construction management at risk agreement · 2017-05-12 · construction management‐at‐risk...

ConstructionManagement‐at‐RiskAgreementPosted04.15.2016–Revised03.31.2017Page1of52

ConstructionManagement‐at‐RiskAgreement

This ConstructionManagement‐at‐RiskAgreement (“Agreement”), by andbetween the Lone StarCollege(“LSC”or“Owner”)and (“ConstructionManager”),referredtoas“Party”individuallyor“Parties”collectively,shallbecomeeffectiveuponthedatethisAgreementhasbeensignedbybothparties(“EffectiveDate”).

ARTICLE1‐ PROJECT

1.01 Ownerintendstoconstructthe (the “Project”)forwhichOwnerintendstoachieveSubstantialCompletion(asdefinedinOwner’sStandardUniformGeneralandSupplementaryConditions)forallStagesofconstructionbeginningonorbefore forthe project.TheContractTimeandthedatebywhichSubstantialCompletionshouldbeachievedwillbeestablishedwhenandifOwneracceptsConstructionManager’sGuaranteedMaximumPriceproposal.DetailsfortheProjectarealsoincludedintheCMARScopeinRFQ ,attachedasExhibitJ.

1.02 FOR EACH CONSECUTIVE CALENDAR DAY AFTER THE COMPLETION PERIOD SETFORTHINAGUARANTEEDMAXIMUMPRICEPROPOSALEXECUTEDBYTHEPARTIESTHATANYWORK, INCLUDINGTHE CORRECTIONOFDEFICIENCIES FOUNDDURINGTHE FINALTESTINGAND INSPECTION, ISNOT COMPLETED,THEAMOUNTOFONETHOUSANDFIVEHUNDREDDOLLARS,($1,500)WILLBEDEDUCTEDFROMTHEMONEYDUEORBECOMESDUETHECONSTRUCTIONMANAGER,NOTASAPENALTYBUTASLIQUIDATEDDAMAGESREPRESENTING THE PARTIES’ ESTIMATE AT THE TIMEOFCONTRACTEXECUTIONOFTHEDAMAGESWHICHTHEOWNERWILL SUSTAINFORLATECOMPLETION.

ARTICLE2‐ DEFINITIONS

2.01 CertainDefinitions:

a. ContractDocuments:ThisAgreement,includesOwner’sStandardUniformGeneralandSupplementary Conditions, Special Conditions, Division I Specifications, all AddendaissuedpriortotheEffectiveDate,theProjectManualsdevelopedfortheconstructionoftheProjectoraportionthereof,alldocumentsrequiredthereunder,theDrawingsandSpecificationsdevelopedby and the Historically Underutilized Business Plan. The Contract Documents form theContractbetweenOwnerandConstructionManager.ConstructionManagershallperformall of its services and construct theWork (as defined below) pursuant to the entireContract. Duties andobligations of ConstructionManagerwhich are described in thisAgreementmaybe expandedor furtherdefinedby additional provisions of the otherContract Documents. “ConstructionManager” shall be substituted for “Contractor” or“General Contractor” in Owner’s Standard Uniform General and SupplementaryConditionsandDivision1Specifications.


b. Construction Cost Limitation: The cost limit for construction which must not beexceededasaresultofthedesignoftheDesignConsultantandwhichmaybestipulatedinacontractwithaDesignConsultant.

c. Construction Phase: The implementation and execution of the construction workrequiredbytheContractDocuments.TheconstructionoftheProjectmaybedividedintodifferentstageseachwithdifferentdatesforimplementationandcompletion(referredtoasa“Stage”).

d. ProjectTeam: TheOwner,ConstructionManager,DesignConsultant(s), any separatecontractors employed by Owner, and other consultants employed for the purpose ofprogramming, design, and construction of the Project. The constitution of the ProjectTeammayvaryatdifferentphasesoftheProject.TheProjectTeamwillbedesignatedbyOwnerandmaybemodifiedfromtimetotimebyOwner.

e. Day:Thecalendardayunlessotherwisespecificallydesignated.

f. Design Consultant: Licensed professionals, or firms employing such licensedprofessionals,engagedbyOwnerasindependentconsultantsfordesignofalloraportionof the Project Improvements and to prepare drawings and specifications for theconstruction of the Project (the “Drawings and Specifications”). More than one suchprofessional or firm may be employed by Owner. (All such professionals or firms,regardlessofnumber,maybereferredtointhesingularherein.)

g. FinalCompletion:AsdefinedbyOwner’sStandardUniformandSupplementaryGeneralConditions.

h. GeneralConditionsWork:AsdefinedinTexasEducationCodesubsection51.776(7),asamended.

i. HUBSubcontractingPlan:TheOwnerhasadoptedExhibitH,PolicyonUtilizationofHistoricallyUnderutilizedBusiness(“Policy”),whichisincorporatedhereinbyreference.Construction Manager, as a provision of the Agreement must comply with therequirements of the Policy as it pertains to development and submission of HUBSubcontractingPlansat the timetradepackagesarebid inbuyingout theGuaranteedMaximumPrice.

j. Pre‐construction Phase: The programming, schematic design, design development,constructiondocuments,andbiddingphases.

k. PreliminaryProjectCost(“PPC”):Thetotalestimatedcostofallprojectdevelopment,includingdesign,construction,andotherassociatedcosts,whichisestablishedpriortothecommencementofdesign.

l. ProjectConstructionBudget(“PCB”):ThebudgetestablishedforthesitepreparationandconstructionofalltheProjectImprovementsandfacilitiesrelatingtoandbeingapartoftheProject,whichincludestheConstructionCostLimitationandothercostsspecifiedbyOwner.

m. Project Improvements: All Project facilities requiring construction, including allpreparatorymatterspriortoconstruction,suchassitepreparation.


n. StandardsandStandardSpecifications:TheconstructionanddesignrequirementsandstandardsofLSC,andvariousbuildingandlifesafetycodesasspecifiedbyLSCwhichareherebyincorporatedbyreference.

o. Subcontractors: All trade contractors, separate contractors, and subcontractorsentering into contracts (“Subcontracts”) with the Construction Manager for theperformanceoftheWork.TherelationshipbetweentheConstructionManagerandtheSubcontractors shall be that of a general contractor to its subcontractors unlessotherwiseapprovedinadvanceinwritingbyOwner,orexceptwhenOwnerentersintoaseparatecontractdirectlywithaSubcontractor.

p. SubstantialCompletion(dateof):AsdefinedbyOwner’sStandardUniformGeneralandSupplementaryGeneralConditions.

q. TotalProjectCost(“TPC”):ThetotalbudgetestablishedfortheProjectbyLSCattheendof thedesigndevelopmentphase (subject to subsequentmodificationbyOwner),whichincludesbutisnotlimitedtoprofessionalservicescosts,ConstructionManager’scosts,thecostsoftheGeneralConditionsitems,furniture,fixturesandequipmentcosts,landscapingcosts,movingcosts,andothermiscellaneouscosts.

r. Work:Theprovisionofallservices, labor,materials,supplies,andequipmentthatarerequiredor reasonably inferable tocomplete theProject instrictaccordancewith therequirementsof theContractDocuments (as suchmaybemodifiedoramended).Theterm “reasonably inferable” takes into consideration the understanding of the partiesheretothatnoteverydetailwillbeshownintheContractDocuments.TheConstructionManager shall not be entitled to an increase in the Guaranteed Maximum Price (asdescribed in section 5.01(g)) due to the absence of any detail or specification theContractormayrequireor foranyconstructionwhichmaybe foundnecessaryas theWorkprogressesinordertocompletetheconstructionoftheProject.Ifanitemorsystemis either shown or specified, all material and equipment required for the properinstallationofsuchitemorsystemandneededtomakeacompleteoperatinginstallationshallbeprovidedwhetherornotdetailedorspecified,omittingonlysuchpartsasarespecificallyexceptedbytheOwner.Notwithstandingtheabove,theContractorshallnotbe responsible for design, except incidental designing/detailing as required by theSpecificationsforshopdrawingpurposes.

ARTICLE3‐ DESIGNATIONOFCONSTRUCTIONMANAGERANDDUTIES

3.01 TheOwnerherebydesignates andappoints theConstructionManagerandauthorizes theConstructionManagertosoactinconnectionwiththescopeofworkandservicessetforthanddescribedinthisAgreement.

3.02 Notwithstanding anything to the contrary contained in this Agreement, Owner andConstructionManageragreeandacknowledgethatOwnerisenteringintothisAgreementinrelianceonConstructionManager’sspecialanduniqueabilitieswithrespecttoperformingits obligations hereunder, and Construction Manager’s special and unique abilities withrespecttoconstructionmanagement.TheConstructionManageracceptstherelationshipoftrustandconfidenceestablishedbetweenitandtheOwnerbythisAgreement.ConstructionManagercovenantswithOwnertouseitsbestefforts,skill,judgment,andabilitiestoperformtheserviceshereunderand to further the interestsofOwner inaccordancewithOwner’srequirements and procedures, in accordance with the highest standards of Construction


Manager’s profession or business and in compliancewith all applicable national, federal,state,municipal,laws,regulations,codes,ordinances,ordersandwiththoseofanyotherbodyhavingjurisdiction.ConstructionManagerwarrants,represents,covenants,andagreesthattherearenoobligations,commitments,orimpedimentsofanykindthatwilllimitorpreventperformanceoftheservicesrequiredhereunder.

3.03 TheConstructionManagerwarrants,represents,covenants,andagreesthatalloftheservicestobeperformedbytheConstructionManagerunderorpursuanttothisAgreementshallbeof the standard andqualitywhichprevail among similar businesses andorganizations ofsuperiorknowledgeandskillengagedinprovidingsimilarservicesinmajorUnitedStatesurbanareasunder the sameor similar circumstancesand involvingaproject suchas theProject.

3.04 The Construction Manager’s duties as set forth herein shall at no time be in any waydiminishedbyreasonofanyapprovalbytheOwnernorshalltheConstructionManagerbereleasedfromanyliabilitybyreasonofsuchapprovalbytheOwner,itbeingunderstoodthatthe Owner at all times is ultimately relying upon the Construction Manager’s skill andknowledgeinperformingtheservicesrequiredhereunder.

3.05 The Construction Manager warrants, represents, covenants, and agrees that all personsconnectedwiththeConstructionManagerdirectlyinchargeofitsservicesaredulyregisteredand/orlicensedunderthelaws,rulesandregulationsofanyauthorityhavingjurisdiction,ifsorequiredbysuchlaws,rulesandregulations.

3.06 TheConstructionManagerwarrants, represents, covenants, andagrees to call toOwner’sattentionanythingofanynatureinanydrawings,specifications,plans,sketches,instructions,information,requirements,procedures,andotherdatasuppliedtotheConstructionManager(bytheOwneroranyotherparty)whichitregardsinitsopinionasunsuitable,improper,orinaccurateinconnectionwiththepurposesforwhichsuchdocumentordatais furnished.Nothing shall excuse or detract from the Construction Manager’s responsibilities orobligationshereunderinacasewheresuchdocumentordataisfurnishedorwhentimeisoftheessenceunless theConstructionManageradvisesOwner inwriting that in itsopinionsuchdocumentordataandanyrequestsmadethereinforactionareunsuitable,improper,orinaccurateandOwnerconfirmsinwritingthatitwishestheConstructionManagertoproceedinaccordancewiththedataasoriginallygiven.

3.07 TheConstructionManagerwarrants,represents,covenants,andagreestofurnishefficientbusiness administration and superintendence and perform its services hereunder orpursuant to thisAgreement in the bestway and in themost expeditious and economicalmannerconsistentwiththeinterestsofOwner.

3.08 TheConstructionManagerwarrants,represents,covenants,andagreesthatitshall,atitsowncost, make good any defects in the Pre‐construction Phase Services as soon as theConstructionManagerbecomesawareofsuchdefectsorisnotifiedofsuchdefects.ShouldtheConstructionManagerrefuseorneglecttomakegoodsuchdefectswithinareasonabletimeafterreceivingnoticerequestingsuchremedialwork,thentheOwnershallbeentitledto make good such defective services at the expense of the Construction Manager. ThiscommitmentbyConstructionManagerisinadditionto,andnotinsubstitutionfor,anyotherremedy for defective Services that theOwnermayhave at lawor in equity. ConstructionManager’sobligationswithrespecttoConstructionPhaseServicesaresetforthinOwner’sStandardUniformGeneralandSupplementaryConditionsandelsewhereasmaybenoted.


3.09 ConstructionManagerwarrants,represents,andagreesthatif(i)itisacorporationorlimitedliability company, then it is a corporation duly organized, validly existing and in goodstandingunder the lawsof theStateofTexas,ora foreigncorporationor limited liabilitycompanydulyauthorizedandingoodstandingtoconductbusinessintheStateofTexas,thatithasallnecessarycorporatepowerandhasreceivedallnecessarycorporateapprovalstoexecuteanddelivertheAgreement,andtheindividualexecutingtheAgreementonbehalfofConstructionManagerhasbeendulyauthorizedtoactforandbindConstructionManager;or(ii)ifitisapartnership,limitedpartnership,orlimitedliabilitypartnership,thenithasallnecessarypartnershippowerandhassecuredallnecessaryapprovalstoexecuteanddeliverthisAgreementandperformallitsobligationshereunder;andtheindividualexecutingthisAgreementonbehalfofConstructionManagerhasbeendulyauthorizedtoactforandbindConstructionManager.

3.10 Neither the execution and delivery of this Agreement by Construction Manager nor theperformanceof itsobligationshereunderwill result in theviolationof anyprovision, if acorporation,of itsarticlesof incorporationorby laws, ifa limitedliabilitycompany,of itsarticlesoforganizationorregulations,orifapartnership,byanypartnershipagreementbywhichConstructionManagerisbound,oranyagreementbywhichConstructionManagerisboundortothebestoftheConstructionManager’sknowledgeandbelief,willconflictwithanyorderordecreeofanycourtorgovernmentalinstrumentalityrelatingtoConstructionManager.

3.11 ExceptfortheobligationofOwnertopayConstructionManagercertainfeesandexpensespursuanttothetermsofthisAgreement,andtoperformcertainotherobligationspursuantto the terms and conditions explicitly set forth herein, Owner shall have no liability toConstructionManager or to anyone claiming through or under ConstructionManager byreasonoftheexecutionorperformanceofthisAgreement.Notwithstandinganyobligationor liabilityofOwner toConstructionManager,nopresentor futurepartneroraffiliateofOwner or any agent, officer, director, employee, or Trustee of Owner, LSC, or of thecomponentscomprisingtheLoneStarCollege,oranyoneclaimingunderOwnerhasorshallhaveanypersonalliabilitytoConstructionManagerortoanyoneclaimingthroughorunderConstructionManagerbyreasonoftheexecutionorperformanceofthisAgreement.

ARTICLE4‐ CONSTRUCTIONMANAGER’SPERSONNELANDSUBCONTRACTORS

4.01 The Construction Manager’s personnel, and the Construction Manager’s associated sub‐consultants, tobeemployed in theProject, are identified inExhibitA.Thepersonnelandentities identifiedinExhibitAshallnotbechangedexceptwiththeOwner’spriorwrittenagreement,whichshallnotbeunreasonablywithheld.

