Common use of Determination of Cost Clause in Contracts

Determination of Cost. 49.1 Subject to Section 49.2 whenever it is necessary for the purposes of this Agreement to determine the cost of a Change, the cost will be the amount agreed upon by the Design- Builder and the Owner within a reasonable time after the issue arises in any given instance. 49.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 49.1, the sole cost to which the Design-Builder will be entitled for the Change will be equal to the aggregate of: (a) all reasonable and proper amounts actually expended by or legally payable by the Design-Builder in respect of labour, equipment or material (supported by invoices, purchase orders, timesheets and other customary industry documentation) that are directly attributable to the subject matter of the Change and that are within one of the classes of expenditures described in Section 49.3; plus (b) to cover other costs, including overhead and profit, the following applicable markup on the amounts charged pursuant to Section 49.2(a): (i) 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 49.3(a); or (ii) 10% when the Design-Builder performed the Change. 49.3 Classes of expenditure that are allowable (all without additional markups except as otherwise noted in Section 49) for the purposes of Section 49.2 are: (a) payments to Subcontractors, including a maximum aggregate markup of 10% on the direct labour, equipment and material costs of the Subcontractors who directly perform the Change; (b) wages, salaries and reasonable traveling expenses of employees of the Design- Builder while they are actually and properly engaged on the Work, other than wages, salaries, bonuses, reasonable living and travelling expenses of personnel of the Design-Builder generally employed at the head office, or at a general office, of the Design-Builder unless such personnel is engaged at the site of the Work, with the approval of the Owner; (c) payments for materials necessary for and incorporated in the Work or necessary for and consumed in the performance of the Work; (d) payment for equipment necessary for and incorporated in the Work; (e) payments for tools, other than tools customarily provided by tradespersons, necessary for and used in the performance of the Work; (f) payments for preparation, inspection, delivery, installation, commissioning and removal of equipment and materials necessary for the performance of the Work; (g) assessments payable under any statutory scheme relating to workers compensation, unemployment insurance or holidays with pay; (h) payments for renting equipment (but not tools) and allowances for equipment (but not tools) owned by the Design-Builder, necessary for the performance of the Work, provided that such payments or allowances are reasonable or have been agreed to by the Design-Builder and the Owner; and (i) other payments, made with the prior approval of the Owner, that are necessary for the performance of the Work, as determined by the Owner.

Determination of Cost. 49.1 Subject to Section 49.2 whenever it is necessary for the purposes of this Agreement to determine the cost of a Change, the cost will be the amount agreed upon by the Design- Design-Builder and the Owner within a reasonable time after the issue arises in any given instance. 49.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 49.1, the sole cost to which the Design-Builder will be entitled for the Change will be equal to the aggregate of: (a) all reasonable and proper amounts actually expended by or legally payable by the Design-Builder in respect of the labour, equipment or material (supported by invoices, purchase orders, timesheets and other customary industry documentation) that are directly attributable to the subject matter of the Change and that are within one of the classes of expenditures described in Section 49.3; plus (b) to cover other costs, including overhead and profit, the following applicable markup on the amounts charged pursuant to Section 49.2(a): (i) 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 49.3(a); or (ii) 10% when the Design-Builder performed the Change. 49.3 Classes of expenditure that are allowable (all without additional markups except as otherwise noted in Section 49) for the purposes of Section 49.2 are: (a) payments to Subcontractors, including a maximum aggregate markup of 10% on the direct labour, equipment and material costs of the Subcontractors who directly perform the Change; (b) wages, salaries and reasonable and traveling expenses of employees of the Design- Builder while they are actually and properly engaged on the Work, other than wages, salaries, bonuses, reasonable living and travelling expenses of personnel of the Design-Design- Builder generally employed at the head office, or at a general office, of the Design-Builder unless such personnel is engaged at the site of the Work, with the approval of the Owner; (c) payments for materials necessary for and incorporated in the Work or necessary for and consumed in the performance of the Work; (d) payment for equipment necessary for and incorporated in the Work; (e) payments for tools, other than tools customarily provided by tradespersons, necessary for and used in the performance of the Work; (f) payments for preparation, inspection, delivery, installation, commissioning and removal of equipment and materials necessary for the performance of the Work; (g) assessments payable under any statutory scheme relating to workers compensation, unemployment insurance or holidays with pay; (h) payments for renting equipment (but not tools) and allowances for equipment (but not tools) owned by the Design-Builder, necessary for the performance of the Work, provided that such payments or allowances are reasonable or have been agreed to by the Design-Design- Builder and the Owner; and (i) other payments, made with the prior approval of the Owner, that are necessary for the performance of the Work, as determined by the Owner. 