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 submit 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 1temized 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 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.
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