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ARTICLE IV - COMPENSATION <br /> For the engineering services described in Article II , <br /> individual or combined cost ceilings shall be established as <br /> indicated below . Within these cost ceilings the ENGINEERS shall <br /> be compensated as follows : <br /> ( 1 ) Each hour of service rendered as a direct charge to <br /> this Contract shall be billed at payroll costs times <br /> the multipler indicated for each service . Payroll <br /> costs include base salary , vacations , sick leave , <br /> holidays , payroll taxes and insurance and pension plan . <br /> (2 ) Mileage costs directly chargeable to this project will <br /> be billed at the ENGINEERS ' standard employee <br /> reimbursement rate of 21 cents per mile . Other travel <br /> expenses shall be billed at actual cost . <br /> ( 3 ) Work done by others on a subcontract basis shall be <br /> billed at actual cost to the ENGINEERS . Subcontract <br /> work will not start until approved by the OWNER. <br /> BASIS OF COMPENSATION <br /> Payroll Cost <br /> Service Multiplier Cost Ceiling <br /> Article IIA - Phase 1 2 . 15 $40,000 <br /> Article IIB - Phase 2 2 . 15 $20,000 <br /> ARTICLE V - PAYMENT <br /> Partial payment shall be made to the ENGINEERS monthly as <br /> work progresses on the basis of hours charged to the job during <br /> the previous month by principals and employees of the ENGINEERS, <br /> Page 7 of 11 <br />