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<br />Architect cannot and does not guarantee that bids will
<br />not vary from any Statement of Probable Construction
<br />Cost or other cost estimate prepared by him,
<br />
<br />3.5 When a fixed limit of Construction Cost is estab-
<br />lished as a condition of this Agreement, it shall be in
<br />writing signed by the parties and shall include a bidding
<br />contingency of ten percent unless another amount is
<br />agreed upon in writing. When such a fixed limit is estab.
<br />lished, the Architect shall be permitted to determine what
<br />materials, equipment, component systems and types of
<br />construction are to be included in the Contract Docu-
<br />ments, and to make reasonable adjustments in the scope
<br />of the Project to bring it within the fixed limit. The archi-
<br />tect may also include in the Contract Documents alter-
<br />nate bids to adjust the Construction Cost to the fixed
<br />limit.
<br />
<br />3,5,1 If the Bidding or Negotiating Phase has not com-
<br />menced within six months after the Architect submits the
<br />Construction Documents to the Owner, any fixed limit
<br />of Construction Cost established as a condition of this
<br />Agreement shall be adjusted to reflect any change in the
<br />general level of prices which may have occurred in the
<br />construction industry for the area in which the Project is
<br />located, The adjustment shall reflect changes between
<br />the date of submission of the Construction Documents
<br />to the Owner and the date on which proposals are
<br />sought
<br />
<br />3,5,2 When a fixed limit of Construction Cost, including
<br />the Bidding contingency (adjusted as provided in Sub-
<br />paragraph 3.5,1, if applicable), is established as a condi-
<br />tion of this Agreement and is exceeded by the lowest
<br />bona fide bid or negotiated proposal, the Detailed Esti-
<br />mate of Construction Cost or the Statement of Probable
<br />Construction cost, the Owner shall (1) give written ap-
<br />proval of an increase in such fixed limit, (2) authorize re-
<br />bidding the Project within a reasonable time, or (3) co'
<br />operate in revising the Project scope and quality as re-
<br />quired to reduce the Probable Construction Cost. In the
<br />case of (3) the Architect, without additional charge, shall
<br />modify the Drawings and Specifications as necessary to
<br />bring the Construction Cost within the fixed limit. The
<br />providing of such service shall be the limit of the Archi-
<br />tect's responsibility in this regard, and having done so,
<br />the Architect shall be entitled to compensation in accord-
<br />ance with this Agreement.
<br />
<br />ARTICLE 4
<br />DIRECT PERSONNEL EXPENSE
<br />
<br />Direct Personnel Expense is defined as the salaries of
<br />professional, technical and clerical employees engaged
<br />on the Project by the Architect, and the cost of their
<br />mandatory and customary benefits such as statutory em-
<br />ployee benefits, insurance, sick leave, holidays, vacations,
<br />pensions and similar benefits.
<br />
<br />ARTICLE 5
<br />REIMBURSABLE EXPENSES
<br />
<br />5.1 Reimbursable Expenses are in addition to the Com-
<br />pensation for Basic and Additional Services and include
<br />actual expenditures made by the Architect, his employ-
<br />
<br />ees, or his professional consultants in the interest of the
<br />Project for the expenses listed in the following Subpara-
<br />graphs:
<br />
<br />5.1.1 Expense of transportation and living when travel-
<br />ing in connection with the Project; long distance calls
<br />and telegrams; and fees paid for securing approval of
<br />authorities having jurisdiction over the Project.
<br />
<br />5.1,2 Expense of reproductions, postage and handling
<br />of Drawings and Specifications excluding duplicate sets
<br />at the completion of each Phase for the Owner's review
<br />and approval.
<br />
<br />5.1.3 If authorized in advance by the Owner, expense
<br />of overtime work requiring higher than regular rates and
<br />expense of renderings or models for the Owner's use.
<br />
<br />5.1.4 Expense of computer time for professional services
<br />when included in Paragraph II.
<br />
<br />5.1.5 Expense of computer time when used in connec-
<br />tion with Additional Services.
<br />
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<br />ARTICLE 6
<br />PAYMENTS TO THE ARCHITECT
<br />
<br />6.1 Payments on account of the Architect's Basic Serv-
<br />ices shall be made as follows:
<br />
<br />6.1.1 An initial payment as set forth in Paragraph II is
<br />the minimum payment under this Agreement.
<br />
<br />6.1.2 Subsequent payments for Basic Services shall be
<br />made monthly in proportion to services performed so
<br />that the compensation at the completion of each Phase,
<br />except when the compensation is on the basis of a Mul-
<br />tiple of Direct Personnel Expense, shall equal the follow-
<br />ing percentages of the total Basic Compensation:
<br />
<br />Schematic Design Phase 15%
<br />Design Development Phase ..... 35%
<br />Construction Documents Phase ... 75%
<br />Bidding or Negotiation Phase .... 80%
<br />Construction Phase ............ 100%
<br />
<br />6.1.3 If the Contract Time initially established in the
<br />Construction Contract is exceeded by more than thirty
<br />days through no fault of the Architect, compensation for
<br />Basic Services performed by Principals, employees and
<br />professional consultants required to complete the Ad-
<br />ministration of the Construction Contract beyond the
<br />thirtieth day shall be computed as set forth in Para,
<br />graph II for Additional Services,
<br />
<br />6.2 Payments for Additional Services of the Architect as
<br />defined in Paragraph 1.3, and for Reimbursable Expenses
<br />as defined in Article 5, shall be made monthly upon
<br />presentation of the Architect's statement of services ren-
<br />dered,
<br />
<br />6,3 No deductions shall be made from the Architect's
<br />compensation on account of penalty, liquidated dam-
<br />ages, or other sums withheld from payments to con-
<br />tractors.
<br />
<br />6.4 If the Project is suspended for more than three
<br />months or abandoned in whole or in part, the Architect
<br />
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<br />AlA DOCUMENT 8141 ,. OWNER-ARCHITECT AGREEMENT. JANUARY 1974 EDITION . AIA@ . @1974
<br />THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVE., N.W., WASHINGTON, D. C. 20006
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