EXHIBIT "B"
TERM AND PAYMENT CLAUSE
Term. This Agreement shall become effective and shall be in full force and effect upon the execution of the Agreement by the City and the CONTRACTOR. This Agreement shall continue in full force and effect for a period of two (2) years from the effective date of the Agreement (the “Term”), unless the Agreement is sooner terminated in accordance with the Terms and Conditions in the Agreement; provided, however, that the City and the CONTRACTOR may mutually agree in writing to extend the Term of this Agreement for three (3) additional one-year periods.
Payment. The City of Lancaster shall reimburse the CONTRACTOR for actual costs, including labor costs and employee benefits incurred by the CONTRACTOR in performance of the work, in an amount not to exceed $1,886,104.46 for the first year of the contract (includes the 5% contingency). For the second year of the contract – not to exceed $1,980,409.68 which includes a maximum of 5% CPI and 5% contingency.
Actual costs shall not exceed the estimated rates and other costs as set forth in the CONTRACTOR’S proposal. Any additional work will require a separate authorization for CONTRACTOR services signed by both parties. THE CONTRACTOR shall not be reimbursed for actual travel expenses incurred in the performance of the work.