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(a) For progressive payments- Upon receipt of monthly invoices from the ENGINEER and the approval thereof by the <br /> LPA, monthly payments for the work performed shall be due and payable to the ENGINEER, such payments to be <br /> equal to the value of the partially completed work minus all previous partial payments made to the ENGINEER. <br /> (b) Final Payment- Upon approval of the work by the LPA but not later than 60 days after the work is completed and <br /> reports have been made and accepted by LPA and DEPARTMENT,a sum of money equal to the basic fee as <br /> determined in this AGREEMENT less the total of the amount of partial payments previously paid to the ENGINEER <br /> shall be due and payable to the ENGINEER. <br /> 5. To pay the ENGINEER as compensation for all services rendered in accordance with the AGREEMENT on the basis of the <br /> following compensation method as discussed in 5-5.10 of the BLR Manual. <br /> Method of Compensation: <br /> ❑ Lump Sum <br /> ❑ Specific Rate <br /> © Cost plus Fixed Fee: Fixed <br /> Total Compensation = DL + DC + OH + FF <br /> Where: <br /> DL is the total Direct Labor, <br /> DC is the total Direct Cost, <br /> OH is the firm's overhead rate applied to their DL and <br /> FF is the Fixed Fee. <br /> Where FF = (0.33 + R)DL+%SubDL, where R is the advertised Complexity Factor and %SubDL is 10% profit <br /> allowed on the direct labor of the subconsultants. <br /> The Fixed Fee cannot exceed 15% of the DL + OH. <br /> Field Office Overhead Rates: Field rates must be used for construction engineering projects expected to exceed one <br /> year in duration or if the construction engineering contract exceeds$1,000,000 for any project duration. <br /> 6. The recipient shall not discriminate on the basis of race, color, national original or sex in the award and performance of any US <br /> DOT-assisted contract or in the administration of its DBE program or the requirements of 49 CFR part 26.The recipient shall take <br /> all necessary and reasonable steps under 49 CFR part 26 to ensure nondiscrimination in the award and administration of US <br /> DOT-assisted contracts. The recipient's DBE program, as required by 49 CFR part 26 and as approved by US DOT, is <br /> incorporated by reference in this agreement. Implementation of this program is a legal obligation and failure to carry out its terms <br /> shall be treated as violation of this AGREEMENT. Upon notification to the recipient of its failure to carry out its approved program, <br /> the Department may impose sanctions as provided for under part 26 and may, in appropriate cases, refer the matter for <br /> enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.0 3801 et seq.). <br /> III. IT IS MUTUALLY AGREED, <br /> 1. No work shall be commenced by the ENGINEER prior to issuance by the IDOT of a written Notice to Proceed. <br /> 2. To maintain, for a minimum of 3 years after the completion of the contract, adequate books, records and supporting documents to <br /> verify the amount, recipients and uses of all disbursements of funds passing in conjunction with the contract; the contract and all <br /> books, records and supporting documents related to the contract shall be available for review and audit by the Auditor General, <br /> and the DEPARTMENT, the Federal Highways Administration (FHWA)or any authorized representative of the federal <br /> government, and to provide full access to all relevant materials. Failure to maintain the books, records and supporting documents <br /> required by this section shall establish a presumption in favor of the DEPARTMENT for the recovery of any funds paid by the <br /> DEPARTMENT under the contract for which adequate books, records and supporting documentation are not available to support <br /> their purported disbursement. <br /> 3. That the ENGINEER shall be responsible for any and all damages to property or persons arising out of an error, omission and/or <br /> negligent act in the prosecution of the ENGINEER's work and shall indemnify and save harmless the LPA, the DEPARMTENT, <br /> and their officers, agents, and employees from all suits, claims, actions or damage liabilities, costs or damages of any nature <br /> whatsoever resulting there from. These indemnities shall not be limited by the listing of any insurance policy. <br /> The LPA will notify the ENGINEER of any error or omission believed by the LPA to be caused by the negligence of the <br /> ENGINEER as soon as practicable after the discovery.The LPA reserves the right to take immediate action to remedy any error <br /> or omission if notification is not successful; if the ENGINEER fails to reply to a notification; or if the conditions created by the error <br /> or omission are in need of urgent correction to avoid accumulation of additional construction costs or damages to property and <br /> reasonable notice is not practicable. <br /> 4. This AGREEMENT may be terminated by the LPA upon giving notice in writing to the ENGINEER at the ENGINEER's last known <br /> post office address. Upon such termination, the ENGINEER shall cause to be delivered to the LPA all drawings, plats,surveys, <br /> reports, permits, agreements, soils and foundation analysis, provisions, specifications, partial and completed estimates and data, <br /> if any from soil survey and subsurface investigation with the understanding that all such material becomes the property of the <br /> LPA. The LPA will be responsible for reimbursement of all eligible expenses incurred under the terms of this AGREEMENT up to <br /> the date of the written notice of termination. <br /> Page 3 of 9 BLR 05530(Rev. 10/24/25) <br />