Common use of Labor Costs Clause in Contracts

Labor Costs. a. Wages of construction workers directly employed by Construction Contractor to perform the construction of the Work at the Project site or, with Owner’s written agreement, at off-site workshops. Costs to be reimbursed will be the actual wages paid to the individuals performing the work. b. Wages or salaries of Construction Contractor’s supervisory and administrative personnel who are stationed at the Project site with Owner’s written agreement. c. Wages and salaries of Construction Contractor’s supervisory and administrative personnel engaged at factories, workshops or on the road in expediting the production or transportation of materials or equipment required for the Work, but only for that portion of their time required for the Work and only with Owner’s written agreement as in Subsection 5.A.1.b above. d. The parties hereby establish the fixed markup rate of thirty-five percent (35%) for all labor burden, including all taxes, insurance (except workers compensation and general liability), contributions, assessments and benefits required by law and collective bargaining agreements and, for personnel not covered by such agreements, customary benefits such as sick leave, medical and health benefits, holidays, vacations and pensions, provided such markup is to apply only upon those wages and salaries included in the Cost of the Work under Subsections 5.A.1.a through A.1.c, above. Further, such labor burden shall not include amounts for items specified in Subsection 5.B.3 that are to be excluded from the Cost of the Work. Construction Contractor’s “General Conditions” expenses, that are to be more particularly itemized in an Attachment to the GMP Amendment and incorporated therein by reference, are a lump sum to be paid as the Work progresses with each Application for Payment based on the percentage of completion. Many of the labor costs itemized in this Subsection 5.A.1 are included in General Conditions’ expenses, whether or not specifically noted as such, and are not to be billed separately. Construction Contractor shall promptly report to Owner any occasion in which the labor/payroll rates paid to personnel is lower than the estimated price included in the GMP Attachment for the General Conditions expense. Further, Owner reserves the right to audit Contractor’s payroll. And Construction Contractor shall promptly make available to Owner all records necessary for such purpose.

Labor Costs. a. Wages of construction workers directly employed by Construction Contractor to perform the construction of the Work at the Project site or, with Owner’s written agreement, at off-site workshops. Costs to be reimbursed will be the actual wages paid to the individuals performing the work. b. Wages or salaries of Construction Contractor’s supervisory and administrative personnel who are stationed at the Project site with Owner’s written agreement. c. Wages and salaries of Construction Contractor’s supervisory and administrative personnel engaged at factories, workshops or on the road in expediting the production or transportation of materials or equipment required for the Work, but only for that portion of their time required for the Work and only with Owner’s written agreement as in Subsection 5.A.1.b subsection A.1.b above. d. The parties hereby establish the fixed markup rate of thirty-five percent (35%) for all labor burden, including all taxes, insurance (except workers compensation and general liability), contributions, assessments and benefits required by law and collective bargaining agreements and, for personnel not covered by such agreements, customary benefits such as sick leave, medical and health benefits, holidays, vacations and pensions, provided such markup is to apply only upon those wages and salaries included in the Cost of the Work under Subsections 5.A.1.a subsections A.1.a through A.1.c, above. Further, such labor burden shall not include amounts for items specified in Subsection subsection 5.B.3 that are to be excluded from the Cost of the Work. Construction Contractor’s “General Conditions” expenses, that are to be more particularly itemized in an Attachment to the GMP Amendment and incorporated therein by reference, are a lump sum to be paid as the Work progresses with each Application for Payment based on the percentage of completion. Many of the labor costs itemized in this Subsection subsection 5.A.1 are included in General Conditions’ Conditions expenses, whether or not specifically noted as such, and are not to be billed separately. Construction Contractor shall promptly report to Owner any occasion in which the labor/payroll rates paid to personnel is lower than the estimated price included in the GMP Attachment for the General Conditions expense. Further, Owner reserves the right to audit Contractor’s payroll. And payroll and Construction Contractor shall promptly make available to Owner all records necessary for such purpose.

