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5. Compensation. For the services to be rendered, City shall pay Consultant time and material basis and hourly rates with annual adjustment capped at 4%annually, as described more particularly in Exhibit A,which is attached and incorporated to the extent consistent with this Agreement. The annual adjustments shall be based on an industry index(ENR Construction Index for San Francisco and Bay Area)and submitted prior to the end of the fiscal year for approval. Payment shall be made on a monthly basis upon receipt and approval of Consultant's invoice. Compensation for an individual Work Authorization shall not exceed $100,000. Total compensation under this Agreement for all Work Authorization Letters issued in the initial three years of this Agreement shall not exceed $1,000,000. Payment shall be made within thirty (30) days of receipt of consultant's invoice and approval by City. a. Invoices submitted to City must contain a brief description of work performed,percentage of work completed, percentage of Agreement time used, percentage of Agreement amount expended and City's contract reference number . b. Upon completion of work and acceptance by City, Consultant shall have sixty (60)days in which to submit final invoicing for payment. An extension may be granted by City upon receiving a written request thirty (30)days in advance of said time limitation. The City shall have no obligation or liability to pay any invoice for work performed which the Consultant fails or neglects to submit within sixty (60)days, or any extension thereof granted by the City, after the work is accepted by the City. 6. Sufficiency of Consultant's Work. a. Services shall be performed by Consultant in accordance with generally accepted professional practices and principles and in a manner consistent with a level of care and skill ordinarily exercised under similar conditions by members of Consultant's profession currently practicing in California. By delivery of completed work, Consultant certifies that the work conforms to the requirements of this Agreement and all applicable federal, state and local laws and a professional standard of care in California. b. Data, calculations, opinions, reports, investigations, and other similar information provided by the City relating to site, local, or other conditions is not warranted or guaranteed, either expressly or implied, by the City. c. Consultant's responsibilities under this section shall not be delegated. Consultant shall be responsible to the City for acts, errors, or omissions of Consultant's subconsultants. d. Whenever the scope of work requires or permits review, approval, conditional approval or disapproval by the City, it is understood that such review, approval, conditional approval or disapproval is solely for the purposes of administering this Agreement and determining whether the Consultant is entitled to payment for such work, and not be construed as a waiver of any breach or acceptance by the City of any responsibility,professional or otherwise, for the work, and does not relieve the Consultant of responsibility for complying with the standard of performance or laws, regulations, industry standards, or from liability for damages Page 2 of 7