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1 <br />10.05 Claims and Disputes <br />A. Notice: Written notice stating the general nature of <br />each Claim, dispute, or other matter shall be delivered by the <br />claimant to ENGINEER and the other party to the Contract <br />promptly (but in no event later than 30 days) after the start of <br />the event giving rise thereto. Notice of the amount or extent <br />of the Claim, dispute, or other matter with supporting data <br />shall be delivered to the ENGINEER and the other party to <br />the Contract within 60 days after the start of such event <br />(unless ENGINEER allows additional time for claimant to <br />submit additional or more accurate data in support of such <br />Claim, dispute, or other matter). A Claim for an adjustment <br />in Contract Price shall be prepared in accordance with the <br />provisions of paragraph 12.01.13. A Claim for an adjustment <br />in Contract Time shall be prepared in accordance with the <br />provisions of paragraph 12.02.13. Each Claim shall be <br />accompanied by claimant's written statement that the.adjust- <br />ment claimed is the entire adjustment to which the claimant <br />believes it is entitled as a result of said event. The opposing <br />party shall submit any response to ENGINEER and the <br />claimant within 30 days after receipt of the claimant's last <br />submittal (unless ENGINEER allows additional time). <br />B. ENGINEER's Decision: ENGINEER will render <br />a formal decision in writing within 30 days after receipt of <br />the last submittal of the claimant or the last submittal of the <br />opposing party, if any. ENGINEER's written decision on <br />such Claim, dispute, or other matter will be final and binding <br />upon OWNER and CONTRACTOR unless: <br />1. an appeal from ENGINEER's decision is taken <br />within the time limits and in accordance with the dispute <br />resolution procedures set forth in Article 16; or <br />2. if no such dispute resolution procedures have <br />been set forth in Article 16, a written notice of intention <br />to appeal from ENGINEER's written decision is. <br />delivered by OWNER or CONTRACTOR to the other <br />and to ENGINEER within 30 days after the date of such <br />decision, and a formal proceeding is instituted by the <br />appealing party in a .forum of competent jurisdiction <br />within 60 days after the date of such decision or within <br />60 days after Substantial Completion, whichever is later <br />(unless otherwise agreed in writing by OWNER and <br />CONTRACTOR), to exercise such rights or remedies as <br />the appealing party may have with respect to such <br />Claim, dispute, or other matter in accordance with <br />applicable Laws and Regulations. <br />C. If ENGINEER does not render a formal decision in <br />writing within the time stated in paragraph 10.05.11, a <br />decision denying the Claim in its entirety shall be deemed to <br />have been issued 31 days afar receipt of the last submittal of <br />the claimant or the last submittal of the opposing party, if <br />any. <br />D. No Claim for an adjustment in Contract Price or <br />Contract Times (or Milestones) will be valid if not submitted <br />in accordance with this paragraph 10.05. <br />ARTICLE 1 I - COST OF THE WORK; CASH <br />ALLOWANCES; UNIT PRICE WORK <br />11.01 Cost of the Work <br />A. Costs Included: The term Cost of the Work means <br />the sum of all costs necessarily incurred and paid by CON- <br />TRACTOR in the proper performance of the Work. When <br />the value of any Work covered by a Change Order or when <br />a Claim for an adjustment in Contract Price is determined on <br />the-basis of Cost of the Work, the costs to be reimbursed to <br />CONTRACTOR will be only those additional or incremental <br />costs required because of the change in the Work or because <br />of the event giving rise to the Claim. Except as otherwise <br />may be agreed to in writing by OWNER, such costs shall be <br />in amounts no higher than those prevailing in the locality of <br />the Project, shall include only the following items, and shall <br />not include any of the costs itemized in paragraph 11.01.13. <br />1 00700 -30 <br />1. Payroll costs for employees in the direct employ <br />of CONTRACTOR in the performance of the Work <br />under schedules of job classifications agreed upon by <br />OWNER and CONTRACTOR. Such employees shall <br />include without limitation superintendents, foremen, and <br />other personnel employed full time at the Site. Payroll <br />costs for employees not employed full time on the Work <br />shall be apportioned on the basis of their time spent on <br />the Work. Payroll costs shall include, but not be limited <br />to, salaries and wages plus the cost of fringe benefits, <br />which shall include social security contributions, unem- <br />ployment, excise, and payroll taxes, workers' <br />compensation, health and retirement benefits, bonuses, <br />sick leave, vacation and holiday pay applicable thereto. <br />The .expenses .of-performing Work outside of regular <br />working hours, on Saturday, Sunday, or legal holidays, <br />shall be included in the above to the extent authorized by <br />OWNER. <br />2. Cost of all materials and equipment furnished <br />and incorporated in the Work, including costs of <br />transportation and storage thereof, and Suppliers' field <br />services required in connection therewith. All cash <br />discounts shall accrue to CONTRACTOR unless <br />OWNER deposits funds with CONTRACTOR with <br />which to make payments, in which case the cash <br />,discounts shall accrue to OWNER. All trade discounts, <br />rebates and refunds and returns from sale of surplus <br />materials and equipment shall accrue to OWNER, and <br />CONTRACTOR shall make provisions so that they may <br />be obtained. <br />