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ARTICLE 5
<br />CONSTRUCTION COST
<br />5.1 DEFINITION
<br />5.1.1 The Cons' nIet it Oust shall be the total cost or esti-
<br />mated cusr ut the- ( )\vtier nl';Ili elemoIts of I lie 1 1rt eet designed
<br />or specified by the Architect.
<br />5.1.2 The C:nnsrruel ion (:test shall include the cot. at ctmmr
<br />market rates of lobar and materials furnished by the Owner and
<br />equipment designed. specilied, .selected or specially provided
<br />for by the Architect, plus a retu unable allowance ti If the C }tn-
<br />trac'tor's overhead and profit. In addirian, a r:uatnable allow•
<br />ancc for contingencies shall he included for ntirket conditions
<br />at the time of bidding and for changes in the Work during
<br />construction.
<br />5.1.3 Cnnsmact it Cost (Ines nit include the coinpcnsatinn of
<br />the Archite'c't and Arc'hitect's e'nnsult:nits, the et mix ul' the land,
<br />righrsof -way, financing or other costs which are the respon-
<br />sibility of the Owner as provided in Article 4.
<br />5.2- RESPONSIBIIJTY FOR CONSTRUCTION COST
<br />5.2.1 I:va luations of the Owner's Project budget, preliminary
<br />estimates of Construction Cost and detailed estimates of Con.
<br />_unction Cost, if any, prepared by the Architect, represent the
<br />Architect's bust judgment as a design pmfessdornl familiar with
<br />the eonstrtction industry. It is recognized, however, that nei-
<br />ther the Architect nor the Owner has control over the east of
<br />labor, materials or equipment, nver the Contractor's methods
<br />of determining hies prices, or over competitive bidding, marker
<br />or negotiating conditions. Accordingly, the Architect cannot
<br />and does not warrant or represent that hicks or negotiated prices
<br />will not vary from the Owner's Project budget or from any
<br />• estimate of Construction Cost or evaltration 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 Agreement by the furnishing, proposal or
<br />establishment of a Project budget, unless such axed limit has
<br />been agreed upon in writing and signed by the panics hereto. If
<br />such a fixed Mint has been established, the Architect shall he
<br />permitted to include contingencies fur design, bidding and
<br />price meal:l itin, 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 and to include in the Contract Docu-
<br />ments alternate bids to adjust the Constntcrion Cost to the fixed
<br />limit. Fixed limits, if any, shall Ix- increased in the amount of an
<br />increase in the Contract Sum occurring :after execution of the
<br />Contract for Construction.
<br />.3 if the Project is abandoned, terminate in accordance
<br />with Paragraph 8.3: or
<br />.4 etxmilerlie in noising the Project scope and quality as
<br />requind to reduce the Construction Cost.
<br />5.2.5 If the Owner chooses to proceed under Clause
<br />Ihc Architect, without additional charge, shall ntociil \' the Con.
<br />tmc't Doe'tlmtins as neCesCan• to Comply with the lixc'd limit, if
<br />(stabil-di 'el :ts a ctuulitit n of this Agreement. The modification
<br />of Contract Documents shall he the Unlit of the Architect's
<br />responsibility arising out ul'the establishment of :t fixed limit.
<br />'Ile Architect shall he entitled to ctimpenst ion in accordance
<br />with this Agreement fur all services perfnrnied 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 muniments of the
<br />Architects service for «se solely with respect to this Pmjtct
<br />and, unless otherwise provided. the Arcltitee't shall he deemed
<br />the author of these documents and shall retain all common law,
<br />statutory and other nerved rights, including the copyright.
<br />The Owner shall he permitted to train copies, including repro-
<br />ducible copies, of the Architect's Drawings, Specifications and
<br />other documents for information and refeemtt in connection
<br />with the Owner's WIC and occupancy of the Project. The Archi-
<br />tect's Drawings, Specifications or other documents shall not he
<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 he in default under this Agreement.
<br />except by agreement in writing and with uppmpri to compen-
<br />sation to the Architect.
<br />6.2 Submission or distribution of documents to meet official
<br />regulatory nrquinrncnrs or for similar purposes in connection
<br />with the I'n'ject is norm he construed as publication in deroga-
<br />tion of the Archnrc's reserved rights.
<br />5.2.3 If the Ridding or Negnriation Phase has not cnmrtienced
<br />within 9n clays ..after the Architect submits the Construction
<br />Documents to toy Owner, any Project budget or fixed limit of
<br />Construction Cost shall he adjusted In reflect changes in the
<br />general level nl' prices in the constructkm industry between the
<br />date of submission of the Constntcrion Documents to the
<br />Owner and the date on which proposals are sought.
<br />5.2.4 If a fixed limit of Construction Cost (adjussred as pro-
<br />vided in Subparagraph S.2.3) is exceeded by the lowest Nina
<br />fade hid or negotiated proposal, the Owner small:
<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 />Page 9
<br />ARTICLE 7
<br />ARBITRATION
<br />/1 Claims. disputes or other matters in question between the
<br />parties to ibis Agreement arising out of or relating to this Agree-
<br />ment or Iareuch thereof shall he subject to and decided by :alai-
<br />train in accarel:ncc with the Cunsr nylon Industry Arbitra-
<br />tion Rules of Ihc• American Arbitration Association currently in
<br />efText unless the panics mutually agree otherwise.
<br />7.2 Demand for arbitration shall Ix fllel in writing with the
<br />other party to this Agreement and with the Annericm Arbitra-
<br />tion Association. A demand for arbitration shall he made within
<br />:a reasonable time after the claim- dispute or otter matter in
<br />question has arisen. In no event shall the demand for arbitration
<br />he made after the date when institution of legal or equitable
<br />proceedings based on such claim, dispute or other matter in
<br />question would be barred by the 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 addition:II person or entity not a party 10 this Agree:ent.
<br />AIA DOCUMENT 0141 • owNER- Alt]IITF.tT AGREEMENT • FOURTEENTH Forma • AIA^ • (019117
<br />Till? AMERICAN INST1'I'IITE of ARCHITECTS, 1735 NEW YORK AVENUE, NAV., WAS, tINOTON, D.C. 1tanK
<br />8141 -1987 6
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