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E. ENGINEER’s Review
1. ENGINEER will timely review and approve Shop Drawings and Samples in accordance with the schedule of Shop
Drawings and Sample submittals acceptable to ENGINEER. ENGINEER’s review and approval will be only to
determine if the items covered by the submittals will, after installation or incorporation in the Work, conform to
the information given in the Contract Documents and be compatible with the design concept of the completed
Project as a functioning whole as indicated by the Contract Documents.

2.ENGINEER’s review and approval will not extend to means, methods, techniques, sequences, or procedures of
construction (except where a particular means, method, technique, sequence, or procedure of construction is
specifically and expressly called for the Contract Documents) or to safety precautions or programs incident
thereto. The review and approval of a separate item as such will not indicate approval of the assembly in which the
item functions.

3. ENGINEER’s review and approval of Shop Drawings or Samples shall not relieve CONTRACTOR from responsibility
for any variation from the requirements of the Contract Documents unless CONTRACTOR has in writing called
ENGINEER’s attention to each such variation at the time of each submittal as required by paragraph 6.17.D.3 and
ENGINEER has given written approval of each such variation by specific written notation thereof incorporated in or
accompanying the Shop Drawing or Sample approval; nor will any approval by ENGINEER relieve CONTRACTOR
from responsibility for complying with the requirements of paragraph 6.17.D.1.

F. Resubmittal Procedures
1. CONTRACTOR shall make corrections required by ENGINEER and shall return the required number of corrected
copies of Shop Drawings and submit as required new Samples for review and approval. CONTRACTOR shall direct
specific attention in writing to revisions other than the corrections called for by ENGINEER on previous submittals.
6.18 Continuing the Work
A. CONTRACTOR shall carry on the Work and adhere to the progress schedule during all disputes or disagreements
with OWNER. No Work shall be delayed or postponed pending resolution of any disputes or disagreements, except as
permitted by paragraph 15.04 or as OWNER and CONTRACTOR may otherwise agree in writing.
6.19 CONTRACTOR’s General Warranty and Guarantee
A. CONTRACTOR warrants and guarantees to OWNER, ENGINEER, and ENGINEER’s Consultants that all Work will be in
accordance with the Contract Documents and will not be defective. CONTRACTOR’s warranty and guarantee

hereunder excludes defects or damage caused by:

1. Abuse, modification, or improper maintenance or operation by persons other than CONTRACTOR,
Subcontractors, Suppliers, or any other individual or entity for wnom CONTRACTOR is responsible; or

2. Normal wear and tear under normal usage.
B. CONTRACTOR’s obligation to perform and complete the Work in accordance with the Contract Documents shall be
absolute. None of the following will constitute an acceptance of Work that is not in accordance with the Contract
Documents or a release of CONTRACTOR’s obligation to perform the Work in accordance with the Contract
Documents:

1. Observations by ENGINEER;

2. Recommendation by ENGINEER or payment by OWNER OF ANY PROGRESS OR FINAL PAYMENT;

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3. The issuance of a certificate of Substantial Completion by ENGINEER or any payment related thereof by OWNER;
4. Use or occupancy of the Work or any part thereof by OWNER;
5. Any acceptance by OWNER or any failure to do so;

6. Any review and approval of a Shop Drawing or Sample submittal or the issuance of a notice of acceptability by
ENGINEER;

7. Any inspection, test, or approval by others; or
8. Any correction of defective Work by OWNER.
6.20 Indemnification

A. Regardless of the coverage provided by any insurance, Contractor agrees to indemnify and hold harmless the City,
its agents, officials, employees and authorized representatives and their employees from and against any and all suits,
causes of action, legal or administrative proceedings, arbitrations, claims, demands, damages, liabilities, interest,
attorneys’ fees, costs and expenses of any kind or nature in any manner caused, occasioned, or contributed to in whole
or in part by reason of any negligent act, omission, or fault or willful misconduct, whether active or passive, of
Contractor or of anyone acting under its direction or control or on its behalf in connection with or incidental to the
performance of this contract. Contractor's indemnity and hold harmless obligations, or portions thereof, shall not
apply to liability caused by the sole negligence or willful misconduct of the party indemnified or held harmless.

