Premium Cost. Premium Cost backcharges originate from design errors and omissions which do not require work to be repeated but which do require additional components to be added to the Project to achieve the intended scope of the Project. The A/E is liable for premiums associated with settling the changes in a non-competitive and non-bidding environment, and taking into consideration price escalations in materials, equipment and labor. The percentage used for calculating “premium cost” will normally be 10% of the added construction cost, but may be modified based on evidence of actual costs.
Appears in 6 contracts
Samples: Professional Services, Professional Services, Professional Services
