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Manager's Fee shall be equitably adjusted on the same basis that was used to establish the Fee for the original Work, <br /> and the Guaranteed Maximum Price shall be adjusted accordingly. <br /> ARTICLE 7 COST OF THE WORK FOR CONSTRUCTION PHASE <br /> § 7.1 Costs to Be Reimbursed <br /> § 7.1.1 The term Cost of the Work shall mean the actual,net costs reasonably and necessarily incurred by the <br /> Construction Manager in the proper performance of the Work,without overhead,profit,fee or markup. Such costs shall <br /> be at rates not higher than the standard paid at the place of the Project except with prior consent of the Owner. The Cost <br /> of the Work shall include only the items set forth in Sections 7.1 through 7.7. <br /> § 7.1.2 Where,pursuant to the Contract Documents,any cost is subject to the Owner's prior approval,the Construction <br /> Manager shall obtain such approval in writing prior to incurring the cost. <br /> § 7.1.3 Costs shall be at rates not higher than the standard rates paid at the place of the Project,except with prior <br /> approval of the Owner. <br /> § 7.2 Labor Costs <br /> § 7.2.1 Wages or salaries of construction workers directly employed by the Construction Manager to perform the <br /> construction of the Work at the site or,with the Owner's prior approval,at off-site workshops. <br /> § 7.2.2 Wages or salaries of the Construction Manager's supervisory and administrative personnel are included in the <br /> Specified General Conditions and not separately reimbursable. <br /> § 7.2.2.1 Wages or salaries of the Construction Manager's supervisory and administrative personnel when performing <br /> Work and stationed at a location other than the site,but only for that portion of time required for the Work are included <br /> in the Specified General Conditions and not separately reimbursable. <br /> § 7.2.3 Wages and salaries of the Construction Manager's supervisory or administrative personnel engaged at factories, <br /> workshops or while traveling,in expediting the production or transportation of materials or equipment required for the <br /> Work,are included in the Specified General Conditions and not separately reimbursable. <br /> § 7.2.4 Costs paid or incurred by the Construction Manager,as required by law or collective bargaining agreements,for <br /> taxes,insurance,contributions,assessments and benefits and,for personnel not covered by collective bargaining <br /> agreements,customary benefits such as sick leave,medical and health benefits,holidays,vacations and pensions, <br /> provided such costs are based on wages and salaries included in the Cost of the Work under Sections 7.2.1 through <br /> 7.2.3.This does not include insurance required by the Contract Documents,which costs are included within the <br /> Specified General Conditions.Costs paid or incurred by the Construction Manager for vacations,bonuses,travel,stock <br /> options,deferred compensation,or discretionary payments to employees are not directly reimbursable.As part of the <br /> GMP Amendment,the parties may agree to a wage burden rate for all workers,which will be fully burdened,including <br /> all the wage-based costs,and fixed for the duration of the Contract time.Burden rates, including any agreed burden <br /> rates,are subject to the Owner's audit to confirm that the burden has been correctly calculated and applied in <br /> accordance with the Contract Documents. <br /> § 7.2.5 If agreed rates for labor costs,in lieu of actual costs,are provided in this Agreement,the rates shall remain <br /> unchanged throughout the duration of this Agreement,unless the parties execute a Modification. <br /> § 7.3 Subcontract Costs <br /> Payments made by the Construction Manager to Subcontractors in accordance with the requirements of the subcontracts <br /> and this Agreement.The Construction Manager shall maintain a procedure for the review,processing and payment of <br /> applications by the Subcontractors for progress and final payments,all in accordance with the terms and conditions of <br /> the Contract Documents.The Construction Manager shall verify the completeness of all applications for payment and <br /> assemble and check all supporting documentation required by the Contract Documents or by the subcontracts with <br /> respect to each Application for Payment,including all lien waivers and releases. <br /> ALA Document A1333 - 2019. 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