4.02 All subcontracts shall be awarded in accordancewith the applicable provisions ofTexasEducationCode section 51.782, as amended. ConstructionManager shall notify Owner inadvanceinwritingoftheidentitiesofallSubcontractorswithwhichitintendstosubcontract.ConstructionManagershallnotsubcontractwithanySubcontractortowhichOwnerhasareasonable objection. Such notice shall be given sufficiently in advance to permit OwneradequatetimeforreviewwithoutdelaytotheProject,andallowingtimeforConstructionManagertomakesubstituteselections,butinnoeventshallsuchnoticebegivenlessthanten (10) days before the intended subcontract date. Construction Manager shall not berequiredtosubcontractwithanySubcontractortowhichithasreasonableobjection,exceptasmayberequiredotherwisebytheapplicableprovisionsofTexasEducationCodesection


51.782,asamended.IfConstructionManagerintendstosubmitaproposalforsubcontractwork, it shall notify Owner in writing prior to soliciting proposals from potentialsubcontractors. When Construction Manager’s Subcontractors for constructing theWorkhave been identified, they shall not be changedwithout Owner’s prior written approval,which shall not be unreasonably withheld. Construction Manager shall not incur anySubcontractcostspriortoissuancebyOwnerofaNoticetoProceedforsuchWork.

4.03 ShouldConstructionManagerproposethedeletionofaHistoricallyUnderutilizedBusiness(“HUB”) classified/certified sub‐consultant or Subcontractor firm from its employ, theConstruction Manager shall substitute a sub‐consultant or Subcontractor firm of likeclassification/certification, and if Construction Manager is unable to substitute a sub‐consultantorSubcontractorfirmof likeclassification,ConstructionManagershallprovideOwnerwithdocumentationofitseffortstoacquiretheservicesofaHUBreplacementfirm.

4.04 Construction Manager shall require in all subcontracts with Subcontractors for theperformance of the work that all Subcontractors will be bound to all of the terms andconditionsfoundinthisAgreement.

ARTICLE5‐ CONSTRUCTIONMANAGER’SSERVICES:PART1:PRE‐CONSTRUCTIONPHASESERVICES

5.01 InimplementationoftheresponsibilitiesanddutiesoftheConstructionManagerassetforthherein,theConstructionManagershallperform,inaccordancewiththeSchedule(asdefinedinSection5.01(b)),thefollowingPre‐constructionPhaseServices:

a. GeneralCoordination.

1. Participate as a member of the Project Team in the development of‐the ProjectFacilityProgramifsuchprogramhasnotbeendevelopedpriortotheEffectiveDateofthisAgreement.

2. Attend regular meetings with other members of the Project Team during thedevelopment of the design of the Project to advise them on site usage and siteimprovements,selectionofmaterials,buildingsystemsandequipment,andmethodsofdeliveryofmaterials,systems,andequipment.

3. The Construction Manager's Pre‐construction Phase Services team shall attendprojectmeetingswiththeOwner,Owner'srepresentatives,andProjectArchitectandDesign architect for two or three day workshop sessions in Houston, Texas atappropriateintervalsthroughoutthedurationofthepre‐constructionphasewiththeoccurrenceofshorterbutmorefrequentprojectteammeetingsincreasingpriortotheOwner'sacceptanceofGMP.

4. ProviderecommendationsandinformationtotheothermembersoftheProjectTeamon:constructionfeasibility;availabilityofmaterialsandlabor;timerequirementsforinstallationandconstruction; assignmentof responsibilities for safetyprecautionsand programs, temporary Project facilities; equipment,materials and services forcommonuseoftheConstructionManagerandOwner'sseparatecontractors,ifany;costfactors,includingcostsofalternativematerialsordesigns,preliminarybudgets,and possible cost savings; methods of verification for determining that therequirements and assignments of responsibilities are included in the proposed


ContractDocuments,andanyothermattersnecessarytoaccomplishtheProjectinaccordancewiththeSchedule(asdefinedbelow)andProjectConstructionBudget.

5. AtOwner’srequest,attendpublicmeetingsandhearingsconcerningthedevelopmentandscheduleoftheProject.

6. The Construction Manager shall prepare and keep updated throughout the Pre‐constructionandConstructionPhasesaProjectScheduleasdescribed

7. inSection01153entitled“ProjectScheduling”ifincludedtherein,otherwiseprovidedin 5.01 (b) (of the agreement) to include those items described under separatecontracts including: equipment, furniture and furnishings, telephones, projectsecurity,propertyprotectionandlifesafetysystems,integrationwithcentralcampusmonitoring systems, information and instructional technology data‐transmissionsystemsandcomputertechnologysystems.

8. Developandupdatea“ConstructabilityReview”reportwhich isareportresultingfromfrequentcommunicationwith theProjectTeamandwhichwilloutline itemsthatintheConstructionManager’sopinionmaycauseproblemsinthewaytheProjectistobeconstructedandwhichwillreviewtheoverallcoordinationofspecificationsanddrawings,detailsanddiscrepanciesthatifleftunattendedmayresultinChangeOrders or claims once Project construction commences. ConstructabilityrecommendationsanddocumentationshallbeinconformancewiththeLSCUniformGeneralConditions.

9. Creation and continuous updating of a decision tracking system in a formatacceptabletoOwner.

b. Scheduling.

1. Develop a critical path Project schedule (“Schedule”) for the other Project Teammembers’ review and the Owner’s approval, that coordinates and integrates theConstructionManager’sservices,theDesignConsultant’sdesign,theworkofotherconsultants and suppliers, and the Owner’s activities with the anticipatedconstructionschedulesforothercontractors.

2. UpdatetheScheduleasisreasonablyrequiredbutatleastmonthlytoincorporateanupdated,detailedlistingforallactivitiesoftheProject,including,withoutlimitation:

3. commencement, milestone and completion dates for Facility Program Phase,SchematicDesignPhase,DesignDevelopmentPhase,ConstructionDocumentsPhase,Bidding/ProposalsPhase,constructionphasingandProjectStages;

4. timesofcommencementandcompletionforeachSubcontractor;

5. requiredactivitysequencesanddurations;

6. contractdocumentpackages,completiondates,Ownercontractdocumentpackagereviewperiods,Projectbuildingpermitsacquisitiontimerequirements,constructioncontractbiddates;

7. processingofshopdrawingsandsamples;


8. a recommended schedule for the Owner’s purchase of materials and equipmentrequiringlongleadtimeprocurement,deliverydatesofproductsrequiringlongleadtimeprocurement,andmethodstoexpediteandcoordinatedeliveryoflongleadtimeprocurementsincludingcoordinationoftheSchedulewiththeearlypreparationofrelevantportionsoftheContractDocumentsbytheDesignConsultant.

9. A separate Schedule shall be prepared for each Stage and each set of biddingdocuments.

10. Provide the necessary critical path schedule control with a goal to attain theSubstantialCompletionoftheProjectonorbeforethedatesetforthhereinabove,sothattheOwnercanoccupyandutilizetheentireProjectfacilitiesonsuchdate;and

11. CreateandmaintaintheScheduleusingthelatestavailableversionofthePrimaverasoftwareprogram,orothersoftwareapprovedbyOwner(thelicenseandtrainingforwhichshallbeatConstructionManager’ssoleexpense).

12. The Construction Manager shall prepare and keep updated throughout the Pre‐constructionandConstructionPhasesaProjectScheduleprovidedin5.01(b)(oftheAgreement)toincludethoseitemsdescribedunder5.01(b)andadditionaldetailedschedule activitieswhichmay beOwner‐managedwork under separate contractsincluding: equipment, furniture and furnishings, telephones, project security,property protection and life‐safety systems, integration with central campusmonitoring systems, information and instructional technology data‐transmissionsystemsandcomputertechnologysystems.

c. BudgetandCostConsultation.

1. ObtainfromOwnerallProjectservice,materialsandpropertycostsandexpensesnotknown directly by the Construction Manager, such costs to include, withoutlimitation,Owner’spersonnelcosts,forceaccountlaborandspecialconsultants.

2. Prepare and update a Project budget during the schematic design phase, designdevelopment phase, and construction documents phase at fifty percent (50%),seventyfivepercent(75%),andonehundredpercent(100%)completion(foreachStage), for written approval by the Owner, such budget to include estimating,updatingandreportingofallProjectcostsincluding,withoutlimitation,construction,DesignConsultantfees,fixtures,furnishingsandequipment,specialconsultantsandcontractors, moving/relocation expenses, regardless of whether such costs areincluded in Owner’s Preliminary Project Cost or Total Project Cost. The designdevelopmentphaseandconstructiondocumentsphaseestimatesshallbedetailedestimates derived from cost quantity surveys. Such cost quantity surveys shall bebaseduponunitpricesforlabor,materials,andoverheadandprofit,inConstructionSpecificationsInstituteDivision1‐16formatforeachportionoftheWork.

3. ProvidethroughoutthedurationoftheProject,updatesofongoingcostandbudgetimpact, and provide continuous cost consultation services. Prepare and beresponsible for all procurement and construction cost estimates.Advise theothermembersoftheProjectTeamimmediatelyifatanytimetheConstructionManagerhas knowledge or belief that the previously established Preliminary Project Cost,


TotalProjectCost,orProjectConstructionBudgetSchedulewillnotbemet,andmakerecommendationstotheProjectTeamforcorrectiveaction.

4. At the completion of the Construction Contract Documents (for any Stage of theProject),updateandrefineacomparisonofactualandprojectedcoststotheProjectConstructionBudget, and in the event such actual and projected costs exceed theoriginalProjectConstructionBudget,developandimplementreasonablestrategiestobeapprovedbytheOwnertoreducethecostsprojectedtobeincurredduringallphasesoftheProject.

d. CoordinationofDesignandConstructionContractDocuments.

1. Reviewallplans, specifications,andotherdesigndocumentsduring theschematicdesign phase, design development phase, and construction documents phase, andadviseOwneronsiteuse,foundations,systems,materials,equipment,constructionfeasibility, availability of labor and materials, procurement time requirements,installationandconstruction,relativecosts,andproviderecommendationstoOwnerwithoutassumingDesignConsultants’professionalresponsibility.

2. Coordinate the incorporation of the Owner’s Design Requirements and Owner’sConstructionStandardsandprocedures,including,withoutlimitation,allofwhichareherebyincorporatedbyreference,intotheConstructionContractDocuments,anduseoftheOwner’sformatasdirectedbytheOwner.

3. Assist in development of any Special Conditions of the Construction ContractDocuments,whichshallbeapprovedinwritingbytheOwneratOwner’ssoleoptionanddiscretion.

4. AtspecifiedtimesrequiredbytheOwner,reviewthedrawingsandProjectManualasthey are being prepared, advise Owner of any error, inconsistency or omissiondiscovered, and recommend alternative solutions whenever the design affectsconstruction feasibility, budget, risks, or schedules (without assuming the DesignConsultants’professionalresponsibility).

5. PrepareaconstructabilityreviewreportbasedonExhibitE,acopyofwhichhasbeenprovidedtoConstructionManageratthetimeortimesindicatedtherein.

6. Coordinate with the Owner to ensure that the Construction Contract Documentscomplywith all applicable State of Texas and the LSC procurement requirements(withoutassuminganyoftheOwner’sresponsibilitytherefore).

7. ConsultwithOwnerandDesignConsultanttodeterminewhatmaterials,equipment,component systems, and construction types should be included in the ContractDocuments;suggestreasonableadjustmentsinthescopeoftheProject;andsuggestalternatebidsintheConstructionDocumentstoadjusttheConstructionCosttotheGuaranteedMaximumPrice(asdefinedherein).

e. ConstructionPlanning.

1. IdentifyforandrecommendtotheOwnertheneedforpurchaseofitemsrequiringextendeddeliverytimes(“longleaditems”),andexpeditetheprocurementofsuch


items to ensure their delivery by the required dates. Participate with DesignConsultant, as requested by Owner and subject to Owner’s prior approval, in thepreparationofperformancespecificationsandrequestfortechnicalproposalsfortheprocurementand installationof systems, components,and for theprocurementoflong lead time equipment and materials. If requested by Owner, and subject toOwner’spriorapproval, issuerequests fortechnicalproposalstoqualifiedsourcesandreceiveproposalsandassistintheirevaluation.

2. Make recommendations to the othermembers of the Project Team regarding thedivision of Contract Documents and Project Manual to facilitate the bidding andawardingof constructioncontracts, toallow forphasedorstagedconstruction,ormultiple separatecontracts, and to take intoconsiderationsuch factorsas timeofperformance,typeandscopeofwork,availabilityoflaborandmaterials,overlappingtradejurisdictions,provisionsfortemporaryfacilities,comparisonsoffactoryandon‐siteproduction costs, shipping costs, code restrictions, theOwner’s goals forHUBcontractorparticipation,andotherconstraints.

3. ReviewtheDrawingsandtheProjectManualwiththeothermembersoftheProjectTeamtoeliminateareasofconflictandoverlapintheworktobeperformedbythevariousSubcontractorsorOwner’sseparatecontractors.

4. Scheduleandconductpre‐bidconferenceswithinterestedbidders,subcontractors,materialsuppliers,andequipmentsuppliers,andrecordminutesofsame.

5. Coordinate and develop with Design Consultant bid packages and work scopedescriptionsforeachseparatebidcategorythatrepresenttheentiretyofthescopeoftheWorkforeachphaseandstageoftheProject.

6. InaccordancewithTexasEducationCodesection51.782,asamended,ConstructionManagershallpubliclyadvertiseandsoliciteithercompetitivebidsorcompetitivesealedproposalsfromtradecontractorsorsubcontractorsfortheperformanceofallmajor elements of the work other than the minor work that may be included inGeneralConditions.ConstructionManagermayseektoperformportionsoftheworkitself ifConstructionManagersubmits itsbidorproposal forthoseportionsofthework in the samemanner as all other trade contractors or subcontractors and ifOwnerdeterminesthatConstructionManager’sbidproposalprovidesthebestvalueforOwner.Owner’sdeterminationinsuchmattersisfinal.IfConstructionManagerintendstosubmitaproposalforsuchwork,itshallnotifyOwnerinwritingpriortosolicitingproposals.Criterion fordeterminationofbestvalueshallbeprovidedbyOwner.ConstructionManagerandOwnershallreceiveandopenalltradecontractororsubcontractorbidsorproposalsinamannerthatdoesnotdisclosethecontentsofthebidorproposalduringtheselectionprocess.Allbidsandproposalsshallbemadepublicwithinseven(7)daysafterthedateoffinalselection.IfConstructionManagerreviews, evaluates, and recommends to Owner a bid or proposal from a tradecontractororsubcontractor,butOwnerrequiresabidorproposalfromanothertradecontractor or subcontractor to be accepted, then, pursuant to the terms of theContract,OwnershallcompensateConstructionManagerbyachangeinprice,time,or Guaranteed Maximum Price for any additional cost and risk, which has beendemonstrated to Owner’s satisfaction and as required by the Contract, which


ConstructionManagermayincurbecauseofOwner’srequirementthatanothertradecontractororsubcontractorbidorproposalbeaccepted.

7. Assist the Owner, the appropriate separate Owner’s contractor, the appropriateDesignConsultantorotherconsultant,inobtainingallapplicableriskmanagement,code, and regulatoryagency reviewsandapprovals for theProjector anyportionthereof including, without limitation, the Texas Higher Education CoordinatingBoard, the Texas Department of Licensing and Regulation, the fire departmentprovidingfireprotection.

8. Refine,implementandmonitortheHUBSubcontractingPlan(includedatExhibitH),which promotes equal employment opportunity in the provision of goods andservicestotheOwnerfortheProject.

