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<br />Agreement. <br /> <br />2.7 Bear all costs incident to this Article. <br /> <br />ARTICLE 3 <br />CONSTRUCTION COST <br /> <br />3.1 DEFINITION <br /> <br />3.1.1 The construction cost will be the total cost or estimated cost to the City of all <br />elements of the Project designed or specified by the Engineer. <br /> <br />3.1.2 The construction cost will include at current market rates, including a reasonable <br />allowance for overhead and profit, the cost of any equipment which has been designed, <br />specified, selected or specially provided for by the Engineer, except that used materials <br />and equipment will be included as if purchased new for the Project. <br /> <br />3.1.3 Construction cost does not include the compensation of the Engineer and the <br />Engineer's consultants, or other costs which are the responsibility of the City as provided <br />in Article 2. <br /> <br />3.2 RESPONSIBILITY FOR CONSTRUCTION COST <br /> <br />3.2.1 Evaluations of the City's Project budget and detailed cost estimates, if any, prepared <br />by the Engineer, will represent the Engineer's judgment to that degree of care and skill <br />ordinarily exercised by a design professional familiar with the construction industry. <br /> <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 Engineerwill be permitted to include <br />contingencies for design, bidding and price escalation, to determine what materials, <br />equipment, and types of construction are to be included in the construction contract <br />documents, to make reasonable adjustments in the scope of the Project and to include in <br />the construction contract documents alternate bids to adjust the construction cost to the <br />fixed limit. The fixed limit of construction cost may be increased by the City. <br /> <br />3.2.3 If the lowest bona fide bid exceeds the Engineer's most recent approved opinion of <br />probable construction cost established as a condition of this Agreement, the City will (1) <br />give written approval of an increase in such fixed limit, (2) authorize rebidding of the Project <br />within a reasonable time, or (3) cooperate in revising the Project scope and quality to <br />reduce the construction cost. During the development of the Project through the phases <br />described in Attachment A to this Agreement and prior to the City's final approval of <br />construction contract documents, the Engineer will monitor the established opinion of <br />probable construction cost in relation to the established fixed limit. <br /> <br />5 <br />