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§7.6.8 Deposits lost for causes other than the Construction Manager’s negligence or failure to fulfill a specific responsibility
<br />in the Contract Documents.
<br />§7.6.9 Mediation and litigation costs, not including attorneys’ feesreasonably incurred by the Construction Manager after the
<br />execution of this Agreement in the performance of the Work and with the Owner’s prior written approval, which shall not be
<br />unreasonably withheld. Costs are not recoverable under this Agreement fordisputes between the Owner and Construction
<br />Manager,or because of non-frivolous third-party claims against the Construction Manager alleging negligence, breach of
<br />contract, or willful misconduct relating to the Project.
<br />§7.6.10 Expenses incurred in accordance with the Construction Manager’s standard personnel policy for relocation and
<br />temporary living allowances of the Construction Manager’s personnel required for the Work.
<br />§7.6.11 That portion of the reasonable expenses of the Construction Manager’s supervisory or administrative personnel
<br />incurred while traveling in discharge of duties connected with the Work.
<br />§7.6.12 The cost for Construction Manager’s administration of warranties required by the Contract Documents after Project
<br />completion shall be charged as astipulated cost of $10,000, and such amount shall be considered approved by the Owner.
<br />§7.6.13 A fixed rate equal to One and One-Tenth Percent (1.1%) of the aggregate of subcontract costs and material costs
<br />under this Agreement (excluding, however, those subcontract costs and material costs which are incurred pursuant to
<br />subcontracts or material agreements for which the Construction Manager has purchased separate subcontract bonds),
<br />established at the time of GMP (as adjusted by Change Orders, if any), for the estimated costs of covering the risk of those
<br />certain subcontractor defaults through subcontractor default insurance or other similar insurance and/or self-insurance, to
<br />protect against the risk of default by such subcontractors and material suppliers. Such 1.1% charge shall not be adjusted for
<br />cost overruns or savings as a result of managing the risk of subcontractor defaults. Self-insured deductibles or retentions
<br />carried by the Construction Manager for subcontractor default insurance shall also be considered a Cost of the work.
<br />§7.7 OtherCostsandEmergencies
<br />§7.7.1 Other costs incurred in the performance of the Work, with the Owner’s prior written approval.
<br />§7.7.2 Costs incurred in taking action to prevent threatened damage, injury, or loss, in case of an emergency affecting the
<br />safety of persons and property, as provided in Article 10 of AIA Document A201–2017.
<br />§7.7.3 Costs of repairing or correcting damaged or nonconforming Work executed by the Construction Manager,
<br />Subcontractors, or suppliers, provided that such damaged or nonconforming Work was not caused by the negligence of, or
<br />failure to fulfill a specific responsibility by, the Construction Manager, and only to the extent that the cost of repair or
<br />correction is not recovered by the Construction Manager from insurance, sureties, Subcontractors, suppliers, or others.
<br />§7.7.4 The costs described in Sections 7.1 through 7.7 shall be included in the Cost of the Work, notwithstanding any
<br />provision of AIA Document A201–2017 or other Conditions of the Contract which may require the Construction Manager to
<br />pay such costs, unless such costs are excluded by the provisions of Section 7.9.
<br />§7.8 RelatedPartyTransactions
<br />§7.8.1 For purposes of this Section 7.8, the term “related party” shall mean (1) a parent, subsidiary, affiliate, or other entity
<br />having common ownership of, or sharing common management with, the Construction Manager; (2) any entity in which any
<br />stockholder in, or management employee of, the Construction Manager holds an equity interest in excess of ten percent in the
<br />aggregate; (3) any entity which has the right to control the business or affairs of the Construction Manager; or (4) any person,
<br />or any member of the immediate family of any person, who has the right to control the business or affairs of the Construction
<br />Manager.Notwithstanding anything in this Section 7.8.1 to the contrary, Kraus-Anderson Insurance Agency shall not be
<br />considered a “related party.”
<br />§7.8.2 If any of the costs to be reimbursed arise from a transaction between the Construction Manager and a related party, the
<br />Construction Manager shall notify the Owner of the specific nature of the contemplated transaction, including the identity of
<br />the related party and the anticipated cost to be incurred, before any such transaction is consummated or cost incurred. If the
<br />Owner, after such notification, authorizes the proposed transaction in writing, then the cost incurred shall be included as acost
<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
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