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time they are incurred or at any time. Therefore, and in <br />recognition of these factors and the likelihood that actual <br />damages from his delay will not be readily ascertainable, the <br />CMAR agrees to pay to the Owner, as Liquidated Damages <br />and not as a penalty, the sum of Two Thousand Five Hundred <br />Dollars ($2,500) as the Liquidated Damages per day, for each <br />day by which the failure to meet the Substantial Completion <br />Date shown in the Master Schedule, adjusted in accordance <br />with this Article, delays the Substantial Completion of the <br />Project. The sum for Liquidated Damages is the amount <br />reasonably estimated in advance to cover the losses to be <br />incurred by the Owner by reason of failure of the CMAR to <br />complete the Project within the time specked, such time being <br />in the essence of this contract and a material consideration <br />thereof. <br />ARTICLE 5 <br />CHANGES IN THE CONSTRUCTION MANAGER'S <br />SERVICES AND ADDITIONAL COMPENSATION <br />5.1 Owner Changes <br />The Owner, without invalidating this Agreement, may make <br />changes in the CMAR's Services specified in Article 3 of this <br />Agreement. The CMAR shall within five (5) days notify the <br />Owner of any changes or other events which in the opinion of <br />the CMAR entitle the CMAR to an increase or decrease the <br />Guaranteed Maximum Price, the CMAR's compensation, the <br />duration of the CMAR's Services, or both. <br />5.1.1 Changes in the CMAR's Services <br />Changes in the CMAR's Services may be directed by the <br />Owner in writing, and if so directed to provide different or <br />additional Services the GMAR shall comply with the directions <br />of the Owner. Additional compensation shall be settled by a <br />written amendment to this Agreement executed by the Owner <br />and the CMAR. If possible, the amendment shall be executed <br />by the Owner and CMAR prior to the CMAR performing the <br />services required by the amendment, but failure to agree on <br />compensation for a change in Services shall not be grounds for <br />the CMAR to cease or refuse to provide the Services <br />reasonably requested by the Owner. The CMAR shall proceed <br />to perform the services required by the amendment only after <br />receiving notice directing the GMAR to proceed. <br />5.1.2 Additional Compensation and Extended Duration <br />The CMAR shall be entitled to receive additional compensation <br />and additional time when the scope or planned duration of <br />Services is increased or extended through the fault of the <br />Owner. The CMAR shall notify the Owner within five (5) days <br />after changes to the scope of the Project or a part thereof or <br />after delays caused in whole or in part by the Owner increase <br />or extend the scope or duration of the CMAR's Services. <br />5.1.2.1 Fixed Fee <br />The CMAR shall not be entitled to an increase in the Fixed Fee <br />unless and until it is finally determined at the completion of the <br />Project that the approved Cost of the Work exceeds one <br />hundred and five percent (105%) of the Cost of the Work set <br />forth in the original agreed Guaranteed Maximum Price. If an <br />increase in the Fixed Fee is just~ed, the CMAR shall 6e <br />entitled to an increase in .the Fixed Fee equal to <br />percent (_%) of the amount by which the final approved Cost <br />of the Work exceeds one hundred and five percent (105%) of <br />the Cost of the Work set forth in the original agreed <br />Guaranteed Maximum Price. The Owner may in its discretion <br />approve adjustments to the Fixed Fee prior to the end of the <br />Project. <br />5.1.2.2 General Conditions <br />The amount of additional General Conditions costs to be paid <br />to the CMAR and the amount of extension of the duration of <br />this Agreement shall be determined on the basis of the <br />CMAR's reasonable additional General Conditions costs after <br />determining the increased services and length of the <br />extensions of the duration of this Agreement. A change in the <br />Drawings and Specifications or other change in the scope of <br />the Work shall not automatically entitle the CMAR to an <br />increase in compensation. Increases in the compensation <br />payable to the CMAR shall only be payable upon proof of an <br />increase in the actual duration or level of services being <br />provided by the CMAR, or both. <br />5.1.2.3 Cost of the Work <br />Increases in the Cost of the Work shall be determined in <br />accordance with the provisions of Article 7 of this Agreement. <br />5.1.3 Payment of Additional Compensation <br />The CMAR shall submit invoices for additional compensation <br />with its invoice for Services and payment shall be made <br />pursuant to the provisions of Article 7 of this Agreement. <br />ARTICLE 6 <br />OWNER'S RESPONSIBILITIES <br />19 <br />