American Process Group Inc 7/9/2019

City of Everett 00 7200 - 35 2019 Biosolids Removal UT3705-2 9.5.3 Unabsorbed and Extended Overhead Any Extended or Unabsorbed Overhead to which the Contractor may be entitled shall be calculated using the Eichleay formula by: 1. Determining the pro-rata amount of Overhead allocable to the subject project. This is accomplished by multiplying Overhead costs by the ratio of the subject project's billings to the ' Contractor's overall billings during the overall period of the subject Project's performance. The result is"Allocable Overhead." ' a. Any additional and unresolved direct cost claims presented by the Contractor concurrently with any request for Extended and/or Unabsorbed Overhead shall not be included in determining the ratio of the subject Project billings to overall Contractor billings for the period of project performance. ' 2. Determining the daily amount of Allocable Overhead for the subject Project. This is accomplished by dividing the Allocable Overhead for the subject Project by the number of days (as contractually defined)of Contract performance. The result is the Daily Rate of Allocable Overhead. 3. Determining the gross amount of potential additional compensation for Home Office Overhead ' due to the project extension. This is accomplished by multiplying the Daily Rate of Allocable Overhead by the number of days of project extension caused solely by the Owner. This results in the Gross Amount of Additional Home Office Overhead Compensation. ' 4. Adjusting the Gross Amount of Additional Home Office Overhead Compensation for any additional contribution for Overhead received by the Contractor on any Change Orders that are being presented and resolved concurrently with the subject calculation for Unabsorbed and/or Extended Home Office Overhead. The necessary adjustment would be to reduce the Gross ' Amount of Additional Home Office Overhead Compensation by any additional compensation for Overhead included in any direct cost claims being resolved concurrently with any claim for ' Extended and/or Unabsorbed Home Office Overhead. Contractor shall not receive compensation for cost of use of equity capital. 9.6. FORCE ACCOUNT If Work or materials are to be paid for by Force Account,payment amounts will be determined and Contractor shall contemporaneously prepare, keep and maintain records segregated and allocated by time, ' location and item of Work in compliance with this subsection. Such records must be contemporaneously countersigned by the Owner or the Owner's Representative(or its designee). Any records not countersigned by the Owner or Owner's Representative shall be excluded from the calculation of payment under this subsection. The payments provided for herein shall be full payment for all Work done on a Force Account basis. The payment shall be deemed to cover all expenses of every nature, kind, and description, including all Overhead expenses,profit, occupational tax and any other Federal or State revenue acts,premiums on ' public liability and property damage insurance policies, and for the use of small tools and equipment for which no rental is allowed. No Contract Claim for Force Account shall be allowed except upon written order by the Owner's Representative for Extra Work prior to the performance of the Extra Work.No Extra Work shall be construed as Force Account Work that can be measured under the Specifications and paid for at the unit prices or lump sum named in the Contract. The Owner's Representative shall compute the amount and costs of any Work to be paid by Force Account, and the amount certified by the Owner's Representative shall be final as provided in 3.2. OWNER'S REPRESENTATIVE. 00 7200 - 35 GENERAL CONDITIONS