Labor Costs. a. Wages of construction workers directly employed by Construction Contractor to perform the construction of the Work at the Project site or, with Owner’s written agreement, at off-site workshops. Costs to be reimbursed will be the actual wages paid to the individuals performing the work. b. Wages or salaries of Construction Contractor’s supervisory and administrative personnel who are stationed at the Project site with Owner’s written agreement. c. Wages and salaries of Construction Contractor’s supervisory and administrative personnel engaged at factories, workshops or on the road in expediting the production or transportation of materials or equipment required for the Work, but only for that portion of their time required for the Work and only with Owner’s written agreement as in Subsection 5.A.1.b A.1.b above. d. The parties hereby establish the fixed markup rate of thirty-five percent (35%) for all labor burden, including all taxes, insurance (except workers compensation and general liability), contributions, assessments and benefits required by law and collective bargaining agreements and, for personnel not covered by such agreements, customary benefits such as sick leave, medical and health benefits, holidays, vacations and pensions, provided such markup is to apply only upon those wages and salaries included in the Cost of the Work under Subsections 5.A.1.a A.1.a through A.1.c, . above. Further, such labor burden shall not include amounts for items specified in Subsection 5.B.3 that are to be excluded from the Cost of the Work. Construction Contractor’s “General Conditions” expenses, that are to be more particularly itemized in an Attachment to the GMP Amendment and incorporated therein by reference, are a lump sum to be paid as the Work progresses with each Application for Payment based on the percentage of completion. Many of the labor costs itemized in this Subsection subsection 5.A.1 are included in General Conditions’ Conditions expenses, whether or not specifically noted as such, and are not to be billed separately. Construction Contractor shall promptly report to Owner any occasion in which the labor/payroll rates paid to personnel is lower than the estimated price included in the GMP Attachment for the General Conditions expense. Further, Owner reserves the right to audit Contractor’s payroll. And payroll and Construction Contractor shall promptly make available to Owner all records necessary for such purpose.

Labor Costs. a. Wages § 7.2.1 With the Owner’s prior written approval, wages or salaries of construction workers directly employed by the Construction Contractor Manager to perform the construction of the Work at the Project site or, with Owner’s written agreement, Site or at off-site Site workshops. Costs to be reimbursed will be Construction § 7.2.2 With the actual Owner’s prior approval, wages paid to the individuals performing the work. b. Wages or salaries of the Construction ContractorManager’s supervisory and administrative personnel who are stationed at assigned to the Project, including but not limited to an estimator, scheduler(s), safety personnel, a Project manager, a Project administrator, superintendent(s) and operations managers, but only for that portion of the time required for the Project, all of whom shall be paid as part of Construction Manager's General Conditions Costs set forth in Attachments 5 and 5.1 to the Final Guaranteed Maximum Price Amendment. Supervisory and administrative personnel providing only a portion of their time to the Project site with Owner’s written agreementshall be frequently assessed and reviewed by the Construction Manager, Project Manager, and Owner to agree upon the time or percentage of time portioned to the Project. c. § 7.2.3 Wages and salaries of the Construction ContractorManager’s supervisory and or administrative personnel assigned to the Project who are engaged at factories, workshops or on the road while traveling, in expediting the production or transportation of materials or equipment required for the Work, but only for that portion of their time required for the Work on the Project, which shall be paid as Construction Manager's General Conditions Costs set forth in Attachments 5 and only with Owner’s written agreement as in Subsection 5.A.1.b above5.1 to the Final Guaranteed Maximum Price Amendment. d. The parties hereby establish § 7.2.4 Costs paid or incurred by the fixed markup rate of thirty-five percent (35%) Construction Manager, as required by law or collective bargaining agreements, for all labor burden, including all employment taxes, insurance (except workers compensation and general liability)insurance, contributions, assessments and benefits required by law and collective bargaining agreements and, for personnel not covered by such collective bargaining agreements, customary benefits such as sick leave, medical and health benefits, holidays, vacations and pensionspensions or other incentive compensation or benefits (but not discretionary or merit bonuses), included as part of Construction Manager's usual compensation package, provided such markup is to apply only upon those costs are based on wages and salaries included in the Cost of the Work under Subsections 5.A.1.a Sections 7.2.1 through A.1.c, above7.2.3. Further, such labor burden shall not include amounts for items specified in Subsection 5.B.3 that Such costs are referred to be excluded from the Cost of the Work. Construction Contractor’s “General Conditions” expenses, that are to be more particularly itemized in an Attachment to the GMP Amendment and incorporated therein by reference, are a lump sum to be paid as the Work progresses with each