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3.1.3 Construction cost does not include the compensation of the Engineer and the Engineer's <br />consultants, or other costs which are the responsibility of the City as provided in Article 2. <br />3.2 RESPONSIBILITY FOR CONSTRUCTION COST <br />3.2.1 Evaluations of the City's Project budget and detailed cost estimates, if any, prepared by <br />the Engineer, will represent the Engineer's best judgment as a design professional familiar with <br />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. <br />If necessary, the Engineer will implement construction cost savings measures or <br />otherwise endeavor to limit probable construction cost to the level of available funds set by the <br />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 />26 <br />