9. AdviseOwner of any tests to be performed, and assistOwner in selecting testinglaboratoriesandconsultants,withoutassumingdirectresponsibilityfortheworkofsuchlaboratoriesandconsultants.

10. Construction Manager shall review the Contract Documents to ensure that theycontain adequate provision for all temporary facilities necessary to enable theSubcontractorstoperformtheirwork,andprovisionsforallofthejobsitefacilitiesnecessarytomanage,inspect,andsuperviseconstructionoftheWork.

11. In accordance with Owner’s Standard Uniform General and SupplementaryConditions, Construction Manager is responsible for initiating, maintaining, andsupervising all safety precautions and programs in connection with the Work.ConstructionManagershallproviderecommendationsandinformationtoOwnerandDesign Consultant with respect to the assignment of responsibilities for safetyprecautions and programs, temporary Project facilities, and equipment,materials,andservicesforcommonuseoftheSubcontractors.VerifythatsuchassignmentswithrespecttotheSubcontractorsareincludedintheContractDocuments.

12. ProvideananalysisofthetypesandquantitiesoflaborrequiredfortheProjectandreviewtheappropriatecategoriesoflaborrequiredforcriticalphasesorStages.Makerecommendationsforactions,whichwillminimizeadverseeffectsoflaborshortages.

f. Furniture,FixturesandEquipment.ConsultwithandmakerecommendationstotheOwnerontheacquisitionscheduleforfixtures,furnitureandequipment,andcoordinatethepurchaseandinstallationofsuchitemswiththeOwnerasmayberequiredtomeettheSchedule.

g. GuaranteedMaximumPrice.

1. AttheconclusionoftheDesignDevelopmentphase,orsuchothertimeasthePartiesmay agree upon when the Drawings and Specifications are sufficiently complete,ConstructionManagershallsubmitaGuaranteedMaximumPriceproposaltoOwnerintheformattachedheretoasExhibitCwhichshallalsostateaContractTimeanddateofSubstantialCompletionuponwhichtheproposalisbased.IfOwneracceptstheproposal,bothpartiesshallsigntheproposalandtheGuaranteedMaximumPrice,ContractTimeanddateofSubstantialCompletionthereinshallbecomepartoftheContract.TheOwner'sconsentmaybeprovidedtotheConstructionManageratthe


beginningofPartIServicesanddoesnothavetoberequestedonanitem‐by‐itembasis. Owner, at its sole option and discretion,may specify a different format forExhibitC,basedonparticularProjectrequirements,buttheConstructionManagermaynotmodifyExhibitCwithouttheexpresswrittenauthorizationofOwner.

2. Owner,atitssoleoptionanddiscretionmayrejecttheGuaranteedMaximumPriceproposal,attempttorenegotiatetheproposalwithConstructionManager(withtherighttoceasenegotiationsatanytimeandrejecttheproposal),orincreasetheProjectConstruction Budget. Construction Manager shall not withdraw its GuaranteedMaximumPriceproposalforninety(90)days.

3. TheGuaranteedMaximumPriceproposalmustbepreparedintheformatspecifiedbyOwnerwhichshallrequireabreakdownofestimatedcostsorganizedbytrade,allowances,contingencies,ConstructionManager’sConstructionPhaseFee,andotherapproved items as defined in Attachment 1 to Exhibit C (Guidelines for thePreparationoftheGMP).

4. The Guaranteed Maximum Price proposal must include a written statementdescribing how it was derived and prepared, which shall include, at a minimum,Drawings and Specifications, addenda, Owner’s Standard Uniform General andSupplementaryConditions,allowances,all clarificationsandassumptionsmadebythe Construction Manager due to the incompleteness of the Drawings andSpecifications,andassumptionsastowhenContractDocumentswillbeissued.ThisinformationshallbefullydescribedinAttachment1toExhibitC.

5. InformulatingtheGuaranteedMaximumPriceproposal,ConstructionManagershallallow for the continued development and completion of the Drawings andSpecificationswhicharereasonablyinferable,exceptformaterialchangesinscope,andtheGuaranteedMaximumPriceproposalshallincludeaConstructionManager’scontingencytoallowforcostsarisingoutofsuchdevelopmentandcompletionwhichdonotqualifyforachangeorder.Amountsattributabletoclarifications,assumptions,andfurtherdevelopmentandcompletionoftheDrawingsandSpecificationsshallbespecifiedinanitemizedbreakdownaspartoftheproposal.

6. InformulatingtheGuaranteedMaximumPriceproposal,includeanOwnerprovidedConstructionContingencyAllowanceinanamounttobedeterminedatthesubmittaloftheGuaranteedMaximumPrice.IndicatethisspecifiedamountunderGuaranteedMaximum Price, Exhibit C, Item 6, and under Attachment 1 to Exhibit C, Tab 3,DescriptionofWork,AllowanceSchedule.

ARTICLE6‐ CONSTRUCTIONMANAGER’SSERVICES:PART2:CONSTRUCTIONPHASESERVICES

6.01 The Construction Phase shall be deemed to commence upon the earlier of (i) the datespecifiedinaNoticetoProceedissuedbyOwnerafterapprovalbyOwnerofaGuaranteedMaximumPricefortheWorkorportionoftheWorkspecifiedinsuchNoticetoProceed,(ii)theissuanceofapurchaseorderbyConstructionManagerformaterialsorequipmentfortheProject after prior written authorization by Owner, or (iii) award of a Subcontract inaccordancewiththerequirementsofthisContractandafterpriorwrittenauthorizationbyOwner. Pre‐construction Phase Services may overlap Construction Phase Services. In


implementation of the responsibilities and duties of the Construction Manager for theConstructionPhase,theConstructionManagershallprovidethefollowingservices:

a. ProjectControl.

1. ConstructionManagershallconstructtheWorkinstrictaccordancewiththeContractDocumentswithin the time required by the Schedule approved by Owner and asrequired by Owner’s Standard Uniform General and Supplementary GeneralConditions,andDivisionISpecifications.ConstructionManagershallawardandenterinto,asageneralcontractor,allSubcontractsnecessaryandappropriatetoprovidealllaborandmaterialsfortheconstructionoftheProject.ConstructionManagershallself‐performonlyGeneralConditionsWorkandotherWork,whichhasbeenawardedtoConstructionManager inaccordancewith the requirementsofTexasEducationCodesection51.782,andthisContract.

2. Owner reserves the right to perform Work related to the Project and to awardseparate contracts forWork related to the Project. The Owner’s consent may beprovidedtotheConstructionManageratthebeginningofPartIServicesanddoesnothavetoberequestedonanitem‐by‐itembasis.

3. MonitortheWorkoftheSubcontractorsasrequiredandcoordinatesuchWorkwiththeactivitiesandresponsibilitiesoftheProjectTeamwithagoaltoattaincompletionoftheProjectatacostnottoexceedtheProjectConstructionBudgetandGuaranteedMaximumPrice,andtoattainSubstantialCompletionbythedatesetforthinExhibitChereinwhenexecuted.

4. AttendOwner’s Project progressmeetings scheduledbyOwner no less often thatoncepermonth, and fully advise theProjectTeamat suchmeetings as toProjectstatus.

5. Schedule,directandattendregularmeetingswithothermembersoftheProjectTeamduringtheconstructionoftheProjecttodiscussjointlysuchmattersasprocedures,progress,problemsandscheduling.Priortoeachmeeting,theConstructionManagershallprepareanddistributetotheotherProjectTeammembersawrittenagendaforthemeeting.PrepareanddistributeateachProjectTeammeetingamemorandumsettingforththelistofcriticalactivitiesthatrequireimmediateactionandthedate(s)bywhentheactivitymustbecompleted,andrecordanddistribute theminutesofeachmeeting.

6. AsprovidedinExhibitA,maintainacompetent,full‐timestaffattheProjectsitetocoordinate and provide general direction over the Work and progress of theSubcontractorsontheProject.

7. As provided in Exhibit A, establish on‐site organization of personnel and clearlydefinedlinesofauthorityinordertoeffectuatetheoverallplansoftheProjectTeam.Ataminimum,ConstructionManager’ssitepersonnelshallincludequalifiedstaffasproposedintheapprovedContractor’sGeneralConditions.

8. InconsultationwithOwner,establishproceduresforcoordinationamongtheProjectTeam, Subcontractors, separate contractors, Design Consultants, and other


consultants with respect to all aspects of the construction of the Project, andimplementsuchprocedures.

9. ExpediteandcoordinatedeliveryandinstallationofOwner‐procuredmaterialandequipment.TheConstructionManagershallcoordinateeffortstoincludetheOwner’sProject Architect in the preparation, development and review of the CM’s GMPProposalwhichwillincludethequalifications,clarifications,assumptions,exclusions,value engineering and all other requirements identified within Attachment 1 toExhibitC(GuidelinesforthePreparationoftheGMP).FollowingOwnerapprovalofthe GMP Proposal, the CM shall monitor the development of the ConstructionDocumentstoconfirmthat,whencomplete, thedocumentsreflect theappropriatedetail describing all qualifications, assumptions, exclusions and value engineeringissues contained in the GMPProposal. The ConstructionManager and the ProjectArchitect shall jointly provide amonthly status report stating the progress of theincorporationoftheGMPqualifications,clarifications,assumptions,exclusions,valueengineeringandallotherprovisions,identifiedinAttachment1toExhibitC,intotheConstructionDocuments.”

10. Construction Manager shall supervise and direct the Work and shall be solelyresponsibleforconstructionmeans,methods,techniques,sequences,andproceduresfortheWork.

11. In accordance with Owner’s Standard Uniform General and SupplementaryConditions,provideandpay forall labor,materials,equipment, tools,constructionequipmentandmachinery,water,heat,utilities,transportation,andallotherfacilitiesandservicesnecessaryfortheproperexecutionandcompletionoftheWorkinstrictaccordancewiththerequirementsoftheContractDocuments.

12. Obtain building permits and special permits for permanent improvements asrequiredby lawor theContractDocuments.AssistOwnerorDesignConsultant inobtainingallapprovalsrequiredfromauthoritieshavingjurisdictionovertheProject.

13. Inspect the Work of Subcontractors to ensure conformance with the ContractDocuments.

b. Scheduling.

1. Perform Project scheduling in compliance with Owner’s Division I SpecificationSection01153entitled “Project Scheduling” if included therein, otherwiseprovideregular monitoring, updating, and reissuing of the all Project Schedules asconstruction progresses, including, without limitation, master Project schedules,detailed construction schedules, submittal schedules, inspection schedules, andoccupancyschedules;identifypotentialandactualvariancesbetweenscheduledandprobablecompletiondates,reviewtheschedulesforWorknotstartedorincompleteand recommend to the Owner adjustments in the schedules to conformwith theprobable completion dates and provide summary reports to the Owner of eachscheduleupdate anddocument all changes in construction schedules. IncorporateactivitiesoftheSubcontractorsandotherpartiesaffectingtheprogressoftheWork,including,without limitation, activity sequences anddurations, allocation of laborandmaterials,processingofshopdrawings,data,andsamples,deliveryoflonglead‐time items. Include Owner’s occupancy requirements and occupancy priorities.


EvaluateSubcontractor’spersonnelandequipment,andavailabilityofsuppliesandmaterials, with respect to each Subcontractor’s ability to meet the Schedule.Recommendaction toOwnerwhenanySubcontract requirementsarenotmet,orappearunlikelytobemet.

c. CostControl.

1. Maintaincostaccountingrecordsingoodformonexpendituresandmaterials,orforanyotherexpendituresrequiringaccountingrecords;andaffordtheOwneraccesstotheserecordsandpreservethemforaperiodoffour(4)yearsafterfinalpaymentismadebytheOwnertotheConstructionManager.

2. Prepareandadminister,andprovidetoOwner,Subcontractors’scheduleofvalues,subcontractors’ sworn statements and waivers of lien as required, contract anddisbursementsummaries,changeorderlistingsandchangeorders,andbudgetcostsummaryreportsasrequiredbyOwner.

3. ConstructionManagershallpromptlyidentifyallvariancesbetweenestimatedcostsandactualcosts,andshallpromptlyreportsuchvariancestotheProjectTeamalongwithrecommendationsforaction,butinanyevent,nomorethantwo(2)businessdaysafteracquiringsuchinformation.

d. Change Orders. Develop and implement a system acceptable to the Owner for thepreparation, review and processing of Change Orders, change order requests, andrequests for information, in accordancewith Owner’s Standard Uniform General andSupplementaryConditionsandDivisionISpecifications.

e. WageRates.Omitted.

f. SpecialConsultants.AssisttheOwnerinselectingandretainingprofessionalservicesnototherwisedescribedinthisAgreementfortheProject,andcoordinatetheseservicesattheowner’srequestinordertomeettheSchedule,without,however,assumingdirectresponsibilityfortheworkoftheseconsultants.

g. Documents,ShopDrawings,andSubmissions.

1. TheDesignConsultantshallbetheinterpreterofthedesignintentoftheConstructionContractDocuments,subjecttothetermsandconditionsoftheagreementbetweentheDesignConsultantandtheOwner,provided,however,theConstructionManagershallrequestsuchinterpretationsfromtheDesignConsultant,withOwnerconsent,fromtimetotimeinordertofacilitatetheConstructionManager’saccomplishmentof its duties under this Agreement. The Owner's consentmay be provided to theConstructionManager at thebeginningofPart I Services anddoesnothave toberequestedonanitem‐to‐itembasis.

2. In collaboration with the other members of the Project Team, the ConstructionManagershallestablishandimplementproceduresforexpeditingtheprocessingandDesign Consultants’ approval of shop drawings and other submissions, and inaccordance with Division I Specifications, as applicable. Receive from theSubcontractors, and review, all shop drawings and other submissions forconformance with the Contract Documents. Coordinate shop drawings and other


submissions with the Contract Documents and other related documents prior totransmittingthemtoothermembersoftheProjectTeam.

3. TheConstructionManagershallrecordtheprogressof theProject,submitwrittenprogressreportstotheothermembersoftheProjectTeam,includinginformationontheSubcontractor’sWorkandthepercentageofcompletion,andkeepadailylogofProjectconstructionactivitiesavailabletotheothermembersoftheProjectTeaminaccordancewithOwner’sStandardUniformGeneralandSupplementaryConditions;whose job function involves or includes observation of Project construction, shallmaintainadailylogofconstructionactivitiesandobservations,whichdailylogsshallbe submitted to the Owner no less frequently than weekly for the immediatelyprecedingweek.

4. TheConstructionManagershallmaintainat theProjectsiteandmakeavailabletoOwner,updatedrecordsofsubcontracts,drawings,examples,purchases,materials,equipment, maintenance and operating manuals and instructions, and otherconstructionrelateddocuments, includingallchangesandrevisions,adirectoryofpersonnel,Projectcorrespondence,inspectionprocedures(aspreparedbyothers),testing laboratory procedures (as prepared by others), contract changes, timeextensions,progresspaymentdata, finalacceptanceprocedures, instructions fromOwner; and shall obtain data from Subcontractors andmaintain a current set ofrecorddrawingsandprojectmanual.

5. Coordinate and facilitate the creation of record and as‐built drawings, and theprocurementofwarrantiesandguaranteesinbinderandCDform.Asequipmentisreceived or installed, enter the equipment and data in Owners maintenancemanagementsoftwareTMAandincludeintheoperatingmanuals.

