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ARTICLE 5 CONSTRUCTION COST
<br />§ 5.1 DEFINITION
<br />§ 5.1.1 The Construction Cost shall be the total cost or, to the extent the Project is not completed, the estimated cost to
<br />the Owner of all elements of the Project designed or specified by the Architect.
<br />§ 5.1.2 The Construction Cost shall include the cost at current market rates of labor and materials:ftzrnished by the
<br />Owner and equipment designed, specified, selected or specially provided for by the Architect, including the costs of
<br />management or supervision of construction or installation provided by a separate construction manager or contractor,
<br />plus a reasonable allowance for their overhead and profit. In addition, a reasonable allowance for contingencies shall be
<br />included for market conditions at the time of bidding and for changes in the Work. '`
<br />§ 5.1.3 Construction Cost does not include the compensation of the Ai~cFiYtect and the Architect's consultants, the costs of
<br />the land, rights-of-way and financing or other costs that are the responsibility of the Owner as provided in Article 4.
<br />§ 5.2 RESPONSIBILITY FOR CONSTRUCTION COST
<br />§ 5.2.1 Evaluations of the Owner's Project budget, the preliminary estimate of Construction Cost and detailed estimates
<br />of Construction Cost, if any, prepared by the Architect, represent the Architect's judgment as a design professional
<br />familiar with the construction industry. It is recognized, however, that neither the Architect nor the Owner has control
<br />over the cost of labor, materials or equipment, over the Contractor's methods of determining bid prices, or over
<br />competitive bidding, market or negotiating conditions. Accordingly, the Architect cannot and does not warrant or
<br />represent that bids or negotiated prices will not vary from the Owner's Project budget or from. any estimate of
<br />Construction Cost or evaluation prepared or agreed to by the Architect. "'
<br />§ 5.2.2 No fixed limit of Construction Cost shall be estabIishad~ as a condition of this Agreement by the furnishing,
<br />proposal or establishment of a Project budget, unless such fixed limit has been agreed upon in writing and signed by;the
<br />parties hereto. If such a fixed limit has been established, the Architect shall be permitted to include contingencies for
<br />design, bidding and price escalation, to deternunc what materials, equipment, component systems and (ypes of
<br />construction are to be included in the Contract Documents, to make reasonable adjustments in the scope'of the Project
<br />and to include in the Contract Documents alternate bids as may be necessary to adjust the Construction Cost to the fixed
<br />limit. Fixed limits, if any, shall be increased in the amount of an increase in the ContracUSun~ occurring after execution
<br />of the Contract for Construction.
<br />§ 5.2.3 If the Bidding or Negotiation Phase has not commenced within 90 days after the Architect submits the
<br />Construction Documents to the Owner, any Project budget or fixed limit of Construction Cost shall be adjusted to
<br />reflect changes in the general level of prices in the construction industry.
<br />§ 5.2.4 If a fixed limit of Construction Cost (adjusted as provided in Section 5.2.3) is exceeded by the lowest bona fide
<br />bid or negotiated proposal, the Owner shall:
<br />.1 give written approval of an increase in such fixed limit;
<br />.2 authorize rebidding or renegotiating of the Project within a reasonable time;
<br />.3 terminate in accordance with Section 8.5; or
<br />.4 cooperate in revising the Project scope and quality as required to reduce the Construction Costa
<br />§ 5.2.5 If the Owner chooses to proceed under Section 5.2.4.4, the Architect, without additional compensation, shall
<br />modify the documents for which flee Architect is responsible; under this Agreement as necessary to comply with the'
<br />fixed limit, if established as a condition of this Agreement~~`he modification of such documents without cost to the
<br />Owner shall be the limit of the Architect's responsibility:.tar-der this Section 5.2.5. The Architect shall be entifled
<br />compensation in accordance with this Agreement for all services performed whether or not the Construction Phase is
<br />commenced. ~~ ~n3 ~s t'le~+n~rl"r~sc~nable by tht' t~cchi:rPr r_. ~c;; ~ ;
<br />ARTICLE 6 USE OF ARCIiITECT'S INSTRUMENTS OF SERVICE
<br />§ 6:1 Drawings, specifications and other documents, including those in electronic forni~ prepared by the Architect and
<br />the Architect's corisultalats are Instruments of Service for use solely with respect to his Project.'The Architect and the
<br />Architect's consultants'shall be deemed the authors and owners of their respecrwe Instruments of Service and shall
<br />retain all common law, statutory and other reserved rights, including copyrights.
<br />AIA Document B751TM -1997. Copyright ©1974, 1978, 1987; and 1997 by The American Institute of Architects. Ail rights reserved. WARNING: This
<br />AIA° Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA' Document, $
<br />or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law.
<br />Purchasers are permitted to reproduce ten (10) copies of this document when completed. To report copyright violations of AIA Contract Documents, a-mail
<br />The American Institute of Architects' legal counsel, copyright@aia.org.
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