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ARTICLE 5
<br />CONSTRUCTION COST
<br />5.1 DEFINITION
<br />5.1.1 The Construction Cost shall be the total cost or esti-
<br />mated cost to the Owner of all elements of the Project designed
<br />or specified by the Architecc.
<br />5.1.2 The Construction Cost shall include the cost at current
<br />market rates of labor and materials fumished by the Owner and
<br />equipment designed, specified, selected or specially provided
<br />for by the Architect, plus a reasonable allowance for the Con-
<br />tractor's overhead and profit. ln addition, a reasonable ailow-
<br />ance for contingencies 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 Conswction Cost does not include the compensation of
<br />the Architect and Architect's consultants, the costs of the larlfi,
<br />rights-of-way, financing or other costs which are the respon-
<br />sibility of the Oa•ner as provided in Article 4.
<br />5.2 RESPONSIBILITY FOR CONSTRUCTION COST
<br />5.2.1 It is recognized that neither the Architect nor the Owner
<br />has control over the cosc of labor, materials or equipment, over
<br />the Concractor's methods of `determining bid prices, or over
<br />competitive bidding, market or negotiating conditions. Accord-
<br />ingly, the Architect cannot and does not w•arrant or represent
<br />that bids or negotiated prices will not var}• from an)• estimate of
<br />Construction Cost or evaluation prepared or agreed to by the
<br />Architect.
<br />5.2.2 No fixed limit of Construction Cost shall be established
<br />as a condition of this Agreement by the fumishing, proposal or
<br />establishment of a Project budget, unless a fixed limit has been
<br />agreed upon in writing and signed by the panies hereto. Fixed
<br />limits, if an}', shall be increased in the amount of an increase in
<br />the Contract Sum occurring after execucion of the Contract for
<br />Construction.
<br />5.2.3 Any Projecc budget or fixed limit of Construction Cost
<br />may be adjusred to reflect changes in the general level of prices
<br />in the construction industry between the date of submission of
<br />the Construction Documents to che Oa•ner and the date on
<br />a•hich proposals are sought.
<br />5.2.4 If a fixed limit of Conswction Cost is exceeded by the
<br />lowest bona fide bid or negociated proposal, the Oa•ner shall:
<br />.1 give a•ritten approval of an 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 abandoned, terminate in accordance
<br />a•ith Paragraph 8.3; or
<br />A cooperate in revising the Project scope and quality as
<br />required to reduce the Construction Cost.
<br />5.2.5 If the Owner chooses to proceed under Clause 5.2.4.4,
<br />the Architect, without additiona] charge, shall modify the Con-
<br />tract Documenu as necessar}, to comply v.ith the fixed limit, if
<br />established as a condition of this Agreement. The modification
<br />of Contract Documents shall be the limit of the Architect's
<br />responsibility arising out of the establishment of a fixed limit.
<br />The Architect shall be entitled to compensation in accordance
<br />vvith 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 and other documents pre-
<br />pared b}, the Architect for this Project are instruments of the
<br />Architect's service for use solely with respect to this Project,
<br />and the Architect shall be deemed the author of these docu-
<br />menu and shall retain ail common law, statutory and other
<br />reserved rights, including the copyright. The Owner shall be
<br />permitted to retain copies, including reproducible copies, of
<br />the Architect's Drawings, Specifications and other documents
<br />for information and reference in connection with the Owner's
<br />use and occupancy of the Project. The Architect's Drawings,
<br />Specifications or other documents shall not be used by the
<br />Owner or others on other projects, for additions to this Project
<br />or for completion of this Pruiect b), others, unless the Architea
<br />is adjudged to be in default under this Agreement, except by
<br />agreement in a•riting and with appropriate compensation to the
<br />Architect.
<br />6.2 Submission or distribution of documents to meet official
<br />regulatory requirements or for similar purposes in connection
<br />with the Project is not to be construed as publication in deroga-
<br />tion of the Architect's reserved rights.
<br />ARTICLE 7
<br />ARBITRATION
<br />7.1 Claims, disputes or other matters in question betw•een the
<br />panies to this Agreement arising out of or relating to this Agree-
<br />ment or breach thereof shail be subject to and decided by arbi-
<br />tration in accordance with the Construction Industry Arbitra-
<br />tion Rules of the American Arbitration Association currentl)• in
<br />effect unless the parties mutuallv agree otherwise. Iv'o arbiva-
<br />tion arising out of or relating to this Agreemen[ shall indude, b},
<br />consolidation, joinder or in an}, other manner, an additional
<br />person or entity not a party to this Agreement, except b}, writ-
<br />ten consent containing a specific reference to this Agreement
<br />signed b), the Owner, Architect, and any ocher person or entit),
<br />sought to be joined. Consent ro arbitration involving an addi-
<br />tional person or entity shall not constiwte consent to arbitra-
<br />tion of any claim, dispute or other matter in question not
<br />_-_described in the written consent. The foregoing agreement to
<br />arbitrate and other agreements to arbitrate with an additional
<br />person or entitl, duly consented to b), the parties to this Agree-
<br />ment shall be specifically enforceable in accordance with appli-
<br />cable laa• in any court 6,ing jurisdiction thereof.
<br />7.2 In no event sha]] the demand for arbitration be made aher
<br />the date when institution of legal or equitable proceedings
<br />based on such claim, dispute or other matter in question a•ould
<br />be barred b)• the applicable statutes of limitations.
<br />7.3 The aa•ard rendered bv the arbitrator or arbitrators shall be
<br />final, and judgment may be entered upon it in accordance a•ith
<br />applicable laa• in am• court having jurisdiction thereof.
<br />ARTICLE 8
<br />TERMINATION, SUSPENSION OR ABANDONMENT
<br />8.1 This Agreement ma)• be terminated b}• either party upon
<br />not less than seven da}•s' a•ritten notice should the other part}'
<br />AIA DOCUMENT 8151 • ABBREVIATED OV('NER-ARCHlTECTAGREEMENT • THIRD EDITION • AIAO • C-I9R-
<br />THE AMERICAK IhSTITI'TE OF ARCHITECTS, 1735 NEV' YORK AVEhL'E, N.U'., VCASHItiGTOti, D.C. 2000C B151-1987 4
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