6. Provide Owner with complete, unaltered copies of all Subcontracts, and allamendmentsthereto.

7. Submit toOwner all documents substantiating payments to qualifyingHUB’s in aformatdesignatedbyOwner.

8. TheConstructionManagershallcoordinateeffortstoincludetheOwner's

9. Project Architect in the preparation, development and review of the CM's GMPproposalwhichwillincludethequalifications,clarifications,assumptions,exclusions,value engineering and all other requirements identified within Attachment 1 toExhibitC(GuidelinesforthePreparationoftheGMP).FollowingOwnerapprovalofthe GMP Proposal, the CM shall monitor the development of the ConstructionDocumentstoconfirmthat,whencomplete, thedocumentsreflect theappropriatedetail describing all qualifications, assumptions, exclusions and value engineeringissues contained in the GMPProposal. The ConstructionManager and the ProjectArchitect shall jointly provide amonthly status report stating the progress of theincorporationoftheGMPqualifications,clarifications,assumptions,exclusions,valueengineeringandallotherprovisions,identifiedinAttachment1toExhibitC,intotheConstructionDocuments.

h. Safety. Construction Manager is solely responsible for all safety precautions andprograms in connectionwith theWork. ConstructionManager shall review the safety


programsdevelopedbyeachoftheSubcontractorsandprepareandsubmittoOwneracomprehensivesafetyprogramwhichcomplieswithallapplicablerequirementsoftheOccupationalSafetyandHealthActof1970andallotherapplicablestate,local,orfederallaws or regulations. Construction Manager shall ensure compliance by theSubcontractorswiththeircontractualsafetyrequirements.

i. Bonds.

1. PaymentandPerformanceBondsonaformprescribedbyOwnerinthetotalamountof theGMPacceptance in the formattachedheretoasExhibit F, shall be suppliedwithin ten (10) days of contract execution in accordance with Owner’s StandardUniformandSupplementaryGeneralConditions.Thesurety foranysecuritybondshallmeetthesamerequirementsassetforthforpaymentandperformancebonds.Iftheconstructionpriceisnotknown,thenthepaymentandperformancebondsshallbebasedonOwner’sConstructionCostLimitation,andrevisedwhentheconstructionprice is established. When the Guaranteed Maximum Price is established, thepayment and performance bonds shall be revised to reflect any changes fromestimatedcosts,orshallbeissuedconcurrentlywiththeexecutionoftheGuaranteedMaximumPriceproposalifasecuritybondwaspreviouslyissued.IfconstructionisphasedorstagedwithdifferentGuaranteedMaximumPricesestablishedatdifferenttimes,thenthepenalsumofthebondsshallbeincreasedbasedonthecumulativetotalvalueofallGuaranteedMaximumPrices ineffect.TheConstructionManagershalldeliver to theOwnera fullyexecutedSecurityBondwithin10daysafter theexecutionoftheAgreement, intheamountof5%ofthesumoftheCCL.ThebondformwillbeprovidedbytheOwner.RefertoArticle7.02fortheamountoftheCCL,andtoExhibitFfortheSecurityBondform.

ARTICLE7‐ PAYMENTSTOTHECONSTRUCTIONMANAGER

7.01 ForPre‐constructionPhaseServices:

a. In full consideration of Construction Manager’s Services during the Pre‐constructionPhaseofthisAgreement,OwnerwillpaytoConstructionManagerthePre‐constructionPhaseFeenottoexceedthesumof$ payable proportionately on amonthlybasisbasedontheamountofeffortexpendedbyConstructionManagerbasedonhourly rates as stated inExhibitA.Anyportionof thePreConstructionPhaseFeeallowancethatremainsunexpendedshallbecreditedtotheOwner.

b. To receive payment, Construction Manager shall send monthly invoices to Owner. IfConstruction Manager is being paid a fee based on hourly rates, then ConstructionManager’sinvoicesshallspecifythedays,hoursandnaturesofthetaskscoveredbytheinvoices,suchinvoicesnottoexceedintheaggregatethemaximumstatedabove.

c. Omitted.

d. IfConstructionManagerisbeingpaidanhourlyfeeforPre‐constructionPhaseServices,thensubjecttothelimitationsherein,thefollowingexpensesofConstructionManager,incurredsolelyanddirectlyinsupportoftheProject,willbereimbursed:

1. Actualout‐of‐pocketcoachclasstravelandotherexpensespreviouslyapprovedbyOwner for travel outside the Project area and incurred solely in connectionwith


ConstructionManager’sperformanceofitsserviceshereunder;provided,however,that the cost of travel between ConstructionManager’s offices and Owner’s localofficesortheProjectshallnotbereimbursed.

2. FeespaidtoConsultantshiredinaccordancewithpriorwrittenapprovalfromOwner.

Owner shall not pay a mark‐up on any of said reimbursables. Payment ofreimbursableexpensesshallnotexceed$ without the priorwritten consent of Owner. Construction Manager shall submit receipts for allreimbursableexpensesalongwithanyreimbursementrequest.

e. AdditionalServices:

1. FromtimetotimeOwnermayrequestthatConstructionManagerperformservicesinadditiontothoseServicesrequiredorreasonablyinferableherein(suchservicesinadditionarehereinaftercalled“AdditionalServices”).EachtimethatConstructionManagerisrequestedtoperformserviceswhichConstructionManagerdeemstobeAdditionalServices,andpriortoperformingsuchAdditionalServices,ConstructionManagershallcompleteandforwardtoOwnerforacceptancebyOwneranAdditionalServicesRequisitionintheformofExhibitDattachedhereto,whichshalldescribeindetail the nature or scope of the Additional Services, the basis upon whichConstructionManager has determined that the requested services are AdditionalServices,andwhichshallset forththemaximumamountof feesandreimbursableexpenses forwhichConstructionManager isprepared toperformsuchAdditionalServices,togetherwithaproposedschedulefortheperformancesofsuchAdditionalServices.ConstructionManagershallproceedonlyafterwrittenacceptancebyOwneroftheAdditionalServicesRequisitionandwrittenapprovalfromOwnertoproceed.

2. IfOwnerconcludesthatallorpartoftheservicesdescribedintheAdditionalServicesRequisitionareServicesalreadyrequiredtobeperformedbyConstructionManagerpursuanttothisAgreementorarereasonablyinferabletherefrom,thenOwnershallnotifyConstructionManagerofOwner’sdeterminationandOwnerandConstructionManagershallattempt, ingood faith, toresolvebynegotiation theirdifferences. Ifwithin seven (7) business days Owner and Construction Manager are unable toresolvetheirdifferences,thenConstructionManagershallneverthelessperformtheservices requested by Owner as if the services were Services required to beperformedpursuanttothisAgreement,withoutprejudice,however,toConstructionManager’srighttopursueaclaimforcompensationforsuchdisputedservices.

3. Uponacceptance byOwner, eachAdditional ServicesRequisition and the servicesperformed by Construction Manager pursuant to such Additional ServicesRequisitionshallbecomepartofthisAgreementandshallbesubjecttoallthetermsandconditionsof thisAgreement,as fullyandcompletelyas though thesamehadbeenincludedinthisAgreementasarequiredServiceattheoriginalexecutionofthisAgreement.

f. ConstructionManagershallnotbeentitledtoanyincreaseinthePre‐constructionPhaseFeebecauseofScheduleextensionsordelays,orchangesinthescopeoftheproposedProject, unless such extensions, delays, or changes are material and significant, asdeterminedbyOwneratitsreasonablediscretion.


7.02 ConstructionPhase

a. OwnershallcompensateConstructionManagerforConstructionPhaseservicesonthebasisofthesumoftheCostoftheWorkasdefinedhereinplustheConstructionManager’sConstructionPhaseFee(suchsumisreferredtoasthe“ContractSum”)assetforthbelow.TheContractSumshallnotexceedtheGuaranteedMaximumPricesetforthinExhibitChereto, subject to changes authorized by the terms and conditions of the ContractDocuments.AnycostwhichisnotauthorizedbythetermsandconditionsoftheContractDocuments,butwhichwouldcausetheGuaranteedMaximumPricetobeexceededshallbepaidbyConstructionManagerwithoutreimbursementbyOwner.IntheeventthattheContractorisrequiredtopayorbeartheburdenofanynewfederal,state,orlocaltax,orofanyrateincreaseofanexistingtax(exceptataxonincome)withrespecttoitsforcesand/oritsperformanceoftheWork(not includingtheforcesandWorkperformedbySubcontractors)asaresultofanystatute,courtdecision,writtenruling,orregulationtakingeffectaftertheeffectivedateofthisAgreement,theGuaranteedMaximumPriceshallbeincreasedbytheamountofthenewtaxortaxincrease.

b. The Owner has afforded the Construction Manager with unrestricted access to theexisting improvements and conditions on the site and has given the ConstructionManager the opportunity to thoroughly investigate the existing conditions,which theConstruction Manager represents it has done. The results of Construction Manager’sinvestigation have been taken into account in establishing the GuaranteedMaximumPriceoftheWork.ConstructionManagershallnotbeentitledtoaclaimforanadjustmentintimeorpriceunderOwner’sStandardUniformGeneralandSupplementaryConditionsforconditionswhichConstructionManagerdiscoveredoroughttohavediscovered inConstruction Manager’s investigation. Before proceeding with the Work, theConstructionManagershallreviewtheDrawingsandSpecificationsandnotifytheDesignConsultant andOwnerof any errors, omissionsordiscrepancies in theDrawings andSpecifications it discovers with respect to the existing conditions. The ConstructionManagershallnotproceedwiththeWork,ifanydefect,definedasanyerror,omission,conflict, inconsistencyorlackofclarity,isknownorshouldbeknownbyConstructionManagertoexistintheDrawingsorSpecificationsorotherContractDocuments,andifConstructionManager nevertheless proceeds to perform the work then ConstructionManager shall be responsible for all foreseeable resulting cost, including the cost ofredoingorremedyingtheWorkandtimedelaysresultingtherefromunlessandtotheextentsuchcostsresultfromdesignorconcealedconditions.UpondiscoveringadefectintheDrawingsorSpecifications,theConstructionManagershallimmediatelysubmitawrittenrequestforanexplanationordecisiontotheDesignConsultantandtheOwner.

c. IftheactualCostoftheWorkplusConstructionManager’sConstructionPhaseFeeislessthan theGuaranteedMaximumPrice, then theentire savings shall be returned to theOwneranda finaladjustmentmadetothecontractamount. Ifatanypointduringtheconstructionof theproject theConstructionManagerandOwneragreethecostof theworkwillbe lessthantheGuaranteedMaximumPricethentheGuaranteedMaximumPricewillbereducedtotheagreeduponamount.ForitemsintheContractDocumentsandonExhibitCheretowhicharenotedas“Allowances”,100%ofanysavingsshallbetheOwner’s.TheCostof theWork included in theAllowances shallbedetermined inaccordance with Owner’s Standard Uniform General and Supplementary ConditionsexceptthatanyclaimbytheContractorforanadjustmenttotheGuaranteedMaximumPricebasedonthecostforAllowanceworkshallbemadewithinareasonabletimeafter


theissuanceoftheDrawingsandSpecificationsfortheAllowanceitems.AnyincreasetoAllowanceamountsbaseduponestimatesbytheContractor,whichincreasesexceedsuchAllowanceamounts,shallnotresultinanyincreasetotheContractor’sFee.

d. If theactual finalGeneralConditionscost is lessthat theamountshowninExhibitC‐GuaranteedMaximumPriceProposal,theentiresavingsshallbereturnedtotheOwnerandafinaladjustmentmadetothecontractamount.TheConstructionManager'sGeneralConditionscostshallbeconsideredaCostoftheWorkwithrespecttotheConstructionManager's Guaranteed Maximum Price. The Owner shall be entitled to one hundredpercent (100%) of any unexpended contingencies or allowances or of the savingsresultingfromanydesignorconstructionchangesreducingthescopeofthework.

e. If the Guaranteed Maximum Price increases from the amount originally set forth inExhibitChereto,thenConstructionManagershallbeentitledtoanequitableincreaseintheConstructionManager’sConstructionPhaseFeewhichshallbelimitedtoa %Fee.

f. In Owner’s Standard Uniform General and Supplementary Conditions, references toadjustmentsin“cost”or“costs”refertoCostsoftheWorkasdefinedhereinbelow,andreferences to Construction Manager’s “overhead” and “profit” refer to ConstructionManager’sConstructionPhaseFee.

g. TheConstructionManager’sFeeshallcovertheConstructionManager’sprofit,generaloverheadandthefollowingcostsandexpenses:

1. AllexpensesinconnectionwithmaintainingandoperatingConstructionManager’smainofficeandanybranchorfieldoffices,including(exceptasotherwiseprovidedhereinafter):

2. Salaries of Construction Manager’s officers, project manager(s), estimators, andschedulersnotdirectlyassignedtotheproject.

3. Salaries of persons employed in the main or branch offices of the ConstructionManagerwhosetimeisdevotedtothegeneralconductoftheConstructionManager’sbusiness, such as office managers, stenographers, plan clerks, file clerks, anddraftsmen.

4. Overheadorgeneralexpensesofanykindexceptthosespecificallyincludedherein.

5. Servicesandexpensesoftheestimating,personnel,accounting,budgetcontrol,auditand management information systems (other than pre‐construction services)relatingtoaccountinginConstructionManager’sofficeandevenifatthesite,exceptasspecificallyidentifiedherein.

6. Interest on the Construction Manager’s capital or on money borrowed by theConstructionManager,includingthecapitalemployedbytheConstructionManagerintheperformanceoftheWork.

7. Amounts required to be paid by Construction Manager for Federal and/or Stateincomeandfranchisetaxes.

8. Legal, accounting, or other similar professional services provided by or toConstructionManager, inregard todisputes,arbitrations, litigationsorothersuch


proceedingswith Subcontractors,withmunicipal authorities,with theOwner, theDesignConsultantsoranyotherpersonorentityrelatingtotheProjectorotherwise.

h. InadditiontothepaymentproceduresdescribedinOwner’sStandardUniformGeneralandSupplementaryConditions,Division I Specifications, Contractor shall submitwitheachapplicationforpaymentallreceipts,invoiceswithcheckvouchersorotherevidenceof payment, petty cash account information, payrolls, and any and all other evidencewhich Owner or Design Consultant shall deem necessary to support the amountrequested.Inaddition,ConstructionManagerwillprovidetoOwneracopyofthepartiallien release obtained from each Subcontractor for all monies funded by LSC in thepreviousapplicationforpayment.TheConstructionManager’sConstructionPhaseFeeshall be shown as a separate line item on the schedule of values. In determining thepercentageofcompletion,ConstructionManagershallusethelesserofthepercentageoftheWork actually completed for each classification on the schedule of values, or thepercentage of the GuaranteedMaximum Price allocable to that itemwhich has beenactuallyincurredanddemonstratedasanexpensebytheConstructionManager.IftheConstructionManager’sConstructionPhaseFeeisafixedfeethentheamountrequestedforsuchfeeshallbeinthesameproportiontothetotalfeeastheamountrequestedforthe Cost of theWork relative to the total Cost of theWork used in deriving the thencurrentGuaranteedMaximumPrice.RetainageasspecifiedinOwner’sStandardUniformGeneralandSupplementaryConditionswillbeappliedtotheentireamountrequestedincludingtheCostoftheWorkandtheConstructionManager’sConstructionPhaseFee.Eachscheduleofvaluessubmittedshallmaintaintheoriginallyestablishedvalueforeachworkclassificationlineitemorsubcontractor,andshallcontainanyrevisionstocostsorcost estimates for each such classification or subcontractor. The format and trackingmethodoftheoriginalscheduleofvaluesandofallupdatestheretoshallbesubjecttotheapproval of Owner and Design Consultant. If at any time, the amount shown on thescheduleofvaluesexceedstheGuaranteedMaximumPriceallocabletothatclassificationorsubcontractor,thentheamountpayabletoConstructionManagerbyOwnershallbereducedbytheamountofsuchexcess.Atalltimes,theestimatedcostofperformingtheuncompleted and unpaid portion of the Work (including Construction Manager’soverheadandprofit)shallnotexceedtheunpaidbalanceoftheGuaranteedMaximumPrice (less retainage on Work previously completed). Payments to SubcontractorsincludedinanapplicationforpaymentshallnotexceedthepercentageofWorkallocabletothatSubcontractorforeachrespectivescheduleofvaluesclassificationwhichhasbeenactuallycompleted.

