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11.3.2. By mutuat acccptancc of a lump sum (which
<br />may includc an allowance for ovcrhead and profit not
<br />nccessarily in accordancc with paragraph 11.6.2. 1).
<br />11.3.3. On the basis of the Cost of thc Work (detcr-
<br />mined as provided in paragraphs 11.4 and 11.5) plus a
<br />CONTRACTOR's Fee for overhead and profit (dcter-
<br />mined as provided in paragraphs 11.6 and 11.7).
<br />COSI Of t{re {'VOr/i:
<br />11.4. The term Cost of the Work means the sum of all
<br />costs necessarily incurred and paid by CONTRACTOR in
<br />the proper performance of the Work. Except as otherwise
<br />may be agreed to in writing by OWNER, such costs shall be
<br />in amounts no higher than those prevailing in the locility of
<br />the Project, shall include only the following items and sha[t
<br />not include any of the costs itemized in paragraph 11.5:
<br />11.4.1. Payroll costs for employees in the direct employ
<br />of CONTRACTOR in the performance of the VVork under
<br />schedules of job classifications agreed upon by OWNER
<br />and CONTRACT'OR. Payroll costs for employees not
<br />employed full time on the Work shall be apportioned on
<br />the basis of their time spent on the Work. Payroll costs
<br />shall include, but not be limited to, salaries and wages
<br />plus the cost of fringe benefits which shall inciude social
<br />security coniributions, unemployment, excise and payroll
<br />taxcs, workers' or workmen's compensation, health and
<br />retirement benefits, bonuses, sick leave, vacation and hol-
<br />iday pay applicable thereto. Such employees shall include
<br />superintendents and foremen at the site. The expenses of
<br />performing Work after regular working hours, on Satur-
<br />day, Sunday or legal holidays, shall be included in the
<br />above to the extent authorized by OWNER.
<br />11.4.2. Cost of a(I materiais and equipment furnished
<br />and incorpocated in the Work, including costs of trans-
<br />portation and storage thereof, and Supp[iers' field scrvices
<br />required in connection therewith. All cash discounts shall
<br />accrue to CONTRACTOR unless OWNER deposits funds
<br />with CONTRACTOR with which to make payments, in
<br />which case the cash discounts shall accrue to OWNER.
<br />All trade discounts, rebates and refunds and ali returns
<br />from sale of surplus materials and equipment shall accrue
<br />to OWNER, and CONTRACTOR shall make provisions
<br />so that they may be obtained.
<br />11.43. Payments made by CONTRACTOR to ihe
<br />Subcontractors for Work pertormed by Subcontcactors.
<br />If required by OWNER, CONTRACTOR shall obtain
<br />competitive bids from Subcontractors acceptab(e to CON-
<br />TRACTOR aad shall deliver such bids to OWNER who
<br />will then determine, with the advice of ENGINEER, which
<br />bids will be accepted. If a subcontraet pcovides that the
<br />Subcontractor is to be paid on the basis of Cost of the
<br />Work Ptus a Fee, the Subcontractor's Cost of the Work
<br />shall be detecmined in the same manncr as CONTRAC-
<br />TOR's Cost of the Work. AII subcontracts shall be subject
<br />to thc other provisions of the Contra,~t Documcnts insofar
<br />as applicablc.
<br />I t.4.4. Costs of special consuitants (including but not
<br />limited to engineers, architects, testing laboratories, sur-
<br />veyors, attorneys and accountants) employed for services
<br />spccifica(ly rclatcd to the Work.
<br />11.4.5. Supplemental costs including the following:
<br />11.4.5. 1. The proportion of necessary transpoRa-
<br />tion, travel and subsistence expenses of CONTRAC-
<br />TOP.'s employees incurred in discharge of duties con-
<br />nected with the Work.
<br />11.4.5.2. Cost, including transportation and main-
<br />tenance, of all materials, supplies, equipment, machin-
<br />ery, appliances, office and temporary facilities at the
<br />site and hand tools not owned by the workers, which
<br />are consumed in the performance of the Work, and cost
<br />less market value of such items used but not consumed
<br />which remain the property of CONTRACT'OR.
<br />11.4.53. Rentals of alt construction equipment and
<br />machinery and the parts thereof whether rented from
<br />CONTRACTOR or others in accordance with rental
<br />agreements approved by OWNER with the advice of
<br />ENGINEER, and the costs of transportation, toading,
<br />unloading, ins[allation, dismantling and removal
<br />thereof-all in accordance with terms of said rental
<br />agreements. The rentai of any such equipment, machin-
<br />ery orparts shall cease when the use thereof is no longer
<br />necessary for the Work.
<br />11.4.5.4. Sales, consumer, use or similar taxes
<br />related to the Work, and for which CONTRACTOR is
<br />liable, imposed by Laws and Regulations.
<br />11.4.5.5. Deposits lost for causes other than negli-
<br />gence of CONTRAC'TOR, any Subcontractor or any-
<br />one directly or indirectly employed by any of them or
<br />for w•l.ose acts any of them may be liable, and royalty
<br />payments and fees for permits and licenses.
<br />11.4.5.6. Losses and damages (and related
<br />expenses), not compensated by insurance orothecwise,
<br />to the Work or otherwise sustained by CONTRACTOR
<br />in connection with the performance and furnishing of
<br />the Work (except losses and damages within the
<br />deductible amounts of property insurance established
<br />by OWNER in accordance with paragraph 5.9), pra
<br />vided they have resulted from causes other than the
<br />negligence of CONTRACT'OR, any Subcontractor, or
<br />anyoae directiy or indirect[y employed by any of them
<br />or for whose acts any of them may be tiable. Such
<br />losses shall include settlements made with the written
<br />consent and approval of OWNER. No such losses,
<br />damages and expenses shall be included in the Cost of
<br />the Work foc the pucpose oCdetecmining CONTI',AC-
<br />TOR's Fee. If, however, any such loss or damage
<br />50
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