B. In any and all claims against OWNER or ENGINEER, agents, officers, directors, partners, or employees by any
employee (or the survivor or personal representative of such employee) of CONTRACTOR, any Subcontractor, any
Supplier, or any individual or entity directly or indirectly employed by any of them to perform any of the Work, or
anyone for whose acts any of them may be liable, the indemnification obligation under paragraph 6.20.A shall not be
limited in any way by any limitation on the amount or type of damages, compensation, or benefits payable by or for
CONTRACTOR or any such Subcontractor, Supplier, or other individual or entity.

C. The indemnification obligations of CONTRACTOR under paragraph 6.20.A shall not extend to the liability of
ENGINEER and ENGINEER’s Consultants or to the officers, directors, partners, employees, agents, and other
consultants and subcontractors of each and any of them arising out of:

The preparation or approval of, or the failure to prepare or approve, maps, Drawings, opinions, reports, surveys,
Change Orders, designs, or Specifications.

ARTICLE 7 - OTHER WORK

7.01 Related Work at Site

A. OWNER may perform other work related to the Project at the Site by OWNER’s employees, or let other direct
contracts therefore, or have other work performed by utility Owner’s. If such other work is not noted in the Contract
Documents, then:

1. Written notice thereof will be given to CONTRACTOR prior to starting any such other work; and

2. If OWNER and CONTRACTOR are unable to agree on entitlement to or on the amount or extent, if any, of any
adjustment in the Contract Price or Contract Times that should be allowed as a result of such other work, a Claim
may be made therefore as provided in paragraph 10.05.

B. CONTRACTOR shall afford each other contractor who is a party to such a direct contract and each utility OWNER
(and OWNER, if OWNER is performing the other work with OWNER’s employees) proper and safe access to the Site

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and a reasonable opportunity for the introduction and storage of materials and equipment and the execution of such
other work and shall properly coordinate the Work with theirs. Unless otherwise provided in the Contract Documents,
CONTRACTOR shall do all cutting, fitting, and patching of the Work that may be required to properly connect or
otherwise make its several parts come together and properly integrate with such other work. CONTRACTOR shall not
endanger any work of others by cutting, excavating, or otherwise altering their work and will only cut or alter their
work with the written consent of ENGINEER and the others whose work will be affected. The duties and
responsibilities of CONTRACTOR under this paragraph are for the benefit of such utility OWNERs and other contractors
to the extent that there are comparable provisions for the benefit of CONTRACTOR in said direct contracts between
OWNER and such utility OWNERs and other contractors.

C. If the proper execution or results of any part of CONTRACTOR’s Work depends upon work performed by others
under this Article 7, CONTRACTOR shall inspect such other work and promptly report to ENGINEER in writing any
delays, defects, or deficiencies in such other work that render it unavailable or unsuitable for the proper execution and
results of CONTRACTOR’s Work. CONTRACTOR’s failure to so report will constitute an acceptance of such other work
as fit and proper for integration with CONTRACTOR’s Work except for latent defects and deficiencies in such other
work.

7.02. Coordination

A. If OWNER intends to contract with others for the performance of other work on the Project at the Site, the
following will be set forth in Supplementary Conditions:

1. The individual or entity who will have authority and responsibility for coordination of the activities among the
various contractors will be identified;

2. The specific matters to be covered by such authority and responsibility will be itemized; and
3. The extent of such authority and responsibilities will be provided.

B. Unless otherwise provided in the Supplementary Conditions, OWNER shall have sole authority and responsibility for
such coordination.

ARTICLE 8 - OWNER'S RESPONSIBILITIES

8.01 Communications to Contractor
A. Except as otherwise provided in these General Conditions, OWNER shall issue all communications to CONTRACTOR
through ENGINEER.

8.02 Replacement of ENGINEER

A. In case of termination of the employment of ENGINEER, OWNER shall appoint and whose status under the Contract
Documents shall be that of the former ENGINEER.