7.03 OwnershallhavetherighttowithholdfrompaymentsdueConstructionManagersuchsumsas are necessary to protect Owner against any loss or damage which may result fromnegligence by Construction Manager or failure of Construction Manager to performConstructionManager’sobligationsunderthisAgreement.

7.04 The final request for payment shall not bemade until ConstructionManager delivers toOwneracompletereleaseofallliensarisingoutofthisAgreementandanaffidavitthatsofarasConstructionManagerhasknowledgeorinformation,thereleaseincludesandcoversallmaterialsandservicesoverwhichConstructionManagerhascontrolforwhichaliencouldbefiled,butConstructionManagermay,ifanyagentorconsultantrefusestofurnishareleaseinfull,furnishabondsatisfactorytoOwnertoindemnifyOwneragainstanylien.Ifanylienremains unsatisfied after all payments are made, Construction Manager shall refund to


OwnerallmoneysOwnermaybecompelledtopayindischargingsuchlien,includingallcostsandreasonableattorneys’fees,andOwnershallhaveallremediesatlawandinequity.

7.05 In addition to the procedures contained in Owner’s Standard Uniform General andSupplementaryGeneralConditions,OwnershallhavenoobligationtomakefinalpaymentuntilafinalaccountingoftheCostoftheWorkhasbeensubmittedbyConstructionManagerand has been verified by Owner or Owner’s representatives, including receipt of asconstructeddocuments,operatingmanualsandwarranties.TheaggregatetotalofpaymentstoConstructionManagershallnotexceedthetotaloftheactualCostoftheWorkasverifiedbyOwnerorOwner’srepresentativefromConstructionManager’sfinalaccountingplustheapplicable Construction Manager’s Construction Phase Fee, as certified for payment inaccordancewiththeContract,butinnoeventmorethantheGuaranteedMaximumPrice.IfpaymentsmadetoConstructionManagerexceedthatwhichisdueandowingpursuanttothisArticleVII,thenConstructionManagershallpromptlyrefundsuchexcesstoOwner.

7.06 Anyprovisionhereoftothecontrarynotwithstanding,Ownershallnotbeobligatedtomakeany payment (whether a progress payment or final payment) to Construction Managerhereunderifanyoneormoreofthefollowingconditionsprecedentexist:

a. ConstructionManagerisinbreachordefaultunderthisAgreement;

b. Anypartofsuchpaymentisattributabletoservicesthatarenotperformedinaccordancewith this Agreement; provided, however, such payment shall bemade as to the partthereof attributable to services which were performed in accordance with thisAgreement;

c. ConstructionManager has failed tomake payments promptly to consultants or otherthirdpartiesusedinconnectionwiththeservicesforwhichOwnerhasmadepaymenttoConstructionManager;or

d. IfOwner,initsgoodfaithjudgment,determinesthattheportionofthecompensationthenremainingunpaidwillnotbesufficienttocompletetheservicesinaccordancewiththisAgreement,noadditionalpaymentswillbedueConstructionManagerhereunderunlessand until Construction Manager, at Construction Manager’s sole cost, performs asufficientportionoftheremainingservicessothatsuchportionofthecompensationthenremaining unpaid is determined by Owner to be sufficient to so complete the thenremainingservices.

e. NothingcontainedhereinshallrequiretheOwnertopaytheConstructionManageranaggregateamountexceedingtheGuaranteedMaximumPriceortomakepaymentifintheOwner’sbeliefthecosttocompletetheWorkwouldexceedtheGuaranteedMaximumPricelesspreviouspaymentstoConstructionManager.

7.07 Nopartialpaymentmadehereundershallbe,orshallbeconstruedtobe,finalacceptanceorapprovalofthatpartoftheservicestowhichsuchpartialpaymentrelates,orareleaseofConstructionManagerofanyofConstructionManager’sobligationshereunderorliabilitieswithrespecttosuchservices.

7.08 Construction Manager shall promptly pay all bills validly due and owing for labor andmaterialperformedandfurnishedbyothersinconnectionwiththeperformanceofthePre‐constructionPhaseServicesandtheconstructionoftheWork.


7.09 OwnershallhavetherighttoverifyandauditthedetailssetforthinConstructionManager’sbillings,certificates,accountings,costdata,andstatements,eitherbeforeorafterpaymenttherefore,by(1)inspectingthebooksandrecordsofConstructionManagerduringnormalbusiness hours; (2) examining any reports with respect to this Project; (3) interviewingConstruction Manager’s business employees; (4) visiting the Project site; and (5) otherreasonableaction.

7.10 The acceptance by Construction Manager or Construction Manager’s successors of finalpaymentunderthisAgreement,shallconstituteafullandcompletereleaseofOwnerfromanyandallclaims,demands,andcausesofactionwhatsoeverwhichConstructionManagerorConstructionManager’ssuccessorshaveormayhaveagainstOwnerundertheprovisionsof thisAgreementexceptthosepreviouslymadeinwritingandidentifiedbyConstructionManagerasunsettledatthetimeofthefinalrequestforpayment.

ARTICLE8‐ COSTOFTHEWORK

8.01 ThetermCostoftheWorkmeanscostswhichtheConstructionManagermustnecessarilyincurtoproperlyperformtheWorkinstrictcompliancewiththeContractDocuments.CostoftheWorkincludesonlytheitemssetforthinthisArticleVIII.

a. LaborandAdministrative:

1. ReasonableandcustomarywagespaidtoconstructionworkersdirectlyemployedbyConstructionManagerwhoperformtheconstructionoftheWork.

2. ReasonableandcustomarywagesorsalariesofConstructionManager’ssupervisoryandadministrativepersonnelwhoareidentifiedonExhibitAbutonlywhenstationedfull‐timeatthesitewiththeOwner’spriorconsent.

3. CostspaidorincurredbyConstructionManagerforlaborcostsarisingoutoftaxes,insurance, and benefits which are (i) required by law, (ii) required by collectivebargainingagreements,(iii),orotherwisecustomary,solongassuchcostsarebasedonwagesandsalarieswhichareproperlyincludedintheCostoftheWorkasdefinedherein.

4. Reasonable and customary travel expenses of Construction Manager’s personnelincurreddirectly and solely in support of theProject and approved in advance inwritingbyOwner.

5. Costs of long‐distance telephone calls, telegrams, postage, package delivery andcourier service, telephone service, and reasonable and customary petty cashexpenses of ConstructionManager’s jobsite office, incurred directly and solely insupportoftheWork,andallincurredatthesite.

b. Materials,Equipment,Tools,Rentals:

1. Costsofmaterialsandequipmenttobeincorporated(orincorporated)intotheWork,including transportation charges, and a reasonable and customary allowance forwasteandspoilage.Ownershallbeentitledtotakepossessionofexcessmaterialsnotincorporated into theWork,oratOwner’soption,ConstructionManager shall sellsuchmaterialsanddeductthegrossproceedsfromtheCostoftheWork.Paymentfor


storedmaterialsissubjecttoOwner’sStandardUniformGeneralandSupplementaryGeneralConditions.

2. Costsofmaterials,supplies,temporaryfacilities,equipment,andhandtoolsexceptfor those customarily owned by constructionworkers, all provided at the site byConstructionManager, if such itemsare fully consumed in the constructionof theWork,andOwnerapprovessuchpurchaseinadvanceinwriting.Costforuseditemsshall be based on fair market value and may include costs of transportation,installation,minormaintenancecosts,andremoval.Iftheitemisnotfullyconsumed,thenthecostshallbebasedoncostoftheitemminusitsfairmarketsalvagevalue.

3. Rentalchargesfortemporaryfacilities,equipment,andhandtoolsexceptforthosecustomarilyownedbyconstructionworkers,allprovidedatthesitebyConstructionManager,andmayincludetransportation,installation,andminormaintenancecosts,andremoval,allsolongasOwnerhasapprovedsuchitemsandtherentalratesinadvanceinwriting.Iftools,machineryorconstructionequipmentarerentedfromtheConstructionManager,theamountofsuchrental,therateofsuchrentals,includingthefreightanddeliverycostthereonandalloperatingexpensesexceptlabor,shallbedetermined by application of “Contractor’s Equipment Cost Guide,” latest editionpublishedbytheAGC,approvedby theOwnerbeforecommitmentsaremadeandshallinnoeventbehigherthantheprevailingcompetitiveratespaidinthelocalityforsimilarequipment.InnoeventshalltheaggregaterentalcosttoOwnerexceedthepurchase price andmaintenance cost of the item. In the event equipment can bepurchasedforanamountcomparabletotheaggregaterentalcostofsaidequipment,ConstructionManagershallpurchasesuchequipmentandturnitovertoOwneruponfinal completion of theWork, or, atOwner’s option, credit to theOwnerwith theamountofthefairmarketresalevalue.

4. Site debris removal anddisposal costs in accordancewith all applicable laws andregulations.

c. Subcontracts: Payments made to Subcontractors by Construction Manager for theconstruction of the Work in accordance with the Contract Documents and therequirementsofthesubcontractswithsuchSubcontractors.

d. Othercosts:

1. GovernmentalsalesandusetaxesdirectlyattributabletotheWork.OwnerisastateagencyandConstructionManagershallavailitselfofallexemptionswhichmayexistforsuchtaxesbasedonOwner’sstatus.

2. Permitandinspectionfees,exceptthatasastateagency,Owneristypicallyexemptfromsuchfees.

3. PremiumsforinsuranceandbondstotheextentdirectlyattributabletothisContract.

4. Testing fees pursuant to the terms and conditions of Owner’s Standard UniformGeneralandSupplementaryConditions.

5. Intellectual property royalties and licenses for items specifically required by theContractDocumentswhichare,orwillbe,incorporatedintotheWork.


6. Forfeiteddeposits,butonlyifsuchdeposithasbeenforfeitedintheabsenceofanyfaultornegligenceofConstructionManager.

7. Other costs approved in advance inwritingbyOwner atOwner’s sole option anddiscretion.

8.02 CostsNotIncludedintheCostoftheWork

ThefollowingshallnotbeincludedintheCostofWorktobepaidbyOwner:

a. Costs including,butnot limited to, the failure toperformof anySubcontractoror thebankruptcyorinsolvencyofanySubcontractor.

b. LegalandadministrativecoststoreviewandnegotiatetheseContractDocuments.

c. Travel and subsistence expense of Construction Manager, its officers or employeesincurredwhile travelingbetween theProjectandConstructionManager’sprincipalorbranchoffices,andtravelinthemetropolitanareaoftheProject.

d. Fines, penalties, sanctions or impositions assessed or imposed by any governmentalbody,instrumentalityortribunalarisingfromthefaultofConstructionManager.

e. Costs incurred by Construction Manager resulting from the failure of ConstructionManager or its Subcontractors to coordinate their work with that of Owner and itscontractors, ifany,afteragreeingtotheschedulestherefore,orfailureofConstructionManagertocomplywithdirectivesofOwnernotinconflictwithsaidschedules.

f. CostsresultingfromthefailureofConstructionManageroranySubcontractortoprocureandmaintaininsuranceasandtotheextentrequiredbytheContractDocuments.

g. Anyandallpersonnelcosts,including,withoutlimitation,wages,salaries,andbenefits,exceptforpersonnelbasedatthesiteofficeandonlyasspecificallyprovidedherein.

h. Anyandalloverheadexpense,orofficeexpenseatanylocation,exceptsiteofficeexpensetotheextentspecificallyincludedherein.

i. CostsrelatedtoConstructionManager’sindemnificationobligationspursuanttoArticleXhereof.

j. Thecostofcapital,including,withoutlimitation,interestoncapital,regardlessofwhetheritisrelatedtotheProject.

k. Any cost arising out of the fault or negligence of Construction Manager, itsSubcontractors,oranypersonorentityforwhomtheymaybeliable,including,withoutlimitation, costs related to defective, rejected, or nonconforming work, materials orequipment,anddamagetopersonsorproperty.

l. LiquidatedoractualdamagesimposedbyOwnerforfailureofConstructionManagertocompletetheWorkwithintheContractTime.

m. Anyandallcostsnotspecificallyauthorizedherein,including,withoutlimitation,anycostwhichwouldcausetheGuaranteedMaximumPricetobeexceeded.


8.03 Discounts,RebatesAndRefunds

TheCostoftheWorktobepaidbyOwnershallbecreditedwiththefollowingitems:

a. Proceeds of the sale of all tools, surplus materials, construction equipment, andtemporarystructureswhichhavebeenchargedtotheWorkotherthanbywayofrental,and remaining after completion, whether such sale is made to the Owner, theConstructionManager,ortosomeotherparty;andanysuchsale,ifmadetoothersthantheOwner,shallbeatfairmarketprice.UponcompletionoftheWorkorwhennolongerrequired,alltools,constructionequipmentandmaterialspurchasedfortheWorkshallbesoldandtheConstructionManagershalluseitsbesteffortstoobtainthehighestpriceinrespectofsuchsales.

b. If Owner makes funds available to Construction Manager, discounts earned by theConstructionManagerthroughadvanceorpromptpayments.TheConstructionManagershallobtainallpossibletradeandtimediscountsonbillsformaterialfurnished,andshallpay said bills within the highest discount periods. The Construction Manager shallpurchase materials for this Project in such quantities as will provide the mostadvantageouspricestotheOwner.

c. Reasonable market value as approved by the Owner at the time of removal of allmaterials,tools,andequipmentactuallypurchasedfortheworkanduponcompletionoftheworkretainedbytheConstructionManager.

d. Rebates,discounts,orcommissionsallowedtoandcollectedbytheConstructionManagerfrom suppliers of materials or from subcontractors, together with all other refunds,returns,orcreditsreceivedforreturnofmaterials,oronbondpremiums,orinsuranceandsalestaxes.

e. Construction Manager shall reimburse Owner for deposits made by Owner and notreturned toOwnerdue to the faultof theConstructionManager. ShouldConstructionManagernotpromptly so reimburseOwnerupondemand,Owner shall be entitled torecover said amount from Construction Manager, including, but not limited to, bydeductingtheamountfrompaymentsduetheConstructionManager.

ARTICLE9‐ OWNER’SRESPONSIBILITIES

9.01 TheOwnershallbefullyacquaintedwiththeProjectandshallfacilitateandcoordinatetheOwner’sProjectissueswiththeConstructionManager.Uponrequest,theOwnerwillfurnishinwritingtheauthorizationofeachrepresentativeoftheOwnertorepresentitinconnectionwiththeProject.

