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<br />ARTICLE 5
<br />CONSTRUCTION COST
<br />5.1 DEFINITION
<br />5.1.1 The Construction Cost shall be the tocal cost or esti-
<br />mated cost to the Owner of all elemenu of the Project designed
<br />or spccified by the Archicect.
<br />5.1.2 The Construction Cost shall include the cost at current
<br />market rates of labor and materiaLs fumished by che Owner and
<br />equipment dcsigned, speci6ed, selected or spectiallY Provided
<br />for by the Architect, plus a rasonable allowancc for che Con-
<br />tractor's ovcrhead and profit. In addidon, a reasonable allow-
<br />ance for contingrncies shall be included for market conditions
<br />at the time of bidding and for changes in the Work during
<br />construction.
<br />5.1.3 Construction Cost does not include the compensation of
<br />the Architect and Architcct's consultants, the costs of the land,
<br />rights-of-way, financing or othcr costs which arc the respon-
<br />sibility of the Owner as provided in Article 4.
<br />5.2 FESPONSIBILITY FOR CONSTRUCTION COST
<br />5.2.1 Evaluuions of the Ownu's Project budgct, preliminary
<br />estimates of Consuuccion Cosc and decailed estimaces of Con-
<br />scrucdon Cost, if any, prepared by che Archicecc, represenc the
<br />Architect's best judgmrnt as a design professional familiu wich
<br />the consuuction industry. It is recogniud, however, thac nci-
<br />ther the Architect nor the Owner has control over the cost of
<br />labor, materials or equipmrnc, over che Contractor's mechods
<br />of detecmir?ing bid prices, or over compedtive bidding, market
<br />or negociacing condidons. Accordingiy, the Architect cannot
<br />and does not warcant or represent that bids or negoriucd prices
<br />will not vuy from the Owner's Project budgct or from any
<br />estimue of Construction Cost or evaluation prepared or agreed
<br />to by the Mchitect.
<br />5.2.2 No fixed limit of Construction Cost shall bc established
<br />u a condition of this Agreement by the fumishing, proposal or
<br />establighment of a Project budget, unless such fixed limit has
<br />bern agretd upon in writing and signed by the patties hereto. If
<br />such a fixed limit has bern escablished, the Archicect shall be
<br />permitted to include concingencies for design, bidding and
<br />price escalation, to determine what materials, cquipmrnt, com-
<br />ponent systems and types of consuuction are to be included in
<br />the Contract Documents, to make reasonable adjusunencs in
<br />the scope of the ProJect and to include in the Contract Docu-
<br />mrn[s alternate bids to adjusc che Construction Cost to the fixed
<br />limit. Fixed limits, if any, shall be increased in the amounc of an
<br />increase in the Contract Sum occurring after execudon of the
<br />Contraa for Consnuction.
<br />5.2.3 ff the Bidding or Negotiation Phase has not commenced
<br />within 90 days aRer the Architect submits thc Construction
<br />Documents to the Owner, any Projecc budgec or fixed limit of
<br />Construction Cost shall be adjusted to reIlect chznges in the
<br />generai Icvel of pdces in the construcdon industry between the
<br />dzce of submission of che Construction Documents co che
<br />Owner and the dau on which proposaLs are sought.
<br />5.2.4 If a fixcd limit of Construction Cost (adjusud as pro-
<br />vided in Subparagraph 5.2.3) Ls exceeded by the lowest bona
<br />fidc bid or negotiated proposal, che Owner shall:
<br />.1 give written approval of an increase in such fixed
<br />licnit;
<br />.2 authorize rebidding or renegotiating of the Project
<br />within a rcasonable time;
<br />
<br />.3 if the Project is abandoned, terminatc in accordancc
<br />with Paragraph 5.3; or .4 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 additional charge, stsail modify the Con-
<br />tract Documcnts as necessary to comply with the fixed limit, if
<br />established as a condition of this Agreement. The modificaaon
<br />of Concract Documents shall be the limit of the ArchitecYs
<br />responsibIlity arising out of the establishment of a fixed limit.
<br />The Architect shall be endded to compcnsation in accordance
<br />with this Agrecment for all services performed whether or not
<br />the Construction Phase is commenced.
<br />ARTIcLE s
<br />USE OF ARtHITECT'S DRAIMINt3S,
<br />SPECfF'ICATIONS AND OTHER DOCUIIiENTS
<br />6.1 The Drawings, Specifications and other documrnts pre-
<br />pared by the Architect for this Project aze instruments of the
<br />Architect's service for use solely with respect to this Projecc
<br />and, unless otherwise provided, the Architect shall be dcemed
<br />the author of chese documrnts and shall retain all common law,
<br />statutory and other rescrved rights, including the copyright.
<br />The Owner shall be permitted to retain copies, induding repra
<br />ducible copies, of the Architecc's Drawings, Specificadons and
<br />other documents for informadon and reference in connection
<br />with the Owner's use and occupancy of the Project. The Archi-
<br />tect's Drawings, Specificacions or other documrnts shall not be
<br />used by the Owner or others on other projects, for additions co
<br />this Project or for completion of this Project by others, unless
<br />the Architcct is adjudged co be in dcPiult under this Agreement,
<br />except by agreement in wricing and w'ith appropriate compen-
<br />sation to the Architect.
<br />6.2 Submission or distribution of documents to meet official
<br />regulatory requiremenu or for similar purposes in connecdon
<br />with the Project is not to be construed as publieation in deroga-
<br />tion of the Archi[ect's reserved rights.
<br />ARTICLE 7
<br />ARBITRATION
<br />7.1 CL?ims, disputes or other matters in quesuon between the
<br />parties to this Agreemenc arising ouc of or relating to this Agree-
<br />mrnt or breach chereof shall be subject co and decided by arbi-
<br />tration in accordancc with the Construction Industry Arbitra-
<br />tion Rules of the American Arbitration Association currendy in
<br />effect urilcss the parties mutually agree otherwise.
<br />7.2 Demand for arbitration shall be filed in writing with the
<br />other party to chis Agreement and with the American Arbitra-
<br />don Association. A demand for arbitradon shall be made within
<br />a reasonable timc after the claim, dispute or other mztter in
<br />question has arisen. In no event shall the demand for arbiuation
<br />be made after the date when insdtution of legal or equitable
<br />proceedings based on such claim, dispute or other matter in
<br />question would be trarced by the applipble statutes of limitations.
<br />7.3 No arbitration arising out of or relating to this Agreemrnt
<br />shall include, by consolidation, joinder or in any other manner,
<br />an additional person or endty noc a parry co chis Agreemrnc,
<br />AIA DOpMIT d/41 • OWNER ARCHITBCT AGREEMENT • FOURTF.BNTEi EDITION • NAO • 01987
<br />THE AMERICAN IIVSTITtTtE OF ARCHITECTS, 1735 NEW YORK AVBNUE, N.W., WASHINGTON, D.C. 20006 BI 41-1 sB7 G
<br />WARNING: Unikermd photocopying violates U.S. copyright laws and is stbJect to legal prosscutbn.
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