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Architect cannot and does not guarantee that bids will not vary from any Statement of Probable Construction Cost or other cost estimate prepared by him. 3.5 When a fixed limit of Construction Cost is estab- lished as a condition of this Agreement, it shall be in writing signed by the parties and shall include a bidding contingency of ten percent unless another amount is agreed upon in writing. When such a fixed limit is estab- lished, the Architect shall be permitted to determine what materials, equipment, component systems and types of construction are to be included in the Contract Docu- ments, and to make reasonable adjustments in the scope of the Project to bring it within the Fixed limit. The archi- tect may also include in the Contract Documents alter- nate bids to adjust the Construction Cost to the fixed limit. 3.5.1 If the Bidding or Negotiating Phase has not com- menced within six months after the Architect submits the Construction Documents to the Owner, any fixed limit of Construction Cost established as a condition of this Agreement shat! be adjusted to reflect any change in the general level of prices which may have occurred in the construction industry for the area in which the Project is located. The adjustment shall reflect changes between the date of submission of the Construction Documents to the Owner and the date on which proposals are sought. 3.5.2 When a fixed limit of Construction Cost, including the Bidding contingency (adjusted as provided in Sub- paragraph 3.5.1, if applicable), is established as a condi- tion of this Agreement and is exceeded by the lowest bona fide bid or negotiated proposal, the Detailed Esti- mate of Construction Cost or the Statement of Probable Construction cost, the Owner shall (1) give written ap- proval of an increase in such fixed limit, (2) authorize re- bidding the Project within a reasonable time, or (3) co- operate in revising the Project scope and quality as re- quired to reduce the Probable Construction Cost. In the case of (3) the Architect, without additional charge, shall modify the Drawings and Specifications as necessary to bring the Construction Cost within the fixed limit. The providing of such service shall be the limit of the Archi- tect's responsibility in this regard, and having done so, the Architect shall be entitled to compensation in accord- ance with this Agreement. ARTICLE 4 DIRECT PERSONNEL EXPENSE Direct Personnel Expense is defined as the salaries of professional, technical and clerical employees engaged on the Project by the Architect, and the cost of their mandatory and customary benefits such as statutory em- ployee benefits, insurance, sick leave, holidays, vacations, pensions and similar benefits. ARTICLE 5 REIMBURSABLE EXPENSES 5.1 Reimbursable Expenses are in addition to the Com- pensation for Basic and Additional Services and include actual expenditures made by the Architect, his employ- ees, or his professional consultants in the interest of the Project for the expenses listed in the following Subpara- graphs: 5.i.1 Expense of transportation and living when travel- ing in connection with the Project; long distance calls and telegrams; and fees paid for securing approval of authorities having jurisdiction over the Project. 5.1.2 Expense of reproductions, postage and handling of Drawings and Specifications excluding duplicate sets at the completion of each Phase for the Owner's review and approval. 5.1.3 If authorized in advance by the Owner, expense of overtime work requiring higher than regular rates and expense of renderings or models for the Owner's use. 5.1.4 Expense of computer time for professional services when included in Paragraph II. 5.1.5 Expense of computer time when used in connec- tion with Additional Services. ARTICLE 6 PAYMENTS TO THE ARCHITECT 6.1 Payments on account of the Architect's Basic Serv- ices shall be made as follows: 6.1.1 An initial payment as set forth in Paragraph II is the minimum payment under this Agreement. 6.1.2 Subsequent payments for Basic Services shall be made monthly in proportion to services performed so that the compensation at the completion of each Phase, except when the compensation is on the basis of a Mul- tiple of Direct Personnel Expense, shall equal the follow- ing percentages of the total Basic Compensation: Schematic Design Phase ........ 15% Design Development Phase ...... 35% Construction Documents Phase ... 75% Bidding or Negotiation Phase .... 80% Construction Phase ............ 100% 6.1.3 If the Contract Time initially established in the Construction Contract is exceeded by more than thirty days through no fault of the Architect, compensation for Sasic Services performed by Principals, employees and professional consultants required to complete the Ad- ministration of the Construction Contract beyond the thirtieth day shall be computed as set forth in Para- graph II for Additional Services. 6.2 Payments for Additional Services of the Architect as defined in Paragraph 1.3, and for Reimbursable Expenses as defined in Article S, shall be made monthly upon presentation of the Architect's statement of services ren- dered. 6.3 No deductions shall be made from the Architect's compensation on account of penalty, liquidated dam- ages, or other sums withheld from payments to con- tractors. 6.4 If the Project is suspended for more than three months or abandoned in whole or in part, the Architect AIA DOCUMENT 6141 • 01NNER-ARCHITECT AGREEMENT JANUARY 1974 EDITION • AIA®•001974 (~ THE AMERICAN 1N5T{TUTE Of ARCHITECTS, 1735 NEW YORK AVE., N.W., WASHINGTON, D. C. 20006 __