9.02 TheOwner shall cooperate inproviding information to theothermembersof theProjectTeamregardingitsrequirementsfortheProject.

9.03 OwnershallfurnishforthesiteoftheProjectanynecessarysurveysdescribingthephysicalcharacteristics, soil reports and subsurface investigations, known legal limitations, utilitylocations,andthelegaldescription,totheextentsuchitemsmayberequiredbyagreementsbetweenOwnerandDesignConsultantorotherconsultants.Ownershallinformallspecialconsultants retained by the Owner that they shall coordinate their services through the


ConstructionManager.Owner shall provide special testing and inspection services to theextentrequiredbyTexasEducationCodesection51.782,asamended.

9.04 IftheOwnerhasactualknowledgeofanyfaultordefectintheProjectornon‐conformancewiththeDrawingsandProjectManual,OwnershallgivepromptwrittennoticethereoftotheConstructionManager.

ARTICLE10‐ INDEMNITY

10.01 TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE CONSTRUCTIONMANAGERANDITSAGENTS,PARTNERS,EMPLOYEES,ANDCONSULTANTS(COLLECTIVELY“INDEMNITORS”) SHALL AND DO AGREE TO INDEMNIFY, PROTECT, DEFEND WITHCOUNSELAPPROVEDBYOWNER,ANDHOLDHARMLESSTHEOWNERANDTHELONESTARCOLLEGE,ITSAFFILIATEDENTERPRISES,REPRESENTATIVESOFTHEOWNER,ANDTHEIRRESPECTIVE OFFICERS, DIRECTORS, TRUSTEES, PARTNERS, EMPLOYEES AND AGENTS(COLLECTIVELY “INDEMNITEES”) FROMANDAGAINSTALL CLAIMS, DAMAGES, LOSSES,LIENS, CAUSES OF ACTION, SUITS, JUDGMENTS AND EXPENSES, INCLUDING ATTORNEYFEES,(COLLECTIVELY“LIABILITIES”)ARISINGOUTOF,CAUSEDBY,ORRESULTINGFROMTHEPERFORMANCEOFTHESERVICESORANYPARTTHEREOFWHICHARECAUSEDINWHOLE OR IN PART BY ANY NEGLIGENT OR WILLFUL ACT OR OMISSION OF THECONSTRUCTION MANAGER, ANYONE DIRECTLY OR INDIRECTLY EMPLOYED BY IT ORANYONEFORWHOSEACTS ITMAYBE LIABLEEVEN IF IT IS CAUSED INPARTBYTHENEGLIGENCEOROMISSIONOFANYINDEMNITEE,SOLONGASITISNOTCAUSEDBYTHESOLENEGLIGENCEORWILLFULMISCONDUCTOFANYINDEMNITEE.INTHEEVENTMORETHANONEOFTHEINDEMNITORSARECONNECTEDWITHANACCIDENTOROCCURRENCECOVERED BY THIS INDEMNIFICATION, THEN EACH OF SUCH INDEMNITORS SHALL BEJOINTLYANDSEVERALLYRESPONSIBLETOTHE INDEMNITEESFOR INDEMNIFICATIONANDTHEULTIMATERESPONSIBILITYAMONGSUCH INDEMNITORSFORTHELOSSANDEXPENSEOFANYSUCHINDEMNIFICATIONSHALLBESETTLEDWITHOUTJEOPARDYTOANY INDEMNITEE. THE PROVISIONS OF THIS ARTICLE SHALL NOT BE CONSTRUED TOELIMINATEORREDUCEANYOTHERINDEMNIFICATIONORRIGHTWHICHOWNERORANYOFTHEINDEMNITEESHASBYLAW.

10.02 CONSTRUCTIONMANAGER SHALL PROTECT AND INDEMNIFY THE OWNER FROM ANDAGAINSTALLCLAIMS,DAMAGES,JUDGMENTSANDLOSSARISINGFROMINFRINGEMENTORALLEGEDINFRINGEMENTOFANYUNITEDSTATESPATENT,ORCOPYRIGHT,ARISINGBY OR OUT OF ANY OF THE WORK PERFORMED HEREUNDER OR THE USE BYCONSTRUCTION MANAGER, OR BY OWNER AT THE DIRECTION OF CONSTRUCTIONMANAGER,OFANYARTICLEORMATERIAL,PROVIDEDTHATUPONBECOMINGAWAREOFASUITORTHREATOFSUITFORPATENTORCOPYRIGHTINFRINGEMENT,OWNERSHALLPROMPTLYNOTIFYCONSTRUCTIONMANAGERANDCONSTRUCTIONMANAGERSHALLBEGIVENFULLOPPORTUNITYTONEGOTIATEA SETTLEMENT.CONSTRUCTIONMANAGERDOES NOT WARRANT AGAINST INFRINGEMENT BY REASON OF OWNER’S OR DESIGNCONSULTANT’S DESIGN OF ARTICLES OR THE USE THEREOF IN COMBINATION WITHOTHER MATERIALS OR IN THE OPERATION OF ANY PROCESS. IN THE EVENT OFLITIGATION, OWNER AGREES TO COOPERATE REASONABLY WITH CONSTRUCTIONMANAGER AND PARTIES SHALL BE ENTITLED, IN CONNECTION WITH ANY SUCHLITIGATION,TOBEREPRESENTEDBYCOUNSELATTHEIROWNEXPENSE.


10.03 The indemnitiescontainedhereinshall survive the terminationof thisAgreement foranyreasonwhatsoever.

ARTICLE11‐ CONSTRUCTIONMANAGER’SINSURANCE

11.01 TheConstructionManagershallnot commenceworkunder theAgreementuntil1) ithasverifiedthatallinsuranceprovidedbyOwnerundertheOWNERCONTROLLEDINSURANCEPROGRAM(OCIP)assetforthintheUniformGeneralandSupplementaryGeneralConditionshasbeenplacedineffectand2)ithasobtainedotherrequiredinsuranceassetforthintheUniform General and Supplementary General Conditions and such insurance has beenreviewedandapprovedinwritingbytheOwner.Approvalof the insurancebytheOwnershallnotrelievenordecreasetheliabilityoftheConstructionManagerhereunder.Priortocommencing any of the Pre‐construction Services, Construction Manager shall provideevidenceasrequiredbythisArticlethatcoverage’sforComprehensiveAutomobileLiabilityareinfullforceandeffect.Priortocommencinganyconstructionwork,Builder’sRiskassetforth inOwner’sStandardUniformGeneralandSupplementaryConditionsshallbe in fullforceandeffectandshallbeincreasedasnecessaryforeachseparatebidpackage,phase,orStageofconstructionpriortothecommencementofconstructionforthatpackage,phase,orStage.

11.02 NotwithstandingtheinsurancerequirementssetforthinArticleXI,Section11,ConstructionManager’sInsurance,LSCshallimplementanOWNERCONTROLLEDINSURANCEPROGRAM(OCIP)fortheproject.TheConstructionManagershouldbepreparedtoidentifyandexclude,and cause all subcontractors and other vendorsworking under ConstructionManager toidentifyandexclude,anycostforinsurancecoveragelinesidentifiedintheUniformGeneralandSupplementaryGeneralConditions.LSCshallallowConstructionManagertoincludeintheGMPachargeofupto0.2%ofinsurableprojectcosttocoveranyotherinsuranceneededbyConstructionManager.

Additionally,LSCshallpurchaseandmaintaintheProperty/BuildersRiskInsurancefortheproject inaccordancewiththeOCIP identifiedintheUniformGeneralandSupplementaryGeneralConditions.TheConstructionManagershouldbepreparedtoidentifyandremovethecostforanypremiumordeductibleexpensesaccordingly.

11.03 TheConstructionManagershallnotcauseorallowanyofitsinsurancetobecancelednorpermit any insurance to lapse during the term of the Agreement or as required in theAgreement.

11.04 TheOwnerreservestherighttoreviewtheinsurancerequirementssetforthinthisArticleduring the effective period of theAgreement and tomake reasonable adjustments to theinsurancecoverage’sand their limitswhendeemednecessaryandprudentby theOwnerbaseduponchangesinstatutorylaw,courtdecisions,ortheclaimshistoryoftheindustryaswellastheConstructionManager.

11.05 TheOwner shall be entitled, upon request, andwithout expense, to receive copies of thepoliciesandallendorsementstheretoandmaymakeanyreasonablerequestsfordeletion,orrevision or modification of particular policy terms, conditions, limitations, or exclusions,exceptwherepolicyprovisionsareestablishedbylaworregulationbindinguponeitherofthePartiesortheunderwriterofanyofsuchpolices.ActuallossesnotcoveredbyinsuranceasrequiredbythisArticleshallbepaidbytheConstructionManager.


11.06 LSCSwillnotreimburseConstructionManagerfortheuniversalortotalprojectfundingofsubcontractorbonding, subcontractordefaultorother formsof insuranceorpayments toprotect against subcontractor non‐performance, failure or default. In the event of asubcontractordefault,thecontractormaysubmitthedefaultparticularsandresolutioncosttoLSCSforreviewandapprovaltoexpendoutofContractor’sContingency.

ARTICLE12‐ TERMINATION

12.01 InadditiontotheterminationproceduressetforthinOwner’sUniformStandardGeneralandSupplementaryConditions,OwnermayterminatetheContractatthefollowingtimes:

a. At any time for convenience upon thirty (30) days’ written notice to ConstructionManager.

b. AttheconclusionoftheSchematicDesignPhase.

c. AttheconclusionoftheDesignDevelopmentPhase.

d. AttheconclusionoftheConstructionDocumentsPhase.

e. IfanyGuaranteedMaximumPriceproposalfromConstructionManagerisnotacceptedbyOwner.

f. During the Pre‐construction Services phase, if Construction Manager is in default orbreachunderthisAgreementanddoesnotcuresuchdefaultorbreachwithinfourteen(14)daysafterwrittennoticefromOwnerspecifyingthenatureofthedefault.

g. Priortothecommencementofconstruction,Ownermayterminateforconvenienceuponfourteen(14)days’writtennoticetoConstructionManager.

If the Contract is terminated under subparagraphs 12.01(a), (b), (c), (d) or (f), thenConstructionManagershallbecompensatedforthePre‐constructionPhaseServiceswhichitis has completed in accordance with this Agreement prior to the date of termination asprovidedhereunder.NoterminationexpenseswillbepaidtoConstructionManager.Thedateof the conclusion of the Schematic Design Phase, Design Development Phase, andConstruction Documents Phase is determined by the date of Owner’s acceptance of therespectivesubmittalsfromtheDesignConsultant.

12.02 AterminationunderthisContractaboveshallnotrelieveConstructionManageroranyofitsemployeesofliabilityforviolationsofthisAgreement,anyactoromission,ornegligenceorwillfulactofConstructionManager.

12.03 AsofthedateofterminationofthisContract,ConstructionManagershallfurnishtoOwnerallstatements,accounts,reportsandothermaterialsasarerequiredhereunderorashavebeen prepared by Construction Manager in connection with Construction Manager’sresponsibilitieshereunder.OwnershallhavetherighttousetheideasanddesignsthereincontainedforthecompletionoftheservicesdescribedbythisAgreement,andforcompletionoftheProject,orotherwise.Alldrawings,plans,specifications,renderingsandmodels,etc.,preparedbytheDesignConsultantarethepropertyofOwnerorDesignConsultant,assetforth in the terms and conditions of the agreement between Owner and the DesignConsultant. They are not to be used by any person or entity other thanOwner on otherprojectsunlessexpresslyauthorizedbyOwner.


ARTICLE13‐ MISCELLANEOUSPROVISIONS

13.01 Exhibits.Allexhibitsheretoareherebyincorporatedhereinbyreferenceforallpurposes.

13.02 Assignment.ThisAgreementisapersonalservicecontractfortheservicesofConstructionManager,andConstructionManager’sinterestinthisAgreement,dutieshereunderand/orfees due hereundermay not be assigned or delegated to a third party. The benefits andburdensofthisAgreementare,however,assignablebyOwnertoacomponentoraffiliateofLSC.

13.03 Certifications.

a. Family Code Child Support Certification. By signing this Agreement, the undersignedcertifiesasfollows:“UnderSection231.006,TexasFamilyCode,thevendororapplicantcertifiesthattheindividualorbusinessentitynamedinthiscontract,bid,orapplicationisnotineligibletoreceivethespecifiedgrant,loan,orpaymentandacknowledgesthatthis contractmay be terminated and paymentmay bewithheld if this certification isinaccurate.”

b. SalesTaxCertification.“UnderSection2155.004,GovernmentCode,thevendorcertifiesthat the individualorbusinessentitynamed in thisbidorcontract isnot ineligible toreceivethespecifiedcontractandacknowledgesthatthiscontractmaybeterminatedandpaymentwithheldifthiscertificationisinaccurate.”

13.04 Entire Agreement; Modifications; Conflicts. This Agreement supersedes all prioragreements,writtenororal,betweenConstructionManagerandOwnerandshallconstitutethe entireAgreement andunderstandingbetween thepartieswith respect to the subjectmatterhereof.ThisAgreementandeachofitsprovisionsshallbebindinguponthepartiesandmaynotbewaived,modified,amendedoralteredexceptbyawritingsignedbyOwnerand Construction Manager. If there is a conflict between this Agreement and Owner’sStandardUniformGeneralandSupplementaryGeneralConditions,thentheprovisionthatprovidesthegreatestbenefittoOwnershallgovern.

13.05 Captions.ThecaptionsofparagraphsinthisAgreementareforconvenienceonlyandshallnotbeconsideredorreferredtoinresolvingquestionsofinterpretationorconstruction.

13.06 GoverningLaw.ThisAgreementandalloftherightsandobligationsofthepartiesheretoand all of the terms and conditions hereof shall be construed, interpreted and applied inaccordancewithandgovernedbyandenforcedunderthelawsoftheStateofTexas.

13.07 Waivers.NodelayoromissionbyeitherofthepartiesheretoinexercisinganyrightorpoweraccruinguponthenoncomplianceorfailureofperformancebytheotherpartyheretoofanyoftheprovisionsofthisAgreementshallimpairanysuchrightorpowerorbeconstruedtobe a waiver thereof. A waiver by either of the parties hereto of any of the covenants,conditions or agreements hereof to be performed by the other party hereto shall not beconstrued to be a waiver of any subsequent breach thereof or of any other covenant,conditionoragreementhereincontained.

13.08 BindingEffect.ThisAgreementshallbebindinguponandinuretothebenefitofthepartiesheretoandtheirrespectivepermittedassignsandsuccessors.


13.09 Appointment.OwnerherebyexpresslyreservestherightfromtimetotimetodesignatebynoticetoConstructionManageroneormorerepresentatives toactpartiallyorwholly forOwnerinconnectionwiththeperformanceofOwner’sobligationshereunder.ConstructionManager shall act only upon instructions from such representatives unless otherwisespecificallynotifiedtothecontrary.

13.10 Records.RecordsofConstructionManager’scosts,reimbursableexpensespertainingtotheProjectandpaymentsshallbeavailable toOwneror its authorizedrepresentativeduringbusinesshoursandshallberetainedfor4(four)yearsafterfinalPaymentorabandonmentoftheProject,unlessOwnerotherwiseinstructsConstructionManagerinwriting.

