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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) authorize re-bidding 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 prior 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. If necessary, the Engineer will implement construction cost savings measures or otherwise endeavor to limit probable construction cost to the level of available funds set by the city. ARTICLE 4 REIMBURSABLE EXPENSES 4.1 Reimbursable expenses, including such things as expenses for plotting, reproduction of documents except bid documents, auto travel mileage, delivery charges, long distance communications, freight, and state accessibility review are not included in the Engineer's basic services compensation. Reimbursable expenses are to be charged to the City by the Engineer at cost +10%. Reimbursable expenses will not exceed $5,000.00 without the City's prior written approval. 11