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include fees paid to ESCO divisions performing work in a manner similar to that of <br />subcontractors. <br />B. Equipment/Supplies Costs. These shall include all items purchased directly <br />by ESCO (not by a subcontractor) that become part of the installation, including excess <br />equipment, supplies and inventory that will become part of the installation, including any <br />sales tax or use tax. <br />C. Miscellaneous Costs/General Conditions. These shall include all direct <br />costs incurred by ESCO (not paid for through a subcontractor) that do not become part of <br />the installation and that are specifically attributable to this project. Direct cost includes, <br />but is not limited to, permits, fees, travel costs, shipping, copying, office and third party <br />rentals, project office improvement expenses, office expenses, labor for project <br />management and site supervision, M&V set-up, mobilization, de -mobilization, temporary <br />power, data, internet, and all wireless communication costs. All Direct costs shall be <br />subject to a reasonable and necessary standard. <br />Section 4.7. Excluded from Costs of the Work. The Costs of the Work shall not include: <br />A. Wages or salaries of ESCO's personnel NOT involved in the development, <br />design, or implementation of the project. This exclusion does not include ESCO personnel <br />that are involved in self -performed work, project development, project implementation, <br />project management, performance assurance, and otherwise billable to the project. <br />B. Costs, other than costs included in written change orders approved by the <br />Owner that would cause the Guaranteed Maximum Implementation Cost to be exceeded. <br />C. Legal, mediation, and arbitration costs incurred by ESCO and relating to the <br />project, except for legal fees recoverable under Section 21.1. <br />D. Errors or omissions associated with design in coordination, scheduling and <br />interfacing of various work in the separate work categories or divisions shall not increase <br />the Guaranteed Maximum Implementation Cost, but are reimbursable within the <br />Guaranteed Maximum Implementation Cost. <br />Included in Table 4.1 Section 4.8. Refunds and Rebates. Trade discounts, rebates, <br />refunds and amounts received from sales of surplus materials or equipment shall accrue to the <br />Owner and ESCO shall use its best efforts to assist the Owner in providing information to allow <br />the Owner to secure all available refunds and rebates. <br />Section 4.9. Pricing Details. <br />A. Upon the execution of a Certificate of Acceptance, if the Total Project Cost <br />is less than the Guaranteed Maximum Implementation Cost, then the difference between <br />the actual and estimated costs may, at the Owner's discretion, be used to implement more <br />projects per the terms of this Contract, provided that the difference is sufficient to fund <br />additional projects. ESCO shall apply the fee structure to those additional projects per <br />Schedule C, Project Budget Summary Table. For purposes of those additional projects, a <br />ESCO (McKinstry)/OWNER/PERFORMANCE CONTRACT 6 <br />