Pricing & Terms of Payment (Lump Sum)

ATTACHMENT "D"

PRICING & TERMS OF PAYMENT LUMP SUM CONTRACTS

1. PRICING:

A. ORIGINAL CONTRACT PRICE: The original Lump Sum Contract Price shall be as set forth in Paragraph 2 of the Subcontract document.

B. EXTRA WORK: Additional compensation for extra work shall be at Contractor's sole discretion determined by one of the below listed methods or any combination thereof.

1. LUMP SUM CHANGES

Lump Sum changes may be negotiated at Contractor's discretion.

2. TIME AND MATERIAL CHANGES

a. Rates and Handling Charges

The craft labor cost, equipment rental costs, and handling charge set out below shall apply to extra work performed by Subcontractor which is not covered by either a lump-sum price adjustment or a unit price schedule. They shall apply without regard to (1) the quantities involved to satisfy the requirements of the Subcontract or the Contractor's Construction Superintendent, (2) the difficulty of performing the work, (3) the number of hours worked, or (4) the materials or equipment used.

No materials, supplies, tools, and equipment shall be chargeable to Contractor, unless Contractor specifically requests and authorizes Subcontractor, by a Field Change Order, to supply them. Contractor reserves the right to supply Subcontractor with any item on a no-charge basis. Subcontractor's handling charge shall not be applicable to any materials, supplies, tools or equipment supplied by Contractor or any work performed by Contractor. In determining the net cost of materials and equipment, Subcontractor agrees to take advantage of, and to credit to the cost of the work, all trade discounts, rebates, allowances, credits and commissions. All transportation costs to and from the worksite for materials, equipment, tools, and supplies used in or for the performance of the work shall be billed to Contractor at Subcontractor's net cost of transportation costs with an original copy of the carrier's freight bill.

(1) Materials

When the extra work requires materials, equipment and supplies, Contractor will reimburse Subcontractor the net cost of all new materials, equipment and supplies incorporated as a permanent part of, or used in the performance of the extra work as shown on Subcontractor's suppliers' bills, plus an amount equal to 10% percent of such net cost to cover Subcontractor's handling charge for obtaining, receiving, unloading, storing and protecting the materials, equipment, and supplies.

V3 Project 09-21-2010 Page 2 of 3

(2) Equipment

The rate for construction equipment that is actually used in the performance of the extra work shall be billed to Contractor at the rated listed in Appendix D-2 (attached) or in the case of authorized rented equipment at competitive actual rental cost plus an amount equal to 0% percent of the cost. Included in the rental rates of construction equipment shall be the insurance thereon, and all labor, materials, parts and supplies required for the maintenance thereof.

(3) Labor

When the extra work requires field labor and field supervision, Contractor will reimburse Subcontractor for Subcontractor's labor costs directly engaged in performing the work (including foreman, but not general supervision). Labor costs include payroll taxes and insurance, field staff and office expenses, small tools (hereby defined as any tool with a total cost of under $1,000.00), consumable supplies, temporary construction, and mark-up for profit. A Schedule of Subcontractor Labor Rates is set out in Appendix D-1 (attached).

(4) Overtime

When Contractor authorizes Subcontractor, in writing, to perform the extra work on an overtime basis, Contractor will reimburse Subcontractor in accordance with Labor Rates set out in Appendix "D-1" (attached). Subcontractor shall not be entitled to any mark- up for overhead and profit on the premium portion of the labor costs for overtime work. b. Contracted Extra Work-Cost Plus

When any extra work is to be performed by a sub-subcontractor employed by Subcontractor on a "cost plus" basis, Contractor shall pay to Subcontractor for arranging therefore and supervising the sub- subcontractor, a fee of 5% percent on the cost for materials and labor on the sublet portion of the work to cover Subcontractor's overhead and profit. c. Contracted Extra Work-Lump Sum

When any extra work is to be performed by a sub-subcontractor employed by Subcontractor on a lump-sum basis, Contractor shall pay to Subcontractor the total lump-sum price of the work sublet with 10% percent added to cover Subcontractor's overhead and profit for arranging therefore and supervising the subcontractor who is awarded the sublet work. d. Measurement

The quantities of materials supplied or work performed shall be recorded on Work Summary Sheets prepared daily, in triplicate, by the Subcontractor. These Summary Sheets shall be signed by the

V3 Project 09-21-2010 Page 3 of 3

Subcontractor's Superintendent and then submitted to the Contractor's Construction Superintendent for approval. After approval, the Contractor's Construction Superintendent will return two signed copies of each Summary Sheet to the Subcontractor. All of Subcontractor's bills must agree with the approved summaries.

3. UNIT PRICE CHANGES

a. Extra work to be performed by Subcontractor on a unit price basis shall be performed solely on the unit prices set forth herein below. Said unit prices include all costs associated with this Subcontract Change including delivery and all taxes. Further, said unit prices are firm regardless of quantity or complexity of the extra work.

b. Item Description Unit WBS Code Number of Work Unit Price

(1) ______

V3 Project 09-21-2010