Application for Payment based on the percentage of completion. Many of the labor costs itemized in this Subsection 5.A.1 "Labor Burden" which are included in General Conditions’ expensesthe rates established in Attachment 5.1 to the Final Guaranteed Maximum Price Amendment for each position as set forth therein. § 7.2.5 The stipulated labor costs provided in Attachment 5.1 to the Final Guaranteed Maximum Price Amendment shall remain unchanged throughout the duration of this Agreement, whether or not specifically noted as such, unless the parties execute a Modification. § 7.2.6 Any labor rates and/or Labor Burden set forth in Attachments 5 and 5.1 to the Final Guaranteed Maximum Price Amendment are not to be billed separately. Construction Contractor shall promptly report to Owner any occasion in which the labor/payroll rates paid to personnel is lower than the estimated price included in the GMP Attachment fixed and final for the General Conditions expenseduration of the Project. FurtherOwner shall be entitled to verify the calculation of the fixed rate times the applicable multiplier. Owner agrees that the rates, Owner reserves the right multipliers and other fixed percentages and amounts applicable to audit Contractor’s payroll. And Construction Contractor shall promptly make available insurance are subject to Owner all records necessary for such purposereview and audit.

Labor Costs. a. § 7.2.1 Wages or salaries of construction workers directly employed by Construction Contractor the CM/GC to perform the construction of the Work at the Project site or, with the Owner’s written agreementprior approval, at off-site workshops. Costs All labor costs shall be based on standard rates as shown in Exhibit Q hereto. Preconstruction labor rates are set forth in Exhibit B. § 7.2.1.1 It is the intent of the parties that neither wages nor labor burden of construction workers will include a mark-up, or an adder, for small tools or consumable supplies or any other non-labor related element of cost. The parties agree that those costs are to be reimbursed will directly charged to the Project at actual cost or as provided in Articles 7 and 8 of this Agreement, which shall be the actual wages paid to same for Work under any Change Order. CM/GC shall not authorize any overtime, whether of its own workers or of its Subcontractors of any tier and their workers, without the individuals performing prior written consent of the workOwner. Such overtime will not increase the CM/GC’s Fee under this Agreement without Owner’s prior written approval. The CM/GC shall include a comparable provision in its subcontracts with its Subcontractors. See Exhibit Q hereto for approved labor/trade rates. b. § 7.2.2 Wages or salaries of Construction Contractorthe CM/GC’s supervisory and administrative personnel who are when stationed at the Project site (or for supervisory personnel as a result of social distancing at the home office or employee’s home) and performing Work, with the Owner’s written agreementprior approval, and only for that portion of the time required for the Work. c. § 7.2.3 Wages and or salaries of Construction Contractorthe CM/GC’s supervisory and or administrative personnel engaged at factoriesany location, workshops or on the road including in expediting the production or transportation of materials or equipment required for the Work, but only for that portion of their time required for the Work and only with Owner’s written agreement as in Subsection 5.A.1.b aboveWork. d. The parties hereby establish § 7.2.4 Costs paid or incurred by the fixed markup rate of thirty-five percent (35%) CM/GC, as required by law or collective bargaining agreements, for all labor burdentaxes , including all taxes, insurance (except workers compensation and general liability)insurance, contributions, assessments assessments, and benefits required by law and collective bargaining agreements and, for personnel not covered by such collective bargaining agreements, customary benefits such as sick leave, medical and health benefits, holidays, vacations and pensions, provided such markup is to apply only upon those costs are based on wages and salaries included in the Cost of the Work under Subsections 5.A.1.a Sections 7.2.1 through A.1.c7.2.3. § 7.2.5 Costs for vacations, above. Furtherholidays, such labor burden and sick leave shall not include amounts for items specified in Subsection 5.B.3 that are be prorated to be excluded from the Cost of the Work. Construction Contractor’s “General Conditions” expenses, that are to be more particularly itemized in an Attachment to the GMP Amendment and incorporated therein by reference, are a lump sum to be paid as the Work progresses with each Application for Payment of this Project based on the percentage time spent by each person on this Project as opposed to other projects as part of completion. Many CM/GC’s fully burdened rates set forth in Exhibits Q/B. § 7.2.6 If agreed rates for labor costs, in lieu of the labor costs itemized actual costs, are provided in this Subsection 5.A.1 are included in General Conditions’ expensesAgreement, whether or not specifically noted as suchthe rates shall remain unchanged throughout the duration of this Agreement, and are not to be billed separately. Construction Contractor shall promptly report to Owner any occasion in which unless the labor/payroll rates paid to personnel is lower than the estimated price included in the GMP Attachment for the General Conditions expense. Further, Owner reserves the right to audit Contractor’s payroll. And Construction Contractor shall promptly make available to Owner all records necessary for such purposeparties execute a Modification.