49.4 If the Design-Builder and the Owner cannot agree as to the cost of labour, equipment or material as contemplated in Section 49.1, and the Owner considers that a Change or series of related Changes may exceed $50,000, the Owner may require the Design-Builder, and the Design- Builder will, obtain a minimum of 3 competitive quotations or tenders for all or any part of such Change or Changes as directed by the Owner. 49.5 The applicable markup set out in this Section 49 will apply to any credit to the Owner for reductions in the costs relating to a Change. Where both increases and reductions in costs relate to a Change, the applicable markup will apply to the net increase or reduction in costs.

Determination of Cost. 49.1 Subject to Section 49.2 whenever it is necessary for the purposes of this Agreement to determine the cost of a Change, the cost will be the amount agreed upon by the Design- Design-Builder and the Owner from time to time within a reasonable time after the issue arises in any given instance.instance.‌‌‌ 49.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 49.1, the sole cost to which the Design-Builder will be entitled for the Change will be equal to the aggregate of: (a) all reasonable and proper amounts actually expended by or legally payable by the Design-Builder in respect of the labour, equipment or material (supported by invoices, purchase orders, timesheets and other customary industry documentation) that are directly attributable to the subject matter of the Change and that are within one of the classes of expenditures described in Section 49.3; plusplus‌‌‌ (b) subject to Section 49.3(a), to cover other costs, including overhead costs and profit, the following applicable a markup of 10% on the amounts charged pursuant to Section 49.2(a): (i) 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 49.3(a); or (ii) 10% when the Design-Builder performed the Change.49.2(a).‌ 49.3 Classes of expenditure that are allowable (all without additional markups except as otherwise noted in Section 49) for the purposes of Section 49.2 are:are:‌ (a) payments to Subcontractors, including a maximum aggregate markup of 10% on the direct labour, equipment and material costs of the Subcontractors who directly perform the Change; (b) wages, salaries and reasonable traveling expenses of employees of the Design- Design-Builder while they are actually and properly engaged on the Work, other than wages, salaries, bonuses, reasonable living and travelling expenses of personnel of the Design-Builder generally employed at the head office, or at a general office, of the Design-Builder unless such personnel is engaged at the site of the Work, with the approval of the Owner;Owner;‌ (c) payments for materials necessary for and incorporated in the Work or necessary for and consumed in the performance of the Work; (d) payment for equipment necessary for and incorporated in the Work; (e) payments for tools, other than tools customarily provided by tradespersons, necessary for and used in the performance of the Work; (f) payments for preparation, inspection, delivery, installation, commissioning and removal of equipment and materials necessary for the performance of the Work; (g) assessments payable under any statutory scheme relating to workers compensation, unemployment insurance or holidays with pay; (h) payments for renting equipment (but not tools) and allowances for equipment (but not tools) owned by the Design-Builder, necessary for the performance of the Work, provided that such payments or allowances are reasonable or have been agreed to by the Design-Design- Builder and the Owner; and (i) other payments, made with the prior approval of the Owner, that are necessary for the performance of the Work, as determined by the Owner. 49.4 If the Design-Builder and the Owner cannot agree as to the cost of labour, equipment or material as contemplated in Section 49.1, and the Owner considers that a Change or series of related Changes may exceed $100,000, the Owner may require the Design-Builder, and the Design- Builder will, obtain a minimum of 3 competitive quotations or tenders for all or any part of such Change or Changes as directed by the Owner.‌ 49.5 The applicable markup set out in this Section 49 will apply to the credit of the Owner for reductions in the costs relating to a Change. Where both increases and reductions in costs relate to a Change, the applicable markup will apply to the net increase or reduction in costs.

