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the construction industry. <br />3.2.2 A fixed limit of construction cost for this Project will be established by the City's <br />representative after consulting with the Engineer. The Engineer will be permitted to include <br />contingencies for design, bidding and price escalation, to determine what materials, equipment, <br />and types of construction are to be included in the construction contract documents, to make <br />reasonable adjustments in the scope of the Project and to include in the construction contract <br />documents alternate bids to adjust the construction cost to the fixed limit. The fixed limit of <br />construction cost may be increased by the City. <br />3.2.3 If the lowest bona fide bid exceeds the Engineer's most recent approved cost estimate <br />established as a condition of this Agreement, the City will (1) give written approval of an <br />increase in such fixed limit, (2) authorize re-bidding of the Project within a reasonable time, or <br />(3) cooperate in revising the Project scope and quality to reduce the construction cost. During <br />the development of the Project through the phases described by Article 1 of this Agreement and <br />prior to the City's final approval of construction contract documents, the Engineer will monitor <br />the established probable construction cost in relation to the established fixed limit. If necessary, <br />the Engineer will implement construction cost savings measures or otherwise endeavor to limit <br />probable construction cost to the level of available funds set by the City. <br />ARTICLE 4 <br />REIMBURSABLE EXPENSES. <br />4.1 Reimbursable expenses, including such things as expenses for plotting, reproduction of <br />documents except bid documents, auto travel mileage, delivery charges, long distance <br />communications, freight, and state accessibility review are included in the Engineer's basic <br />services compensation. <br />ARTICLE 5 <br />PAYMENTS TO THE ENGINEER <br />5.1 PAYMENTS ON ACCOUNT OF BASIC SERVICES <br />Payments for Basic Services will be made to Engineer monthly following receipt by City of <br />Engineer's invoices and appropriate payment requisitions. The amounts of these invoices will be <br />based upon the extent of work completed by the Engineer on a percentage basis within each <br />phase of services, in accordance with Article 15 of this Agreement, less any disputed amounts, <br />pending resolution thereof. <br />5.2 PAYMENTS ON ACCOUNT OF ADDITIONAL SERVICES <br />Payments on account of the Engineer's Additional Services as defined in Section 1.8 will be <br />made monthly upon presentation of the Engineer's statement of services rendered or expenses <br />incurred, less any disputed amounts, pending resolution thereof and an Authorization of Change <br />KBR McCarty Agreement 2008 <br />13 <br />