Labor Costs. a. Wages of 8.4.2.1. Actual hourly wages paid to construction workers directly employed by Construction Contractor to DESIGN BUILD CONTRACTOR who perform the construction of the Work. DESIGN BUILD CONTRACTOR shall provide certified payrolls and any other documentation requested by City to verify wages and hours, and compliance with the City’s wage rates identified in Exhibit “G”. Actual wages paid may include premium payments for overtime work or night work for time actually spent in the performance of the Work at the Project site or, with Owner’s written agreement, at off-site workshops. Costs when such premium payments have been demonstrated to be reimbursed will be in accordance with the actual wages paid DESIGN BUILD CONTRACTOR’s normal business practice and is included in the Guaranteed Maximum Price. Premium time shall not accrue prior to the individuals performing the workcompletion of 40 hours per week of work by any given individual. b. Wages 8.4.2.2. Actual wages or salaries (inclusive of Construction ContractorLabor Burden) of DESIGN BUILD CONTRACTOR’s supervisory and administrative personnel who are stationed identified on Exhibit “D” together with their Allowable Hourly Rate – but only for documented time when directly involved in performance of the Work. The salaries of DESIGN BUILD CONTRACTOR’s supervisory personnel are subject to a not-to-exceed increase of 3% per year; the first year beginning on the date that Director approves DESIGN BUILD CONTRACTOR’s Construction Phase Maximum Guaranteed Price proposal. The three-percent (3%) increase shall be available to DESIGN BUILD CONTRACTOR each year thereafter not to exceed seven (7) years or at the Project site with Ownercompletion or termination of this Agreement, whichever occurs first. The annual not- to-exceed increase of three-percent (3%) is available hereunder only to the extent it reflects a concurrent and equal increase in the supervisory personnel’s written agreementsalaries or wages. Any increase or portion thereof not used in a given year shall expire and does not “bank” or “accumulate. c. Wages and salaries ” Notwithstanding, Cost of Construction Contractorthe Work for purposes of calculating payment for DESIGN BUILD CONTRACTOR’s supervisory and administrative personnel engaged at factories, workshops or when directly involved in performance of the Work shall be based on the road “actual hourly pay rate” set forth in expediting Exhibit “D”. Projected wage increases should be reflected in the production Guaranteed Maximum Price Proposal. Actual wages paid may include premium payments for overtime work or transportation night work for time actually spent in the performance of materials the Work when such premium payments have been demonstrated to be in accordance with the DESIGN BUILD CONTRACTOR’s normal business practice and is included in the Guaranteed Maximum Price. Premium time shall not accrue prior to the completion of forty (40) hours per week of work by any given individual. Labor burden for overtime payments shall be eliminated or equipment required reduced to equal the DESIGN BUILD CONTRACTOR’s actual substantiated cost for such burden. Should DESIGN BUILD CONTRACTOR require employees, other than those listed on Exhibit “D”, DESIGN BUILD CONTRACTOR shall provide written notice to the Director setting forth all the information described above. If for any reason, Director reasonably objects to any such employee, DESIGN BUILD CONTRACTOR shall not use that employee to perform on the Project. Failing reasonable objection by the Director, the employee, together with the employee’s daily billing rate, shall automatically become a part of Exhibit “D”. The Labor Burden rate shall be based on the actual cost of direct wages or salaries of DESIGN BUILD CONTRACTOR’s employee’s incurred in the interest of the Project. For billing purposes only, this rate shall be established annually, subject to verification by the City’s auditors based on the DESIGN BUILD CONTRACTOR’s labor burden for the Workprevious year. The City shall be allowed to audit the actual cost of labor burden each year, and City shall be entitled to a refund to the extent that it has paid the DESIGN BUILD CONTRACTOR more than its actual Labor Burden costs. Initially, the Labor Burden shall be set at % subject to verification by the City’s auditors. It will be reset each year based on the audited rate for the prior year. Under no circumstances shall the City pay more for Labor Burden than the percentage established for billing purposes for any given year. Labor burden for overtime payments shall be eliminated or reduced to equal the DESIGN BUILD CONTRACTOR’s actual substantiated cost for such burden. 