8.03 Furnish Data
A. OWNER shall promptly furnish the data required of OWNER under the Contract Documents.
8.04 Pay Promptly When Due

A. OWNER shall make payments to CONTRACTOR promptly when they are due as provided in paragraphs 14.02.C and
14.07.C.

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8.05 Lands and Easements; Reports and Tests
A. OWNER's duties in respect of providing lands and easements and providing ENGINEERing surveys to establish
reference points are set forth in paragraphs 4.01 and 4.05. Paragraph 4.02 refers to OWNER's identifying and making
available to CONTRACTOR copies of reports of explorations and tests of subsurface conditions and drawings of physical
conditions in or relating to existing surface or subsurface structures at or contiguous to the Site that have been utilized
by ENGINEER in preparing the Contract Documents.
8.06 Insurance

See Article 5.
8.07 Change Orders
A. OWNER is obligated to execute Change Orders as indicated in paragraph 10.03.
8.08 Inspections, Tests, and Approvals
A. OWNER's responsibility in respect to certain inspections tests, and approvals is set forth in paragraph 13.03.B.
8.09 Limitations on OWNER's Responsibilities
A. The OWNER shall not supervise, direct, or have control or authority over, nor be responsible for, CONTRACTOR's
means, methods, techniques, sequences, or procedures of construction, of the safety precautions and programs
incident thereto, or for any failure of CONTRACTOR to comply with Laws and Regulations applicable to the
performance of the Work. OWNER will not be responsible for CONTRACTOR's failure to perform the Work in
accordance with the Contract Documents.

8.10 Undisclosed Hazardous Environmental Condition

A. OWNER's responsibility in respect to an undisclosed Hazardous Environmental Condition is set forth in paragraph
4.06

8.11 Evidence of Financial Arrangements
A. If and to the extent OWNER has agreed to furnish CONTRACTOR reasonable evidence that financial arrangements

have been made to satisfy OWNER's obligations under the Contract Documents, OWNER's responsibility in respect
thereof will be as set forth in the Supplementary Conditions.

ARTICLE 9 - ENGINEER'S STATUS DURING CONSTRUCTION

9.01 OWNER’s Representative

A. ENGINEER will be OWNER's representative during the construction period. The duties and responsibilities and the
limitations of authority of ENGINEER as OWNER's representative during construction are set forth in the Contract
Documents and will not be changed without written consent of OWNER and ENGINEER.

9.02 Visits to Site

A. ENGINEER will make visits to the Site at intervals appropriate to the various stages of construction as ENGINEER
deems necessary in order to observe as an experienced and qualified design professional the progress that has been
made and the quality of the various aspects of CONTRACTOR's executed Work. Based on information obtained during

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such visits and observations, ENGINEER, for the benefit of OWNER, will determine, in general, if the Work is proceeding
in accordance with the Contract Documents. ENGINEER will not be required to make exhaustive or continuous
inspections on the Site to check the quality or quantity of the Work. ENGINEER's efforts will be directed toward
providing for OWNER a greater degree of confidence that the completed Work will conform generally to the Contract
Documents. On the basis of such visits and observations, ENGINEER will keep OWNER informed of the progress of the
Work and will endeavor to guard OWNER against defective Work.

B. ENGINEER's visits and observations are subject to all the limitations on ENGINEER's authority and responsibility set
forth in paragraph 9.10, and particularly, but without limitation, during or as a result of ENGINEER's visits or
observations of CONTRACTOR's Work ENGINEER will not supervise, direct, control, or have authority over or be
responsible for CONTRACTOR's means, methods, techniques, sequences, or procedures of construction, or the safety
precautions and programs incident thereto, or for any failure of CONTRACTOR to comply with Laws and Regulations
applicable to the performance of the Work.

9.03 Project Representative

A. If OWNER and ENGINEER agree, ENGINEER will furnish a Resident Project Representative to assist ENGINEER in
providing more extensive observation of the Work. The responsibilities and authority and limitations thereon of any
such Resident Project Representative and assistants will be as provided in paragraph 9.10 and in the Supplementary
Conditions. If OWNER designates another representative or agent to represent OWNER at the Site who is not
ENGINEER's Consultant, agent or employee, the responsibilities and authority and limitations thereof of such other
individual or entity will be as provided in the supplementary Conditions.

9.04 Clarifications and interpretations

A. ENGINEER will issue with reasonable promptness such written clarifications or interpretations of the requirements
of the Contract Documents as ENGINEER may determine necessary, which shall be consistent with the intent of and
reasonably inferable from the Contract Documents. Such written clarifications and interpretations will be binding on
OWNER and CONTRACTOR. If OWNER and CONTRACTOR are unable to agree on entitlement to or on the amount or
extent, if any, of any adjustment in the Contract Price or Contract Times, or both, that should be allowed as a result of
a written clarification or interpretation, a Claim may be made therefore as provided in paragraph 10.05.

