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<br /> .' " <br /> L/6rr <br /> 3.1.3 Construction cost does not include the cempensation of the ENGINEER and the <br /> ENGINEER's consultants, or other costs which are the responsibility of the CITY as <br /> provided in Article 2. <br /> 3.2 RESPONSIBILITY FOR CONSTRUCTION COST <br /> 3.2.1 Evaluations of the CITY's Project budget and detailed cost estimates, if any, <br /> prepared by the ENGINEER, will represent the ENGINEER's best judgment as a design <br /> professional familiar with the construction industry. <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 ENGINEER will be permitted to <br /> include contingencies for design, bidding and price escalation, to determine what materials, <br /> equipment, component systems and types of construction are to be included in the <br /> construction contract documents, to make reasonable adjustments in the scope of the <br /> Project and to include in the construction contract documents alternate bids to adjust the <br /> construction cost to the fixed limit. The fixed limit of construction cost may be increased <br /> by the CITY. <br /> 3.2.3 If the lowest bona fide bid exceeds the ENGINEER's most recent approved cost <br /> estimate established as a condition of this Agreement, the City will (1) give written approval <br /> of an increase in such fixed limit, (2) authorize rebidding of the Project within a reasonable <br /> time, (3) cooperate in revising the Project scope and quality to redûce the construction <br /> cost, or (4) decline to proceed with the Project. During the development of the Project <br /> through the phases described by Article 1 of this Agreement and prior to the CITY's final <br /> approval of construction contract documents, the ENGINEER will monitor the established <br /> probable construction cost in relation to the established fixed limit. <br /> If necessary, the ENGINEER will implement construction cost savings measures or <br /> otherwise endeavor to limit probable construction cost to the level of available funds set <br /> by the CITY. <br /> - ARTICLE 4 <br /> REIMBURSABLE EXPENSES <br /> 4.1 Reimbursable expenses are to be charged to the CITY by the ENGINEER at actual <br /> cost and include such things as expenses for plotting and reproduction of documents, auto <br /> travel mileage, delivery charges, long distance communications, freight and similar <br /> incidentals. <br /> ARTICLE 5 <br /> PAYMENTS TO THE ENGINEER <br /> 5.1 PAYMENTS ON ACCOUNT OF BASIC SERVICES <br /> Payments for Basic Services will be made to ENGINEER monthly following receipt <br />