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28 CONSULTING ENGINEERING services to be performed by the Consulting Engineer be fully set forth in the agreement. Such agreements also provide for approPriate adjusnnents in the fixed payment, in the event that the physical scope of the project, time for completion, or the services required are materially increased over that contemplated during the negotiations. The principal contingency for the Engineer, with cost-based methods, lies in failure to spell out, in sufficient detail all the reimbursible items. Where this list is not complete the client's auditor may unreasonably reject certain items of cost which are not included in the Agreement. 5. Fixed Lump-Sum Payment This method of compensating Consulting Engineers is used frequently for investigations and studies aod for basic services on design-type projects when the scope of the assignment to be undertaken can be clearly and fully defined. Two methods are generally used to arrive at a lump-sum compensation for the basic services on design-type projects: The first of these is the computation of a lump sum as an appropriate percentage of the estimated construction cost of the project. The second is direct development of a fixed amount of compensation, by estimating the individual elements of the engineering cost outlined in the forego- ing section, plus a reasonable margin of profit, all expressed as a single lump sum. These two methods are frequently used concurrently, each as a check on the other. For arriving at a lump sum compensation for investigations and studies, the second of the two preceding methods is generally used. Where consultation is undertaken on a lump-sum basis, the agreement should contain a clearly stated time limit during which the services will be performed, and a provision for additional compensation for time in excess of that stated. In design assignments, there should he a provision for changes required after the approval of preliminary designs, with a clear understanding as to where the final approval authority lies. Payments on this basis should be made to the Consulting Engineer at stated times (usually once a month) during the execution of the work. 6. Percentage of Construction Cost This method has been widely used for determining the compensation of Consult- ing Engineers on assignments where the principal responsibility is the design of various works, and the preparation of drawings, specifications, and other contract documents necessary for the description of facilities to be constructed. *. 'Construction cost" is defined as the total cost to the Client for the execution of the work authorized at one time and handled in each separate phase of engineering services, excluding fees or other cost for engineering and legal services, the cost of land. rights-of-way, legal and administrative expenses, but including the direct cost to the client of all construction contracts; items of construc- tion, including labor, materials, and equipment; required for the completed work (including extras) and the total value at site of project of all labor, materials, and equipment purchased or furnished directly by the Client for the project.