9.05 Authorized Variations in Work

A. ENGINEER may authorize minor variations in the Work from the requirements of the Contract documents which do
not involve an adjustment in the Contract Price or the Contract Times and are compatible with the design concept of
the completed Project as a functioning whole as indicated by the Contract Documents. These may be accomplished by
a Field Order and will be binding on OWNER and also on CONTRACTOR, who shall perform the Work involved promptly.
If OWNER and CONTRACTOR are unable to agree on entitlement to or on the amount or extent, if any, of any
adjustment in the Contract Price or Contract Times, or both, as a result of a Field Order, a Claim may be made
therefore as provided in paragraph 10.05.

9.06 Rejecting Defective Work

A ENGINEER will have authority to disapprove or reject Work which ENGINEER believes to be defective, or that
ENGINEER believes will not produce a completed Project that conforms to the Contract Documents or that will
prejudice the integrity of the design concept of the completed Project as a functioning whole as indicated by the
Contract Documents. ENGINEER will also have authority to require special inspection or testing of the Work as
provided in paragraph 13.04, whether or not the Work is fabricated, installed, or completed.

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9.07 Shop Drawings, Change Orders and Payments

A. In connection with ENGINEER's authority as to Shop Drawings and Samples, see paragraph 6.17.
B. In connection with ENGINEER's authority as to change orders, see Articles 10, 11, and 12.

C. In connection with ENGINEER's authority as to Applications for Payment, see Article 14.

9.08 Determinations for Unit Price Work

A ENGINEER will have authority to determine the actual quantities and classifications of items of Unit Price Work
performed by CONTRACTOR, and the written decisions of ENGINEER on such matters will be final, binding on OWNER
and CONTRACTOR and not subject to appeal (except as modified by ENGINEER to reflect changed factual conditions).

9.09 Decisions on Requirements of Contract Documents and Acceptability of Work

A. ENGINEER will be the initial interpreter of the requirements of the Contract Documents and judge of the
acceptability of the Work there under. Claims, disputes and other matters relating to the acceptability of the Work,
the quantities and classifications of Unit Price Work, the interpretation of the requirements of the Contract documents
pertaining to the performance of the Work, and Claims seeking changes in the Contract Price or Contract Times will be
referred initially to ENGINEER in writing in accordance with the provisions of paragraph 10.05, with a request for a
formal decision.

B. When functioning as interpreter and judge under this paragraph 9.09, ENGINEER will not be liable in connection
with any interpretation or decision rendered in such capacity. The rendering of a decision by ENGINEER pursuant to
this paragraph 9.09 with respect to any such Claim, dispute, or other matter (except any which have been waived by
the making or acceptance of final payment as provided in paragraph 14.07) will be a condition precedent to any
exercise by OWNER or CONTRACTOR of such rights or remedies as either may otherwise have under the Contract
Documents or by Laws or Regulations in respect of any such Claim, dispute, or other matter.

9.10 Limitations on ENGINEER's Authority and Responsibilities

A. Neither ENGINEER's authority or responsibility under this Article 9 or under any other provision of the Contract
Documents nor any decision made by ENGINEER in good faith either to exercise or not exercise such authority or
responsibility or the undertaking, exercise, or performance of any authority or responsibility by ENGINEER shall create,
impose, or give rise to any duty in contract, tort, or otherwise owed by ENGINEER to CONTRACTOR, any Subcontractor,
any Supplier, any other individual or entity, or to any surety for or employee or agent of any of them.

B. ENGINEER will not supervise, direct, control, or have authority over or be responsible for CONTRACTOR's means,
methods, techniques, sequences, or procedures of construction, or the safety precautions and programs incident
thereto, or for any failure of CONTRACTOR to comply with Laws and Regulations applicable to the performance of the
Work. ENGINEER will not be responsible for CONTRACTOR's failure to perform the Work in accordance with the
Contract Documents.

C. ENGINEER will not be responsible for the acts or omissions of CONTRACTOR or of any Subcontractor, any Supplier,
or of any other individual or entity performing any of the Work.

