init.
1 Costs, other than costs included in Change Orders approved by the Owner, that would cause the
Guaranteed Maximum Pnice to be exceeded; and
8 Costs for services incurred during the Preconstruction Phase
§ 6.9 Discounts, Rebates and Refunds
§ 6.9.1 Cash discounts obtained on payments made by the Construction Manager shall accrue to the Owner if (1)
before making the payment, the Construction Manager included them in an Application for Payment and received
payment from the Owner, or (2) the Owner has deposited funds with the Construction Manager with which to make
payments, otherwise, cash discounts shall accrue to the Construction Manager. Trade discounts, rebates, refunds and
amounts reccived from sales of surplus materials and equipment shall accrue to the Owner, and the Construction
Manager shall make provisions so that they can be obtained.
§ 6.9.2 Amounts that accrue to the Owner in accordance with the provisions of Section 6.9. | shall be credited to the
Owner as a deduction from the Cost of the Work.
§ 6.10 Related Party Transactions
§ 6.10.1 For purposes of Section 6 (0, the term “related party” shall mean a parent, subsidiary, affiliate or other
entity having common ownership or management with the Construction Manager; any entity in which any
stockholder in, or management employee of, the Construction Manager owns any interest in excess of ten percent in
the aggregate; or any person or entity which has the right to control the business or affairs of the Construction
Manager The term “related party” includes any member of the immediate family of any person identified above.
§ 6.10.2 If any of the costs to be reimbursed arise from a transaction between the Construction Manager and a related
party, the Construction Manager shail notify the Owner of the specific nature of the contemplated transaction,
including the identity of the related party and the anticipated cost to be incurred, before any such transaction 15
consummated or cost incurred. If the Owner, after such notification, authorizes the proposed transaction, then the
cost incurred shall be included as a cost to be reimbursed, and the Construction Manager shal procure the Work,
equipment, goods or service from the related party, as a Subcontractor, according to the terms of Sections 2.3.2.1,
2.3.2 2 and 2 3.2.3. If the Owner fails to authorize the transaction, the Construction Manager shall procure the Work,
equipment, goods or service from some person or entity other than a related party according to the terms of Sections
2.3.2.4, 2.3.2.2 and 2 3.2 3.
§ 6.11 Accounting Records
The Construction Manager shall keep ftll and detailed records and accounts related to the cost of the Work and
exercise such controls as may be necessary for proper financial management under this Contract and to substantiate
all costs incurred. The accounting and control systems shall be satisfactory to the Owner. The Owner and the
Owner's auditors shall, during regular business hours and upon reasonable notice, be afforded access to, and shall be
permitted to audit and copy, the Construction Manager’s records and accounts, including compleie documentation
supporting accounting entries, books, correspondence, instructions, drawings, receipts, subcontracts, Subcontractor’s
proposals, purchase orders, vouchers, memoranda and other data relating to this Contract. The Construction
Manager shall preserve these records for a period of three years after final payment, or for such longer period as may
be required by law
ARTICLE 7 PAYMENTS FOR CONSTRUCTION PHASE SERVICES
§ 7.1 Progress Payments
§ 7.1.1 Based upon Applications for Payment submitted to the Architect by the Construction Manager and
Certificates for Payment issued by the Architect, the Owner shali make progress payments on account of the
Contract Sum to the Construction Manager as provided below and elsewhere in the Contract Documents.
§ 7.1.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of
the month, or as follows
§ 7.1.3 Provided that an Application for Payment is received by the Architect not later than the 25th day of a month,
the Owner shall make payment of the certified amount to the Construction Manager not later than the 25th_ day of
the following month [fan Application for Payment is received by the Architect after the application date fixed
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