2008-11-10 Regular Meeting, Public Hearing and Workshop Meeting of the La Porte City Council

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§ 5.1 COMPENSATION § 5.1.1 For the Construction Manager's performance of the Work, the Owner shall pay the Construction Manager in current funds and subject to the Guaranteed Maximum Price the Contract Sum consisting of the Cost of the Work as defined in Article 6, the expended portion of the Construction Contingency as defined in Section 2.2.2, and the Construction Manager's Fee determined as follows: As adjusted by any approved Change Order, Notwithstanding the foregoing changes in the Scope of the Work and change orders may be permitted only in accordance with the provisions of the Contract. No Construction Manager fee shall be paid on the Construction Manager's Contingency or the Owner's Contingency until funds are allocated from those contingencies to the Cost of the Work. All reimbursement for profit; indirect costs; all telephone bills for all personnel; all facsimile charges; home office personnel and benefits assigned to the Project; home office overhead and expenses; home office personnel relocation; all home office accounting, audit, legal, and data processing fees and expenses; and all travel, meals and lodging shall be deemed to be included in the Construction Manager's fee. For Owner's approved changes in the Scope of the Work resulting in an increase or decrease in each Guaranteed Maximum Price, the Construction Manager shall receive and increase or decrease in fee. General Condition Cost and Reimbursed items as submitted to City in " step 2" Proposal. (State a lump sum, percentage of actual Cost of the Work or other provision for determining the Construction Manager's Fee, and explain how the Construction Manager's Fee is to be adjusted for changes in the Work.) § 5.2 GUARANTEED MAXIMUM PRICE § 5.2.1 The Guaranteed Maximum Price for the Project shall be added to this Agreement by the execution of Amendment No. 1, as .approved by Owner's City Council, which Amendment No. 1 shall thereafter be incorporated into this Agreement for all purposes. The sum of the Cost of the Work, General Conditions of the Contract, and the Construction Manager's Fee are guaranteed by the Construction Manager not to exceed the amount provided in Amendment No. i ("Guaranteed Maximum Price"), as approved by Owner's City Council, subject to any additions and deductions approved by Owner's City Council, due to Owner's City Council -approved changes in the Work as provided in the Contract documents. Such maximum sum as adjusted by approved changes in the Work is referred to in the Contract Documents as the Guaranteed Maximum Price. Costs which would cause the Guaranteed Maximum Price to be exceeded shall be paid by the Construction Manager without reimbursement (paragraphs deleted) By the Owner. Should the Construction Manager complete the Project for less than the Guaranteed Maximum Price, the remaining funds shall be credited to the Owner as a deduction from the Guaranteed Maximum Price. Construction Manager shall also return to the Owner all unused funds from any Contingency account as a deduction from the Guaranteed Maximum Price. The Construction Manager shall not participate in any savings. All savings shall be credited to Owner. It is the intent of the parties that if the Cost of the Work plus the Construction Manager's fee is less than the Guaranteed Maximum Price, as it may be adjusted by approved Change Orders, the entire amount of the savings shall be returned to Owner. (Insert specific provisions if the Construction Manager is to participate in any savings.) § 5.3 CHANGES IN THE WORK § 5.3.1 Adjustments to the Guaranteed Maximum Price shall be calculated in accordance with Article 7 of the General Conditions of the Contract, as amended. Adjustments to the Guaranteed Maximum Price shall only be considered on account of Owner -approved changes in the Work subsequent to the execution of Amendment No. 1; provided, however, that no adjustment to the Guaranteed Maximum Price shall become effective unless approved by the Owner. § 5.3.2 In calculating adjustments to subcontracts (except those awarded with the Owner's prior consent on the basis of cost plus a fee), the terms "cost" and "fee" as used in Section 7.3.3.3 of A201 TM-1997 and the terms "costs" and "a reasonable allowance for overhead and profit" as used in Section 7.3.6 of A201 TM-1997 shall have the meanings assigned to them in that document and shall not be modified by this Article 5. Adjustments to subcontracts awarded with the Owner's prior consent on the basis of cost plus a fee shall be calculated in accordance with the terms of those subcontracts. § 5.3.3 In calculating adjustments to the Contract, the terms "cost" and "costs" as used in the above -referenced provisions of A201 TM-1997 shall mean the Cost of the Work as defined in Article 6 of this Agreement, and the term Init. AIA Document A121 nmCMc — 2003 and AGC Document 565. Copyright© 1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING: This document is protected by U.S. Copyright Law and International Treaties. 1 Unauthorized reproduction or distribution of this document, or any portion of it, may result in severe civil and criminal penalties, and will be / prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 16:02:34 on 12/01 /2008 under Order No.1000375455_1 which expires on 10/20/2009, and is not for resale. User Notes: (4293007293)