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to be reimbursed, and the Construction Manager shall procure the Work, equipment, goods, or service, from the related party,
<br />as a Subcontractor, according to the terms of Article 9. If the Owner fails to authorize the transaction in writing, the
<br />Construction Manager shall procure the Work, equipment, goods, or service from some person or entity other than a related
<br />party according to the terms of Article 9.
<br />§7.9 CostsNotToBeReimbursed
<br />§7.9.1 The Cost of the Work shall not include the items listed below:
<br />.1 Salaries and other compensation of the Construction Manager’s personnel stationed at the Construction
<br />Manager’s principal office or offices other than the site office, except as specifically provided in Section 7.2, or
<br />as may be provided in Article 14;
<br />.2 Bonuses, profit sharing, incentive compensation, and any other discretionary payments, paid to anyone hired by
<br />the Construction Manager or paid to any Subcontractor or vendor, unless the Owner has provided prior
<br />approval;
<br />.3 Expenses of the Construction Manager’s principal office and offices other than the site office;
<br />.4 Overhead and general expenses, except as may be expressly included in Sections 7.1 to 7.7;
<br />.5 The Construction Manager’s capital expenses, including interest on the Construction Manager’s capital
<br />employed for the Work;
<br />.6 Except as provided in Section 7.7.3 of this Agreement, costs due to the negligence of, or failure to fulfill a
<br />specific responsibility of the Contract by, the Construction Manager, Subcontractors, and suppliers, or anyone
<br />directly or indirectly employed by any of them or for whose acts any of them may be liable;
<br />.7 Any cost not specifically and expressly described in Sections 7.1 to 7.7;
<br />.8 Costs, other than costs included in Change Orders or Construction Change Directives approved by the Owner,
<br />that would cause the Guaranteed Maximum Price to be exceeded; and
<br />.9 Costs for services incurred during the Preconstruction Phase.
<br />ARTICLE8 DISCOUNTS,REBATES,ANDREFUNDS
<br />§8.1 Cash discounts obtained on payments made by the Construction Manager shall accrue to the Owner if (1)before making
<br />the payment, the Construction Manager included the amount to be paid, less such discount, in an Application for Payment and
<br />received payment from the Owner, or (2) the Owner has deposited funds with the Construction Manager with which to make
<br />payments; otherwise, cash discounts shall accrue to the Construction Manager. Trade discounts, rebates, refunds, and amounts
<br />received from sales of surplus materials and equipment shall accrue to the Owner, and the Construction Manager shall make
<br />provisions so that they can be obtained.
<br />§8.2 Amounts that accrue to the Owner in accordance with the provisions of Section 8.1 shall be credited to the Owner as a
<br />deduction from the Cost of the Work.
<br />ARTICLE9 SUBCONTRACTSANDOTHERAGREEMENTS
<br />§9.1 Construction Manager shall enter into Subcontracts and other agreements necessary to perform the Work required in the
<br />Contract Documents, pursuant to Minnesota Statutes, Section 471.463, subd. 5(b). Those portions of the Work that the
<br />Construction Manager does not customarily perform with the Construction Manager’s own personnel shall be performed
<br />under subcontracts or other appropriate agreements with the Construction Manager. The Construction Manager shall obtain
<br />bids from Subcontractors, and from suppliers of materials or equipment fabricated especially for the Work, who are qualified
<br />to perform that portion of the Work in accordance with the requirements of the Contract Documentsand pursuant to the
<br />prequalification requirements developed by the Owner and Construction Manager pursuant to Section 471.463, subd. 5(b).
<br />The Construction Manager shall deliver such bids to the Architect and Owner with an indication as to which bids the
<br />Construction Manager intends to acceptpursuant to Section 471.463, subd. 5(b). Any advice of the Architect, or approval or
<br />objection by the Owner, shall not relieve the Construction Manager of its responsibility to perform the Work in accordance
<br />with the Contract Documents. The Construction Manager shall not be required to contractwith anyone to whom the
<br />Construction Manager has reasonable objection.
<br />§9.1.1 When a specific subcontractor or supplier (1) is recommended to the Owner by the Construction Manager; (2) is
<br />qualified to perform that portion of the Work; and (3) has submitted a bid that conforms to the requirements of the Contract
<br />Documents without reservations or exceptions, but the Owner requires that another bid be accepted, then the Construction
<br />Manager may require that a Change Order be issued to adjust the Guaranteed Maximum Price by the difference between the
<br />bid of the person or entity recommended to the Owner by the Construction Manager and the amount of the subcontract or
<br />other agreement actually signed with the person or entity designated by the Owner.
<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 />16
<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
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