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I I was increased by any significant sums because the engineer or any subcontractor furnished incomplete or inaccurate cost or pricing data or data not current as certification of current cost or pricing data (EPA form 570Q-41), then such price, cost, or profit shall be reduced accordingly and the agreement shall be modified in writing to reflect such reduction. (b) Failure to agree on a reduction shall be subject to the remedies clause of this agreement. (Nate.-Since the agreement is subject to reduction under this clause by reason of defective cost or pricing data submittod in connection with certain subcontracts, the engineer may wish to include a clause in each such subcontract requiring the subcontractor to appropriately indemnify the engineer. It is also expected that any subcontractor subject to such indemnification will generally require sub- stantially similar indemnification for defective cost or pricing date required to be submittod by his lower tier subcontractors.) 11. SUBCONTRACTS (a) Any subcontractors and outside associates or consultants required by the engineer in connection with services under this agreement will be limited to such individuals or firms as were specifically identified and agreed to during negoti- ations, or as the owner specifically authorizes during the performance of this agreement. The owner must give prior approval for any substitutions in or ad- ditions to such subcontractors, associates, or consultants. (b) The Engineer may not subcontract services in excess of thirty (30) percent (or percent, if the owner and the engineer hereby agree) of the con- tract price ~subcontractors or consultants without the owner's prior written approval. 12. LABOR STANDARDS To the extent that this agreement involves "construction" (as defined by the Secretary of Labor), the engineer agrees that such construction work shall be subject to the following labor standards provisions, to the extent applicable: (a) Davis-Bacon Act (40 U.S.C. 276a-276a-7); (b) Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333); (c) Copeland Anti-Kickback Act (18 U.S.C. U74), and (d) Executive Order 11246 (Equal Employment Opportunity); and implementing rules" regulations, and relevant orders of the Secretary of Labor or EPA. The engineer further agrees that this agreement shall include and be subject to the llLabor Standards Provisions for Federally Assisted Construction Contracts" (EPA form 5720-4) in effect at the time of execution of this agree- ment. 13. EQUAL EMPLOYMENT OPPORTUNITY I~ accordance with EPA policy as expressed in 40 CFR 30.420-5, the engineer agrees that he will not discriminate against any employee or application for employ- ment because of race, religion, color, sex, age, or national origin. Page 6 of 8 pages