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ARTICLE 5
<br />CONSTRUCTION COST
<br />5.1 DEFINITION
<br />5.1.1 The Cnnslrucrinn (:nst shall he II)c uaal cost or (Sti•
<br />mated cost to the ( )wncr of all elements of the Project dcsitu ucl
<br />or specified by the Architect.
<br />5.1.2 The (onstruction (:nst shall include the cost at current
<br />market rates of labor and materials furnished by the Owner and
<br />equipment designed, spec:Meth selected or specially prnwided
<br />for by the Architect, plus a rcasnn: hle allowance for the Con-
<br />tractor's overhead and profit. In addition, a reasonable allow-
<br />ance• for contingencies shall he included for market conditions
<br />at the time of bidding and for chtmges in the \\'ork during
<br />Cons) met in n.
<br />5.1.3 Construction Cast (111(5 run include Ihc compensation nl'
<br />the Architect and Architect's consultants, the costs of the land,
<br />rights-of-way. linaneirir cif tither costs \which are Inc I respon-
<br />sibility of the O vncr as provided in Article '1.
<br />5.2 RESPONSIBILITY FOR CONSTRUCTION COST
<br />5.2.1 Evaluations of the Owner's Project budget, preliminary
<br />estimates of Construction cost and det;Iiicd estimates of Con-
<br />struction Cost, if :my, prepared by the Architect, represent Inc I
<br />Architect's best judgment :IS a design prnlessional familiar with
<br />the construction industry. It IS recognized, however, than nei-
<br />ther the Architect nor the Owner has control over the cost of
<br />labor, materials or equipment, over Ihc 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 hick or negotiated prices
<br />will not vary from the Owner's Project budget or from anv
<br />estimate of Construction (:tl51 or evaluation prepared or agreed
<br />to by the Architect.
<br />5.2.2 No fixed limit of Construction Cost shall he established
<br />as a condition of this Agree'me'nt by the furnishing, proposal or
<br />establishment or a Project budget, unless such fixed limit has
<br />been agreed upon in writing and signal by Ihc panics hereto. If
<br />such a fixed limit has been established, the Architect shall be
<br />permitted to include contingencies for design, bidding and
<br />price use:dation, to determine what materials, equipment, com-
<br />ponent systems and types of construction are to he included in
<br />the Contract Documents, to make reasonable adjustments in
<br />the scope of the Project :Ind to include in the Contract Docu-
<br />ments alternate bids to adjust the Construction Cost ro the fixed
<br />limit. Fixed limits, if any, shall be increased in the amount of an
<br />increase in the Contract Sum occurring after execution of the
<br />Contract for Cnnst ruction. -
<br />5.2.3 If the (lidding or Negotiation Phase has not commenced
<br />within 91) days :rftcr the Architect .submits the Construction
<br />Documents to the Owner, any Project budget or fixed limit of
<br />Construction Cost shall he adjusted to reflect changes in the
<br />general level of prices in (Inc construction industry between Inc I
<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 :1 fixed limit of Construction Cost (adjusted as pro-
<br />vided in Subparagraph 5.2.3) is exceeded by the lowest Kona
<br />file bid or negotiated proposal, the Owner shall:
<br />.1 give written approval of an increase in such fixed
<br />limit;
<br />.2 authorize rebidding or renegotiating of the Project
<br />within a reasonable time;
<br />.3 it the Project is abandoned, terminate in accordance
<br />\with Paragraph 8.3: or
<br />.4 cooperate in revising the Project scope :Intl quality a5
<br />required to reduce the Construction Cost.
<br />5.2.5 If the O\vnar chooses m proceed under Clause
<br />the Architect, without addilinn :d charge, shall modify the Con-
<br />tract I)ncun)ents :t5 ncecssary to comply with the fixed lin)it,
<br />established as a condition of this Agreement. The modification
<br />of Contract Documents shall Inc the limit of the Architect's
<br />responsibility arising nut nr the est:bib:1 mt'm nl' a Iixctl limit.
<br />The Architect shall he entitled to cnlnpensatinn in accord:ince
<br />with this Agrecnient for all services performed whether or nor
<br />the Construction Phase is commenced.
<br />ARTICLE 6
<br />USE OF ARCHITECT'S DRAWINGS,
<br />SPECIFICATIONS AND OTHER DOCUMENTS
<br />6.1 The I)rinvings, Specifications :tncl 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 he 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 he permitted to retain copies, including repro -
<br />ducible copies, of the Architect's Drawings, Specifications and
<br />other documents fur information and reference in connection
<br />with (Inc Owner's use and ne'cup :lnc'v of the Project. The Archi-
<br />tect's Drawings, Specifications or ether documents shall not he
<br />used hp 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 compcn-
<br />sutinn 10 the Architect.
<br />6.2 Submission or distribution of documents a1 meet official
<br />regulatory requirements or for similar purposes in connection
<br />with Inc I 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 />parties to this Agreement arising out of or relating to this Agree-
<br />ment or breach thereof shall Inc subject to and decided by arbi-
<br />tration in accordance \with the CnnSlructinn Industry i \rhitr :I-
<br />Hon hefts of Ihc An)cric'an Arbitration Association currently in
<br />tweet unless the parties mutually agree otherwise.
<br />7.2 Demand for arbitration shall he tiled in writing with the
<br />other party to this Agreement and with the American Arbitra-
<br />tion Association. A demand for :u'hitration shall be made within
<br />a reasonahlc link after they claim, dispute or other matter in
<br />question has arisen. In no event shall Ihc demand liter arbitration
<br />be made after the clam when institution of legal or equitable
<br />proceedings based on such claini, dispute or other matter in
<br />question would Iv barred by Ihc applicable statutes of limitations.
<br />7.3 No arbitration arising out of or relating In this Agreement
<br />shall include, by consolidation, joinder or in any other manner,
<br />an additionaI person or entity not a party to this Agreement,
<br />AIA DOCUMENT 0141 • n \CNEH.AItel IIT'EIrr AGREEMENT • ROURTEIiNTII EDMON • AIM' • 4)19H7
<br />11 IV AMERICAN INSTITUTE OF AIICI Irl'EC'I :S, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 2(3014
<br />Page 82
<br />B141 -1987 6
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