Determination of Cost. 49.1 Subject to Section 49.2 whenever it is necessary for the purposes of this Agreement to determine the cost of a Change, the cost will be the amount agreed upon by the Design- Design-Builder and the Owner within a reasonable time after the issue arises in any given instance. 49.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 49.1, the sole cost to which the Design-Builder will be entitled for the Change will be equal to the aggregate of: (a) all reasonable and proper amounts actually expended by or legally payable by the Design-Builder in respect of the labour, equipment or material (supported by invoices, purchase orders, timesheets and other customary industry documentation) that are directly attributable to the subject matter of the Change and that are within one of the classes of expenditures described in Section 49.3; plus (b) to cover other costs, including overhead and profit, the following applicable markup on the amounts charged pursuant to Section 49.2(a): (i) 5%, % when the expenditure is a payment to a Subcontractor pursuant to Section 49.3(a)Subcontractor; or (ii) 10% when the Design-Builder performed the Change. 49.3 Classes of expenditure that are allowable (all without additional markups except as otherwise noted in Section 49) for the purposes of Section 49.2 are: (a) payments to Subcontractors, including a maximum aggregate markup of 10% on the direct labour, equipment and material costs of the Subcontractors who directly perform the Change; (b) wages, salaries and reasonable traveling expenses of employees of the Design- Design-Builder while they are actually and properly engaged on the Work, other than wages, salaries, bonuses, reasonable living and travelling expenses of personnel of the Design-Builder generally employed at the head office, or at a general office, of the Design-Builder unless such personnel is engaged at the site of the Work, with the approval of the Owner; (c) payments for materials necessary for and incorporated in the Work or necessary for and consumed in the performance of the Work; (d) payment for equipment necessary for and incorporated in the Work; (e) payments for tools, other than tools customarily provided by tradespersons, necessary for and used in the performance of the Work; (f) payments for preparation, inspection, delivery, installation, commissioning and removal of equipment and materials necessary for the performance of the Work; (g) assessments payable under any statutory scheme relating to workers compensation, unemployment insurance or holidays with pay; (h) payments for renting equipment (but not tools) and allowances for equipment (but not tools) owned by the Design-Builder, necessary for the performance of the Work, provided that such payments or allowances are reasonable or have been agreed to by the Design-Design- Builder and the Owner; and (i) other payments, made with the prior approval of the Owner, that are necessary for the performance of the Work, as determined by the Owner. 49.4 If the Design-Builder and the Owner cannot agree as to the cost of labour, equipment or material as contemplated in Section 49.1, and the Owner considers that a Change or series of related Changes may exceed $50,000, the Owner may require the Design-Builder, and the Design- Builder will, obtain a minimum of 3 competitive quotations or tenders for all or any part of such Change or Changes as directed by the Owner. 49.5 The applicable markup set out in this Section 49 will apply to any credit to the Owner for reductions in the costs relating to a Change. Where both increases and reductions in costs relate to a Change, the applicable markup will apply to the net increase or reduction in costs.

