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ARTICLE 5 COMPENSATIONANDPAYMENTS FOR PRECONSTRUCTIONPHASESERVICES <br />§ 5.1 Compensation <br />§ 5.1.1 For the Construction Manager’s Preconstruction Phase services described in Sections 3.1 and 3.2, the Owner shall <br />compensate the Construction Manager as follows: <br />(Insert amount of, or basis for, compensation and include a list of reimbursable cost items, as applicable.) <br />Preconstruction phase services shall be compensated via lump sum of $10,000.00for 7 months of Preconstruction Phase <br />services. <br />§ 5.1.2 The hourly billing rates for Preconstruction Phase services of the Construction Manager and the Construction <br />Manager’s Consultants and Subcontractors, if any, are set forth below. <br />(If applicable, attach an exhibit of hourly billing rates or insert them below.) <br /> See Exhibit C. <br />Individual or PositionRate <br /> <br />§ 5.1.2.1 Hourly billing rates for Preconstruction Phase services include all costs to be paid or incurred by the Construction <br />Manager,as required by law or collective bargaining agreements, for taxes, insurance, contributions, assessments and benefits <br />and, for personnel not covered by collective bargaining agreements, customary benefits such as sick leave, medical and health <br />benefits, holidays, vacations and pensions, and shall remain unchanged unless the parties execute a Modification. <br />§ 5.1.3 If the Preconstruction Phase services covered by this Agreement have not been completed <br />within seven ( 7 ) months of the date of this Agreement, through no fault of the Construction Manager, the <br />Construction Manager’s compensation for Preconstruction Phase services shall be equitably adjusted. <br />§ 5.2 Payments <br />§ 5.2.1 Unless otherwise agreed, payments for services shall be made monthly in proportion to services performed. <br />§ 5.2.2 Payments are due and payable upon presentation of the Construction Manager’s invoice. Pursuant to the Prompt <br />Payment of Local Government Bills, Minnesota Statutes, Section 471.425 (“Prompt Payment Act”), amounts unpaidand not <br />subject to a good faith disputethirty-five ( 35 ) days after the invoice date shall bear interest at the rate entered <br />below, or in the absence thereof at the legal rate prevailing from time to time at the principal place of business of the <br />Construction Manager. <br />(Insert rate of monthly or annual interest agreed upon.) <br />4.00 % per annum <br />ARTICLE 6 COMPENSATION FOR CONSTRUCTIONPHASESERVICES <br />§ 6.1 ContractSum <br />§ 6.1.1 The Owner shall pay the Construction Manager the Contract Sum in current funds for the Construction Manager’s <br />performance of the Contract after execution of the Guaranteed Maximum Price Amendment. The Contract Sum is the Cost of <br />the Work as defined in Article 7 plus the Construction Manager’s Fee. <br />§ 6.1.2 The Construction Manager’s Fee: <br />(State a lump sum, percentage of Cost of the Work or other provision for determining the Construction Manager’s Fee.) <br />The Construction Manager's Fee calculation will be done at the time the Guaranteed Maximum Price is established for the <br />Project via the Guaranteed Maximum Price Amendment and shall be determined by multiplying the estimated Cost of the <br />Work by a rate of One and Three Tenths percent (1.3%). The Construction Manager's Fee will become a fixed amount at the <br />time the Guaranteed Maximum Price Amendment is executed and shall not be reduced. <br />§ 6.1.3 The method of adjustment of the Construction Manager’s Fee for changes in the Work: <br />AIA Document A133 – 2019. Copyright © 1991, 2003, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of <br />Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects.This draft was produced at 13:53:13 CDT <br />11 <br />on 08/18/2025 under Subscription No.20250116558 which expires on , is not for resale, is licensed for one-time use only, and may only be used in accordance <br />® <br />with the AIA Contract DocumentsTerms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. <br />User Notes: (640e2aedf442e4498d096805) <br />Qbhf!253!pg!74: <br /> <br />