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<br />ARTICLE 5
<br />CONSTRUCTION COST
<br />
<br />5.1 DEFINITION
<br />5.1.1 The Con.'itnlction Cost shall be the [mal cOSt or esti-
<br />mated COSt (0 the Owner of all elements of the Proiecr designed
<br />or specified by the ArchiteCt
<br />5.1.2 The Construction Cost sh:dl include the cost at current
<br />market rates of labor and m:ucrials furnished by the Owner and
<br />equipment designed, specified, selected or spedally provided
<br />for hy the Architect, plus a reasonable allowance for the Con-
<br />trador's overhead and profir. In addition, :1 reasonable allow.
<br />ance fOf contingencies shall be included for market conditions
<br />at the time of bidding :md for changes in the Work during
<br />construction.
<br />5.1.3 Construction Cost does not include the compensation of
<br />the Architect and Architect's consultants, the costs of the bnd,
<br />rlghts-oC-WOlY, financing or other costs which are the respon-
<br />siblJity of the Owner as provided in Article 4.
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<br />5.2 RESPONSIBIUTY FOR CONSTRUCTION COST
<br />5.2.1 Evaluations of the Owner's Project budget, preliminary
<br />estimates of Construction Cost and detailed estimates of Con-
<br />struction Cost, if any, prepared by the Architect, represent the
<br />Architect's best judgmem as a design professional famil.i.:lr with
<br />the construction industry. It is recognized, however, that nei-
<br />ther the Architect nor the Owner has comrol over the cost of
<br />!:l.bor, materials or equipment, over the Comractor's methods
<br />of determining bid prices, or over competitive bidding, market
<br />or negotiating conditions. Accordingly, the Architect cannot
<br />and does not warrant or represent [hat bids or negotiated prices
<br />will not vary from the Owner's Project budget or from any
<br />estimate of Construction Cose or evaluation prepared or agreed
<br />co by the ArchJtect.
<br />5.2.2 No fixed limit of Construction Cost shall be established
<br />as a condition of this Agreement hy the furnishin~, proposal or
<br />e5tablis.hment of a Project budget, unless such fIxed limit has
<br />been agreed upon in writing and signed by the parties hereto. If
<br />such a tlxed limit has been esClblished, the Architect shall be
<br />permitted to include contingencies for design, bidding and
<br />price escalation, co determine what materials, equipment, com-
<br />ponent systems and types of construction are to be included in
<br />the Contract Docwnents, to make re3Sonable adjustments in
<br />the scope of the Project and to include in the Contmct Docu-
<br />ments alternate bids ro adjust the Construction Cost to the ftxed
<br />limit. Fixed limits, tfany, shall be increased in the amount of:m
<br />jncrea.<;e in the Contract Sum occurring after execution of the
<br />Contract for Construction.
<br />
<br />5.2.3 If the Bidding or Negotiation Phase has not commenced
<br />within 90 days after the Architect submits the Construction
<br />Documents to the Owner, any Project budget or fixed. limit of
<br />Constmction Cost sh:ill be adjusted to reflect changes in the
<br />general level of prices in the construction industry berween the
<br />date of submission of the Construction Documents to the
<br />Owner and the date on which proposals are sought.
<br />5.2.4 If a fIxed limit of Construction Cost (adjusted as pro-
<br />vided in Subparagraph 5.2,3) is exceeded by the lowest bona
<br />ftde bid or negoti<ued proposal, the Owner shall:
<br />
<br />.1 give written approval of an incre:lSe in such fixed
<br />limit;
<br />
<br />.2 authorize rebidding or renegotiating of the Project
<br />within a reasonable time;
<br />
<br />.3 if the Project is abandoned, terminate in accordance
<br />with Pa.ra.grJ.ph 8.3; or
<br />.4 cooperate in revising the Project scope and quality as
<br />required to rcduce the Construction Cost.
<br />5.2.5 If the Owner chooses to proceed under Clause 5.2.4.4,
<br />the Architect, without additional charge, shall modify the Con.
<br />tr:let Document,> as necessary to comply with the fixed limit, if
<br />established as a condition of this Agreement. The modification
<br />of Contract Documents shall be the limit of the Architect's
<br />responsibility ari....ing our of the establishment of a fixed limit.
<br />The Architect shall be entil\ed to compensation in accordance
<br />with this Agreement for all services performed whether or nm
<br />the Construction Phase is commenced.
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<br />ARTICLE 6
<br />USE OF ARCHITECT'S DRAWINGS,
<br />SPECIFICATIONS AND OTHER DOCUMENTS
<br />
<br />6.1 The Dmwings, Specific:nions and other documents pre-
<br />pared by the Architect for chis Project are instruments of the
<br />Archlcect's service for use solely with respect to this Project
<br />and, unless Otherwise provided, the Architect shall be deemed
<br />the author of these documents and shall retain all common law,
<br />statutory and other reserved rights, including the copyright.
<br />The Owner shall be petmitted to retain copies, including repro-
<br />duable copies, of the Architect's Drawings, Spedfications and
<br />other documents for information and reference in connection
<br />with the Owner's use and occupancy of the Project. The Archi-
<br />tect's Df'Jwings, Specifications or Other documents shali not be
<br />used by the Owner or others on other projects, for additions to
<br />this Project or for completion of this Project by others, unless
<br />the Architect is adjudged to be in default under this Agreement,
<br />except by agreement in writing and with appropriate compen-
<br />sation to the Architect.
<br />6.2 Submission or dl..triburion of documents to meet official
<br />regulatOry requirements or for similar purposes in connection
<br />with the Project is not ro be construed as publication in deroga-
<br />rion of the Architect's resef\'ed rights.
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<br />ARTICLE 7
<br />ARBITRATION
<br />
<br />7.1 Claims, disputes or other matters in question between the
<br />parties to this Agreement arising out of or relating to this Agree-
<br />meO[ or breach thereof shall be subject to and decided by arbi-
<br />trminn in accordance with the Construction Industry Arbitm.
<br />tion Rules of the American Arbitr.uion Association currently in
<br />effect unless the parties murw.lly agree otherwise.
<br />7.2 Demand for arbitration shall be ftled in writing with the
<br />other party to this Agreement and with the American Arbitra-
<br />{ion Association. A demand for arbitration shall be made within
<br />a reasonable time after the claim, dispute or other matter in
<br />question has arisen. In no event shall the demand for arbitra[\on
<br />be made after the date when institution of legal or equitable
<br />proceedings based on such claim, dispute or other matter in
<br />question would be barred by the applicable staNtes of limit:.tion'i.
<br />7.3 No arbitr.ltion arising Out of or relating to this Agreement
<br />shall include. by consolidation, jOinder or in any other manner,
<br />w additional person or entity not a party to this Agreement,
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<br />AlA DOCUMENT 8141 . OWNER.ARCHITECT ^GREEMENT. FOURTE!Nlli EDITION. AlA- . @1987
<br />THE AMERICA.."i INSTITUTE OF ARCHITECTS. t735 NEW YORKAVENUI!:, N.W., WASHINGTON, D.C. 20006
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<br />B141.1987 6
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