D. ENGINEER's review of the final Application for Payment and accompanying documentation and all maintenance and
operating instructions, schedules, guarantees, Bonds, certificates of inspection, tests and approvals, and other
documentation required to be delivered by paragraph 14.07.A will only be to determine generally that their content
complies with the requirements of, and in the case of certificates or inspections, tests, and approvals that the results
certified indicate compliance with the Contract Documents.

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E. The limitations upon authority and responsibility set forth in this paragraph 9.10 shall also apply to ENGINEER's
Consultants, Resident Project Representative, and assistants.

ARTICLE 10 - CHANGES IN THE WORK; CLAIMS

10.01 Authorized Changes in the Work

A. Without invalidating the Agreement and without notice to any surety, OWNER may, at any time or from time to
time, order additions, deletions, or revisions in the Work by a Written Amendment or a Change Order. Upon receipt of
any such document, CONTRACTOR shall promptly proceed with the Work involved which will be performed under the
applicable conditions of the Contract Documents (except as otherwise specifically provided).

B. If OWNER and CONTRACTOR are unable to agree on entitlement to, or on the amount or extent, if any, of an
adjustment in the Contract Price or Contract Times, or both, that should be allowed as a result of a Change Order, a
Claim may be made therefore as provided in paragraph 10.05.

10.02 Unauthorized Changes in the Work

A. CONTRACTOR shall not be entitled to an increase in the Contract Price or an extension of the Contract Times with
respect to any work performed that is not required by the Contract Documents as amended, modified, or
supplemented as provided in paragraph 3.04, except in the case of an emergency as provided in paragraph 6.16 or in
the case of uncovering Work as provided in paragraph 13.04.B.

10.03 Execution of Change Orders

A. OWNER and CONTRACTOR shall execute appropriate Change Orders recommended by ENGINEER (or Written
Amendments) covering:

1. Changes in the Work which are: (i) ordered by OWNER pursuant to paragraph 10.01.A, (ii) required because of
acceptance of defective Work under paragraph 13.08.A or OWNER's correction of defective Work under paragraph
13.09, or (iii) agreed to by the parties;

2. Changes in the Contract Price or Contract Times which are agreed to by the parties, including any undisputed
sum or amount of time for Work actually performed in accordance with a Change Order ; and

3. Changes in the Contract Price and Contract Times which embody the substance of any written decision

rendered by ENGINEER pursuant to paragraph 10.05; provided that, in lieu of executing any such Change Order,
an appeal may be taken from any such decision in accordance with the provisions of the Contract Documents and
applicable Laws and Regulations, but during any such appeal, CONTRACTOR shall carry on the Work and adhere to
the progress schedule as provided in paragraph 6.18.A.

10.04 Notification to Surety
A. If notice of any change affecting the general scope of the Work or the provisions of the Contract Documents
(including, but not limited to, Contract Price or Contract Times) is required by the provisions of any Bond to be given to

a surety, the giving of any such notice will be CONTRACTOR's responsibility. The amount of each applicable Bond will
be adjusted to reflect the effect of any such change.

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25.

26.

27.

28.

29.

Rights and Remedies. The duties and obligations imposed by the contract and the rights and
remedies available under the contract shall be in addition to and not a limitation of any duties,
obligations, rights, and remedies otherwise imposed or available by law.

Prohibited Interests. Professional Engineer shall not allow any officer or employee of the City of
Nashua to have any indirect or direct interest in this contract or the proceeds of this contract.
Professional Engineer warrants that no officer or employee of the City of Nashua has any direct
or indirect interest, whether contractual, noncontractual, financial or otherwise, in this contract
or in the business of Professional Engineer. If any such interest comes to the attention of
Professional Engineer at any time, a full and complete disclosure of the interest shall be
immediately made in writing to the City of Nashua. Professional Engineer also warrants that it
presently has no interest and that it will not acquire any interest, direct or indirect, which would
conflict in any manner or degree with the performance of services required to be performed
under this contract. Professional Engineer further warrants that no person having such an interest
shall be employed in the performance of this contract. If City of Nashua determines that a conflict
exists and was not disclosed to the City of Nashua, it may terminate the contract at will or for
cause in accordance with paragraph 8.

