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6.5.5 Whenever a factor is applied to Hourly Costs in determining compensation payable to ENGINEER that factor will be adjusted annually and equitably to reflect changes in the various elements that comprise such factor. All such adjustments will be in accordance with generally accepted accounting practices as applied on a consistent basis by ENGINEER and consistent with ENGINEER's overall compensation practices and procedures. . 6.6 DEFINITIONS 6.6.1 The Hourly Costs used as a basis for payment means salaries and wages (basic and incentive) paid to all ENGINEER's personnel engaged directly on the Project, inctuding, but not limited to, engineers, surveyors, designers, draftsmen, specification writers, estimators, other technical and business pcrsormeI; plus the cost of customary and statutory benefits including, but not limited to, social security contributions, unemployment, excise and payroll taxes, workers' compensation, health and retirement benefits, sick leave, vacation ad holiday and other group benefits. For the purposes of this Agreement, ENGINEER's Hourly Costs are as shown on Exbibit E. The Hourly Costs of principals of ENGINEER will be adjusted equitably to reflect changes in personnet and in ENGINEER's overall compensation procedures and practices. 6.6.2 Reimbursahle Expenses means the actual reasonable expenses incurred by ENGINEER or ENGINEER's independent professional associates or consultants, directly or indirectly in cormection with the Project, such as expenses for: transportation and subsistence incidental thereto; obtaining bids or proposals from Contmctor(s); providing and maintaining field office facitities including furnishings and utilities; subsistence and transportation of Resident Project Representatives and their assistants~ toll telephone calls and telegrams; reproduction of reports, Drawings, Specifications, Bidding Documents, and similar Project~related items in addition to those required under Section l; and, if authorized in advance by CITY, overtime work requiring higher than regular rates. SECTION 7 - CONSTRUCTION COST AND OPINIONS OF COST 7.1 CONSTRUCTION COST . The constlllction cost of the entire Project (herein referred to as ''"Construction Cost") means the total cost to CITY of those portions of the entire Project designed and specified by ENGINEER, but it will not include indirect costs such as ENGINEER's compensation and expenses, the cost ofland, rights-of-way, or compensation for or damages to properties Wlless so specified in a Work Order, nor will it include CITY's legal, accounting, insurance counseling or auditing services, or interest and frnancing charges incurred in cormection with the Project or the cost of other services to be provided by others to CfTY pursuant to paragraphs 4.7 through 4.11, inclusive. (Construction Cost is one of the items comprising Total Project Cost which is dermed in pamgraph 2.1.6). 7.2 OPINIONS OF COST 7. t.1 Since ENGINEER has no control over the cost of labor, materials, equipment or services furnished by others, or over the Contractor(s) methods of determining prices, or over competitive bidding or market conditions, ENGINEER's opinions of probable Totat Project Costs and Construction Cost provided for herein are to be made on the basis of ENGINEER's experience and qualifications and represent ENGINEER's best judgement as an experienced and qualified professional engineer, familiar with the construction industry~ but ENGINEER cannot and does not guarantee that proposals, bids or actual Total Project or Construction Costs will not vary from opinions of probable cost prepared by ENGINEER. Ifprior to the Bidding or Negotiating Phase, CITY wishes greater assurance as to Total Project or Construction Costs, CITY shall employ an independent cost estimator. 7.1.2 Ifa Construction Cost timit is estabtished in a Work Order between CITY and ENGtNEER, the following will apply: 7.1.2. I The acceptance by CITY at any time during the Basic Services or Additional Services of a revised opinion of probable Total Project or Construction Costs in excess of the then established cost limit will constitute a corresponding revision in the Construction Cost limit to the extent indicated in such revised opmlOn. . ARDEN.WPD t5 Rev. December 12, 1997