Res 1986-014 - Laserfiche WebLink

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3 CONSTRUCTION COST 3.1 DEFINITION 3.1.1 The Construction Cost shall be the total cost or estimated cost to the Owner of all elements of the project(s) designed or specified by the Engineer. 3.1.2 The Construction Cost shall include at current market rates, including a reasonable allowance for overhead and profit, the cost of any equipment which has been designed, specified, selected or specially provided for by the Engineer, except that used materials and equipment shall be included as if purchased new for the Project(s). The term IIreasonable allowance for overhead and profitll shall mean fifteen percent (15%) on the basis of actual cost directly related to the work. The actual cost shall be limited to: labor, including foremen, materials entering permanently into the work, the ownership or rental cost of construction plant and equipment during the time of use on the work, power and consumable supplies for the operation of power equipment, insurance and social security and old age and unemployment contributions. 3.1.3 Construction Cost does not include the compensation of the Engineer and the Engineer's consultants, the cost of the land, rights-of-way, or other costs which are the responsibility of the Owner as provided in Article 2. 3.2 RESPONSIBILITY FOR CONSTRUCTION COST 3.2.1 Evaluations of the Owner's Project budget, Statements of Probable Construction Cost and Detailed Estimates of Construction Cost, if any, prepared by the Engineer, represent the Engineer's best judgment as a design professional familiar with the construction industry. 3.2.2 A fixed limit of construction cost will be established for this project(s). The Engineer shall be permitted to include contingencies for design, bidding and price escalation, to determine what materials, equipment, component systems and types of construction are to be included in the contract documents, to make reasonable adjustments in the scope of the project(s) and to -15-