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be valid if not submitted in accordance with this paragraph
<br />11.2.
<br />11.3. The value of any Work covered by a Change Order or
<br />of any claim for an adjustment in the Contract Price will be
<br />determined as follows:
<br />11.3.1. where the Work involved is covered by unit
<br />prices contained in the Contract Documents, by application
<br />of such unit prices to the quantities of the items involved
<br />(subject to the provisions of paragraphs 11.9.1 through
<br />11.9.3, inclusive);
<br />11.3.2. where the Work involved is not covered by unit
<br />prices contained in the Contract Documents, by a mutually
<br />agreed lump sum (which may include an allowance for
<br />overhead and profit not necessarily in accordance with
<br />paragraph 11.6.2);
<br />11.3.3. where the Work involved is not covered by unit
<br />prices contained in the Contract Documents and agreement
<br />to a lump sum is not reached under paragraph 11.3.2, on the
<br />basis of the Cost of the Work (determined as provided in
<br />paragraphs 11.4 and 11.5) plus a CONTRACTOR's fee for
<br />overhead and profit (determined as provided in paragraph
<br />11.6).
<br />Cost of the Work:
<br />11.4. The term Cost of the Work means the sum of all costs
<br />necessarily incurred and paid by CONTRACTOR in the proper
<br />performance of the Work. Except as otherwise may be agreed
<br />to in writing by OWNER, such costs shall be in amounts no
<br />higher than those prevailing in the locality of the Project, shall
<br />include only the following items and shall not include any of the
<br />costs itemized in paragraph 11.5:
<br />11.4.1. Payroll costs for employees in the direct employ
<br />of CONTRACTOR in the performance of the Work under
<br />schedules of job classifications agreed upon by OWNER and
<br />CONTRACTOR. Such employees shall include without lim-
<br />itation superintendents, foremen and other personnel em-
<br />ployed full- time at the site. Payroll costs for employees not
<br />employed full time on the Work shall be apportioned on the
<br />basis of their time spent on the Work. Payroll costs shall
<br />include, but not be limited to, salaries and wages plus the
<br />cost of fringe benefits which shall include social security
<br />contributions, unemployment, excise and payroll taxes, work-
<br />ers' compensation, health and retirement benefits, bonuses,
<br />sick leave, vacation and holiday pay applicable thereto. The
<br />expenses of performing Work after regular working hours,
<br />on Saturday, Sunday or legal holidays, shall be included in
<br />the above to the extent authorized by OWNER.
<br />11.4.2. Cost of all materials and equipment furnished and
<br />incorporated in the Work, including costs of transportation
<br />and storage thereof, and Suppliers' field services required in
<br />connection therewith. All cash discounts shall accrue to
<br />CONTRACTOR unless OWNER deposits funds with CON-
<br />TRACTOR with which to make payments, in which case the
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<br />cash discounts shall accrue to OWNER. All trade discounts,
<br />rebates and refunds and returns from sale of surplus materi-
<br />als and equipment shall accrue to OWNER, and CON-
<br />TRACTOR shall make provisions so that they may be
<br />obtained.
<br />11.4.3. Payments made by CONTRACTOR to the Sub-
<br />contractors for Work performed or furnished by Subcontrac-
<br />tors. If required by OWNER, CONTRACTOR shall obtain
<br />competitive bids from subcontractors acceptable to OWNER
<br />and CONTRACTOR and shall deliver such bids to OWNER
<br />who will then determine, with the advice of ENGINEER,
<br />which bids, if any, will be accepted. If any subcontract
<br />provides that the Subcontractor is to be paid on the basis of
<br />Cost of the Work Plus a fee; the Subcontractor's Cost of the
<br />Work and fee shall be determined in the same manner as
<br />CONTRACTOR's Cost of the Work and fee as provided in
<br />paragraphs 11.4, 11.5, 11.6 and 11.7. All subcontracts shall
<br />be subject to the other provisions of the Contract Documents
<br />insofar as applicable.
<br />11.4.4. Costs of special consultants (including but not
<br />limited to engineers, architects, testing laboratories, survey-
<br />ors, attorneys and accountants) employed for services spe-
<br />cifically related to the Work.
<br />11.4.5. Supplemental costs including the following:
<br />11.4.5.1. The proportion of necessary transportation,
<br />travel and subsistence expenses of CONTRACTOR's em-
<br />ployees incurred in discharge of duties connected with the
<br />Work.
<br />11.4.5.2. Cost, including transportation and mainte-
<br />nance, of all materials, supplies, equipment, machinery,
<br />appliances, office and temporary facilities at the site and
<br />hand tools not owned by the workers, which are con-
<br />sumed in the performance of the Work, and cost less
<br />market value of such items used but not consumed which
<br />remain the property of CONTRACTOR.
<br />11.4.5.3. Rentals of all construction equipment and
<br />machinery and the parts thereof whether rented from
<br />CONTRACTOR or others in accordance with rental agree-
<br />ments approved by OWNER with the advice of ENGI-
<br />NEER, and the costs of transportation, loading, unload-
<br />ing, installation, dismantling and removal thereof —all in
<br />accordance with the terms of said rental agreements. The
<br />rental of any such equipment, machinery or parts shall
<br />cease when the use thereof is no longer necessary for the
<br />Work.
<br />11.4.5.4. Sales, consumer, use or similar taxes related
<br />to the Work, and for which CONTRACTOR is liable,
<br />imposed by Laws and Regulations.
<br />11.4.5.5. Deposits lost for causes other than negli-
<br />gence of CONTRACTOR, any Subcontractor or anyone
<br />directly or indirectly employed by any of them or for
<br />whose acts any of them may be liable, and. royalty
<br />payments and fees for permits and licenses.
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