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Init. <br />§ 11.6.2 For Reimbursable Expenses the compensation shall be the expenses incurred by the Construction Manager <br />and the Construction Manager's consultants plus zero percent ( 0 %) of the expenses incurred. <br />§ 11.7 Payments to the Construction Manager <br />§ 11.7.1 An initial payment of (n /a) ($ ) shall be made upon execution of this Agreement and is the minimum <br />payment under this Agreement. It shall be credited to the Owner's account in the final invoice. <br />§ 11.7.2 Unless otherwise agreed, payments for services shall be made monthly in proportion to services performed. <br />Payments are due and payable upon presentation of the Construction Manager's invoice. Amounts unpaid thirty (30 <br />) days after the invoice date shall bear interest at the rate entered below, or in the absence thereof at the legal rate <br />prevailing from time to time at the principal place of business of the Construction Manager. <br />(Insert rate of monthly or annual interest agreed upon.) <br />§ 11.7.3 The Owner shall not withhold amounts from the Construction Manager's compensation to impose a penalty <br />or liquidated damages on the Construction Manager, or to offset sums requested by or paid to Contractors for the cost <br />of changes in the Work unless the Construction Manager agrees or has been found liable for the amounts in a binding <br />dispute resolution proceeding. <br />§ 11.7.4 Records of Reimbursable Expenses, expenses pertaining to Additional Services, and services performed on <br />the basis of hourly rates shall be available to the Owner at mutually convenient times. <br />ARTICLE 12 SPECIAL TERMS AND CONDITIONS <br />Special terms and conditions that modify this Agreement are as follows: <br />12.1 All notices and other communications pursuant to this Agreement shall be in writing and shall be deemed to have <br />been duly given to the other party (a) on the day it is personally delivered or transmitted by facsimile or e-mail; (b) on <br />the day after being sent by Federal Express (or comparable overnight delivery service), all fees prepaid; or (c) on the <br />second day after being mailed by United States certified or registered mail, postage prepaid. Notices shall be sent to <br />the other party at the address, fax number or e -mail address set forth in this Agreement, or at such other address, fax <br />number or e-mail address for receiving notices and other communications as shall be given in writing by the receiving <br />party to the other party. Similar provisions shall be made applicable to communications involving the Architect and to <br />communications involving any of the Contractors. <br />12.2 Construction Manager shall provide the methodology to allow the Owner to yield the benefits of it "sales tax <br />exempt" status through direct material purchases. This methodology shall incorporate the provisions of the League of <br />Minnesota Cities Information Memo entitled "City Sales Tax Exemptions in Construction Contracts" dated November <br />7, 2013, a copy of which the Construction Manager hereby acknowledges receiving. The Construction Manager shall <br />also ensure all pertinent provisions of Minnesota Statutes are complied with. The Construction Manager shall also <br />advise the Owner of any unreasonable risk that could be assumed in the direct purchases of materials. <br />12.3 The Construction Manager shall not be allowed to bid on any bid package associated with the Project. The <br />Construction Manager may utilize its own forces to perform incidental work on the Project's site to deal with clean -up <br />or other needed items with the authorization of the Owner and at agreed upon rates of reimbursement. <br />ARTICLE 13 SCOPE OF THE AGREEMENT <br />§ 13.1 This Agreement represents the entire and integrated agreement between the Owner and the Construction <br />Manager and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement <br />may be amended only by written instrument signed by both Owner and Construction Manager. This Agreement, <br />including any amendment thereto, may be executed in several counterparts, each of which shall be deemed to be an <br />original and all of which together shall constitute one Agreement binding on xerographic, electronically transmitted, <br />or similar copy of a handwritten signature to this Agreement or an electronic signature to this Agreement, including <br />any amwendment thereto, shall be deemed an original signature for purposes of enforcing this Agreement. <br />§ 13.2 This Agreement is comprised of the following documents listed below: <br />AIA Document C132TM — 2009 (formerly B801 T"CMa — 1992). Copyright © 1973, 1980, 1992 and 2009 by The American Institute of Architects. An rights <br />reserved. WARNING: This Ain Document is protected by U.S. Copyright Law and international Treaties. Unauthorized reproduction or distribution of <br />this AIA°' Document, Or any portion of it may result in severe civil and criminal penalties, and will be prosecuted to the maxiinun'' 05(0111 possible und0r <br />the law. This document was produced by AIA software at 10:12:33 on 12/18/2013 under Order No.1645001270 _ 1 which expires on 10/17/2014, and is not for <br />resale. 20 <br />User Notes: <br />(1400123506) <br />19 <br />