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<br />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 Architect.
<br />5.1.2 The Construction Cost shall include the cost at current
<br />market rates of labor and materials furnished 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. In addition, a reasonabte allow-
<br />ance for contingencies 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 Architect's consultants, the costs of the land,
<br />rights-of-way, financing or other costs which are the respon-
<br />sibility of the Owner as provided in Article 4.
<br />5.2 RESPaNSIBILITY FOR CONSTRUCTION COST
<br />5.2.1 Evaluations of the Owner's Project budget, preliminary
<br />estimates of Construction Cost and detailed estimates of Con-
<br />struction Cost, if any, prepared by the Architect, represent the
<br />Architect's best judgment as a design professional familiar with
<br />the construction industry. It is recognized, however, that nei-
<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 competitive bidding, market
<br />or negotiating conditions. Accordingly, the Architect cannot
<br />and does not warrant or represent that bids or negotiated prices
<br />will not vary from the Owner's Project budget or from any
<br />estimate of Construction Cost or evaluation prepared or agreed
<br />to by the Architect
<br />5.2.2 No fixed limit of Construction Cost shall be established
<br />as a condition of this Agreement by the furnishing, proposal or
<br />establishment of a Project budget, unless such fixed limit has
<br />been agreed upon in writing and signed by the parties hereto. If
<br />such a fixed limit has been established, the Architect shall be
<br />permitced ro include contingencies for design, bidding and
<br />price escalation, to determine what materials, equipment, com-
<br />ponent systems and types of construction are ro be included in
<br />the Contract Documents, to make reasonable adjustments in
<br />the scope of the Project and to include in the Contract Docu-
<br />ments altemate bids to adjust the Construction Cost to the fixed
<br />limit. Fixed limits, if any, shail be increased in the amount of an
<br />increase in the 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 Architect submits the Construction
<br />Documents ro the Owner, any Project budget or fixed limit of
<br />Construccion 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 the Construction Documents to the
<br />Owner and the date on which proposals are sought.
<br />5.2.4 If a fixed limit of Construction Cost (adjusted as pro-
<br />vided in Subparagraph 5.2.3) is eKCeeded by the lowest bona
<br />£de bid or negotiated proposal, the Owner shall:
<br />.1 give written approval of an inerease in such fixed
<br />limit;
<br />.2 authorize rebidding or renegotiating of the Project
<br />within a reasonable time;
<br />.3 if the Proiect is abandoned, terminate in accordance
<br />with Paragraph 8.3; or
<br />.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, shall modify the Con-
<br />tract Documents as necessary to comply with the fixed limit, if
<br />established as a condition of this Agreement. The modification
<br />of Contract Documents shall be the limii of the Architect's
<br />responsibility arising out of the establishment of a fixed limit.
<br />The Architect shall be entitled ro 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 and 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 provided, the Architect shall be deemed
<br />the author of these documents and shall retain all common law,
<br />statutory and other reserved rights, including the copyright.
<br />The Owner shall be permitted to retain copies, including repro-
<br />ducible copies, of the Architect's Drawings, 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 />tect's Drawings, Specifications or other documents shall not be
<br />used by the Owner or others on other projects, for additions to
<br />this Project or for completion of this Project by others, unless
<br />the Architect is adjudged to be in default under this Agreement,
<br />except by agreement in writing and with appropriate compen-
<br />sation to the 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 between the
<br />par[ies to this Agreemen[ arising out of or relating to this Agree-
<br />ment or breach thereof shall be subject to and decided by arbi-
<br />tration in accordance with the Constniction Industry Arbitra-
<br />tion Rules of the Ainerican Arbitration Association currentlv in
<br />effect unless the parties mutually agree otherwise.
<br />7.2 Demand for arbitration shall be filed in writing with the
<br />other party to this Agreement and with the American Arbitra-
<br />tion Association. A demand for arbitration shall be made within
<br />a reasonable time after Lhe claim, dispute or other matter in
<br />question has arisen. In no event shall the demand for arbitration
<br />be made after the date «dhen institution of legal or equitable
<br />proceedings based on such claim, dispute or other matter in
<br />qucs[ion R ould be barred by [he applicable statutes of limitations.
<br />7.3 No arbitration arising out of or relating to this Agreement
<br />shall include, by consolidation, joinder or in any other manner,
<br />an additional person or entity not a parn- to this Agreement,
<br />AIA DOCUMENT 8141 • OWNER-ARCHI'I'ECT AGREEMENT 0 FOURTEENTH EDITION * AlAS •@1987
<br />THE A3IERICAN INSTITUTE OF ARCHITEC7'S, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006 8141-1987 6
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