Determination of Cost. 49.1 ‌ 50.1 Subject to Section 49.2 50.2 whenever it is necessary for the purposes of this Agreement to determine the cost of a Change, the cost will be the amount agreed upon by the Design- Design-Builder and the Owner within a reasonable time after the issue arises in any given instance.instance.‌ 49.2 50.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 49.150.1, the sole cost to which the Design-Builder will be entitled for the Change will be equal to the aggregate of:of:‌ (a) all reasonable and proper amounts actually expended by or legally payable by the Design-Design- Builder in respect of the labour, equipment or material (supported by invoices, purchase orders, timesheets and other customary industry documentation) that are directly attributable to the subject matter of the Change and that are within one of the classes of expenditures described in Section 49.350.3; plusplus‌ (b) to cover other costs, including overhead and profit, the following applicable markup on the amounts charged pursuant to Section 49.2(a):50.2(a). (i) 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 49.3(a50.3(a); or or‌ (ii) 10% when the Design-Builder performed the Change.Change.‌ 49.3 50.3 Classes of incremental expenditure that are allowable for the Work that is the subject matter of the Change (all without additional markups except as otherwise noted in Section 4950) for the purposes of Section 49.2 50.2 are: (a) payments to Subcontractors, including a maximum aggregate markup of 10% on the direct labour, equipment and material costs of the Subcontractors who directly perform the Change;Work;‌ (b) wages, salaries and reasonable traveling expenses of employees of the Design- Design-Builder while they are actually and properly engaged on the Work, other than wages, salaries, bonuses, reasonable living and travelling expenses of personnel of the Design-Builder generally employed at the head office, or at a general office, of the Design-Builder unless such personnel is engaged at the site of the Work, with the approval of the Owner; (c) payments for materials necessary for and incorporated in the Work or necessary for and consumed in the performance of the Work;Work;‌ (d) payment for equipment necessary for and incorporated in the Work; (e) payments for tools, other than tools customarily provided by tradespersons, necessary for and used in the performance of the Work; (f) payments for preparation, inspection, delivery, installation, commissioning and removal of equipment and materials necessary for the performance of the Work; (g) assessments payable under any statutory scheme relating to workers compensation, unemployment insurance or holidays with pay;pay;‌ (h) payments for renting equipment (but not tools) and allowances for equipment (but not tools) owned by the Design-Builder, necessary for the performance of the Work, provided that such payments or allowances are reasonable or have been agreed to by the Design-Builder and the Owner; and (i) other payments, made with the prior approval of the Owner, that are necessary for the performance of the Work, as determined by the Owner.‌ 50.4 If the Design-Builder and the Owner cannot agree as to the cost of labour, equipment or material as contemplated in Section 50.1, and the Owner considers that a Change or series of related Changes may exceed $50,000, the Owner may require the Design-Builder, and the Design- Builder will, obtain a minimum of 3 competitive quotations or tenders for all or any part of such Change or Changes as directed by the Owner. 50.5 The applicable markup set out in this Section 50 will apply to any credit to the Owner for reductions in the costs relating to a Change. Where both increases and reductions in costs relate to a Change, the applicable markup will apply to the net increase or reduction in costs.‌

Determination of Cost. 49.1 Subject to Section 49.2 whenever it is necessary for the purposes of this Agreement to determine the cost of a Change, the cost will be the amount agreed upon by the Design- Builder and the Owner Authority within a reasonable time after the issue arises in any given instance. 49.2 If the Design-Builder and the Owner Authority cannot agree as to the cost of the Change as contemplated in Section 49.1, the sole cost to which the Design-Builder will be entitled for the Change will be equal to the aggregate of: (a) all reasonable and proper amounts actually expended by or legally payable by the Design-Builder in respect of labour, equipment or material (supported by invoices, purchase orders, timesheets and other customary industry documentation) that are directly attributable to the subject matter of the Change and that are within one of the classes of expenditures described in Section 49.3; plus (b) to cover other costs, including overhead and profit, the following applicable markup on the amounts charged pursuant to Section 49.2(a): (i) 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 49.3(a); or (ii) 10% when the Design-Builder performed the Change. 