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ARTICLE 5 .3 if the Project is abandoned, terminate in accordance
<br /> with Paragraph 8.3,or
<br /> CONSTRUCTION COST .4 coo pe rate in revising the Project scope and quality as
<br /> 5.1 DEFINITION required to reduce the Construction Cost
<br /> 5.2.5 If the Owner chooses to proceed under Clause 5.2 4.4
<br /> mate The Construction Cost shall is the total cost or esti- the Architect, without additional charge, shall modify the Con-
<br /> mated cost ro the Owner to all elements of the Project designed tract Documents as necessary to com Iv with the fixed limit, if
<br /> • or specified by the Architect. comp
<br /> iv
<br /> as a condition of this Agreement. The modification
<br /> 5.1.2 The Construction Cost shall include the cost at current of Contract Documents shall be the limit of the Architect's
<br /> market rates of labor and materials furnished by the Owner and responsibility arising out of the establishment of a fixed limit
<br /> equipment designed, specified, selected or specially provided The Architect shall be entitled to compensation in accordance
<br /> for by the Architect, plus a reasonable allowance for the Con- with this Agreement for all services performed whether or not
<br /> tractor's overhead and profit. In addition, a reasonable allow- the Construction Phase is commenced.
<br /> ance for contingencies shall be included for market conditions
<br /> at the time of bidding and for changes in the Work during
<br /> construction. ARTICLE 6
<br /> 5.1.3 Construction Cost does not include the compensation of USE OF ARCHITECT'S DRAWINGS,
<br /> the Architect and Architect's consultants, the costs of the land, SPECIFICATIONS AND OTHER DOCUMENTS
<br /> rights-of-wav, financing or other costs which are the respon-
<br /> sibility of the Owner as provided in Article 4. 6.1 The Drawings, Specifications and other documents pre-
<br /> 5.2 RESPONSIBIUTY FOR CONSTRUCTION COST pared by the Architect for this Project are instruments of the
<br /> Architect's service for use solely with respect to this Project
<br /> 5.2.1 Evaluations of the Owner's Project budget, preliminary and, unless otherwise provided. the Architect shall be deemed
<br /> estimates of Construction Cost and detailed estimates of Con- the author of these documents and shall retain all common law,
<br /> struction Cost, if any, prepared by the Architect,represent the statutory and other reserved rights, including the copyright.
<br /> Architect's best judgment as a design professional familiar with The Owner shall be permitted to retain copies,including repro-
<br /> the construction industry It is recognized, however, that nei- ducible copies,of the Architect's Drawings, Specifications and
<br /> ther the Architect nor the Owner has control over the cost of other documents for information and reference in connection
<br /> labor, materials or equipment, over the Contractor's methods with the Owner's use and occupancy of the Project.The Archi-
<br /> of determining bid prices,or over competitive bidding,market tect's Drawings,Specifications or other documents shall not be
<br /> or negotiating conditions. Accordingly, the Architect cannot used by the Owner or others on other projects,for additions to
<br /> and does not warrant or represent that bids or negotiated prices this Project or for completion of this Project by others, unless
<br /> will not vary from the Owner's Project budget or from any the Architect is adjudged to be in default under this Agreement,
<br /> estimate of Construction Cost or evaluation prepared or agreed except by agreement in writing and with appropriate compen-
<br /> to by the Architect. sation to the Architect.
<br /> 5.2.2 No fixed limit of Construction Cost shall be established 6.2 Submission or distribution of documents to meet official
<br /> as a condition of this Agreement by the furnishing,proposal or regulatory requirements or for similar purposes in connection
<br /> establishment of a Project budget, unless such fixed limit has with the Project is not to be construed as publication in deroga-
<br /> been agreed upon in writing and signed by the parties hereto.If tion of the Architect's reserved rights.
<br /> such a fixed limit has been established, the Architect shall be
<br /> permitted to include contingencies for design, bidding and
<br /> price escalation,to determine what materials,equipment,com-
<br /> ponent systems and types of construction are to be included in
<br /> the Contract Documents, to make reasonable adjustments in ARTICLE 7
<br /> the scope of the Project and to include in the Contract Docu- ARBITRATION
<br /> ments alternate bids to adjust the Construction Cost to the fixed
<br /> limit. Fixed limits,if any,shall be increased in the amount of an 7.1 Claims, disputes or other matters in question between the
<br /> increase in the Contract Sum occurring after execution of the parties to this Agreement arising out of or relating to this Agree-
<br /> Contract for Construction. ment or breach thereof shall be subject to and decided by arbi-
<br /> 5.2.3 If the Bidding or Negotiation Phase has not commenced tration in accordance with the Construction Industry Arbitra-
<br /> within 90 days after the Architect submits the Construction tion Rules of the American Arbitration Association currently in
<br /> Documents to the Owner, any Project budget or fixed limit of effect unless the parties mutually agree otherwise
<br /> Construction Cost shall be adjusted to reflect changes in the 7,2 Demand for arbitration shall be filed in writing with the
<br /> general level of prices in the construction industry between the ether party to this Agreement and with the American Arbitra-
<br /> date of submission of the Construction Documents to the Lion Association.A demand for arbitration shall be made within Owner and the date on which proposals are sought. a reasonable time after the claim, dispute or other matter in
<br /> 5.2.4 if a fixed limit of Construction Cost (adjusted as pro- question has arisen In no event shall the demand for arbitration
<br /> sided in Subparagraph 5.2 3) is exceeded by the lowest bona be made after the date when institution of legal or equitable
<br /> fide bid or negotiated proposal, the Owner shall: proceedings based on such claim, dispute or other matter in
<br /> .1 give written approval of an increase in such fixed question would be barred by the applicable statutes of limitations.
<br /> limit, 7.3 No arbitration arising out of or relating to this Agreement
<br /> .2 authorize rebidding or renegotiating of the Project shall include,by consolidation,joinder or in am•other manner.
<br /> within a reasonable time: an additional person or entitv not a part% to this Agreement,
<br /> AIA 00CUMEW 8141 •OWNER-ARCHITECT AGREEMENT•FOURTEENTH EDITION•AIAO •©1987
<br /> THE AMERICAN INSTITUTE OF ARCHITECTS,1735 NEW YORK AVENUE,N.W.,WASHINGTON,D C.20006 8141-1987 6
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