Common use of Determination of Cost Clause in Contracts

Determination of Cost. ‌ 50.1 Subject to Section 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-Builder and the Owner within a reasonable time after the issue arises in any given instance.‌ 50.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 50.1, 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 50.3; plus‌ (b) to cover other costs, including overhead and profit, the following applicable markup on the amounts charged pursuant to Section 50.2(a). (i) 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 50.3(a); or‌ (ii) 10% when the Design-Builder performed the Change.‌ 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 50) for the purposes of Section 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 Work;‌ (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.‌ 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. ‌ 50.1 49.1 Subject to Section 50.2 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.‌instance. 50.2 49.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 50.149.1, 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 50.349.3; plus‌plus (b) to cover other costs, including overhead and profit, the following applicable markup on the amounts charged pursuant to Section 50.2(a).49.2(a): (i) 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 50.3(a49.3(a); or‌ or (ii) 10% when the Design-Builder performed the Change.‌Change. 50.3 49.3 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 5049) for the purposes of Section 50.2 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 Work;‌Change; (b) wages, salaries and reasonable and 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-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-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.‌Owner. 50.4 49.4 If the Design-Builder and the Owner cannot agree as to the cost of labour, equipment or material as contemplated in Section 50.149.1, 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 49.5 The applicable markup set out in this Section 50 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.‌costs.

Determination of Cost. ‌ 50.1 49.1 Subject to Section 50.2 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 from time to time within a reasonable time after the issue arises in any given instance.‌instance. 50.2 49.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 50.149.1, 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 50.349.3; 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 50.2(a49.2(a). (i) 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 50.3(a); or‌ (ii) 10% when the Design-Builder performed the Change.‌ 50.3 49.3 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 5049) for the purposes of Section 50.2 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 Work;‌; (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;‌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-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.‌Owner. 50.4 49.4 If the Design-Builder and the Owner cannot agree as to the cost of labour, equipment or material as contemplated in Section 50.149.1, and the Owner considers that a Change or series of related Changes may exceed $50,000100,000, 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 49.5 The applicable markup set out in this Section 50 49 will apply to any the credit to 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.‌costs.

Determination of Cost. ‌ 50.1 49.1 Subject to Section 50.2 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 from time to time within a reasonable time after the issue arises in any given instance.‌instance. 50.2 49.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 50.149.1, 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 50.349.3; plus‌plus (b) to cover other costs, including overhead and profit, the following applicable markup on the amounts charged pursuant subject to Section 50.2(a49.3(a), a markup for overhead of 5% and a markup for profit of 2.5%. (i) 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 50.3(a); or‌ (ii) 10% when the Design-Builder performed the Change.‌ 50.3 49.3 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 50) for the purposes of Section 50.2 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 Work;‌2.5% for profit; (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;‌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-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.‌Owner. 50.4 49.4 If the Design-Builder and the Owner cannot agree as to the cost of labour, equipment or material as contemplated in Section 50.149.1, and the Owner considers that a Change or series of related Changes may exceed $50,000100,000, 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 49.5 The applicable markup markups set out in this Section 50 49 will apply to any the credit to 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 markups will apply to the net increase or reduction in costs.‌costs.

Determination of Cost. ‌ 50.1 49.1 Subject to Section 50.2 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 from time to time within a reasonable time after the issue arises in any given instance.‌instance.‌‌‌ 50.2 49.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 50.149.1, 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 50.349.3; 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 50.2(a).49.2(a).‌ (i) 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 50.3(a); or‌ (ii) 10% when the Design-Builder performed the Change.‌ 50.3 49.3 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 5049) for the purposes of Section 50.2 are: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 Work;‌; (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;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-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.‌Owner. 50.4 49.4 If the Design-Builder and the Owner cannot agree as to the cost of labour, equipment or material as contemplated in Section 50.149.1, and the Owner considers that a Change or series of related Changes may exceed $50,000100,000, 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.Owner.‌ 50.5 49.5 The applicable markup set out in this Section 50 49 will apply to any the credit to 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.‌costs.

Determination of Cost. ‌ 50.1 47.1 Subject to Section 50.2 47.2 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 from time to time within a reasonable time after the issue arises in any given instance.‌instance. 50.2 47.2 If the Design-Builder and the Owner Authority cannot agree as to the cost of the Change as contemplated in Section 50.147.1, 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 50.347.3; plus‌plus (b) to cover other costs, including overhead and profit, the following applicable markup on the amounts charged pursuant subject to Section 50.2(a).47.3(a): (i) for a Change or a series of related Changes with an aggregate cost (prior to applying a markup) less than $1,000,000, a markup for overhead of 10% and a markup for profit of 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 50.3(a); or‌ and (ii) 10for a Change or a series of related Changes with an aggregate cost (prior to applying a markup) greater than $1,000,000, a markup for overhead of 5% when the Design-Builder performed the Change.‌and a markup for profit of 5%. 50.3 47.3 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 50) for the purposes of Section 50.2 47.2 are: (a) payments to SubcontractorsSubcontractors but notwithstanding the markups specified in Section 47.2(b), including a maximum aggregate markup the markups applied to such payments to the Design-Builder’s Consultant and Subcontractors will for the purposes of 10Section 47.2(b) be 5% on the direct labour, equipment for overhead and material costs of the Subcontractors who directly perform the Work;‌5% for profit. (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;‌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-Design- Builder and the OwnerAuthority; and (i) other payments, payments made with the prior approval of the Owner, Authority that are necessary for the performance of the Work, as determined by and such expenditures are not the Owner.‌subject matter of the markups in Section 47.2(b). 50.4 47.4 If the Design-Builder and the Owner Authority cannot agree as to the cost of labour, equipment or material as contemplated in Section 50.147.1, and the Owner Authority considers that a Change or series of related Changes may exceed $50,000100,000, the Owner Authority may require the Design-Builder, and the Design- 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 OwnerAuthority. 50.5 47.5 The applicable markup markups set out in this Section 50 47 will apply to any the credit to of the Owner Authority for reductions in the costs relating to a Change. Where both increases and reductions in costs relate to a Change, the applicable markup markups will apply to the net increase or reduction in costs.‌costs.

