2. Cost of all materials and equipment fumished 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-III, 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.
d. No compensation will be allowed for shop tools having a daily rental rate of less than $10 as set forth
in Section 18 of the Rental Rate Blue Book.
GC - 40 of 57
