Common use of Compensation Invoicing and Payment Clause in Contracts

Compensation Invoicing and Payment. Compensation for services provided under this Contract shall be provided on a Cost Reimbursement –Hourly Salary Rate basis, a Cost Reimbursement - Hourly Billing Rate basis, a Lump Sum basis, or a combination thereof, at the sole discretion of the CITY. For the Cost Reimbursement – Hourly Salary Rate basis, compensation is defined as the sum of: (1) Hourly Salary Rates; (2) Overhead; (3) Other Direct Cost with no markup; (4) Subcontract Expenses plus administrative fee as stated herein; and (5) Profit as defined herein. For the Cost Reimbursement – Hourly Billing Rate basis, compensation is defined as the sum of: (1) Hourly Billing Rates; (2) Other Direct Cost with no markup; and (3) Subcontract Expenses plus administrative fee as stated herein. For the Lump Sum basis, compensation is defined solely as the Lump Sum. 10.1 Cost Reimbursement – Hourly Salary Rate Basis 10.1.1 Hourly Salary Rates" shall be at the rates approved by the ENGINEER, to be charged by CONSULTANT for employees' time directly chargeable to their performance of the project work. Actual CONSULTANT salaries may be increased at the discretion of CONSULTANT’s management. However, Hourly Salary Rate increases are limited to once per year, per employee, on the anniversary date of the CONSULTANT’s Contract execution, and are subject to the approval of the ENGINEER. Any such increases shall be in accordance with established Bureau of Engineering policies existing at the time the adjustment is approved. In no case shall the "Hourly Salary Rates" exceed the actual salary rates paid to the employee. If a CONSULTANT employee is promoted to a new classification or position, documentation shall be provided to the ENGINEER. CONSULTANT shall provide explanation of the higher responsibilities of the CONSULTANT employee in the new classification or position. CONSULTANT may increase the Hourly Salary Rate due to promotion, subject to the approval of the ENGINEER. Subconsultant Hourly Salary Rates are negotiated by Task Order. Any adjustments to subconsultants’ Hourly Salary Rates for a Task Order shall be reviewed and approved by the ENGINEER prior to invoicing. Adjustments to subconsultants’ Hourly Salary Rates may be increased one time per year, per employee, on the anniversary date of the CONSULTANT’S Contract execution, and are subject to approval of the ENGINEER. Any such increases shall be in accordance with established Bureau of Engineering policies existing at the time the adjustment is approved. 10.1.2 Overhead" (including payroll burden, general and administrative expenses, and all other expenses not included in Section 10.1.3) shall be at a rate applied to Hourly Salary Rate. Payroll burden includes the cost of benefits for employees including, but not limited to, employer paid costs for employee insurance programs, employer- paid payroll-related taxes, sick leave, holidays, vacation and retirement. Overhead for this Consultant Services Contract is fixed for the duration of the Contract at a rate of [Insert Rate] percent for CONSULTANT personnel located in the CONSULTANT’S Office and fixed at a rate of [Insert Rate] percent for CONSULTANT personnel located in a CITY office. At the ENGINEER’S discretion, the subconsultants’ overhead rates are subject to review and approval by the ENGINEER and shall remain fixed for the duration of the Contract. The CONSULTANT Office rate shall apply to CONSULTANT personnel on temporary assignment, not to exceed one month, at one of the CITY’S offices. The CITY Office rate shall apply when the CONSULTANT personnel are on assignment at one of the CITY’S offices for a period exceeding one month. The overhead rate selection for every CONSULTANT employee shall be approved by the ENGINEER. 10.1.3 “Other Direct Cost" includes those costs of CONSULTANT directly identifiable to or incurred in the performance of services hereunder, including but not limited to reproduction, freight, messenger service, travel (in accordance with established CITY policies), equipment rented by CONSULTANT, auto rental (as approved within the Consultant Travel Authorization form, Exhibit I), and mileage charges (based on IRS allowable amounts). Expenses related to CONSULTANT travel will be reimbursed based upon the CITY’S policies and procedures that are in place at the time when the CONSULTANT Contract is fully executed. CONSULTANT must obtain CITY approval prior to incurring any travel expenses. Travel-related questions can be referred to the Contact Person as listed in Article 19. Any specialized items purchased for the task at the request of the CITY shall be charged to the CITY, and shall become the property of the CITY and delivered to the CITY upon request. Any other items purchased for the task shall be the property of the CONSULTANT, shall not be charged to the CITY, and will not be reimbursed. Communication expenses, cost of office space, equipment, and supplies furnished to CITY personnel at CONSULTANT’S location shall be paid by the CITY. The CITY shall receive the full benefit of any free travel, frequent flyer mileage, discounts and/or any other advantages which are acquired by the CONSULTANT as a result of CITY sponsored travel. 10.1.4 Subcontract Expenses" shall be the actual amount paid by CONSULTANT to subconsultant for their services to the CITY plus an administrative fee of five (5) percent. A maximum fee of five (5) percent may also be applied to the actual amount paid to consultants below the tier of subconsultant.

