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COMPENSATION The primary basis of compensation for project work is proposed to be one of two methods dependent on the project phase. For those items of work which are not. clearly defined the cost plus fixed fee with an upset limit is proposed. For those phases of the project that have a .:well defined scope of work, the lump sum method is proposed. For special services such as extensive public hearings, additional meetings beyond those allocated, or similar work, the preferred com- pensation is on an hourly basis. .Direct expenses attributed to the project would be billed at cost with no mark up. We propose to enter .into a prime agreement with the City which will outline each specific phase of the project (i.e, environmental assessment, surveying, preliminary engineering, land acquisition, design, construction) as well as allocated man hours and expenses for each phase. Monthly progress reports will then be submitted to the City, Mn/DOT and ultimately FAA indicating status of completion. Dependent on the funding arrangements, work is proposed to be invoiced on a monthly basis with reimbursement expected within 30 days. For those periods when little activity is occurring due to steps between project phases, agency reviews, etc., invoicing can be done at longer intervals should the City desire. Should the City select Hakanson Anderson Associates,. Inc. for this assignment, we would welcome the opportunity ;to discuss the City's position prior to contract preparation'..` All personnel are required to keep daily time logs indicating hours worked on each project. The project manager will be responsible for tracking costs and progress against each phase's budget on a weekly basis. A sample monthly status report is shown on the following pages. 11