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the industry. The Engineer cannot and does not guarantee that proposals, bids or actual costs will not vary from its opinions of cost. 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. In the case of (3) above, the Engineer will, without additional charge, modify one (1) time the plans and specifications prepared by it hereunder as necessary to bring the subject cost within the cost limit. The Engineer's provision of such service will be the limit of the Engineer's responsibility in this regard and, having done so, the Engineer will be entitled to payment for its services in accordance with this Agreement. 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 in -house expenses for faxes, bond plots, computer charges, in -house word processing, reproduction costs, postage, local mileage, telephone, etc. bid documents, auto travel mileage, delivery charges, long distance communications, freight, express and courier delivery services are included in the Engineer's basic services compensation. Reimbursable expenses in excess of $10,381.00 are to be charged to the City by the Engineer at 1.15 times the actual cost. ARTICLE 5 PAYMENTS TO THE ENGINEER 5.1 PAYMENTS ON ACCOUNT OF BASIC SERVICES Payments for Basic Services will be made to Engineer monthly following receipt by City of Engineer's invoices and appropriate payment requisitions. The amounts of these invoices will be based upon the extent of work completed by the Engineer on a percentage basis within each phase of services, in accordance with Article 15 of this Agreement, less any disputed amounts, pending resolution thereof. 5.2 PAYMENTS ON ACCOUNT OF ADDITIONAL SERVICES Payments on account of the Engineer's Additional Services as defined in Section 1.7 will be made monthly upon presentation of the Engineer's statement of services rendered or expenses Kimley Horn — Thorpe Lane Project 13