Compensation Invoicing and Payment. Compensation for services provided under this Contract shall be provided on a Cost Reimbursement –Hourly Salary Rate basis, a Cost Reimbursement - Hourly Billing Rate basis, a Lump Sum basis, or a combination thereof, at the sole discretion of the CITY. For the Cost Reimbursement – Hourly Salary Rate basis, compensation is defined as the sum of: (1) Hourly Salary Rates; (2) Overhead; (3) Other Direct Cost with no markup; (4) Subcontract Expenses plus administrative fee as stated herein; and (5) Profit as defined herein. For the Cost Reimbursement – Hourly Billing Rate basis, compensation is defined as the sum of: (1) Hourly Billing Rates; (2) Other Direct Cost with no markup; and (3) Subcontract Expenses plus administrative fee as stated herein. For the Lump Sum basis, compensation is defined solely as the Lump Sum. 10.1 Cost Reimbursement – Hourly Salary Rate Basis 10.1.1 Hourly Salary Rates" shall be at the rates approved by the ENGINEER, to be charged by CONSULTANT for employees' time directly chargeable to their performance of the project work. Actual CONSULTANT salaries may be increased at the discretion of CONSULTANT’s ’S management. However, Hourly Salary Rate increases are limited to once per year, per employee, on the anniversary date of the CONSULTANT’s ’S Contract execution, and are subject to the approval of the ENGINEER. Any such increases shall be in accordance with established Bureau of Engineering policies existing at the time the adjustment is approved. In no case shall the "Hourly Salary Rates" exceed the actual salary rates paid to the employee. If a CONSULTANT employee is promoted to a new classification or position, documentation shall be provided to the ENGINEER. CONSULTANT shall provide explanation of the higher responsibilities of the CONSULTANT employee in the new classification or position. CONSULTANT may increase the Hourly Salary Rate due to promotion, subject to the approval of the ENGINEER. Subconsultant Hourly Salary Rates are negotiated by Task Order. Any adjustments to subconsultants’ Hourly Salary Rates for a Task Order shall be reviewed and approved by the ENGINEER prior to invoicing. Adjustments to subconsultants’ Hourly Salary Rates may be increased one time per year, per employee, on the anniversary date of the CONSULTANT’S Contract execution, and are subject to approval of the ENGINEER. Any such increases shall be in accordance with established Bureau of Engineering policies existing at the time the adjustment is approved. 10.1.2 Overhead" (including payroll burden, general and administrative expenses, and all other expenses not included in Section 10.1.3) shall be at a rate applied to Hourly Salary Rate. Payroll burden includes the cost of benefits for employees including, but not limited to, employer paid costs for employee insurance programs, employer- employer-paid payroll-related taxes, sick leave, holidays, vacation and retirement. Overhead for this Consultant Services Contract is fixed for the duration of the Contract at a rate of [[ Insert Rate, Max 180% ] percent for CONSULTANT personnel located in the CONSULTANT’S Office and fixed at a rate of [[ Insert Rate, Max 155% ] percent for CONSULTANT personnel located in a CITY office. At the ENGINEER’S discretion, the subconsultants’ overhead rates are subject to review and approval by the ENGINEER and shall remain fixed for the duration of the Contract. The CONSULTANT Office rate shall apply to CONSULTANT personnel on temporary assignment, not to exceed one month, at one of the CITY’S offices. The CITY Office rate shall apply when the CONSULTANT personnel are on assignment at one of the CITY’S offices for a period exceeding one month. The overhead rate selection for every CONSULTANT employee shall be approved by the ENGINEER. 10.1.3 “Other Direct Cost" includes those costs of CONSULTANT directly identifiable to or incurred in the performance of services hereunder, including but not limited to reproduction, freight, messenger service, travel (in accordance with established CITY policies), equipment rented by CONSULTANT, auto rental (as approved within the Consultant Travel Authorization form, Exhibit I), and mileage charges (based on IRS allowable amounts). Expenses related to CONSULTANT travel will be reimbursed based upon the CITY’S policies and procedures that are in place at the time when the CONSULTANT Contract is fully executed. CONSULTANT must obtain CITY approval prior to incurring any travel expenses. Travel-related questions can be referred to the Contact Person as listed in Article 19. Any specialized items purchased for the task at the request of the CITY shall be charged to the CITY, CITY and shall become the property of the CITY and delivered to the CITY upon request. Any other items purchased for the task shall be the property of the CONSULTANT, shall not be charged to the CITY, and will not be reimbursed. Communication expenses, cost of office space, equipment, and supplies furnished to CITY personnel at CONSULTANT’S location shall be paid by the CITY. The CITY shall receive the full benefit of any free travel, frequent flyer mileage, discounts and/or any other advantages which are acquired by the CONSULTANT as a result of CITY sponsored travel. 10.1.4 Subcontract Expenses" shall be the actual amount paid by CONSULTANT to subconsultant for their services to the CITY plus an administrative fee of five (5) percent. A maximum fee of five (5) percent may also be applied to the actual amount paid to consultants below the tier of subconsultant.