1 Project Budget Construction Budget Construction Cost Contract Contractor Subcontractor Substantial Performance The Work Place of the Work Prime Rate Definitions © The Project Budger is the Clienr’s estimated total expenditure for the entire proiecs. it includes the Construction Budget and all other costs to the Client for the project such as but not limited to profes- sional fees, costs of land, and rights of way. The Construction Budget is the Client’s estimated Construction Cost including contingencies for cost increases. Construction Cost means the contract price(s) of all elements of the project designed or specified by or on behalf of the Architect, in- cluding all applicable taxes whether recoverable or not. Where there is no contract price for all or part of the project, the Construction Cost shall be the estimated cost at current market rates as deter- mined by the Architect. Construction Cost does not include the compensation of the Architect and the Architect’s consultants, the cost of the land, or other costs which are the responsibility of the Client. In the event that labour or material are furnished bv the Client below market cost or when old materials are re-used, the Construction Cost for purposes of establishing the fee is to be in- terpreted as the cost of all materials and labour necessary to com- plete the Work as if all materials had been new and if all labour had been paid for at existing marker prices. The Contract is the agreement between the Client and the Contrac- tor for the provision of labour, materials and equipment for the ex- ecution of the Work by the Contractor and sets out their respective duties, responsibilities and obligations as prescribed in the Contract Documents and represents the entire agreement between all parties. The Contract supersedes al! prior negotiations, representations or agreements, either written or oral, including the bidding documents. The Contract Documents consist of the executed agreement be- tween the Client and the Contractor, the general conditions of the Contract, the plans, sketches, drawings, graphic representations, specifications and such other documents as are identified in the agreement and the general conditions as constituting part of the Contract Documents, The Contractor is the person, firm, or corporation contracting with the Client to provide labour, materials and equipment for the exe- cution of the Work. A Subcontractor is a person, firm, or corporation contracting with the Contractor to perform a part or parts of the Work included in the Contract, or to supply products worked to a special design according to the Contract Documents. Substantial Performance of the Work is as defined in the lien legis- lation applicable to the place of the project. If such legislation is not in force or does not contain such definition, Substantial Performance shall have been reached when the Work is ready for use or is being used for the purpose intended and is so certified by the Architect. The Work means the roral construction and related services required by the Contract Documents. The Place of the Work is the designated site or location of the project of which the Work may be the whole or a part. Prime Rate means the lowest rate of interest quoted by chartered banks to the most credit worthy borrowers for prime business loans as determined and published by the Bank of Canada. RAIC Document 6