Article I - BASIC SERVICE FEE

1.1. That the owner will pay the Designer for his Basic Services a fee of 6.6% of the amount of the contract award adjusted in accordance with the conditions of Article IV. Whether the work be entirely executed or whether its execution be suspended or abandoned in part or in whole, payments to the Designer on his fee are to be made as follows:

1.1.1 Schematic Design Phase

Upon the written acceptance of the Schematic Design Phase by the Owner and the written approval of the Bureau of General Services, an amount equal to 15% of 6.6% of the Designer's approved estimate of the construction cost will be paid.

If the estimated construction cost as required by Article II is within the available funds, a program budget for this schematic phase will be prepared. if the estimated construction cost is more than the funds available, the plans of the schematic design phase shall be rejected. In such an event, the owner, the Bureau of General Services, and the Designer will restudy the design concept to determine if it is feasible to make any changes which will bring the work within the available funds without materially altering the intended use of the project. If such an agreement is reached, a revised schematic design phase shall be prepared by the Designer and submitted to the Owner and the Bureau of General Services for approval.

1.1.2 Preliminary Design Phase (AIA Design Development Phase)

Upon the written acceptance of the preliminary design phase by the owner and the written approval of the Bureau of General Services, the payment on account will be increased to an amount equal to a total of 35% of 6.6 % of the Designer's approved estimate of the construction cost. If the estimated construction cost is more than the funds available, the owner shall have the right to require the Designer to make revisions mutually determined to be necessary in order to bring the construction cost within the funds available and resubmit plans, outline specifications and a revised cost estimate to the owner and the Bureau of General Services for approval.

1.1.3 Final Design Phase (AIA Construction Document Phase)

Upon the written acceptance of the final design phase by the Owner and the written approval of the Bureau of Public improvements, the payment on account will be increased to an amount equal to 75% of 6.6 % of the Designer's approved detailed estimate of the construction cost.

NOTE: * Lump sum may be used in lieu of percentage fee.

This detailed estimate shall be based on the final design and current construction costs. if this estimate exceeds available funds for construction, the Designer, the Owner, and the Bureau of General Services shall re-examine the project and shall consider whether to make any changes or revisions that do not materially alter the intent of the project; to agree upon certain additive alternates that may not be mandatory to the concept of the basic project; or to completely redesign the project to bring the construction cost within the available funds. Except by mutual agreement of the above mentioned parties, any changes, revisions or redesign shall not increase the Designer's fee, since Page 1 of this Agreement stipulates the amount of funds available for construction, except as this amount may be amended by a subsequently approved project budget.

The Designer shall not proceed from any one of the above phases without the acceptance-of the owner and written approval by the Bureau of General Services.

During the design of any of the foregoing phases, no addition to or change in the original project concept shall be made without the written approval of the Owner and the Bureau of General Services. The Designer shall be responsible to notify the aforementioned parties of any such additions or changes even though the construction cost is not increased.

1.1.4 Bidding Phase

After bona fide bids are taken and accepted, the payments on account will be increased to an amount equal to 80% of 6.6 % of the accepted bid; provided, if in the judgment of the Owner and the Bureau of General Services the bids received are not acceptable, no additional percentage above that amount as determined by Article I (Sub-Article 1.1.3) will be paid.

After bona fide bids are received, if they exceed the available construction funds, the Designer-, the Owner and the Bureau of General Services shall review the design plans and specifications and the Designer shall be responsible to make any revisions determined to be necessary to bring the construction cost within the funds available; or, if necessary, to redesign the project. Except under very unusual circumstances and by mutual agreement of the above mentioned parties, no additional fee will be paid to the Designer for such revisions or redesign.

If the agreed upon revisions or redesign that may have been set forth in Article I (Sub-Article 1.1.1, 1.1.2, 1.1.3, 1.1.4) above do not bring the estimated construction cost within the funds available, and it appears impracticable to accomplish this, the owner and the Bureau of General Services shall have the right to suspend or abandon the project and no payments will be made beyond the appropriate amounts approved in Article I (Sub-Articles 1.1.1, 1.1.2, 1.1.3, or 1.1.4).

1.1.5 Contract Administration

Each month, during the period of the construction contract, additional payment will be due, based on the work completed, as indicated by approved contractor's requisitions, until the aggregate of payments reaches an amount equal to 100% of the fee.

Notes