IMCO General Construction 5/9/2022

7.5 Cost of the Phase 2 Work. 7.5.1 Cost of the Phase 2 Work includes only those items expressly defined in this Section 7.5.1 that are reasonably incurred by Design-Builder in the proper performance of the Phase 2 Work. The Cost of the Phase 2 Work shall not include any Pass-Through Costs (as defined in Section 7.5.3 hereof), Construction General Conditions Work (as defined in Section 7.3 hereof), or costs intended to be covered by the Design-Build Fee(as defined in Section 7.4 hereof). For the avoidance of doubt, any confusion about the categorization of cost items between the Cost of the Phase 2 Work and Pass-Through Costs shall be resolved in favor of Pass-Through-Costs. Further, any confusion about the categorization of cost items between the Cost of the Phase 2 Work and Construction General Conditions Fee or Design-Build Fee shall be resolved in favor of Construction General Conditions Fee and Design-Build Fee, respectively. The Cost of the Phase 2 Work shall include only the following: 7.5.1.1 Except for those supervisory and administrative personnel who are covered by the General Conditions Fee (Exhibit D)and employees billed at all-inclusive billing rates(Exhibit E),wages of direct employees of Design-Builder performing the Work at the Site or,with Owner's agreement,at locations off the Site. 7.5.1.2 Except for those supervisory and administrative personnel who are covered by the General Conditions Fee (Exhibit D) and employees billed at all-inclusive billing rates (Exhibit E), wages or salaries of Design-Builder's personnel engaged in the performance of the Work and who are located at the Site or working off-Site to assist in the production or transportation of material and equipment necessary for the Work. 7.5.1.3 Except for those supervisory and administrative personnel who are covered by the General Conditions Fee(Exhibit D)and employees billed at all-inclusive billing rates(Exhibit E),wages or salaries of Design-Builder's personnel stationed at Design-Builder's principal or branch offices, but only to the extent such personnel perform tasks directly associated with the Project. 7.5.1.4 A multiplier of Fifty-one percent (51%) shall be applied to the wages and salaries of the employees of Design-Builder covered under Sections 7.5.1.1 through 7.5.1.3 hereof to account for employee labor burden, including payroll taxes, pension costs, insurance and other fringe benefits. 7.5.1.5 Payments properly made by Design-Builder to Subcontractors and Design Consultants for performance of portions of the Work. 7.5.1.6 Costs, including acquisition, transportation, inspection, testing, storage, and handling of materials, furnishings, equipment, and supplies incorporated or reasonably used in completing the Work. 7.5.1.7 Costs of removal of debris and waste from the Site. 7.5.1.8 All fuel and utility costs incurred in the performance of the Work. 7.5.1.9 The cost of defending suits or claims for infringement of patent rights arising from the use of a particular design, process, or product required by Owner, paying legal judgments against Design-Builder resulting from such suits or claims, and paying settlements made with Owner's consent. 7.5.1.10 Deposits which are lost, except to the extent caused by Design-Builder's negligence. 7.5.1.11 Costs incurred in preventing damage, injury, or loss in case of an emergency affecting the safety of persons and property except to the extent caused by Design-Builder's negligence. PROGRESSIVE DESIGN-BUILD CONTRACT,Page 11