In the event Professional Engineer (or any of its officers, partners, principals, or employees acting
with its authority) is convicted of a crime involving a public official arising out or in connection
with the procurement of work to be done or payments to be made under this contract, City of
Nashua may terminate the contract at will or for cause in accordance with paragraph 8. Upon
termination, Professional Engineer shall refund to the City of Nashua any profits realized under
this contract, and Professional Engineer shall be liable to the City of Nashua for any costs incurred
by the City of Nashua in completing the work described in this contract. At the discretion of the
City of Nashua, these sanctions shall also be applicable to any such conviction obtained after the
expiration or completion of the contract.

Professional Engineer warrants that no gratuities (including, but not limited to, entertainment or
gifts) were offered or given by Professional Engineer to any officer or employee of the City of
Nashua with a view toward securing a contract or securing favorable treatment with respect to
the awarding or amending or making of any determinations with respect to the performance of
this contract. If City of Nashua determines that such gratuities were or offered or given, it may
terminate the contract at will or for cause in accordance with paragraph 8.

The rights and remedies of this section shall in no way be considered for be construed as a waiver
of any other rights or remedies available to the City of Nashua under this contract or at law.

Third Party Interests and Liabilities. The City of Nashua and Professional Engineer, including any
of their respective agents or employees, shall not be liable to third parties for any act or omission
of the other party. This contract is not intended to create any rights, powers, or interest in any
third party and this agreement is entered into for the exclusive benefit of the City of Nashua and
Professional Engineer.

Survival of Rights and Obligations. The rights and obligations of the parties that by their nature
survive termination or completion of this contract shall remain in full force and effect.

Severability. In the event that any provision of this contract is rendered invalid or unenforceable
by any valid act of Congress or of the New Hampshire legislature or any court of competent
jurisdiction, or is found to be in violation of state statutes or regulations, the invalidity or
unenforceability of any particular provision of this contract shall not affect any other provision,

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10.05 Disputes — Not Insurance Related

A. Notice: Written notice stating the general nature of each Claim, dispute, or other matter shall be delivered by the
claimant to ENGINEER and the other party to the Contract promptly (but in no event later than 10 days) after the start
of the event giving rise thereto. Notice of the amount or extent of the dispute, or other matter with supporting data
shall be delivered to the ENGINEER, Risk Management Department and the other party to the Contract within 60 days
after the start of such event. A dispute for an adjustment in Contract Price shall be prepared in accordance with the
provisions in paragraph 12.01.B. A dispute for an adjustment in Contract Time shall be prepared in accordance with
the provisions of paragraph 12.02.B. Each dispute shall be accompanied by claimant's written statement that the
adjustment disputed is the entire adjustment to which the claimant believes it is entitled as a result of said event. The
opposing party shall supmit any response to ENGINEER and the claimant within 30 days after receipt of the claimant's
last submittal (unless ENGINEER allows additional time).

B. ENGINEER'S Decision: ENGINEER will render a formal decision in writing within 30 days after receipt of the last
submittal of the claimant or the last submittal of the opposing party, if any. ENGINEER's written decision on such
dispute, or other matter will be final and binding upon CONTRACTOR unless:

1. An appeal from ENGINEER'S decision is taken within the time limits and in accordance with the dispute
resolution procedures set forth in Article 16; or

2. If no such dispute resolution procedures have been set forth in Article 16, a written notice of intention to

appeal from ENGINEER's written decision is delivered by CONTRACTOR to the other and to ENGINEER within 30
days after the date of such decision, and a formal proceeding is instituted by the appealing party in a forum of
competent jurisdiction within 60 days after the date of such decision or within 60 days after Substantial
Completion, whichever is later (unless otherwise agreed in writing by OWNER and CONTRACTOR), to exercise such
rights or remedies as the appealing party may have the respect to such Claim, dispute, or other matter in
accordance with applicable Laws and Regulations.

C. If ENGINEER does not render a formal decision in writing within the time stated in paragraph 10.05.B, a decision
denying the dispute in its entirety shall be deemed to have been issued 31 days after receipt of the last submittal of

the claimant or the submittal of the opposing party, if any.

D. No dispute for an adjustment in Contract Price or Contract Times (or Milestones) will be valid if not submitted in
accordance with this paragraph 10.05.

