Illinois Administrative Code › Title 35 - ENVIRONMENTAL PROTECTION › Part 661 - GENERAL CONDITIONS OF GRANTS FOR THE FINANCING AND CONSTRUCTION OF PUBLIC WATER SUPPLY FACILITIES › Subpart C - REQUIREMENTS APPLICABLE TO SUBAGREEMENTS OF GRANTEE › Section 661.303 - Contracts for Personal and Professional Services - Consulting Engineering Agreements

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Scope of Application
The provisions of subsections (a) through (i) apply to all
				  subagreements of grantees for architectural or engineering services in which
				  the aggregate amount of services involved is expected to exceed $10,000. When
				  $10,000 or less of services (e.g., for consultant or consultant subcontract
				  service) is required, the provisions of Section
				  661.301(m)
				  shall apply.
b) Type of
				Contract (Subagreement)
1) General
Cost reimbursement, fixed price or per diem types of
				  contracts or combinations of those contracts may be negotiated for
				  architectural or engineering services.
2) Contracts prohibited
The cost-plus-percentage-of-cost and the
				  percentage-of-construction-cost types of contract are
				  prohibited.
3) Fixed price
				contracts
A fixed price contract is one that established a guaranteed
				  maximum price that may not be increased except to the extent that a contract
				  amendment increases the scope of work. A fixed price contract may be used only
				  if the scope and extent of work to be performed are clearly
				  defined.
4) Cost
				reimbursement contracts
Each cost reimbursement contract must clearly establish a
				  cost ceiling that the engineer may not exceed without formally amending the
				  contract and a fixed dollar profit that may not be increased except in case of
				  a contract amendment which increases the scope of the work.
5) Per diem contracts
Per diem agreements should be used only when the first task
				  under the grant involves establishing the scope and cost of succeeding tasks,
				  or for incidental services, such as expert testimony or other intermittent or
				  professional services. Resident engineer and resident inspection services shall
				  be compensated under a fixed price contract or a cost reimbursement contract as
				  described in subsections (b)(3) and (b)(4), respectively.
6) Compensation procedures
If, under either a cost reimbursement or fixed price
				  contract, the grantee desires to utilize a multiplier type of compensation, all
				  of the following must apply:
A) The
				multiplier and the portions of the multiplier allocable to overhead and
				allocable to profit have been specifically negotiated;
B) The portion of the multiplier allocable to
				overhead includes only allowable items of cost under the cost principles set
				forth in Section
				661.701;
C) The portions of the multiplier allocable
				to profit and allocable to overhead have been separately identified in the
				contract; and
D) The fixed price
				contract includes a guaranteed maximum price for completion of the specifically
				defined scope of work: the cost reimbursement contract includes a fixed dollar
				profit that may not be increased except in a case of a contract amendment that
				increases the scope of work.