8.4.2.3. Actual out of town travel expenses of DESIGN BUILD CONTRACTOR’s personnel incurred directly and solely in support of the Project with prior written approval of the Project Manager or specifically identified in the negotiated cost proposal but only to the extent permitted by City’s policies on reimbursement for that portion of their time required for the Work and only with Owner’s written agreement as in Subsection 5.A.1.b abovetravel. d. The parties hereby establish the fixed markup rate 8.4.2.4. Actual costs paid or incurred by DESIGN BUILD CONTRACTOR for labor costs arising out of thirty-five percent (35%) for all labor burden, including all taxes, insurance (except workers compensation and general liability)insurance, contributions, assessments and benefits which are (i) required by law and law, (ii) required by collective bargaining agreements and, for personnel not covered by such agreements, (iii) or as otherwise customary benefits so long as such as sick leave, medical and health benefits, holidays, vacations and pensions, provided such markup is to apply only upon those costs are based on the actual wages and salaries of construction workers properly included in the Cost of the Work under Subsections 5.A.1.a through A.1.c, above. Further, such labor burden shall not include amounts for items specified in Subsection 5.B.3 that are to be excluded from the Cost of the Work. Construction Contractor’s “General Conditions” expenses, that are to be more particularly itemized in an Attachment to the GMP Amendment and incorporated therein by reference, are a lump sum to be paid as the Work progresses with each Application for Payment based on the percentage of completion. Many of the labor costs itemized in this Subsection 5.A.1 are included in General Conditions’ expenses, whether or not specifically noted as such, defined herein and are not to be billed separately. Construction Contractor shall promptly report to Owner any occasion approved in which advance by the labor/payroll rates paid to personnel is lower than the estimated price included in the GMP Attachment for the General Conditions expense. Further, Owner reserves the right to audit Contractor’s payroll. And Construction Contractor shall promptly make available to Owner all records necessary for such purposeDirector.

Labor Costs. a. Wages of construction workers directly employed by Construction Contractor to perform the construction of the Work at the Project site or, with Owner’s written agreement, at off-site workshops. Costs to be reimbursed will be the actual wages paid to the individuals performing the work. b. Wages or salaries of Construction Contractor’s supervisory and administrative personnel who are stationed at the Project site with Owner’s written agreement. c. Wages and salaries of Construction Contractor’s supervisory and administrative personnel engaged at factories, workshops or on the road in expediting the production or transportation of materials or equipment required for the Work, but only for that portion of their time required for the Work and only with Owner’s written agreement as in Subsection 5.A.1.b A.1.b above. d. The parties hereby establish the fixed markup rate of thirty-five percent (35%) for all labor burden, including all taxes, insurance (except workers compensation and general liability), contributions, assessments and benefits required by law and collective bargaining agreements and, for personnel not covered by such agreements, customary benefits such as sick leave, medical and health benefits, holidays, vacations and pensions, provided such markup is to apply only upon those wages and salaries included in the Cost of the Work under Subsections 5.A.1.a A.1.a through A.1.c, above. Further, such labor burden shall not include amounts for items specified in Subsection 5.B.3 that are to be excluded from the Cost of the Work. Construction Contractor’s “General Conditions” expenses, that are to be more particularly itemized in an Attachment to the GMP Amendment and incorporated therein by reference, are a lump sum to be paid as the Work progresses with each Application for Payment based on the percentage of completion. Many of the labor costs itemized in this Subsection subsection 5.A.1 are included in General Conditions’ Conditions expenses, whether or not specifically noted as such, and are not to be billed separately. Construction Contractor shall promptly report to Owner any occasion in which the labor/payroll rates paid to personnel is lower than the estimated price included in the GMP Attachment for the General Conditions expense. Further, Owner reserves the right to audit Contractor’s payroll. And payroll and Construction Contractor shall promptly make available to Owner all records necessary for such purpose.

