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 4. COST LIMITATIONS: In accordance
the A/E Contract, performance schedule and
contents of this publication. The Project
with the Contract Clause entitled "Design
Manager will work directly with the assigned
within Funding Limitations", the A/E is
PM, who will furnish design guidance
responsible for designing a Project so as to
necessary for the successful execution of the
permit the award of a construction contract
work.
within the Total Construction Funds Available
using
customary
NAVFACENG-COM
7. POOR A/E PERFORMANCE (RE-
contracting procedures.
It is also the
SUBMITTAL POLICY): If the PM deter-
responsibility of the A/E to design the Project
mines that a design submittal is unacceptable,
for the lowest life cycle cost, including
thus necessitating a resubmittal, the A/E may
construction
cost
and
accumulated
be required to send representatives to
maintenance and operating costs. The A/E
SOUTHNAVFACENGCOM at no additional
shall determine, at the earliest possible stage
cost to the Government to resolve the
of design, that the cost of the Project will or
problems with the design.
will not exceed the funds stated in the Cost
Limitations; if it will, the A/E shall promptly
8. ERRORS AND NEGLIGENT PER-
notify the PM in writing. The A/E shall
FORMANCE (A/E LIABILITY): Neither
structure the construction contract documents
the Government's review, approval or
so as to have a base bid which maximize
acceptance of, nor payment for, the services
chances of awarding the construction contract
required shall be construed to operate as a
within the funds available and includes all
waiver of any rights under the design contract
essential features necessary to satisfy the
or any action arising out of the performance of
Project requirement and to provide a complete
the design contract, and the A/E shall be and
and usable facility. Additive bid items shall be
remain liable to the Government for all
included as appropriate to provide the
damages caused by the A/E's negligent
complete scope of the Project. When bids or
performance of any of the services furnished.
proposals for the construction contract are
Design errors or omissions which result in
received that exceed the Total Construction
damages or extra cost to the Government will
Funds Available the A/E shall perform such
be evaluated for potential A/E financial
redesign and other services as are necessary to
liability. If the Government determines that
permit contract award within the funding
the A/E is financially liable for a design
limitation.
deficiency, the A/E will be so advised by
official correspondence. Reimbursement of
5. CONFORMANCE TO CRITERIA:
costs incurred by the Government as a result
All work shall be in accordance with current
of the A/E's errors and/or negligent
NAVFACENGCOM and SOUTHNAVFAC-
performance will be actively pursued by
ENGCOM criteria, instructions, technical
SOUTHNAV-FACENGCOM. The preferred
guides, and guide specifications. See Section
method of settlement of A/E financial liability
8 for information on criteria and obtaining
is for the A/E to accept responsibility and
criteria.
negotiate directly with the Contractor. Where
6. A/E PROJECT MANAGER:
One
the A/E cannot reach an agreement with the
individual of the A/E Firm shall be designated
Contractor or if the A/E declines to negotiate
as Project Manager. The Project Manager
or accept responsibility, SOUTHNAV-
shall be fully cognizant of the requirements of
FACENGCOM will arrange settlement
RESPONSIBILITIES OF THE A/E
5-2
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