13.11 Notices. All notices, consents, approvals, demands, requests or other communicationsprovidedfororpermittedtobegivenunderanyoftheprovisionsofthisAgreementshallbeinwritingandshallbedeemedtohavebeendulygivenorservedwhendeliveredbyhanddeliveryorwhendeposited in theU.S.mailby registeredor certifiedmail, return receiptrequested,postageprepaid,andaddressedasfollows:

IftoOwner: IftoConstructionManager:JenniferOlenick ViceChancellor,FinanceandAdministration&CFO 5000ResearchForestDrive TheWoodlands,Texas77381

Withacopyto:

LoneStarCollege OfficeoftheGeneralCounsel 5000ResearchForestDrive TheWoodlands,Texas77381

ortosuchotherpersonoraddressasmaybegiveninwritingbyeitherpartytotheotherinaccordancewiththeaforesaid.

13.12 Severability. In case any provision hereof shall, for any reason, be held invalid orunenforceableinanyrespect,suchinvalidityorunenforceabilityshallnotaffectanyotherprovisionhereof,andthisAgreementshallbeconstruedasifsuchinvalidorunenforceableprovisionhadnotbeenincludedherein.

13.13 Enforcement.ItisacknowledgedandagreedthatConstructionManager’sservicestoOwnerareunique,whichgivesConstructionManagerapeculiarvaluetoOwnerandforthelossofwhichOwner cannot be reasonably or adequately compensated in damages; accordingly,ConstructionManageracknowledgesandagreesthatabreachbyConstructionManagerofthe provisions hereof will cause Owner irreparable injury and damage. ConstructionManager,therefore,expresslyagreesthatOwnershallbeentitledtoinjunctiveand/orotherequitable relief in any court of competent jurisdiction to prevent or otherwise restrain abreachofthisAgreement,butonlyifOwnerisnotinbreachofthisAgreement.

13.14 Independent Contractor. Construction Manager recognizes that it is engaged as anindependentcontractorandacknowledgesthatOwnerwillhavenoresponsibilitytoprovidetransportation,insuranceorotherfringebenefitsnormallyassociatedwithemployeestatus.ConstructionManager,inaccordancewithitsstatusasanindependentcontractor,covenants


andagreesthatitshallconductitselfconsistentwithsuchstatus,thatitwillneitherholditselfoutasnorclaimtobeanofficer,partner,employeeoragentofOwnerbyreasonhereof,andthatitwillnotbyreasonhereofmakeanyclaim,demandorapplicationtoorforanyrightorprivilegeapplicable toanofficer,partner,employeeoragentofOwner, including,butnotlimitedto,unemploymentinsurancebenefits,socialsecuritycoverageorretirementbenefits.ConstructionManagerherebyagreestomakeitsownarrangementsforanyofsuchbenefitsasitmaydesireandagreesthatitisresponsibleforallincometaxesrequiredbyapplicablelaw.

13.15 AlternativeDisputeResolution. Thedispute resolutionprocessprovided for inChapter2260oftheTexasGovernmentCodeshallbeused,asfurtherdescribedherein,bytheLoneStarCollege(“LSC”)andConstructionManagertoattempttoresolveanyclaimforbreachofcontractmadebyConstructionManager:

a. ConstructionManager'sclaimsforbreachofthiscontractthatthePartiescannotresolveintheordinarycourseofbusinessshallbesubmittedtothenegotiationprocessprovidedin Chapter 2260, subchapter B, of the Government Code. To initiate the process,ConstructionManagershallsubmitwrittennotice,asrequiredbysubchapterB,to[forthe System, the Chancellor; for component institutions, the President] or his/herdesignee. Said notice shall specifically state that the provisions of Chapter 2260,subchapter B, are being invoked. A copy of the notice shall also be given to all otherrepresentativesofSystemandConstructionManagerotherwiseentitledtonoticeunderthe Parties' contract. Compliance by Construction Manager with subchapter B is aconditionprecedent to the filing of a contested case proceedingunder Chapter 2260,subchapterC,oftheGovernmentCode.

b. ThecontestedcaseprocessprovidedinChapter2260,subchapterC,oftheGovernmentCodeisConstructionManager'ssoleandexclusiveprocessforseekingaremedyforanyandallallegedbreachesofcontractbySystemifthePartiesareunabletoresolvetheirdisputesundersubparagraph(a)ofthisparagraph.

c. Compliance with the contested case process provided in subchapter C is a conditionprecedenttoseekingconsenttosuefromtheLegislatureunderChapter107oftheCivilPracticesandRemediesCode.NeithertheexecutionofthiscontractbyLSCnoranyotherconductofanyrepresentativeofLSCrelatingtothecontractshallbeconsideredawaiverofsovereignimmunitytosuitorawaiverofitsrighttoseekredressinanappropriatecourtoflaw.

Thesubmission,processingandresolutionofConstructionManager'sclaimisgovernedbythepublishedrulesadoptedbytheAttorneyGeneraloftheStateofTexaspursuanttoChapter2260, as currently effective, hereafter enactedor subsequently amended. These rules arefoundat1T.A.C.Part3Chapter68.

NeithertheoccurrenceofaneventnorthependencyofaclaimconstitutesgroundsforthesuspensionofperformancebytheConstructionManager,inwholeorinpart.

ThevenueforanydisputeresolutionarisingfromthiscontractwillbeinacourtofcompetentjurisdictioninMontgomeryorHarrisCounty,Texas.

ARTICLE14‐ OTHERCONDITIONSORSERVICES


14.01 CertificationofNoAsbestosContainingMaterialsorWork

a. The Contractor shall provide a certification statement, included with each materialssubmittal,statingthatnoasbestoscontainingmaterialsorworkisincludedwithinthescopeoftheproposedsubmittal.

b. TheContractorshallprovideatSubstantialCompletion,anotarizedcertificationtotheOwnerandtheArchitect thatnoasbestoscontainingmaterialsorworkwasprovided,installed,furnishedoraddedtotheproject.

c. The Contractor shall take whatever measures he deems necessary to insure that allemployees,suppliers,fabricators,materialmen,subcontractors,ortheirassigns,complywiththisrequirement.

d. The Contractor shall insure compliance with the following act – Asbestos HazardEmergencyResponseAct(AHERA–40CFR763‐99(7))fromallofhissubcontractorsandassignsaslistedinitemCabove.Allmaterialsusedonthisprojectshallbecertifiedasnon‐AsbestosContainingBuildingMaterials(ACBM).

1. EverysubcontractorshallprovideanotarizedstatementthatnoACBMhasbeenused,provided,orleftonthisproject.

2. TheContractorshallprovidetotheextentdeemednecessaryforcompliancebytheState,datasheetsand/orlabelsasproofofcompliance.

3. TheContractorshallprovideanotarizedcertificationthatnoACBM’swereused.

14.02 All the requirements contained within the LSC Uniform General Conditions, which wereconveyedtotheConstructionManagerwiththepreviouslyissuedRFP,shallbecomeapartofthisAgreement.

14.03 TheConstructionCostLimitation(CCL)fortheProjectshallbe$ .TheCCL shall include theConstructionManagerConstructionContingencyAllowance and theOwner’sConstructionContingency.

14.04 RefertoExhibitI foracompletelistofapprovedgeneralconditionitems.TheseapproveditemsshallbereflectedintheGeneralConditionslumpsumcostshownasalineitemintheGuaranteedMaximumPriceProposalandthescheduleofvalues/costbreakdown.ItemsnotshownonExhibitIwillnotbeacceptedasageneralconditioncostandwillbepartofthePre‐constructionPhaseFee,ConstructionPhaseFeeorCostofWork.

14.05 Thefollowingexhibitsareherebyincorporatedbyreferenceforallpurposesasif fullysetforthherein:

ExhibitA Personnel,Staff,SubcontractorsandDutiesExhibitB (NotUsed)ExhibitC GMPProposalAttachment1toExhibitC GuidelinesforthePreparationoftheGMPProposalExhibitD AdditionalServicesRequisitionExhibitE ConstructabilityImplementationProgramExhibitF PerformanceandPaymentBondformExhibitG AdditionalContractDocuments/SpecificationSections:


1. UniformGeneralConditionsandSupplementaryGeneralConditions

2. SpecialConditionswithAttachments(asapplicable)Attachment“A”–OwnerControlledInsuranceProgram

3. ProjectSchedule 4. HUBPenalties

ExhibitH HUBSubcontractingPlan(assubmittedinRFQ)ExhibitI ApprovedGeneralConditionsLineItemsAttachment1toExhibitI GeneralConditionsBreakout,Fee&InsurancePercentagesExhibitJ CMARResponsetoRFQ

INWITNESSWHEREOF,intendingtobebound,thePartieshaveenteredintothisAgreementasoftheEffectiveDate.LONESTARCOLLEGE CONSTRUCTIONMANAGER Signature Date Signature Date PrintedName PrintedName

Title TitleCONTENTAPPROVED: ATTEST:LSCFacilitiesPlanningandConstruction (Seal) Signature Date PrintedName

Title


EXHIBITAPersonnel,Staff,SubconcontractorsandDutiesHourlyRates(IfApplicableUnder7.01(A))

(TobecompletedbyConstructionManagerandreturnedwithexecutedAgreement)


EXHIBITB(Notused)


EXHIBITCGuaranteedMaximumPriceProposal

WeherebysubmittotheLoneStarCollegeofTheWoodlands,TexaspursuanttotheprovisionsofArticleVoftheConstructionManagementAt‐RiskAgreementbyandbetweentheLoneStarCollegeand (the“Agreement”),effectiveuponthedatetheAgreementhasbeensignedbybothparties(“EffectiveDate”),aGuaranteedMaximumPriceforthe (asdefinedintheAgreement)basedontheContractDocuments(asdefinedbytheAgreement)developedfortheProject,asfollows:

1. A lumpsum,not‐to exceedamount for the reimbursableCostof theWorkprovidedbytheAgreement(inclusiveofConstructionManagercontingenciesfordesign,bidding,andpriceescalation):

(providedetailedbreakdownbyproject element, phase, stage, schedule ofvalues, separate subcontract, or as otherwise specified by Owner for thisProject)

$

2. Alumpsum,not‐to‐exceedamountforGeneralConditionsitemsprovidedbyConstructionManagerpursuanttotheAgreement(exclusiveofcontingenciesfordesign,bidding,andpriceescalation):

(providedetailedbreakdownbyproject element, phase, stage, schedule ofvalues, separate subcontract, or as otherwise specified by Owner for thisProject)

$

3. Omitted.

4. TotalofConstructionManager’sConstructionPhaseFeeof %oftheGeneralConditionsandDirectCostoftheWork. $

5. Owner’s Construction ContingencyAllowance. This is a lump sum amountfrom which changes are to be paid in accordance with Article VI of theUniformGeneralconditionsandtheSupplementaryGeneralConditions.Anyunused amountwill be deducted from the GuaranteedMaximumPrice byChangeOrder. $

6. TOTALOF1THROUGH5 $

Thisfigure(Item6above)shallbetheGuaranteedMaximumPrice(GMP)thatweherebyguaranteetotheOwner.Attachedisabreakdownshowingthedollaramountallocatedtoeachbiddingpackage;allofwhichtotalstheGMPamount.

***SIGNATUREPAGEFOLLOWS***


Corporation/LLC:CorporateSecretaryAttestsSignature OtherBusinessForms:Witness Signature Date Signature Date PrintedName PrintedName

Title TitleCONTENTAPPROVED:LSCFacilitiesPlanningandConstruction Signature Date PrintedName

Title Wheninvoicing,pleaserefertoContractNo. andPONo. .Note:ModificationofthisFormrequiresapprovalofOGC.


ATTACHMENT1TOEXHIBITCGuidelinesforthePreparationof

GuaranteedMaximumPriceProposal

TobeattachedtoExhibitC,GuaranteedMaximumPriceProposaloftheConstruction‐Management‐at‐RiskAgreement

TheGuaranteedMaximumPriceproposal isdevelopedat thephasespecified in theConstructionManager‐at‐RiskAgreement,ArticleVII.

TheGMPproposalshouldbeboundandentitled,“GuaranteedMaximumPriceProposalsfor(nameofproject,projectnumber)”andmustincludeadateonthecover.Proposalpagesmustbenumbered.Boundinsidetheproposal,intheorderindicated,shouldbe:

i. Transmittalletter,includingconfirmationofprojectteam

ii. TableofContents

Tab1. GMPSummary–(briefgeneralsummaryofscopeofwork,alternates,etc.)

Tab2. Listofdocuments(projectmanual(s),drawingsbysheetnumber&date)

Tab3. DescriptionofWork

1. Specificationlisting–provideadetailedlistingofspecificationsbydivisionandsectionwhichdescribesexclusions,substitutions,modifications,etc.Ifnochangesareproposedforaparticularsection,insert“asperspecifications”

2. Qualifications and Assumptions – a summary of all qualifications and assumptionsincludedinthespecificationlisting

3. Exclusions–asummaryofallexclusions included in thespecification listing,plusanyexclusionsnotrelatedtothespecifications

4. ValueEngineeringrecommendations–ifapplicable

5. AllowanceSchedule–ifapplicable

6. ContingencyBreakdown

Tab4. GuaranteedMaximumPriceProposalCostBreakdown:

1. ExhibitC‐GuaranteedMaximumPriceProposal(formasattachedtotheAgreement).

2. TheConstructionManagershallprovideadetailedinitialTotalProjectConstructionCostestimate using standard estimating industry practices, utilizing the ConstructionSpecificationsInstitute(CSI)Master‐Format,withadditionalcostbreakdownasrequiredbytheFPCProjectManager.

3. The Construction Manager shall provide an initial GMP proposal line item costbreakdownforallanticipatedbidpackagestrategies{BPS}includedinExhibitC,ItemNo.1,CostofWork,includingallself‐performworknotassociatedwithGeneralConditions.


The breakdown shall be shown on the Standard Schedule of Values Format – Part I(shownbelow).

4. TheConstructionManagershallprovideacostbreakdown,includingunitprices,forallitems included in Exhibit C, Item No.2, General Conditions, as defined by Exhibit I,containedwithintheAgreement.

StandardScheduleofValuesFormat–PartI

A B C D

CSISectionWork

BreakdownStructure

CSIDescriptionofWork/SubcontractorName/SpecificationSection

InitialGMPProposalLineItemValue

GeneralConditions(BreakdownperExhibitI) $‐

CostofWork

Division1‐NotincludedinExhibitI $‐

Division2‐Sitework $‐

Division3‐Concrete $‐

Division4‐Masonry $‐

Division5‐Metals $‐

Division6‐Woods&Plastics $‐

Division7‐Thermal&MoistureProtection $‐

Division8‐Doors&Windows $‐

Division9‐Finishes $‐

Division10‐Specialties $‐

Division11‐Equipment $‐

Division12‐Furnishings $‐

Division13‐SpecialConstruction $‐

Division14‐ConveyingSystems $‐

Division15‐Mechanical $‐

Division16‐Electrical $‐

CMDesignContingency $‐

CMConstructionPhaseFee $‐

Owner'sConstructionContingency $‐

Owner'sCashAllowance(IfApplicable) $‐

PartIIServices(GMP)Total $‐

GUARANTEEDMAXIMUMPRICEBUYOUT/BIDPACKAGESTRATEGYCOSTBREAKDOWN

5. STANDARDSCHEDULEOFVALUESFORMAT–DURINGBUYOUTOFTHEGMP

The ConstructionManager shall provide a detailed actual GMP buyout line item costbreakdownascomparedtotheinitialGMPStandardScheduleofValuesFormat–PartI.Thecostbreakdownshall includeOwner savings/expenditures for eachCostofWorkbuyout line item. Refer to the Standard Schedule of Values Format – Part II (shownbelow).


