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<br /> I36. Overhead: For the purpose of calculating additional compensation under this section of the Contract,
<br /> Overhead shall include only those costs that are expended for the administration of the business as a 1
<br /> I whole. Such costs usually accrue or are incurred due to the passage of time, and cannot be traced to a
<br /> particular project or Contract. Examples of possible Overhead costs include, but are not limited to,
<br /> General and Administrative salaries and benefits, rent, general company insurance (exclusive of
<br /> insurance on owned equipment that is directly job costed), depreciation on office facilities, utilities,
<br /> I maintenance, office supplies, general company accounting and legal fees (exclusive of amounts
<br /> expended directly on any specific project), personal property taxes, general company business
<br /> licenses,dues and subscriptions.
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<br /> a. 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.
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<br /> . b. 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.
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<br /> c. 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 an
<br /> 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 excess
<br /> ' of that which would normally be expended in an arms-length transaction, an adjustment, in the
<br /> form of a reduction in the amount for calculation purposes, shall be included in any calculation
<br /> in determining the amount of Allocable Overhead.
<br /> d. 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 /> e. Indirect or home office costs that vary substantially with the amount of Work performed shall
<br /> not be included in the group of costs comprising Overhead.
<br /> If. 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,
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<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 /> g. In addition to compliance with Federal Acquisition Regulations, Subpart 31.2 examples of
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<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 /> I 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 /> ' 37. Owner: The City of Everett, Washington. "Owner"and the"City" mean the same.
<br /> 38. Owner's Representative: The person designated in writing and employed or retained by the Owner
<br /> to act as its representative at the construction Site and to perform construction inspection service and
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<br /> administrative functions relating to this Contract. The terms "Owner's Representative", "Engineer"
<br /> and"Architect"are interchangeable.
<br /> 39. Person: Includes individuals, associations, firms, companies, corporations, partnerships, and joint
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<br /> ventures.
<br /> 40. Physical Completion: Physical Completion Date is the day all of the Work is physically completed
<br /> on the Project. All documentation required by the Contract and required by law does not necessarily
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<br /> need to be furnished by the Contractor by this date.
<br /> 41. Progress Schedule: A schedule prepared and maintained by Contractor, describing the sequence and
<br /> duration of the activities comprising the Contractor's plan to accomplish the Work within the Contract
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<br /> Time.
<br /> 10023829 City of Everett Public Works July 2018
<br /> WPCF FEN Chlorination Building Upgrade Work Order 3614
<br /> GENERAL CONDITIONS
<br /> I00 72 13-7 Issue for Bid
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