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<br />00800 - 8/13 <br /> <br /> <br />1. Where the work involved is covered by unit prices contained in the Contract <br />Documents, by application of unit prices to the quantities of items involved. <br /> <br />2. By mutual acceptance of a lump sum which CONTRACTOR and OWNER <br />acknowledge contains a component for overhead and profit. <br /> <br />3. On the basis of the "cost of work," determined as provided in Paragraphs B and C <br />below plus a CONTRACTOR's fee for overhead and profit which is determined as <br />provided in Paragraph E. <br /> <br />B. The term "cost of work" means the sum of all direct costs necessarily incurred and paid <br />by CONTRACTOR in the proper performance of the Work described in the Change <br />Order. Except as otherwise may be agreed to in writing by OWNER, such costs shall be <br />in amounts no higher than those prevailing in the locality of the Project, shall include only <br />the following items and shall not include any of the costs itemized in Paragraph C. <br /> <br />1. Payroll costs for employees in the direct employ of CONTRACTOR in the <br />performance of the work described in the Change Order under schedules of job <br />classifications agreed upon by OWNER and CONTRACTOR. Payroll costs for <br />employees not employed full time on the work covered by the Change Order shall be <br />apportioned on the basis of their time spent on the work. Payroll costs shall include, <br />but not be limited to, salaries and wages plus the cost of fringe benefits which shall <br />include social security contributions, unemployment, excise and payroll taxes, <br />workers' or workmen's compensation, health and retirement benefits, bonuses, sick <br />leave, vacation and holiday pay application thereto. Such employees shall include <br />superintendents and foremen at the site. The expenses of performing the work after <br />regular working hours, on Sunday or legal holidays, shall be included in the above to <br />the extent authorized by OWNER. <br /> <br />2. Cost of all materials and equipment furnished and incorporated in the work, including <br />costs of transportation and storage thereof, and manufacturers' field services <br />required in connection therewith. All cash discounts shall accrue to CONTRACTOR <br />unless OWNER deposits funds with CONTRACTOR with which to make payments, <br />in which case the cash discounts shall accrue to OWNER. All trade discounts, <br />rebates and refunds, and all returns from sale of surplus materials and equipment <br />shall accrue to OWNER and CONTRACTOR shall make provisions so that they may <br />be obtained. Rentals of all construction equipment and machinery and the parts <br />thereof whether rented from CONTRACTOR or others in accordance with rental <br />agreements approved by OWNER with the advice of ENGINEER and the costs of <br />transportation, loading, unloading, installation, dismantling and removal thereof, all in <br />accordance with the terms of said agreements. The rental of any such equipment, <br />machinery or parts shall cease when the use thereof is no longer necessary for the <br />work. <br /> <br />3. Payments made by CONTRACTOR to Subcontractors for work performed by <br />Subcontractors. If required by OWNER, CONTRACTOR shall obtain competitive <br />bids from Subcontractors acceptable to CONTRACTOR and shall deliver such bids <br />to OWNER who will then determine, with the advice of ENGINEER, which bids will <br />be accepted. If the Subcontract provides that the Subcontractor is to be paid on the <br />basis of cost of the work plus a fee, the Subcontractor's cost of the work shall be <br />determined in the same manner as CONTRACTOR'S cost of the work. All