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<br />ARTICLE 7 <br /> <br />CONSTRUCTION COST <br /> <br />7.1 DEFINITION <br /> <br />(I) The Construction Cost shall be the total cost or estimated cost to the Owner of all <br />elements of the Project designed or specified by the Architect-Engineer. The <br />construction cost shall not exceed the Owner's Construction Budget. The <br />Owner's construction budget is set forth in Article I and Exhibit B. <br /> <br />(2) The Construction Cost shall also include the cost of labor and materials furnished <br />by the Owner and any equipment which has been designed, specified, selected or <br />specially provided for by the Architect-Engineer. It shall also include the <br />Contractor's compensation for services, Reimbursable Costs and the cost of work <br />provided by the Contractor. <br /> <br />(3) Construction Cost does not include the compensation of the Architect-Engineer <br />and the Architect-Engineer's consultants, the cost of the land, rights-of-way, or <br />other costs which are the responsibility of the Owner. <br /> <br />7.2 RESPONSIBILITY FOR CONSTRUCTION COST <br /> <br />(I) The Architect-Engineer, as a design professional familiar with the construction <br />industry, shall assist the Contractor in evaluating the Owner's Project Budget, and <br />shall review the estimates of Construction Cost prepared by the Contractor. It is <br />recognized, however, that neither the Architect-Engineer, nor the Owner has <br />control over the cost of labor, materials or equipment, over the Contractors' <br />method of determining Bid prices, or over competitive bidding, market or <br />negotiating conditions. Accordingly, the Architect-Engineer cannot and does not <br />warrant or represent that Bids or negotiated prices will not vary from the Project <br />budget proposed, established or approved by the Owner, or from the estimate of <br />Construction Cost or other cost estimate or evaluation prepared by the Contractor. <br /> <br />(2) No fixed limit of Construction Cost shall be established as a condition of this <br />Agreement by the furnishing, proposal, or establishment of a Project budget, <br />unless such fixed limit has been agreed upon. If such a fixed limit has been <br />established, the Contractor will include contingencies for design, bidding and <br />price escalation and the Contractor will consult with the Architect-Engineer to <br />determine what materials, equipment, component systems and types of <br />construction are to be included in the Contract Documents, to make reasonable <br />adjustments in the scope of the Project, and to include in the Contract Documents <br />alternate Bids to adjust the Construction Cost to the fixed limit. <br /> <br />(3) If Bids are not received within the time scheduled at the time the fixed limit of <br />Construction Cost was established due to causes beyond the Architect-Engineer's <br /> <br />Actny/Final .-\grccmcnt Between SIB and <br />Spillis Candcla/2/25/02 /(cb) <br /> <br />12 <br />