Res 2007-189 - Laserfiche WebLink

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ARTICLE 3 CONSTRUCTION COST 3.1 DEFINITION 3.1.1 The construction cost WIll be the total cost or estimated cost to the City of all elements of the Project designed or specified by the Engineer. 3.1.2 The construction cost will 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 WIll be included as if purchased new for the Project. 3.1.3 Construction cost does not include the compensation of the EngIneer and the Engineer's consultants, or other costs which are the responsibIlIty of the City as provIded in Article 2. 3.2 RESPONSIBILITY FOR CONSTRUCTION COST 3.2.1 EvaluatIons of the CIty'S Project budget and detailed cost estImates, if any, prepared by the Engineer, will represent the EngIneer's best judgment as a design professional familiar with the constructIon Industry. 3.2.2 A fixed limit of construction cost for this Project WIll be established by the City's representatIve after consulting with the EngIneer. The Engineer will be permitted to include contingencies for design, bidding and price escalation, to determine what materials, equipment, and types of construction are to be included in the construction contract documents, to make reasonable adJustments In the scope of the Project and to include in the constructIon contract documents alternate bids to adjust the construction cost to the fixed limit. The fixed limit of construction cost may be increased by the CIty. 3.2.3 If the lowest bona fide bId exceeds the Engineer's most recent approved cost estimate established as a condition of this Agreement, the City will (1) give written approval of an increase In such fixed lImIt, (2) authonze re-biddlng of the Project within a reasonable tIme, or (3) cooperate in revising the Project scope and qualIty to reduce the construction cost. During the development of the Project through the phases described by Article 1 of this Agreement and pnor to the City's final approval of construction contract documents, the EngIneer WIll monItor the established probable construction cost in relation to the establIshed fixed limIt. In providing estimates of cost, financial analyses, economic feasibility projections, and schedules for the ProJect, both the CIty and the Engineer recognize that the EngIneer has no control over cost or pnce of labor and materials; unknown or latent conditions of existing equipment or structures that may affect operation or maintenance costs; competitive bIddIng procedures and market conditions; time or qualIty of performance by third partIes; quality, type, management, or direction of operating personnel; and other economic and operational factors that may materially affect the ultimate project cost and schedule. Therefore, the Engineer makes no warranty that the City's actual project costs, economic feasibIlity, or schedules WIll not vary from its opinions, Wet Weather Improvements Project - CH2M Hill 16