Labor Costs. a. Wages of construction workers directly employed by Construction Contractor to perform the construction of the Work at the Project site or, with Owner’s written agreement, at off-site workshops. Costs to be reimbursed will be the actual wages paid to the individuals performing the workwork prior to any labor burden markup. b. Wages or salaries of Construction Contractor’s supervisory supervisory, and administrative personnel who are personnel, whether stationed at the Project site or offsite, but only for that portion of their time required for the Work and only with Owner’s written agreement. Costs to be reimbursed will be the actual wages paid to the individuals performing the work prior to any labor burden markup. c. Wages and salaries of Construction Contractor’s supervisory and administrative personnel engaged at factories, workshops or on the road in expediting the production or transportation of materials or equipment required for the Work, but only for that portion of their time required for the Work and only with Owner’s written agreement as in Subsection 5.A.1.b above. Costs to be reimbursed will be the actual wages paid to the individuals performing the work prior to any labor burden markup. d. The parties hereby establish Labor burden on those wages and salaries included in the Cost of the Work under Subsections 5.A.1.a through 5.A.1.c, above at a fixed markup rate of thirtyforty-five seven percent (3547%) for all labor burden, including all taxes, insurance including workers’ compensation (except workers compensation and general liability), contributions, assessments and benefits required by law and collective bargaining agreements and, for personnel not covered by such agreements, customary benefits such as sick leave, medical and health benefits, holidays, vacations and pensions. The fixed burden rate established herein shall also include the costs incurred by the project for all vehicles (including fuel, maintenance and insurance), software, software licenses, computers, tablets and cellphones (including cellular service) provided such markup to or utilized by the supervisory and administrative staff. e. All labor costs for workers directly employed by Construction Contractor shall be the actual wages paid to employees prior to labor burden markup. At the time any GMP is submitted, Contractor shall provide proof in a form acceptable to apply only upon those wages and salaries Owner that wage rates included in the Cost of Work are representative of the Work under Subsections 5.A.1.a through A.1.c, above. Further, such labor burden shall not include amounts for items specified in Subsection 5.B.3 that are actual wages to be excluded from the Cost of the Work. Construction Contractor’s “General Conditions” expenses, that are to be more particularly itemized in an Attachment to the GMP Amendment and incorporated therein by reference, are a lump sum to be paid as the Work progresses with each Application for Payment based on the percentage of completion. Many of the labor costs itemized in this Subsection 5.A.1 are included in General Conditions’ expenses, whether or not specifically noted as such, and are not to be billed separately. Construction Contractor shall promptly report to Owner any occasion in which the labor/payroll rates paid to personnel is lower than the estimated price included in the GMP Attachment for the General Conditions expensepaid. Further, Owner reserves the right to audit Contractor’s payroll. And payroll and Construction Contractor shall promptly make available to Owner all records necessary for such purpose. f. All labor costs identified in Subsections 5.A.1.b and 5A.1.c, and the corresponding labor burden identified in 5.A.1.d shall comprise the Construction Contractor’s “General Conditions” expenses for the work. Estimated General Conditions expenses shall be itemized in an attachment to the GMP Amendment and established as a not to exceed amount. Labor and labor burden costs for supervisory and administrative personnel included in the General Conditions are allowable costs only to the extent that the total cost for said labor and burden does not exceed the amount established in the GMP amendment.

