction Cost shall be adjusted to reflect changes in the
<br />general level of prices in the construction industry between the
<br />date of submission of [he Construction Documents to the
<br />Owner and the dace on which proposals are sought.
<br />5.2.4 If a fised limit of Construccion Cosc (adjusted as pro-
<br />vided in Subparagraph 5.2•3) is exceeded by the lowes[ bona
<br />fide bid or negotiaied proposal, [he Owner shall:
<br />.7 give written approval of :n increase. in such Fixed
<br />limit;
<br />.2 authorize rebidding or renegotiating of the Project
<br />within a reasonable time;
<br />.3 if the Project is abandoneei, terminate in accordancc
<br />with Paragraph 8.3; or
<br />.4 cooperatc in revising [he Project scope and qualiry as
<br />required to reduce the Construction Cost.
<br />5.2.5 If the Owner chooses to proceed under Clausc 5.2.4.4,
<br />the Archicecc, without additional charge, shall modifir the Con-
<br />tract Documen[s as necessary to comply with the fixed limit, if
<br />established as a condicion of chis Agreemene. The modificacion
<br />of Contract Docwnents shall be che limit of the Architect's
<br />responsibility arising ou[ oE the establishment of a fised limit.
<br />The Architect shall be entided to compensation in accordance
<br />with this Agreement for all services performed whether or not
<br />the Construction Phase is commenced.
<br />ARTICLE 6
<br />USE OF ARCHITECT'S DRAWINGS,
<br />SPECIFICATIONS AND OTHER DOCUMENTS
<br />6.1 The Drawings, Specifications 1I1C1 other documents pre-
<br />pared by the Architect for this Project are instruments of the
<br />Architect's service for use solely with respect to this Project
<br />and, unless otherwise provicled, the Architect shall be deemed
<br />the author of these documents and shall retain all common law,
<br />statu[ory and other reserved righcs, including che copyrighc.
<br />The Owner shall be permitted co retain copies, including repro-
<br />ducible copies, of the Architect's Drawing5, Specificaiions an(J
<br />o[her documents for information anci reference in conneaion
<br />wi[h the Owner's use and occupancy of the Project. The :lrchi-
<br />tect's Drawings, SpeciFications or orher documents shall noc be
<br />used by the Owner or others on other projects, for additions ro
<br />this Projec[ or for completion of chis Project by others,,unless
<br />the Architect is adjudbed to be in default under this`?gre?ment,
<br />escept by agreement in writing and with appropriate compen-
<br />sation ro the Architect.
<br />6.2 Submission or distribution of documcnts to meet official
<br />regulatory requirements or for sirnilar purposes in connection
<br />with the Project is not to be construed as publica[ion in deroga-
<br />tion of the Architect's reserved righcs.
<br />1..
<br />ARTICLE 7
<br />ARBITRATION
<br />7.1 Claims, disputes or other matters in question between the
<br />parcies to this Agreement arising out of or relating to [his Agree-
<br />ment or breach thereof sh:ill be subject to and decided b} arbi-
<br />tration in accordance with the Construction Industrv Arbitra-
<br />tion Rules of the American Arbitration Association currenclv in
<br />effect unless the parties mutually agree oLherwise.
<br />7.2 Demand for arbitration shall be filed in writing with the
<br />other parry to this Agreement and with the American Arbitra-
<br />tion Association. A demand for arbitration shall be made within
<br />a reasonable time after the clum, dispute or other ma«er in
<br />ques[ion has arisen. In no event shall the dem:uid for arbi[racion
<br />be made after the date when ins[i[ution of legal or equitable
<br />proceedings based on such claim, dispute or other matcer in
<br />question would be barred by the applicable statutes of,-li'Tqtations.
<br />7.3 No arbitration arising ouc of or relating to
<br />shall include, by consolidation, joinder or in an},
<br />an additional person or entiry not a parry• [o this Agreei?nt,
<br />AIA DOCUMENT B141 • OWNER-ARCHITECT AGREEMENT • FOURTEENTH EDITION • AIAO • 01987 .-
<br />THE AMERICAN 1NSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006 B141 -1987' 6
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