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11.3.2. By mutual acceptance Of a lump sum (which <br />may include an allowance rot overhead and profit not <br />necessarily in accordance whh paragraph 11.6.2.1}. <br /> <br /> I 1.3.3. On the basis of the Cost of thc Work (deter- <br />mined as provided in paragraphs 11.4 and Il.5} plus a <br />CONTRACTOR's Fee for overhead and profit (deter- <br />mined as provided in paragraphs I 1.6 and 11.7). <br /> <br />Cost of the Work: <br /> I 1.4. 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 other~4se <br />may be agreed to in writing by OWNER, such costs shall be <br />in amounts no higher than those prevailing in the locality of <br />the Project, shall include only thc followlng items and shall <br />not include any of the costs itemized in paragraph 11.5: <br /> <br /> 11.4.1. Payroll costs for employees in the dkect employ <br />of CONTRACTOR in the performance of the Work undei: <br />schedules of job classifications agreed upon by OWNER <br />and CONTRACTOR. 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 include social <br />security contributions, unemployment, excise and payroll <br />taxes, 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 /> <br /> 11.4.2. Cost of all materials and equipmem fumlshed <br />and incorporated in the Work, including costs of tans- <br />portation and storsge thereof, and Suppliers' field services <br />required in connection therewith. Ail cash discounts shall <br />accrue to CONTRACTOR unless OWNER deposits funds <br />with CONTRACTOR with which to make i~ayments, in <br />which case the cash discounts shall accrue to OWNER. <br />Ali trade discounts, rebates and refunds and all 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 /> <br /> 11.4.3. Payments made by CONTRACTOR to the <br />Subcontractors for Work performed by Subcontractors. <br />If required by OWNER, CONTRACTOR shall obtain <br />competitive bids from Subcontractors acceptable to CON- <br />TRACTOR and shall deliver such bids to OWNER who <br />wiU then determlne, with the advice of ENGINEER, which <br />bids will be accepted. If a subcontract provides that the <br />Subcontractor is to be paid on the basis of Cost of the <br />Work Plus a Fee, the Subcontractor's Cost of the Work <br />shall be determined in the same manner as CONTRAC- <br />TOR's Cost of the Work. All subcontracts shall be subject <br /> <br />to the other provisions of the Contract Documents insofar <br />as applicable. ~. <br /> <br /> 1 1.4.4. Costs of special consultants (including but not <br />limited to engineers, architects, testing laboratories, sur- <br />veyors, attorneys and accountants) employed for services <br />specifically related to the Work. <br /> <br />11.4.5. Supplemental costs including the following: <br /> <br /> 11.4.5.1. The proportion of necessary transporta- <br />tion, travel and subsistence expenses of CONTRAC- <br />TOR's employees incurred in discharge of duties con- <br />nected with the Work. <br /> <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 CONTRACTOR. <br /> <br /> 11.4.5.3. Rentals of all construction equipment and <br />machinery and the pans 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, loading, <br />unloading, installation, dismantling and removal <br />thereof--all in accordance with terms of said rental <br />agroements. The rental of any such equipment, machln- <br />cry or parts shall cease when the use thereof is no longer <br />necessary for the Work. <br /> <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 /> <br /> 11.4.5.5. Deposks lost for causes other than negll- <br />gance of CONTRACTOR, any Subcontractor or any- <br />one directly or indirectly employed by any of them or <br />for wl.ose acts any of them may be liable, and royalty <br />payments and fees for permits and licenses. <br /> <br /> 11.4.5.6. Losses and damages (and related <br /> expenses), not compensated by insurance oroth~rwise, <br /> to the Work or otherwise sustained by CONTRACTOR <br /> in connection with thc 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), pro- <br /> vided they have resulted from causes other than the <br /> negligence of CONTRACTOR, any Subcontractor, or <br />· anyone directly or indirectly employed by any of them <br />or for whose acts any of them may be liable. 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 Cos~. of <br />the Work for the purpose of determining CONTI'IAC- <br />TOR's Fee. If, however, any such loss or damage <br /> <br />50 <br /> <br /> <br />