Section 00700 - General conditions

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00700 - 23/38 3. On the basis of the cost of Work (determined as provided in Paragraphs 11.2 and 11.3) plus a CONTRACTOR's fee for overhead and profit (determined as provided in Paragraph 11.4). 11.2 COST OF WORK (BASED ON TIME AND MATERIALS) A. General: The term "cost of Work" means the sum of all costs necessarily incurred and paid by the CONTRACTOR for labor, materials, and equipment in the proper performance of extra Work. Except as otherwise may be agreed to in writing by the OWNER, such costs shall be in amounts no higher than those prevailing in the locality of the Project. Whenever any extra Work is in progress, for which the definite price has not been agreed on in advance, the CONTRACTOR shall each day, report to the ENGINEER the amount and cost of the labor and material used, and any other expense incurred in such extra Work on the preceding day, and no claim for compensation for such extra Work will be allowed unless such report shall have been made. B. Labor: The cost of labor used in performing extra Work by the CONTRACTOR, a subcontractor, or other forces will be the sum of the following: 1. The actual wages paid plus any employer payments to, or on behalf of workers for fringe benefits including health and welfare, pension, vacation, and similar purposes. The cost of labor may include the wages paid to foremen when determined by the ENGINEER that the services of foremen do not constitute a part of the overhead allowance. 2. All payment imposed by state and federal laws including, but not limited to, compensation insurance, and social security payments. 3. The amount paid for subsistence and travel required by collective bargaining agreements, or in accordance with the regular practice of the employer. 4. At the beginning of the extra Work and as later requested by the ENGINEER, the CONTRACTOR shall furnish the ENGINEER proof of labor compensation rates being paid. C. Materials: The cost of materials used in performing extra Work will be the cost to the purchaser, whether CONTRACTOR or subcontractor, from the supplier thereof, except as the following are applicable: 1. Trade discounts available to the purchaser shall be credited to the OWNER notwithstanding the fact that such discounts may not have been taken by the CONTRACTOR. 2. For materials secured by other than a direct purchase and direct billing to the purchaser, the cost shall be deemed to be the price paid to the actual supplier as determined by the ENGINEER. Markup except for actual costs incurred in the handling of such materials will not be allowed.