Res 1998-224 - Laserfiche WebLink

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ARTICLE 3 CONSTRUCTION COST 3.1 DEFINITION 3.1.1 The construction cost will be the total cost or estimated cost to the City of all elements of the Project designed or specified by the Engineer. 3.1.2 The construction cost will include at current market rates, including a reasonable allowance for overhead and profit, the cost of any equipment which has been designed, specified, selected or specially provided for by the Engineer, except that used materials and equipment will be included as if purchased new for the Project. 3.1.3 Construction cost does not include the compensation of the Engineer and the Engineer's consultants, or other costs which are the responsibility of the City as provided in Article 2. 3.2 RESPONSIBILITY FOR CONSTRUCTION COST 3.2.1 Evaluations ofthe City's Project budget and detailed cost estimates, if any, prepared by the Engineer, will represent the Engineer's judgment to that degree of care and skill ordinarily exercised by a design professional familiar with the construction industry. 3.2.2 A fixed limit of construction cost for this Project will be established by the City's representative after consulting with the Engineer. The Engineer will be permitted to include contingencies for design, bidding and price escalation, to determine what materials, equipment, and types of construction are to be included in the construction contract documents, to make reasonable adjustments in the scope of the Project and to include in the construction contract documents alternate bids to adjust the construction cost to the fixed limit. The fixed limit of construction cost may be increased by the City. 3.2.3 If the lowest bona fide bid exceeds the Engineer's most recent approved opinion of probable construction cost established as a condition of this Agreement, the City will (1) give written approval of an increase in such fixed limit, (2) authorize rebidding of the Project within a reasonable time, or (3) cooperate in revising the Project scope and quality to reduce the construction cost. During the development of the Project through the phases described in Attachment A to this Agreement and prior to the City's final approval of construction contract documents, the Engineer will monitor the established opinion of 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. 3 -