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<br />2.9 If The Owner obsenc. nr otherwise becomes aware
<br />of any fault or defect in the Project, or nonconformance
<br />xcith the Conlracl Documents, prompt written notice
<br />thereof shall be gken by the Owner to the Construction
<br />Manager and the Architect.
<br />2.10 The Owner rescn'es the right to perform work re-
<br />lated to the Project with the Ossner's own forces, and to
<br />award contracts in connection with the Project which are
<br />not part of the Construction ,Manager's responsibilities un-
<br />der this Agrer.lent. The Construction Manager shall notify
<br />the Olt net if any such independent action will in any way
<br />compromise the Construction Manager's ability to meet
<br />the Construction Manager's responsibilities under this
<br />Agreement.
<br />2.11 The Ov.nef shall furnish the required information
<br />and services and shall render approvals and decisions as
<br />expeditiously as necessary for the orderly progress of the
<br />Construction Manager's services and the work of the Con.
<br />tractors.
<br />ARTICLE 3
<br />CONSTRUCTION COST
<br />3.1 Construction Cost shall be the total of the final Con-
<br />.'K,
<br />tract Sums of all of the separate Contracts, actual Reim.
<br />ursable Costs relating to the Construction Phase as de -
<br />filled in Article 6, and the Construction Manager's com-
<br />pensalion.
<br />3.2 Construction Cost does mauc include the compensa.
<br />lion of tht Architect and the Architect's consultanls,lihe
<br />cost of the land, rights-of-svay or other costs which are
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<br />3.3 Evaluations of the Owner's Project budget and cost
<br />estimates prepared by the Construction Manager represent
<br />the Construclion Manager's best judgment as a profes.
<br />sional familiar with the construction industry. It is recog-
<br />nized, howe\er, that neither the Construction Manager
<br />nor the Owner has control over ;he cost of labor, mate-
<br />rials or equipment, over Contractors' methods of de-
<br />lermining Bid prices or other competitive bidding or ne•
<br />gotialing conditions. Accordingly, the Construction Man.
<br />ager cannot and does not warrant or represent that Bids
<br />ur negotiated prices will not vary Irom the Project budget
<br />proposed, established or approved by the Owner, or from
<br />any cost estimate or evalualion prepared by Inc Construc-
<br />tion Manager.
<br />3.4 No fixed limit of Construction Cost shall be estab-
<br />lished at a condition of this Agreement by the furnishing,
<br />proposal or estahlkhment of a Project b!:dgel under Sub-
<br />paragraph 1.1.1 or Paragraph 2.2, or othemisr unless such
<br />fixed limit has been agreed upon in wriling and signed by
<br />the p.uries to this Agreement If such a fixed limit has been
<br />Gestablished. the ConstrucOnn Manager shall include on.
<br />ingencies for design, bidding and price escal>.i0n, and
<br />,hall cowuh with the Architect In determine what mate-
<br />rial., equipment, component systems and types of con-
<br />struclion are to he included in the Contract Documents,
<br />to suggest reasonable adjustments in the scope of the
<br />Project, and it, suggest atlernme Bid% in the Constaclion
<br />Documents it, adjust the Construction Cost to the fixed
<br />limit. Any such fixed limit shall be increased in the amount
<br />I)( any increase in the Contract Sums occurring after the
<br />execulitm of the Contracts for Construction.
<br />3.4.1 If Bids are not received v::hin the time scheduled
<br />at the time the fixed limit of Construction Cost was eslab.
<br />hshed, due to causes belond the Construction Manager's
<br />control, any fre0 limit of Construction Cost established
<br />as a ccndiiion of this Agreement shall be adjusted to re-
<br />flecl any change in the general level of prices in the con-
<br />struction indus;:/ occurring between the originally ached.
<br />uled date and the date on which Bids are received.
<br />3.4.2 If a fixed limit of Construction Cost (adjusted as
<br />provided in Subparagraph 3.4.1) is exceeded by the sum
<br />of the lowest figures from bona fide Bids or negotiated.
<br />proposals plus the Construction Manager's estimate of..
<br />other elemeits of Construction Cost fo. the Project, the''
<br />Owner shall (11 Bite written approval of an increase in
<br />such fixed limit. (2) authorize rebidding or renegotiation'
<br />of the Project or portions of the Project within a reason-'
<br />able time, Of if the Project is abandoned. terminate in -
<br />accordance wish Paragraph 10.2, or (4) cooperate In revis-
<br />ing the scope and quality of the Work as required to re-
<br />duce the Construction Cost. In the case of item (4), the ;
<br />Construction Manager, without additional compensation, .'
<br />shall cooperate with the Architect as necessary to bring
<br />the Construction Cost within the fixed limit.
<br />ARTICLE 4
<br />CONSTRUCTION SUPPORT ACTIVITIES
<br />4.1 Construction support activities, if provided by the
<br />Construction Manager, shall be governed by separate
<br />contractual 4rmngemenis unless otherwise provided in
<br />Article 16.
<br />ARTICLE 5
<br />DIRECT PERSONNEL EXPENSE
<br />5.1 Direct Personnel Expense is defined as the direct sal-
<br />aries of all of the Construction Manager's personnel en-
<br />gaged on the Project, excluding those whose compensa-
<br />tion is included in the fee, and the portion of the cost of
<br />their mandatory and customary contributions and benefits
<br />related thereto such as employment taxes and other statu-
<br />tory emplosco benefits, insurance, sick leave, holidays,
<br />xacalinrn. pensinn.. and similar contributions and bene.
<br />fits.
<br />ARTICLE 6
<br />REIMJURSABLE COSTS
<br />6.1 The term Reimbursable CaslA shall mean costs neces-
<br />sarily incurred in the proper performance of services and
<br />paid by the Consturtion Manage? Such costs shall be at
<br />rates nor higher Gon the standard paid in the locality of
<br />the Pmject. except with prior consent of the Owner. Re-
<br />Irr.hursable Costs and costs not to he reimbursed shall be
<br />listed in Article 16.
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