Res 1985-081 - Laserfiche WebLink

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-9- profit" 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 Architect and the Architect'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, Opinion of Probable Construction Cost and Detailed Estimates of Construction Cost, if any, prepared by the Architect, represent the Architect's best judgment as a design professional familiar with the construction industry. It is recognized, however, that neither the Architect nor the Owner has control over the cost of labor, materials or equipment, over the Contractor's methods of determining bid prices, or over competitive bidding, market or negotiating conditions. Accordingly, the Architect cannot and does not warrant or represent that bids or negotiated prices will not vary from the Project budget proposed, established or approved by the Owner, if any, or from any Opinion of Probable Construction Cost or other cost estimate or evaluation prepared by the Architect. 3.2.2 A fixed limit of construction cost has been established for this Project. The Architect 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 and to include in the contract documents alternate bids to adjust the construction cost to the fixed limit. The fixed limit of construction cost may be increased by Owner. Any such increase in the fixed limit of construction cost shall result in increased compensation to Architect as provided in Section 14.2 of this Agreement. 3.2.3 If the Bidding or Negotiation Phase has not commenced within three (3) months after the Architect submits the Construction Documents to the Owner, any Project budget or fixed limit of Construction Cost shall be adjusted to reflect any change in the general level of prices in the construction industry between the date of submission of the Construction Documents to the Owner and the date on which proposals are sought.