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' City of Everett 00 7200-3 <br /> Diversion Dam Road Phase 3 UT 3707 & UT 3708 <br /> ' Overhead: For the purpose of calculating additional compensation under this section of the <br /> Contract, Overhead shall include only those costs that are expended for the administration of <br /> the business as a whole. Such costs usually accrue or are incurred due to the passage of time, <br /> and cannot be traced to a particular project or Contract. Examples of possible Overhead costs <br /> ' include, but are not limited to, General and Administrative salaries and benefits, rent, general <br /> company insurance (exclusive of insurance on owned equipment that is directly job costed), <br /> depreciation on office facilities, utilities, maintenance, office supplies, general company <br /> ' accounting and legal fees (exclusive of amounts expended directly on any specific project), <br /> personal property taxes, general company business licenses, dues and subscriptions. <br /> The following costs and expenses are excluded from the definition and calculation of Overhead. <br /> ' Overhead costs that vary substantially with the volume of Work performed (as measured by <br /> billings) shall not be included in Overhead for the purpose of determining additional <br /> compensation for Extended or Unabsorbed Home Office Overhead or both. <br /> ' Examples of costs that are not included in Overhead include, but are not limited to, travel and <br /> business meetings, telephones, professional fees expended for the benefit of a specific project, <br /> union welfare benefits, payroll taxes and equipment rental. <br /> ' If related party transactions are included in a Contractor's Overhead, they shall be explicitly <br /> identified as related party transactions and shall not exceed amounts that would be incurred in <br /> an arms-length transaction for the provision of the same or similar goods and services. If such <br /> ' transactions exist and the amounts paid by the Contractor and included in Overhead are in <br /> excess of that which would normally be expended in an arms-length transaction, an adjustment, <br /> in the form of a reduction in the amount for calculation purposes, shall be included in any <br /> calculation in determining the amount of Allocable Overhead. <br /> ' Overhead shall not include any cost directly attributable to a particular project. If a cost can be <br /> traced to a particular Contract, the Contractor may not classify the cost as Overhead. <br /> Indirect or home office costs that vary substantially with the amount of Work performed shall not <br /> be included in the group of costs comprising Overhead. <br /> Overhead shall not include costs specifically disallowed by Federal Acquisition Regulations, <br /> ' Subpart 31.2— Contracts with Commercial Organizations, or its successor. Further, "Overhead" <br /> shall not include the costs of"field support services"that are more closely direct costs in nature, <br /> regardless of the manner in which the Contractor normally accounts for such costs. An example <br /> ' of such disallowed cost would be for material handling and expediting, which are costs incurred <br /> for the direct support and benefit of specific project(s). <br /> In addition to compliance with Federal Acquisition Regulations, Subpart 31.2 examples of <br /> ' specific costs not allowed in a calculation under this section of the Contract include, but are not <br /> limited to, Incentive Compensation paid to personnel classified as Overhead and otherwise <br /> includable under this section of Contract, travel and business meetings, employer paid benefits <br /> and taxes on direct payroll costs of any project, insurance costs directly identifiable to a specific <br /> ' project, penalties, and costs incurred regarding company owned equipment normally classified <br /> as a direct project costs. <br /> Owner: The City of Everett, Washington. "Owner" and the "City" mean the same. <br /> ' Owner's Representative: The person designated in writing and employed or retained by the <br /> Owner to act as its representative at the construction Site and to perform construction <br /> inspection service and administrative functions relating to this Contract. The terms "Owner's <br /> Representative", "Engineer" and "Architect" are interchangeable. <br /> Person: Includes individuals, associations, firms, companies, corporations, partnerships, and <br /> joint ventures. <br /> 00 7200- 3 GENERAL CONDITIONS <br />