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 clatmant 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.
I. 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.
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 finds 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
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