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9 <br />Progressive Design Build Contract <br />7.4 Construction General Conditions Price. Owner shall pay the Construction General Conditions <br />Price of [$ to be added in GMP Amendment] for all Construction General Conditions Work as identified and <br />defined in Exhibit D (Construction General Conditions Work). The Construction General Conditions <br />Price shall be paid monthly based on the percent of Cost of Work completed in the month covered by <br />Design-Builder’s pay application during Phase 2. The Construction General Conditions Price shall cover all <br />construction general conditions work, regardless of whether the work is completed by the Design-Builder, <br />a Key Firm, or Subcontractor. <br />7.5 Design-Build Fee. <br />7.5.1 The Design-Build Fee shall be two point five seven percent (2.57%) multiplied by the Cost <br />of the Phase 2 Work. <br />7.5.2 The Design-Build Fee is intended to compensate Design-Builder for all costs and expenses <br />not specifically included elsewhere. The Design-Build Fee shall compensate Design-Builder for <br />all other costs, including but not limited to the following: <br />7.5.2.1 Profit on all work including self-performed work. <br />7.5.2.2 Profit Margins or similar mark-ups on cost for work performed by related parties or <br />entities of the Design Builder. <br />7.5.2.3 General administration costs associated with Design-Builder’s home office <br />operations, support staff, such as executives, HR, accounting, IT, etc. unless specifically <br />approved in advance by Owner. <br />7.5.2.4 Cost of centralized and generally shared information technology, equipment, <br />enterprise software and data processing. <br />7.5.2.5 Cost associated with bonuses or profit sharing. <br />7.5.2.6 Discretionary costs, such as clothing, awards or similar expenses. <br />7.5.2.7 Business and Occupancy (B&O) Taxes. <br />7.6 Cost of the Phase 2 Work. <br />7.6.1 Cost of the Phase 2 Work includes only those items expressly defined in this Section 7.6.1 <br />that are reasonably incurred by Design-Builder in the proper performance of the Phase 2 Work. <br />The Cost of the Phase 2 Work shall not include any Pass-Through Costs (as defined in Section <br />7.6.3), Construction General Conditions Work (as defined in Section 7.4 and Exhibit D), or costs <br />intended to be covered by the Design-Build Fee (as defined in Section 7.5). For the avoidance of <br />doubt, any confusion about the categorization of cost items between the Cost of the Phase 2 Work <br />and Pass-Through Costs shall be resolved in favor of Pass-Through-Costs. Further, any confusion <br />about the categorization of cost items between the Cost of the Phase 2 Work and Construction <br />General Conditions Fee or Design-Build Fee shall be resolved in favor of Construction General <br />Conditions Fee and Design-Build Fee, respectively. <br />The Cost of the Phase 2 Work shall include only the following: <br />7.6.1.1 Except for those supervisory and administrative personnel who are covered by the <br />Construction General Conditions Work (Exhibit D), wages of direct employees of Design- <br />Builder performing the Work at the Site or, with Owner’s agreement, at locations off the <br />Site.