StandardScheduleofValuesFormat–PartII

A B C D E F G

CSISection

WorkBreakdownStructure

CSIDescriptionofWork/SubcontractorName/Specification

Section

InitialGMPProposalLineItemValue

ActualContractAmountatBuyout

Delta(GMPtoActual)

Contract/PurchaseOrderNo.

ColumnEquations D' IF(E=0,0,E‐D)

GeneralConditions(BreakdownperExhibitI) $‐ $‐ $‐

CostofWork

Division1‐NotincludedinExhibitI $‐ $‐ $‐

Division2‐Sitework

02300 FoundationSubcontract"A"‐Earthwork $‐ $‐ $‐ Example

02500 Utilities Subcontract"B"‐SiteUtilities $‐ $‐ $‐ Example

Division3‐Concrete $‐ $‐ $‐

Division4‐Masonry $‐

Division5‐Metals $‐ $‐ $‐

Division6‐Woods&Plastics $‐ $‐ $‐

Division7‐Thermal&MoistureProtection$‐ $‐ $‐

Division8‐Doors&Windows $‐ $‐ $‐

Division9‐Finishes

09900 Finishes Subcontract"C"‐Painting $‐ $‐ $‐ Example

Division10‐Specialties $‐ $‐ $‐

Division11‐Equipment $‐ $‐ $‐

Division12‐Furnishings $‐ $‐ $‐

Division13‐SpecialConstruction $‐ $‐ $‐

Division14‐ConveyingSystems $‐ $‐ $‐

Division15‐Mechanical $‐ $‐ $‐

Division16‐Electrical $‐ $‐ $‐

CMDesignContingency $‐ $‐ $‐

CMConstructionPhaseFee $‐ $‐ $‐

Owner'sConstructionContingency $‐ $‐ $‐

Owner'sCashAllowance(IfApplicable) $‐ $‐ $‐

PartIIServices(GMP)Total $‐ $‐ $‐


6. STANDARD SCHEDULE OF VALUES FORMAT DURING THE PAY APPLICATIONPROCESS

The ConstructionManager shall provide a detailed Subcontract/Purchase Order/Self‐perform line item pay application schedule of values based the actual GMP buyoutStandard Schedule of Values Format – Part II. The contract amounts shall be furtherbroken down into labor andmaterial line items as described in the UniformGeneralConditionsspecificationsection01210.RefertoAttachment1ofsection01210forthecompleteStandardScheduleofValuesFormat.

Tab5. MasterProjectSchedule

This schedule shall be a computer generated CPM Schedule developed in PrimaveraProjectPlannerorSureTrakProjectManagersoftwareorothersoftwareapprovedbyOwner.ItshallbepresentedinbarchartformandcontaindetailedactivitiesforalleventsandmilestonesincludedinPartIPre‐constructionServices,includingpermittingandthedevelopmentoftradepackages.

Additionally, the schedule shall include detailed, logic driven activities for all Part II,ConstructionPhaseactivitiesscheduledtocommenceduringthefirst90daysfollowingacceptanceoftheGMP.

Theremainderoftheconstructionactivities,thosecommencingafterthefirst90days,shallbeincludedinthisschedulebutmaybesummarizedbytradeandmayhavelongerdurationsthanthe“detailed”activitiesmentionedabove.

AllpathsintheschedulemustleadtoamilestoneactivityforSubstantialCompletion.Thismilestoneshallbelogicdrivenandshallindicatecompletionwithinapproximately90%ofthecontractconstructionperiod.(TotalFloatshallbenolessthan10%oftheprojectduration.)

TheSummaryLevelScheduleshallbeprovidedinhardcopyforminthenotebookandalsoinadisketteformatattachedinthenotebook.

Tab6. HistoricallyUnderutilizedBusinessPlan

1. HUBPlan,ExhibitH

2. DeterminationofGoodFaithEffort,ExhibitF

3. HUBLetterofIntent


EXHIBITDAdditionalServicesRequisition

RequisitionNumber: ProjectNumber: College: ProjectName: Date: To: IDF(ORIGINAL)(Date) (Contractor)Dear :PleaserefertotheAgreementdated betweenLoneStarCollege(“Owner”)andtheundersigned (“Construction Manager”) as amended to the date hereof (such agreement as somodified and amended being hereafter called the “Agreement”), pursuant towhich ConstructionManageristoperformcertainservices.ThetermsthataredefinedintheAgreementshallhavethesamemeaningswhenusedinthisletter.1. Owner has requested the performance of the services described below which Construction

ManagerdeemstobeAdditionalServices.

2. ConstructionManageragreestoperformtheAdditionalServicesdescribedabovesubjecttoandinaccordancewiththetermsandprovisionsoftheAgreementforafeewhichwillbedeterminedinaccordancewiththeAgreementbutwhichwillnotexceed Dollars($_______________)andforreimbursementofexpensesinaccordancewiththeAgreementincurred solely in connection with the performance of such Additional Services, but whichreimbursementforexpenseswillnotexceed Dollars($ ).


3. ConstructionManagerwillperformtheservicesinaccordancewithanyscheduleattachedhereto(attachscheduleifapplicable),butinanyeventnotlaterthan ( ) daysafterConstructionManagerisauthorizedtoproceed.

Iftheforegoingisacceptabletoyou,pleasesoexecutebysigningtheenclosedcopyofthisletteratthespaceprovidedforthispurposeandbyinsertingthedateuponwhichConstructionManagerisauthorizedtocommenceperformanceoftheAdditionalServicesdescribedinParagraph1above. Sincerelyyours, CONSTRUCTIONMANAGER Signature Date PrintedName

TitleAcceptedthis dayof , .ConstructionManager isauthorizedtocommenceperformanceoftheAdditionalServiceson .Iftheforegoingisacceptabletoyou,pleasesoexecutebysigningtheenclosedcopyofthisletteratthespaceprovidedforthispurposeandbyinsertingthedateuponwhichConstructionManagerisauthorizedtocommenceperformanceoftheAdditionalServicesdescribedinParagraph1above.LONESTARCOLLEGE Signature Date PrintedName

Title PARTI:PRE‐CONSTRUCTIONPHASESERVICESORIGINALCONTRACTAMOUNT ($ )

PREVIOUSADDITIONS ($ )

PREVIOUSDEDUCTIONS ($ )

NETBALANCECONTRACTAMOUNT ($ )

THIS(Addition)(Deduction): ($ )

ADJUSTEDCONTRACTAMOUNT ($ )

Xc: Contractor Director ProjectManager IDFFile


EXHIBITEConstructabilityImplementationProgram

ProgramObjectives:

Identifyanddocumentprojectcostandschedulesavings(targetedcostsavings:5%ofconstructioncosts)

ProposedSteps: ConstructabilityImplementationMeeting

identificationofallprojectteampersonnelandallprojectstakeholders clarificationofprojectgoals,objectives,andprogresstodate teambriefingonobjectives,methods,andconceptsofconstructability familiarizationwithimplementationprogram preliminaryidentificationofconstructabilityprioritiesandspecialchallengesorconcerns

ConstructabilityReviewofSchematicDesign(SD)Documents;CommentsSubmittedtoCMTeam establishmentofprojectconstructabilityprocedures,includingproceduresfordocumenting

savings

MeetingtoReviewSchematicDesignConstructabilityComments prioritizationandtime‐phasingofconstructabilityconcepts detaileddiscussionsoffront‐end,high‐priorityconcepts(identifyconcerns,identify

informationneeds,starttobrainstormalternativeapproaches,conductpreliminaryevaluationofapproaches,identifyneedsforfurtheranalysis,chartpathforward,documentationofsavings)

DesignDevelopmentConstructabilityReviewCommentstoCMTeam follow‐updiscussionsonfront‐end,high‐priorityconcepts detaileddiscussionsoffront‐end,high‐priorityconcepts(identifyconcerns,identify

informationneeds,starttobrainstormalternativeapproaches,conductpreliminaryevaluationofapproaches,identifyneedsforfurtheranalysis,chartpathforward,documentationofsavings)

ConstructabilityReviewMeeting reviewplans&specificationsdevelopedtodate,identifyingsub‐optimalorpotentially

problematicdesignelements recommendalternativedesignsuggestionsforconsiderationanddocumentpotential

savings conductValueEngineeringinvestigationsintoselectedhigh‐costdesignelements;consider

life‐cyclecosteffect

30%CDConstructabilityReviewCommentstoCMTeam reviewplans&specificationsdevelopedtodate,identifyingsub‐optimalorpotentially


savings conductValueEngineeringinvestigationsintoselectedhigh‐costdesignelements


50%CDConstructabilityReviewCommentstoCMTeam reviewplans&specificationsdevelopedtodate,identifyingsub‐optimalorpotentially


savings conductValueEngineeringinvestigationsintoselectedhigh‐costdesignelements

95%CDConstructabilityReviewCommentstoCMTeam

ConstructabilityDiscussionswithCMTeam

DocumentOn‐siteConstructabilityLessonsLearned

Close‐outProjectConstructabilityDocumentation


EXHIBITFPerformanceandPaymentBond

SuretyBondNo.

STATEOFTEXAS § KNOWALLMENBYTHESEPRESENTS:COUNTYOF § Thatwe,CONTRACTORNAME,asPrincipal,and , asSurety,areherebyheldandfirmlybounduntotheLoneStarCollegeObligeeinthepenalsumofthetotalamountoftheGMP Dollars($ )theConstructionCostLimitation(CCL)fortheProjectdefinedhereinbelow,forpaymentwhereofthesaidPrincipalandSuretybindthemselves,theirheirs,executors,administrators,andsuccessors,jointlyandseverally,firmlybythesepresents.

WhereasthePrincipalhasexecutedacontract,withObligeefortheuseandbenefitofLoneStarCollegeatTheWoodlands,Texas,dated (the “Contract”), forthe (ProjectName).

NOWTHEREFORE,theconditionofthisobligationissuchthat,iftheaforesaidPrincipalshallexecuteaGuaranteedMaximumPriceProposalacceptabletoallparties,thesaidPrincipalwill,withinthetimerequiredbytheContract,givePerformanceandPaymentBonds,asrequiredbytheContract,tosecuretheperformanceofthetermsandconditionsoftheContract,thenthisobligationtobevoid;otherwisethePrincipalandsuretywillpayuntotheObligeethedifferenceinmoneybetweentheamountoftheGuaranteedMaximumPriceProposalofthesaidPrincipalandtheamountforwhichtheObligeelegallycontractswithanotherpartytoperformtheworkifthelatteramountbeinexcessoftheformer,butinnoeventshallliabilityhereunderexceedthepenalsumhereof.

INWITNESSWHEREOF, the aboveboundenpartieshave executed this instrumentundertheirseveralsealsthis dayof intheyear , the name andcorporatesealofeachcorporatepartybeingheretoaffixed,andthesepresentsdulysignedbyitsundersignedrepresentativepursuanttoauthorityofitsgoverningbody.

(Seal)

ATTEST: CONTRACTOR Signature Date Signature Date PrintedName PrintedName

Title Title Signature Date Signature Date PrintedName PrintedName

Title Title


EXHIBITGAdditionalContractDocuments/SpecificationSections

1. UniformGeneralandSupplementalConditions–Attached

2. SpecialConditionswithAttachments(asapplicable)

Attachment“A”OwnerControlledInsuranceProgram‐Attached

3. ProjectSchedule–TobeattachedataLaterDatewiththeProjectGMP

4. HUBPenaltiesfromRFQ

NoncompliancewithCommitmentUtilizationGoalARespondentwillcommittoautilizationpercentage(orgoal),whichwillbetrackedbyaprogressassessmentreportbasedondataprovidedmonthly.FailuretomeetthegoalwillsubjectRespondenttopenaltiesbasedontheamountofthegoalnotachieved.

UtilizationGoalandPenalty:IfaRespondent’sutilizationgoalisnotmet,apenaltywillbeassessedontheamountnotachievedusingtheslidingscalebelow.

UtilizationGoalPenaltyAppliedto

AmountnotAchieved0‐20% 5%21‐41% 4%41‐60% 3%68‐80% 2.75%81‐100% 2.50%

A Respondent must recommend and receive written consent/approval from LSC for anysubstitutionsofcertifiedHUB/MVWObusinessesrelatedtomaintainingtheutilizationcommitmentorgoal.

ARespondent,who intentionallyand/orknowinglymisrepresents facts,maybesuspended fromparticipatinginLSCworkfornotlessthanone(1)year.


EXHIBITHHUBSubcontractingPlan

(ConstructionManagershallprovidetheHUBSubcontractingPlanthatwasprovidedwiththerespondent’sRFQhereinthisexhibit)

Attached


EXHIBITIApprovedGeneralConditionsLineItems

ProjectManagementWhenBasedOn‐Site

Superintendent SafetyManagerCPMScheduler ProjectManagerProjectExecutive Field/OfficeEngineerFieldOfficeSupportStaff ProjectEngineer/ExpeditorAssistantSuperintendent(s)

* ProjectManager/Superintendentbonuses/incentives/rewardsshallNOTbeincludedintheGeneralConditionsGMPproposal,butmaybeincludedintheConstructionPhaseFee.

BondsandInsurance

Builder’sRiskInsurance GeneralLiabilityInsurancePayment&PerformanceBonds OtherGeneralProjectInsurance

TemporaryUtilities

Dumpsters TemporaryToiletsMonthlyWaterCosts MonthlyElectricalCostsTemporaryFireProtection StreetRental&BarricadesFencing&CoveredWalkways MonthlyTelephoneInstallationCostsTemporaryWaterDistribution&Meters TemporaryTelephoneSystemInstallationTemporaryElectricalDistribution&Meters SiteErosionControl(BMPs)&ProjectEntrance(s)

FieldOffices&ConstructionSupplies

PartneringCosts FirstAidSuppliesJobPhotos/Videos ReferenceManualsReproductionServices MonthlyOfficeSuppliesProjectSpecificSignage Postage/SpecialShippingRemoteParkingExpenses Project/As‐BuiltDrawingsSecuritySystem/Watchman Move‐In/Out&OfficeSetupMobilization&Demobilization DrinkingWater&AccessoriesSafetyMaterialandEquipment EmployeeIdentificationSystemSmallToolsandStorageTrailers OfficeClean‐Up/JanitorialServicesMonthlyOfficeTrailerRentalCosts ProjectCleaningatSubstantialCompletion&FinalAcceptance

* Allitemslistedabove,aresubjecttorequestsforadditionalinformationorbreakdown.

ItemsNOTTOBEINCLUDEDintheGeneralConditionsGMPlineitem,butmaybeincludedintheCM/DBContractor’sConstructionPhaseFee:

Purchase/LeaseofVehiclesandMaintenanceCostsPurchase/RentalofRadios/CommunicationEquipmentPurchase/RentalofJobsiteComputer&ElectronicEquipmentPurchase/RentalofSpecializedTelephoneSystems(includingcellular/digitalphones)


ATTACHMENT1TOEXHIBITIGeneralConditionsBreakout,FeePercentageandInsurancePercentages

Attached


EXHIBITJCMARResponsetoRFQ

Attached