ARTICLE 11 - COST OF THE WORK; CASH ALLOWANCES; UNIT PRICE WORK

11.01 Cost of the Work

A. Costs Included: The term Cost of the Work means the sum of all costs necessarily incurred and paid by
CONTRACTOR in the proper performance of the Work. When the value of any Work covered by a Change Order or
when a Claim for an adjustment in Contract Price is determined on the basis of the Cost of the Work, the costs to be
reimbursed to CONTRACTOR will be only those additional or incremental costs required because of the change in the
Work or because of the event giving rise to the Claim. Except as otherwise may be agreed to in writing by OWNER,
such costs shall be in amounts no higher than those prevailing in the locality of the Project, shall include only the
following items, and shall not include any of the costs itemized in paragraph 11.01.B.

1. Payroll costs for employees in the direct employ of CONTRACTOR in the performance of the Work under
schedules of job classifications agreed upon by OWNER and CONTRACTOR. Such employees shall include without
limitation superintendents, foremen, and other personnel employed full time at the Site. Payroll costs of
employees not employed full time on the Work shall be apportioned on the basis of their time spent on the Work.
Payroll costs shall include, but not be limited to, salaries and wages plus the cost of fringe benefits which shall

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include social security contributions, unemployment, excise, and payroll taxes, workers' compensation, health and
retirement benefits, bonuses, sick leave, vacation and holiday pay applicable thereto. The expenses of performing
Work outside of regular working hours, on Saturday, Sunday, or legal holidays, shall be included in the above to the
extent authorized by OWNER.

2. Cost of all materials and equipment furnished and incorporated in the Work, including costs of transportation
and storage thereof, and Suppliers’ field services required in connection therewith. All cash discounts shall accrue
to CONTRACTOR unless OWNER deposits funds with CONTRACTOR with which to make payments, in which case
the cash discounts shall accrue to OWNER. All trade discounts, rebates and refunds and returns from sale of
surplus materials and equipment shall accrue to OWNER, and CONTRACTOR shall make provisions so that they may
be obtained.

3. Payments made by CONTRACTOR to Subcontractors for Work performed by Subcontractors. If required by
OWNER, CONTRACTOR shall obtain competitive bids from subcontractors acceptable to OWNER = and
CONTRACTOR and shall deliver such bids to OWNER, who will then determine, with the advice of ENGINEER, which
bids, if any, will be acceptable. If any subcontract provides that the Subcontractor is to be paid on the basis of Cost
of the Work plus a fee, the Subcontractor's Cost of the Work and fee shall be determined in the same manner as
CONTRACTOR's Cost of the Work and fee as provided in this paragraph 11.01.

4. Costs of special consultants (including but not limited to ENGINEERs, architects, testing laboratories, surveyors,
attorneys, and accountants) employed for services specifically related to the Work.

5. Supplemental costs including the following:

a. The proportion of necessary transportation, travel, and subsistence expenses of CONTRACTOR's employees
incurred in discharge of duties connected with the Work.

b. Cost, including transportation and maintenance, of all materials, supplies, equipment, machinery,
appliances, office, and temporary facilities at the Site, and hand tools not owned by the workers, which are
consumed in. the performance of the Work, and cost, less market value, of such items used but not consumed
which remain the property of CONTRACTOR.

c. Rentals of all construction equipment and machinery, and the parts thereof whether rented from
CONTRACTOR or others in accordance with rental agreements approved by OWNER with the advice of
ENGINEER, and the costs of transportation, loading, unloading, assembly, dismantling, and removal thereof.
All such costs shall be in accordance with the terms of said rental agreements. The rental of any such
equipment, machinery, or parts shall cease when the use thereof is no longer necessary for the Work.

6. Rental rates shall be determined as follows:

a. The base rates shall be those established in publications and revisions thereto entitled “Rental Rate Blue
Book for Construction Equipment” or the “Rental Rate Blue Book for Older Construction Equipment” as
published by K-Ill, 1735 Technology Drive, Suite 401, San Jose, CA 95110-1313, Phone (408) 467-6700.

b. Attachments (e.g. tractor with ripper and dozer or tractor with loader and backhoe) will be included in the
hourly rental rate only when deemed essential to the work as determined the ENGINEER. When multiple
attachments are approved for use and are being used interchangeably, the attachment having the higher
rental rate shall be the only one included for payment.

c. No direct payment will be made for necessary accessories (including replenishing blades, augers, teeth,
hoses, bits, etc.) if not listed in the Rental Rate Blue Book.

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