|
ARTICLE7 COSTOFTHEWORKFORCONSTRUCTIONPHASE
<br />§7.1 CoststoBeReimbursed
<br />§7.1.1 The term Cost of the Work shall mean costs necessarily incurred by the Construction Manager in the proper
<br />performance of the Work. The Cost of the Work shall include only the items set forth in Sections 7.1 through 7.7.
<br />§7.1.2 Where, pursuant to the Contract Documents, any cost is subject to the Owner’s prior approval, the Construction
<br />Manager shall obtain such approval in writing prior to incurring the cost.The Owner’s execution of the Guaranteed Maximum
<br />Price Amendment shall constitute the Owner’s approval of all costs identified within the Guaranteed Maximum Price.
<br />§7.1.3 Costs shall be at rates not higher than the standard rates paid at the place of the Project, except with prior approval of
<br />the Owner.
<br />§7.2 LaborCosts
<br />§7.2.1 Wages or salaries of construction workers directly employed by the Construction Manager to perform the construction
<br />of the Work at the site or, with the Owner’s prior approval, at off-site workshopsat the rates set forth in Exhibit C.
<br />§7.2.2 Wages or salaries of the Construction Manager’s supervisory and administrative personnel when stationed at the site
<br />and performing Workat the rates set forth in Exhibit C.
<br />§7.2.2.1 Wages or salaries of the Construction Manager’s supervisory and administrative personnel when performing Work
<br />and stationed at a location other than the site, but only for that portion of time required for the Workat the rates set forth in
<br />Exhibit C.
<br />§7.2.3 Wages and salaries of the Construction Manager’s supervisory or administrative personnel engaged at factories,
<br />workshops or while traveling, in expediting the production or transportation of materials or equipment required for the Work,
<br />but only for that portion of their time required for the Workat the rates set forth in Exhibit C.
<br />§7.2.4 Costs paid or incurred by the Construction Manager,as required by law or collective bargaining agreements, for taxes,
<br />insurance, contributions, assessments and benefits and, for personnel not covered by collective bargaining agreements,
<br />customary benefits such as sick leave, medical and health benefits, holidays, vacations and pensions, provided such costs are
<br />based on wages and salaries included in the Cost of the Work under Sections 7.2.1 through 7.2.3.Such costs for taxes,
<br />insurance, contributions, and assessments (excluding benefits) shall be forty-six percent (46%) of gross payroll. Gross payroll
<br />consists of wages and benefits.
<br />§7.2.5 If agreed rates for labor costs, in lieu of actual costs, are provided in this Agreement, the rates shall remain unchanged
<br />throughout the duration of this Agreement, unless the parties execute a Modification.
<br />§7.3 SubcontractCosts
<br />Payments made by the Construction Manager to Subcontractors in accordance with the requirements of the subcontracts and
<br />this Agreement.
<br />§7.4 CostsofMaterialsandEquipmentIncorporatedintheCompletedConstruction
<br />§7.4.1 Costs, including transportation and storage at the site, of materials and equipment incorporated, or to be incorporated,
<br />in the completed construction.
<br />§7.4.2 Costs of materials described in the preceding Section 7.4.1 in excess of those actually installed to allow for reasonable
<br />waste and spoilage. Unused excess materials, if any, shall become the Owner’s property at the completion of the Work or, at
<br />the Owner’s option, shall be sold by the Construction Manager. Any amounts realized from such sales shall be credited to the
<br />Owner as a deduction from the Cost of the Work.
<br />§7.5 CostsofOtherMaterialsandEquipment,TemporaryFacilitiesandRelatedItems
<br />§7.5.1 Costs of transportation, storage, installation, dismantling, maintenance, and removal of materials, supplies, temporary
<br />facilities, machinery, equipment and hand tools not customarily owned by construction workers that are provided by the
<br />Construction Manager at the site and fully consumed in the performance of the Work. Costs of materials, supplies, temporary
<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 />13
<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!255!pg!74:
<br />
<br />
|