Labor Costs. a. Wages of Actual hourly wages paid to construction workers directly employed by Construction Contractor to DESIGN BUILD CONTRACTOR who perform the construction of the Work at the Project site or, with Ownerthe Director’s prior written agreementconsent, at off-site workshops, when available. Costs For hourly workers employed by the DESIGN BUILD CONTRACTOR, DESIGN BUILD CONTRACTOR shall provide certified payrolls and any other documentation requested by City to verify wages and hours, and compliance with the City’s wage rates identified in Exhibit “H”. The City requires Contractor to document Actual wages and labor burden separately which may be less that Allowable wages in Exhibit “D”. Actual wages paid may include premium payments for overtime work or night work for time actually spent in the performance of the Work when such premium payments have been demonstrated to be reimbursed will in accordance with the DESIGN BUILD CONTRACTOR’s normal business practice and is included in the Guaranteed Maximum Price. Premium time shall not accrue prior to the completion of 40 hours per week of work by any given individual. b. Allowable Hourly Rate (Actual Wages or salaries inclusive of Labor Burden) of DESIGN BUILD CONTRACTOR’s Key Personnel who are identified on Exhibit “D” together with their Allowable Rate – but only for documented time when directly involved in performance of the Work. DESIGN BUILD CONTRACTOR shall identify actual wages and salaries of Key Personnel within fourteen (14) Calendar Days from NTP for Preconstruction Services and upon submission of DESIGN BUILD CONTRACTOR’s Construction Services Guaranteed Maximum Price proposal and upon submission of CGMP’s. Allowable Hourly Rate means the rate for a particular staff classification identified in Exhibit “D”, which includes actual wages or salaries (inclusive of Labor Burden). The salaries of DESIGN BUILD CONTRACTOR’s supervisory personnel are subject to a not-to-exceed increase of 4% per year; the first year beginning on the date that Director approves DESIGN BUILD CONTRACTOR’s Construction Services Maximum Guaranteed Price proposal. The 4% increase shall be available to DESIGN BUILD CONTRACTOR each year thereafter not to exceed seven years or at the completion or termination of this Contract, whichever occurs first. The annual not-to-exceed increase of 4% is available hereunder only to the extent it reflects a concurrent and equal increase in the supervisory personnel’s salaries or wages. Notwithstanding the foregoing, DESIGN BUILD CONTRACTOR shall be permitted to amend it wage rates annually on April 1st of each calendar year to reflect the actual wages paid to the individuals performing the work. b. Wages or salaries of Construction Contractorits personnel and shall submit the same to the Director for approval. Any increase or portion thereof not used in a given year shall expire and does not “bank” or “accumulate.” Notwithstanding, Cost of the Work for purposes of calculating payment for DESIGN BUILD CONTRACTOR’s supervisory and administrative personnel who are stationed at when directly involved in performance of the Project site with Owner’s written agreement. c. Wages and salaries of Construction Contractor’s supervisory and administrative personnel engaged at factories, workshops or Work shall be based on the road “actual hourly pay rate” set forth in expediting Exhibit “D”. Projected wage increases should be reflected in the production Guaranteed Maximum Price Proposal. Actual wages paid may include premium payments for overtime work or transportation night work for time actually spent in the performance of materials or equipment required for the Work, but only for that portion of their time required for the Work when such premium payments have been demonstrated to be in accordance with the DESIGN BUILD CONTRACTOR’s normal business practice and only with Owner’s written agreement as in Subsection 5.A.1.b above. d. The parties hereby establish the fixed markup rate of thirty-five percent (35%) for all labor burden, including all taxes, insurance (except workers compensation and general liability), contributions, assessments and benefits required by law and collective bargaining agreements and, for personnel not covered by such agreements, customary benefits such as sick leave, medical and health benefits, holidays, vacations and pensions, provided such markup is to apply only upon those wages and salaries included in the Cost Guaranteed Maximum Price. Premium time shall not accrue prior to the completion of 40 hours per week of work by any given individual. Labor Burden for overtime payments shall be eliminated or reduced to equal the Work under Subsections 5.A.1.a through A.1.cDESIGN BUILD CONTRACTOR’s actual substantiated cost for such burden. Should DESIGN BUILD CONTRACTOR require employees, other than those listed on Exhibit “D”, DESIGN BUILD CONTRACTOR shall provide written notice to the Director setting forth all the information described above. FurtherIf for any reason, Director reasonably objects to any such labor burden employee, DESIGN BUILD CONTRACTOR shall not include amounts for items specified in Subsection 5.B.3 use that are employee to