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

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§ 6.4 ACCOUNTING RECORDS § 6.4.1 The Construction Manager shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Contract; the accounting and control systems shall be satisfactory to the Owner. The Owner and the Owner's accountants or other representative shall be afforded access to the Construction Manager's records, books, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project, and the Construction Manager shall preserve these for a period of twelve years after final payment, or for such longer period as may be required by law, including any record retention laws applicable t the Owner. ARTICLE 7 CONSTRUCTION PHASE § 7.1 PROGRESS PAYMENTS § 7.1.1 Based upon Applications for Payment properly submitted to the Architect by the Construction Manager and Certificates for Payment issued by the Architect, the Owner shall make progress payments on account of the Contract Sum to the Construction Manager as provided below and elsewhere in the Contract Documents. § 7.1.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of the month, or as follows: § 7.1.3 The Construction Manager's invoice or Application for Payment must be presented to the Architect for approval prior to presentation to the Owner. Within seven days of receipt of construction Manager's invoice, the Architect shall make a recommendation to the Owner regarding payment. In making such recommendation, the Architect shall specifically state the basis for such recommendation and the specific amount required to be withheld to protect the Owner's interest. Provided an Application for Payment is received and certified by the Architect not later than the first (Is`) day of a month, the Owner shall make payment to the Construction Manager for undisputed amounts within thirty (30) days of receipt of the certified Application for Payment by Owner. If an Application for Payment is received by the Architect after the application date fixed above, payment of the undisputed amounts shall be made by the Owner not later than twenty-five (25) days after the Architect receives and certifies the Application for Payment except that no payment shall be considered not paid when due or overdue except in accordance with Texas Government Code Section 2251.021. § 7.1.4 With each Application for Payment, the Construction Manager shall submit payrolls, petty cash accounts, receipted invoices or invoices with check vouchers attached and any other evidence required by the Owner or Architect to demonstrate that cash disbursements already made by the Construction Manager on account of the Cost of the Work equal or exceed (1) progress payments already received by the Construction Manager; less (2) retainage; less (3) that portion of those payments attributable to the Construction Manager's Fee; plus (4) payrolls for the period covered by the present Application for Payment. Each Application for Payment shall also include a list, with backup data, of how each payment shall be spent, including a list detailing which subcontractors and suppliers will be paid out of funds paid by the Owner and the amount of such payments to subcontractors and suppliers, and in the next payment cycle, proof of each payment to Construction Manager's subcontractors and suppliers after payment. § 7.1.5 Each Application for Payment shall be based upon the most recent schedule of values submitted by the Construction Manager in accordance with the Contract Documents. The schedule of values shall allocate the entire Guaranteed Maximum Price among the various portions of the Work, except that the Construction Manager's Fee shall be shown as a single separate item. The schedule of values shall be prepared in such form and supported by such data to substantiate its accuracy as the Architect may require. This schedule, unless objected to by the Architect, shall be used as a basis for reviewing the Construction Manager's Applications for Payment. § 7.1.6 Applications for Payment shall show the percentage completion of each portion of the Work as of the end of the period covered by the Application for Payment. The percentage completion shall be the percentage of that portion of the Work which has actually been completed. § 7.1.7 Subject to other provisions of the Contract Documents, the amount of each progress payment shall be computed as follows: Init. AIA Document A121 TMCMc — 2003 and AGC Document 565. Copyright 01991 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. 15 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: (4283007293)