49.3 Classes of expenditure that are allowable (all without additional markups except as otherwise noted in Section 49) for the purposes of Section 49.2 are: (a) payments to Subcontractors, including a maximum aggregate markup of 10% on the direct labour, equipment and material costs of the Subcontractors who directly perform the Change; (b) wages, salaries and reasonable traveling expenses of employees of the Design- Builder while they are actually and properly engaged on the Work, other than wages, salaries, bonuses, reasonable living and travelling expenses of personnel of the Design-Builder generally employed at the head office, or at a general office, of the Design-Builder unless such personnel is engaged at the site of the Work, with the approval of the OwnerAuthority; (c) payments for materials necessary for and incorporated in the Work or necessary for and consumed in the performance of the Work; (d) payment for equipment necessary for and incorporated in the Work; (e) payments for tools, other than tools customarily provided by tradespersons, necessary for and used in the performance of the Work; (f) payments for preparation, inspection, delivery, installation, commissioning and removal of equipment and materials necessary for the performance of the Work; (g) assessments payable under any statutory scheme relating to workers compensation, unemployment insurance or holidays with pay; (h) payments for renting equipment (but not tools) and allowances for equipment (but not tools) owned by the Design-Builder, necessary for the performance of the Work, provided that such payments or allowances are reasonable or have been agreed to by the Design-Builder and the OwnerAuthority; and (i) other payments, made with the prior approval of the OwnerAuthority, that are necessary for the performance of the Work, as determined by the OwnerAuthority. 49.4 If the Design-Builder and the Authority cannot agree as to the cost of labour, equipment or material as contemplated in Section 49.1, and the Authority considers that a Change or series of related Changes may exceed $50,000, the Authority may require the Design- Builder, and the Design-Builder will, obtain a minimum of 3 competitive quotations or tenders for all or any part of such Change or Changes as directed by the Authority. 49.5 The applicable markup set out in this Section 49 will apply to any credit to the Authority for reductions in the costs relating to a Change. Where both increases and reductions in costs relate to a Change, the applicable markup will apply to the net increase or reduction in costs.

Determination of Cost. 49.1 Subject to Section 49.2 whenever it is necessary for the purposes of this Agreement to determine the cost of a Change, the cost will be the amount agreed upon by the Design- Design-Builder and the Owner from time to time within a reasonable time after the issue arises in any given instance. 49.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 49.1, the sole cost to which the Design-Builder will be entitled for the Change will be equal to the aggregate of: (a) all reasonable and proper amounts actually expended by or legally payable by the Design-Builder in respect of the labour, equipment or material (supported by invoices, purchase orders, timesheets and other customary industry documentation) that are directly attributable to the subject matter of the Change and that are within one of the classes of expenditures described in Section 49.3; plus (b) to cover other costs, including overhead and profit, the following applicable markup on the amounts charged pursuant to Section 49.2(a): (i) 5%, when the expenditure is a payment to a Subcontractor pursuant subject to Section 49.3(a); or (ii) 10, a markup for overhead of 5% when the Design-Builder performed the Changeand a markup for profit of 2.5%. 49.3 Classes of expenditure that are allowable (all without additional markups except as otherwise noted in Section 49) for the purposes of Section 49.2 are: (a) payments to SubcontractorsSubcontractors but notwithstanding the markups specified in Section 49.2(b), including a maximum aggregate markup the markups applied to such payments to the Design-Builder’s Consultant and the first level Subcontractors that subcontracted directly with the Design-Builder will for the purposes of 10Section 49.2(b) be no greater than 5% on the direct labour, equipment for overhead and material costs of the Subcontractors who directly perform the Change2.5% for profit; (b) wages, salaries and reasonable traveling expenses of employees of the Design- Design-Builder while they are actually and properly engaged on the Work, other than wages, salaries, bonuses, reasonable living and travelling expenses of personnel of the Design-Builder generally employed at the head office, or at a general office, of the Design-Builder unless such personnel is engaged at the site of the Work, with the approval of the Owner; (c) payments for materials necessary for and incorporated in the Work or necessary for and consumed in the performance of the Work; (d) payment for equipment necessary for and incorporated in the Work; (e) payments for tools, other than tools customarily provided by tradespersons, necessary for and used in the performance of the Work; (f) payments for preparation, inspection, delivery, installation, commissioning and removal of equipment and materials necessary for the performance of the Work; (g) assessments payable under any statutory scheme relating to workers compensation, unemployment insurance or holidays with pay; (h) payments for renting equipment (but not tools) and allowances for equipment (but not tools) owned by the Design-Builder, necessary for the performance of the Work, provided that such payments or allowances are reasonable or have been agreed to by the Design-Design- Builder and the Owner; and (i) other payments, made with the prior approval of the Owner, that are necessary for the performance of the Work, as determined by the Owner. 49.4 If the Design-Builder and the Owner cannot agree as to the cost of labour, equipment or material as contemplated in Section 49.1, and the Owner considers that a Change or series of related Changes may exceed $100,000, the Owner may require the Design-Builder, and the Design- Builder will, obtain a minimum of 3 competitive quotations or tenders for all or any part of such Change or Changes as directed by the Owner. 49.5 The applicable markups set out in this Section 49 will apply to the credit of the Owner for reductions in the costs relating to a Change. Where both increases and reductions in costs relate to a Change, the applicable markups will apply to the net increase or reduction in costs.

