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MAR. 13. 1998 5:23PM BRANDSTETTER O.~RROI.L
<br />ARTICLE 5
<br />CONSTRUCTION COST
<br />5.1 DEFINITION
<br />5.1.1 The Construction Cosc shall be the total, cost or rati-
<br />matedcost to the Owner of aU elements of the Project designed
<br />or spccifcd by the Architect.
<br />5.1.4 Tht Construction Cost shall include the cosE at current
<br />market rates of labor and materials furnished by the Owner and
<br />egtdpmenr designed, specified, selected or specially provided
<br />for by the Architect, plus a reasonable allowance for the Cvn-
<br />taaor's ovcnc~ad and profit. In addition, a rcuonablc allow.
<br />ante foe contingencies s1ra11 be included for market conditions
<br />at the time of bidding and for changes in the Work during
<br />constructiun.
<br />5.1.3 Construction Cost dots not include the compensation of
<br />the Archittct and Architect's consultants, the costs of the land,
<br />rights-of way, financing or ocher costs which are thr rtrspon-
<br />sibility of the Owner as provided ;n Articre 4. _
<br />5.2 RESPONSIBILITY FOR CONSTRUCTION COST
<br />5.4.1 Evaluations of the Owner's Project budget, preliminary
<br />estimates of Construction Cost and detailed estimates of Con-
<br />stnralon Cast, of any, prepared by the Architect, represent the
<br />Architeri s best judgment as a design profession;U familiar with
<br />the Construction industry. !t is rccogrtizcd, however, chat ne-
<br />ther the Architect nor the Owner has control over the cost of
<br />labor, materials or equipment, over the Contractor's methods
<br />of determining bid prices, or over compctitivc bidding, mukct
<br />or negotiating conditions. Accordingly, the Architect cannot
<br />Arad dots not w-urant or rcprcscnt the[ bids or negotiated prices
<br />will not vary from the Owner's Pn)jcct budget or from any
<br />estimate of Construction Cost or evaluation prepared or agreed
<br />to by the Architect.
<br />5,4.4 No fixed limit of Construction Cost shall be established
<br />as a condition of this Agreement by the furnishing, proposal or
<br />esnblishment of a Project budget, unless such (ixetl limit has
<br />been agreed upon m writing and signed by the parties hereto. If
<br />such a fixed limit has been cstablishccl, the Architect shall be
<br />permitted to include contingtttcie5 for design, bidding and
<br />price csalation, to dcrcrminc what trratctiaLc, equipment, mm-
<br />ponenr systems and types of construction err to be included in
<br />the Contact Documents, to make reasonable adjustments in
<br />the scope of the Prolect and to melude in the Contact Docu-
<br />ments alternate bids to adjust the Construction Cosc ro the fixed
<br />limit. Fixed 1lmlts. If any, shall be increued in the amount of arl
<br />increase in the Contract Sum occurring after execution of die
<br />Contact for Construction.
<br />5.2.3 if the Bidding or lYegotiation Phase has not commenced
<br />within 90 days afar the Archltccr submits the Construaion
<br />Documents to the Owner, any Project budget or fixed limit 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 submissian of the Cotutruction Documents to the
<br />Owner and the date on which proposals are sought.
<br />5.4.4 !f a fixed lirttlr of Construction Cost (adjusted u pro-
<br />vided in Subparagraph 5.2.3) is tacteeded by the lOwcSt bona
<br />fide bid or negvdated proposal, the Owner shall:
<br />.1 give written approval of an incrcasc in such Fixccl
<br />limit;
<br />2 authorize rebidding or renegotiating of the Project
<br />within a rttsonable tune;
<br />~~10.155a P. 16
<br />.3 if the Project is abandontd, terminate in accordance
<br />with Paragraph 8.3; oc
<br />.4 cooperate in revising the Project scope and quality as
<br />required to reduce the Construction Cost.
<br />5.2.5 1f the Owner chooses to proceed under Clause 5.2.4.4,
<br />the ArChi[eCt, wi[hOU[ additional Charge, shat! modify the Con-
<br />tract Documents as necessary t0 comply with the flied limit, If
<br />established as a condition of this Agreement. The modification
<br />of Contact Documents shall be the limit of the Architect's
<br />responsibility arising out of thc.cstablishmcnt of a Fused limit.
<br />The Architect shall be entitled to compensation in accordance
<br />with this Agreement for all services performed whether Or not
<br />the Cvnstructivn Phase is commenced:
<br />ARTICLE 6
<br />USE OF ARCHRECT'S DRAWINGS,
<br />SPECIFICATIONS AND OTHER DOCUMENTS
<br />6.1 The Drawings, Specl(icatlons and other documents pre-
<br />pared by the Architect for this Project arc instrumrnts of the
<br />Architect s service far tut solely with respect to this Project
<br />anti, unless otherwise provided, the Architect shall be deemed
<br />the author Of these documents and shall retain all common law,
<br />statutory and other rescrvcd rights, rnduding tht copyright.
<br />The Owner shall be permitted to main copies, including repm-
<br />ducible copies, of rile ArchitecCS Dcrwings, Specifications and
<br />other documents for Information and reference in connection
<br />with the Owner's use and occupancy Of the Project. The Archi-
<br />tct:t's Dnwings, Speeifir:,aGOrtS orother documen4s Shall not be
<br />used by the Owner of others on other projects, for addrtioru to
<br />this Project or for completion of this Project by others, uNt;ss
<br />the Architect is adjudged to be in dcP.tult under this Agreement,
<br />except by agreement in writing and with appropriate compen-
<br />sation co the Archtrecc.
<br />6,2 Submission or distribution of dcxumenw to meet official
<br />regulatory requirements or for similar purposes in connection
<br />with thr Project is not t0 be Construed as publication in deroga-
<br />tion of the Architect's reserved rights.
<br />ARTICLE 7
<br />AReITRAnoN
<br />7.1 Claims, disputes or other matters to quest;vn between the
<br />parties to this Agreement arising out of or relating to this Agree-
<br />ment or breach thrrcof shah be subject to and decided by arbi-
<br />tracion in accordance with the ConstnucGon industry Arbita-
<br />tion Rules of the American Arbitration Association currently In
<br />effect unless the pardcs mutually agree otherwise.
<br />7.2 Dcrnand for arbitration shall be filed in writing with the
<br />other party t0 Chu Agreement and with the Amcricur Arbita-
<br />tion Association. A danartd [or arbitration shall be made within
<br />a rca-omble time after the claim, dlapu[e or other matter in
<br />qutxdon has arisen. !n no event shall the demand for arbitntion
<br />be made after the date when institution of legal or equitable
<br />proceedings based on such claim, dispute or other matter in
<br />qucsuon would he batted by the appGubk statutes of Gtrtitations.
<br />7.3 No arbitntion arising out of or relating to this Agreement
<br />shall indude, by consolidation, joinder or in any Othu manna,
<br />an adtiitiotral person yr entity not a party to this Agreement,
<br />AIA oowr,~nt• St,l • OWNER-utcttlr6Gr AGttIiSMt6NT • ta0trrrTEEN7'tt ED1Tiorr • Aln~ • ®1987
<br />TH8 MtERiCM1 INSTITUTE OP ARCHlTSCrS. t734 Nsv~ YORK evt;ivtcE, N.v., WASttING7oN, o.C. ztioo6 8141-1887 8
<br />trti<ARHINC~ Utdlwand photocopylnq r1o1MU US. eoptrrrlpM Iwrs acrd 4 eubl~et to hyr+l proaKUtlon.
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