Determination of Cost. ‌ 50.1 49.1 Subject to Section 50.2 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 Authority within a reasonable time after the issue arises in any given instance.‌instance. 50.2 49.2 If the Design-Builder and the Owner Authority cannot agree as to the cost of the Change as contemplated in Section 50.149.1, 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 50.349.3; plus‌plus (b) to cover other costs, including overhead and profit, the following applicable markup on the amounts charged pursuant to Section 50.2(a).49.2(a): (i) 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 50.3(a49.3(a); or‌ or (ii) 10% when the Design-Builder performed the Change.‌Change. 50.3 49.3 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 5049) for the purposes of Section 50.2 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 Work;‌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 OwnerAuthority; (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 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 Owner.‌Authority. 50.4 49.4 If the Design-Builder and the Owner Authority cannot agree as to the cost of labour, equipment or material as contemplated in Section 50.149.1, and the Owner Authority considers that a Change or series of related Changes may exceed $50,000, the Owner Authority may require the Design-Design- Builder, and the Design- 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 OwnerAuthority. 50.5 49.5 The applicable markup set out in this Section 50 49 will apply to any credit to the Owner 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.‌costs.

Determination of Cost. ‌ 50.1 49.1 Subject to Section 50.2 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.‌instance. 50.2 49.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 50.149.1, 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 50.349.3; plus‌plus (b) to cover other costs, including overhead and profit, the following applicable markup on the amounts charged pursuant to Section 50.2(a).49.2(a): (i) 5%, % when the expenditure is a payment to a Subcontractor pursuant to Section 50.3(a)Subcontractor; or‌ or (ii) 10% when the Design-Builder performed the Change.‌Change. 50.3 49.3 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 5049) for the purposes of Section 50.2 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 Work;‌; (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;‌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-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.‌Owner. 50.4 49.4 If the Design-Builder and the Owner cannot agree as to the cost of labour, equipment or material as contemplated in Section 50.149.1, 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 49.5 The applicable markup set out in this Section 50 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.‌costs.

Determination of Cost. ‌ 50.1 47.1 Subject to Section 50.2 47.2 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 from time to time within a reasonable time after the issue arises in any given instance.‌instance. 50.2 47.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 50.147.1, 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 50.347.3; plus‌plus (b) to cover other costs, including overhead and profit, the following applicable markup on the amounts charged pursuant subject to Section 50.2(a).47.3(a): (i) for a Change or a series of related Changes with an aggregate cost (prior to applying a markup) less than $1,000,000, a markup for overhead of 10% and a markup for profit of 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 50.3(a); or‌ and (ii) 10for a Change or a series of related Changes with an aggregate cost (prior to applying a markup) equal to or greater than $1,000,000, a markup for overhead of 5% when the Design-Builder performed the Change.‌and a markup for profit of 5%. 50.3 47.3 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 50) for the purposes of Section 50.2 47.2 are: (a) payments to SubcontractorsSubcontractors but notwithstanding the markups specified in Section 47.2(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 47.2(b) be no greater than 5% on the direct labour, equipment for overhead and material costs of the Subcontractors who directly perform the Work;‌5% for profit. (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;‌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-Design- Builder and the Owner; and (i) other payments, payments made with the prior approval of the Owner, Owner that are necessary for the performance of the Work, Work as determined by the Owner.‌Owner, and such expenditures are not the subject matter of the markups in Section 47.2(b). 50.4 47.4 If the Design-Builder and the Owner cannot agree as to the cost of labour, equipment or material as contemplated in Section 50.147.1, and the Owner considers that a Change or series of related Changes may exceed $50,000100,000, 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 47.5 The applicable markup markups set out in this Section 50 47 will apply to any the credit to 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 markups will apply to the net increase or reduction in costs.‌costs.

Determination of Cost. ‌ 50.1 49.1 Subject to Section 50.2 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.‌instance. 50.2 49.2 If the Design-Builder and the Owner cannot agree as to the cost of the Change as contemplated in Section 50.149.1, 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 50.349.3; plus‌plus (b) to cover other costs, including overhead and profit, the following applicable markup on the amounts charged pursuant to Section 50.2(a).49.2(a): (i) 5%, when the expenditure is a payment to a Subcontractor pursuant to Section 50.3(a49.3(a); or‌ or (ii) 10% when the Design-Builder performed the Change.‌Change. 50.3 49.3 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 5049) for the purposes of Section 50.2 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 Work;‌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;‌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.‌