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Init.
<br />payment from the Owner, or (2) the Owner has deposited funds with the Construction Manager with which to make
<br />payments; otherwise, cash discounts shall accrue to the Construction Manager. Trade discounts, rebates, refunds and
<br />amounts received from sales of surplus materials and equipment shall accrue to the Owner, and the Construction
<br />Manager shall make provisions so that they can be obtained.
<br />§ 6.9.2 Amounts that accrue to the Owner in accordance with the provisions of Section 6.9.1 shall be credited to the
<br />Owner as a deduction from the Cost of the Work.
<br />§ 6.10 Related Party Transactions
<br />§ 6.10.1 For purposes of Section 6.10, the term "related party" shall mean a parent, subsidiary, affiliate or other
<br />entity having common ownership or management with the Construction Manager; any entity in which any
<br />stockholder in, or management employee of, the Construction Manager owns any interest in excess of ten percent in
<br />the aggregate; or any person or entity which has the right to control the business or affairs of the Construction
<br />Manager. The term "related party" includes any member of the immediate family of any person identified above.
<br />§ 6.10.2 If any of the costs to be reimbursed arise from a transaction between the Construction Manager and a
<br />related party, the Construction Manager shall notify the Owner of the specific nature of the contemplated
<br />transaction, including the identity of the related party and the anticipated cost to be incurred, before any such
<br />transaction is consummated or cost incurred. If the Owner, after such notification, authorizes the proposed
<br />transaction, then the cost incurred shall be included as a cost to be reimbursed, and the Construction Manager shall
<br />procure the Work, equipment, goods or service from the related party, as a Subcontractor, according to the terms of
<br />Sections 2.3.2.1, 2.3.2.2 and 2.3.2.3. If the Owner fails to authorize the transaction, the Construction Manager shall
<br />procure the Work, equipment, goods or service from some person or entity other than a related party according to
<br />the terms of Sections 2.3.2.1, 2.3.2.2 and 2.3.2.3.
<br />§ 6.11 Accounting Records
<br />The Construction Manager shall keep full and detailed records and accounts related to the cost of the Work and
<br />exercise such controls as may be necessary for proper financial management under this Contract and to substantiate
<br />all costs incured. The accounting and control systems shall be satisfactory to the Owner. The Owner and the
<br />Owner's auditors shall, during regular business hours and upon reasonable notice, be afforded access to, and shall be
<br />permitted to audit and copy, the Construction Manager's records and accounts, including complete documentation
<br />supporting accounting entries, books, correspondence, instructions, drawings, receipts, subcontracts, Subcontractor's
<br />proposals, purchase orders, vouchers, memoranda and other data relating to this Contract. The Construction
<br />Manager shall preserve these records for a period of three years alter final payment, or for such longer period as may
<br />be required by law.
<br />ARTICLE 7 PAYMENTS FOR CONSTRUCTION PHASE SERVICES
<br />§ 7.1 Progress Payments
<br />§ 7.1.1 Based upon Applications for Payment submitted to the Architect by the Construction Manager and
<br />Certificates for Payment issued by the Architect, the Owner shall stake progress payments on account of the
<br />Contact Sunt to the Construction Manager as provided below and elsewhere in the Contract Documents.
<br />§ 7.1.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of
<br />the month, or as follows:
<br />§ 7.1.3 Provided that an Application for Payment is received by the Architect not later than the fifth day of a month,
<br />the Owner shall sake payment of the certified amount to the Construction Manager not later than the last day of the
<br />same month. 1f an Application for Payment is received by the Architect after the application date fixed above,
<br />payment shall be made by the Owner not later than thirty ( 30 ) days after the Architect receives the Application for
<br />Payment.
<br />§ 7.1.4 With each Application for Payment, the Construction Manager shall subunit payrolls, petty cash accounts,
<br />receipted invoices or invoices with check vouchers attached, and any other evidence required by the Owner or
<br />Architect to demonstrate that cash disbursements already made by the Construction Manager on account of the Cost
<br />of the Work equal or exceed progress payments already received by the Construction Manager, less that portion of
<br />AIA Document A13394— 2009 (formerly A121 "'CMc —2003). Copyright ©1991, 2003 and 2009 by The American Institute of Architects. All rights reserved.
<br />WARNING: This AIA" Document is protected by U.S. Copyright Law and International 'treaties. Unauthorized reproduction or distribution of this AIM
<br />Document, or any portion of it, may result in seven civil and criminal penalties, and will be prosecuted to the maximus extent possible under the law.
<br />This document was produced by AIA software at 16:20:45 on 12/02/2014 under Order No.3644058906_1 which expires on 08/14/2015, and is not for resale.
<br />User Notes: (1970105415)
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