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10. Project Budgeting and Funding. The estimated budget for the Levee
<br />Improvements, consisting of legal cost for SCOA and the Owners (including .documentation for
<br />design, construction, acquisition, CFD formation and other elements of the project); currently
<br />anticipated hard and soft costs of design (including field studies); bidding (including document
<br />preparation); construction (including field engineering, testing, surveying, project management,
<br />construction supervision, contingency, preparation of "as -built" record documents pursuant to
<br />Section 15, third party inspections, CFD Advanced Costs and City Costs pursuant to Sections
<br />4(c) and 11, respectively, construction contractor's bonds and insurance, and SCOA's bonds
<br />pursuant to Section 17); FEMA accreditation; and for the construction phase only, overhead
<br />(including general and corporate overhead, and accounting) not to exceed 10% of Final Project
<br />Costs, is $11,750,053.00. The design phase of the project is substantially complete. Hard and
<br />soft design costs (including overhead), actual and projected, to date are $2,776,780.00.
<br />Throughout the remaining pre -construction process, and continuing through completion of
<br />construction of the Levee Improvements and subsequent FEMA accreditation hearings, SCOA,
<br />on a monthly basis, will provide City with actual project costs incurred to date and an updated
<br />estimated budget for the remaining costs of the Levee Improvements project. The final pre -
<br />construction design and construction budget will include a reasonable contingency amount, not
<br />to exceed ten percent (10%) of the overall budget for the Levee Improvements, to cover
<br />unanticipated design, construction and other cost overruns, but excluding City Costs, which will
<br />be separately adjusted pursuant to Section 11. SCOA and City acknowledge that an allocation of
<br />the contingency shall not require the City's approval and that the foregoing contingency
<br />represents both a design and construction contingency. Upon City's approval of the final pre-bid
<br />design and construction budget, the Final Construction Documents pursuant to Section 3, and the
<br />Final Bid Package Documents pursuant to Subsection 12(a), SCOA will publish / advertise
<br />notice of the construction contract pursuant to Subsection 12(c) below. After City's approval
<br />and before SCOA's acceptance of the best value bid pursuant to Subsection 12(c), SCOA will
<br />prepare and submit to City a proposed final budget for the Levee Improvements in which the
<br />final accepted line item bid prices are substituted for the corresponding cost estimates in the last
<br />pre-bid design and construction budget. Upon City's approval, the then approved final budget
<br />shall be referred to as "Final Design and Construction Budget" and shall thereafter govern the
<br />work of Levee Improvements subject to adjustment pursuant to Sections 3 and 11. Accordingly,
<br />upon establishment of the Final Design and Construction Budget, the Parties agree to affix the
<br />Final Design and Construction Budget to this Agreement as Exhibit 14. During construction of
<br />the Levee Improvements, on at least a monthly basis, SCOA will provide City with a variance
<br />report detailing by line item, the actual costs of designing and constructing the Levee
<br />Improvements, as compared to the costs set forth in the Final Design and Construction Budget
<br />(including any adjustments pursuant to Sections 3 and 11). Prior to conveyance of the Levee
<br />Improvements, SCOA will provide to City for review and approval, not to be unreasonably
<br />withheld, conditioned or delayed, a complete accounting of the actual total costs of designing
<br />and constructing the Levee Improvements and securing FEMA accreditation of the New Levee,
<br />together with a variance report detailing by line item, the actual total costs as compared to the
<br />costs set forth in the Final Design and Construction Budget (including any adjustments pursuant
<br />to Sections 3 and 11). The final accounting of the actual total costs of designing and
<br />constructing the Levee Improvements as approved by City is referred to herein as the "Final
<br />Project Costs". City will have the right to audit SCOA's records of the project after SCOA
<br />submits its accounting. Any such audit will be conducted by City Staff or a nationally
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