perform on the Project. Failing reasonable objection by the Director, the employee, together with the employee’s daily billing rate, shall automatically become a part of Exhibit “D”. The Labor Burden rate shall be excluded from the Cost of the Work. Construction Contractor’s “General Conditions” expenses, that are to be more particularly itemized in an Attachment to the GMP Amendment and incorporated therein by reference, are a lump sum to be paid as the Work progresses with each Application for Payment based on the percentage actual cost of completion. Many direct wages or salaries of DESIGN BUILD CONTRACTOR’s employees incurred in the interest of the labor costs itemized in Project. For billing purposes only, this Subsection 5.A.1 are included in General Conditions’ expensesrate shall be established annually, whether or not specifically noted as such, and are not subject to be billed separately. Construction Contractor shall promptly report to Owner any occasion in which verification by the labor/payroll rates paid to personnel is lower than City’s auditors based on the estimated price included in the GMP Attachment DESIGN BUILD CONTRACTOR’s Labor Burden for the General Conditions expenseprevious year. FurtherThe components which comprise the Labor Burden, Owner reserves the right to audit Contractor’s payroll. And Construction Contractor shall promptly make available to Owner all records necessary for such purpose.as set forth in Exhibit “A” –

Labor Costs. a. Wages of construction workers directly employed by Construction Contractor to perform the construction of the Work at the Project site or, with Owner’s written agreement, at off-site workshops, provided, however, that such wages shall not exceed the standard, customary or going wage rates in the place of the Project. Costs to be reimbursed will be the actual wages paid to the individuals performing the work. b. Stated Labor Wages or salaries (but not profit sharing) of Construction Contractor’s supervisory and administrative personnel who are listed by name and title on Attachment 7 to Composite Exhibit “A” when providing services to the Project whether stationed at the Project site or otherwise. Wages and salaries (but not bonuses, profit sharing or incentive compensation) of Contractor’s supervisory or administrative personnel engaged with Owner’s written agreement. c. Wages and salaries of Construction Contractor’s supervisory and administrative personnel engaged approval, at factories, workshops or on the road road, in expediting the production or transportation of materials or equipment required for the Work, but only for that portion of their verifiable time required for the Work and only with Owner’s written agreement as in Subsection 5.A.1.b above. d. The parties hereby establish the fixed markup rate of thirty-five percent (35%) Work. Costs paid or incurred by Contractor for all labor burden, including all taxes, insurance (except workers compensation and general liability)insurance, contributions, assessments and benefits required by law and or collective bargaining agreements and, for personnel not covered by such agreements, customary benefits such as sick leave, medical and health benefits, holidays, vacations and pensions, provided such markup is to apply only upon those costs are based on wages and salaries included in the Cost of the Work under Subsections 5.A.1.a Paragraphs 7.2.1 through A.1.c, above. Further, such labor burden 7.2.3 and shall not include amounts bonuses, profit sharing or incentive compensation. Notwithstanding the foregoing or anything else in the Contract Documents to the contrary, the aggregate reimbursable labor costs for items specified in Subsection 5.B.3 that are to be excluded from Contractor’s personnel included within the Cost of the WorkWork shall the stated wage or salary rates specified in Attachment 7 to Composite Exhibit “A” (which includes all labor burden) (the “Stated Rates”). Construction Contractor’s As used in the Contract Documents, the term “labor burden” shall mean only the items listed in Attachment 7 to Composite Exhibit “A”. Any Change Order executed pursuant to Paragraph 2.1.2 of this Agreement shall not include or in any way entitle Contractor to receive any General Conditions” expenses, that are to be more particularly itemized in an Attachment which relate to the GMP Amendment and incorporated therein by reference, are a lump sum to be paid as project management or supervisory personnel’s time either supervising or otherwise dealing with the Work progresses with each Application for Payment based on the percentage of completion. Many of the labor costs itemized in this Subsection 5.A.1 are included in General Conditions’ expenses, whether or not specifically noted as such, and are not to be billed separately. Construction Contractor shall promptly report to Owner any occasion in which the labor/payroll rates paid to personnel is lower than the estimated price included in the GMP Attachment for the General Conditions expense. Further, Owner reserves the right to audit Contractor’s payroll. And Construction Contractor shall promptly make available to Owner all records necessary for such purposeAllowance item.