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6.3.2 Direct material costs. This is an itemization, including material invoice, of the quantity <br /> and cost of additional materials necessary to perform the change in the Work. These costs shall <br /> be by the unit cost applied to the quantity and extended. The unit cost shall not include discounts <br /> or rebates so long as Owner was given a reasonable opportunity and declined to provide <br /> payment qualifying for such discount or rebate. The material costs may include normal freight <br /> costs; Owner must pre-approve express charges or special delivery costs. <br /> 6.3.3 Construction equipment usage costs. This is an itemization of the actual length of <br /> time construction equipment other than small tools described in Clause 6.3.1.5 above, <br /> appropriate for the Work will be used solely on the change in the Work at the Site times the <br /> applicable rental cost as established by the lower of the prevailing rate published in The Rental <br /> Rate Blue Book by Data Quest, San Jose, California, or the actual rate paid as evidenced by <br /> rental receipts. Actual, reasonable mobilization costs are permitted if the equipment is brought to <br /> the Site solely for the change in the Work. <br /> If more than one rate is applicable, the lowest rate will be utilized. The rates in effect at the time of <br /> the performance of the change work are the maximum rates allowable for equipment of modern <br /> design and in good working condition and include full compensation for furnishing all fuel, oil, <br /> lubrication, repairs, maintenance, and insurance. Equipment not of modern design and/or not in <br /> good working condition will have lower rates. Hourly, weekly, and/or monthly rates, as <br /> appropriate, will be applied to yield the lowest total cost. The rate for equipment necessarily <br /> standing by for future use on the Work shall be 50% of the rate established above. <br /> If equipment is required for which a rental rate is not established by The Rental Rate Blue Book, <br /> an agreed rental rate shall be established for that equipment, which rate and use must be <br /> approved by Owner prior to performing the changed Work. <br /> 6.3.4 Cost of change in insurance or bond premium. This is defined as: <br /> 6.3.4.1 Design-Builders' liability insurance: The cost (expressed as a percentage) of <br /> any changes in Design-Builder's liability (including professional errors and omissions) <br /> insurance arising directly from the changed Work; and <br /> 6.3.4.2 Public works bond: The cost (expressed as a percentage) of the change in <br /> Design-Builder's premium for Design-Builder's bond arising directly from the changed <br /> Work. <br /> Upon request, Design-Builder shall provide Owner with supporting documentation from <br /> its insurer or surety of any associated cost incurred. <br /> 6.3.5 Subcontractor costs. These are payments Design-Builder makes to Subcontractors for <br /> changed or extra Work performed by Subcontractors. The Subcontractors' cost of changed Work <br /> shall be determined in the same manner as prescribed in this Subparagraph 6.3. <br /> 6.3.6 Design costs. These are payments Design-Builder makes to Design Consultants and <br /> wages/benefits for design professionals employed by Design-Builder for additional services <br /> performed arising out of a change in the Work. <br /> Article 7 <br /> Procedure for Payment <br /> 7.1 Progress Payments <br /> 7.1.1 Progress payments will be made monthly for work duly certified, approved, and <br /> performed during the calendar month preceding the Application. <br /> City of Everett—Contract Page 7 <br /> Between Owner and Design Builder—Lump Sum <br /> East Clearwell Roof Replacement Project <br />