Determination of Cost. 49.1 Subject to Section 49.2 whenever it is necessary for the purposes of this Agreement to determine the cost of a Change, the cost will be the amount agreed upon by the Design- Design-Builder and the Owner from time to time within a reasonable time after the issue arises in any given instance. 49.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 49.1, the sole cost to which the Design-Builder will be entitled for the Change will be equal to the aggregate of: (a) all reasonable and proper amounts actually expended by or legally payable by the Design-Builder in respect of the labour, equipment or material (supported by invoices, purchase orders, timesheets and other customary industry documentation) that are directly attributable to the subject matter of the Change and that are within one of the classes of expenditures described in Section 49.3; plus (b) subject to Section 49.3(a), to cover other costs, including overhead costs and profit, the following applicable a markup of 10% on the amounts charged pursuant to Section 49.2(a): (i) 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 49.3(a); or (ii) 10% when the Design-Builder performed the Change. 49.3 Classes of expenditure that are allowable (all without additional markups except as otherwise noted in Section 49) for the purposes of Section 49.2 are: (a) payments to Subcontractors, including a maximum aggregate markup of 10% on the direct labour, equipment and material costs of the Subcontractors who directly perform the Change; (b) wages, salaries and reasonable traveling expenses of employees of the Design- Design-Builder while they are actually and properly engaged on the Work, other than wages, salaries, bonuses, reasonable living and travelling expenses of personnel of the Design-Builder generally employed at the head office, or at a general office, of the Design-Builder unless such personnel is engaged at the site of the Work, with the approval of the Owner; (c) payments for materials necessary for and incorporated in the Work or necessary for and consumed in the performance of the Work; (d) payment for equipment necessary for and incorporated in the Work; (e) payments for tools, other than tools customarily provided by tradespersons, necessary for and used in the performance of the Work; (f) payments for preparation, inspection, delivery, installation, commissioning and removal of equipment and materials necessary for the performance of the Work; (g) assessments payable under any statutory scheme relating to workers compensation, unemployment insurance or holidays with pay; (h) payments for renting equipment (but not tools) and allowances for equipment (but not tools) owned by the Design-Builder, necessary for the performance of the Work, provided that such payments or allowances are reasonable or have been agreed to by the Design-Design- Builder and the Owner; and (i) other payments, made with the prior approval of the Owner, that are necessary for the performance of the Work, as determined by the Owner. 49.4 If the Design-Builder and the Owner cannot agree as to the cost of labour, equipment or material as contemplated in Section 49.1, and the Owner considers that a Change or series of related Changes may exceed $100,000, the Owner may require the Design-Builder, and the Design- Builder will, obtain a minimum of 3 competitive quotations or tenders for all or any part of such Change or Changes as directed by the Owner. 49.5 The applicable markup set out in this Section 49 will apply to the credit of the Owner for reductions in the costs relating to a Change. Where both increases and reductions in costs relate to a Change, the applicable markup will apply to the net increase or reduction in costs.