Common use of Allowance Amounts Clause in Contracts

Allowance Amounts. 4.11.1 The Incentive Benchmark Amendment may contain allowances as part of the Cost of the Work only if the Incentive Benchmark Drawings and Specifications do not include sufficient specificity, detail or certainty for Contractor to incorporate pricing into the Incentive Benchmark Amendment (“Allowance”). For these Allowances, Contractor shall propose its estimates of the cost for the Allowance item and accounting for the unique features of this Project, its location, information available, local labor rates and MSG’s directions. 4.11.2 The estimate of the cost for each Allowance item shall be subject to Contractor’s Fee (calculated in accordance with Schedule E-1). No work shall be performed on any Allowance without the Contractor first obtaining MSG’s approval. Contractor represents to MSG that the estimate of the cost for each Allowance item is reasonable based on the information known by Contractor at the time of the Incentive Benchmark Amendment. Unless otherwise noted in the Contract Documents, the Cost of the Work for any Allowance in the Incentive Benchmark shall include all labor, material, equipment, taxes, transportation, Subcontractor overhead and profit, and insurance associated with the applicable Allowance. Contractor’s overall project management and overhead and its General Conditions Costs associated with any Allowance are deemed to be included in the Incentive Benchmark set forth in the Incentive Benchmark Amendment, and are not subject to adjustment, regardless of the actual amount of the Allowance. 4.11.3 Contractor shall continue to work with other members of the Project Development Team to develop a final price for each portion of the Work covered by an Allowance promptly after MSG has finalized its selection of items and Architect has completed all related Contract Documents associated with any such Allowance. Contractor shall give notice to MSG of the final amount. MSG thereafter shall promptly elect to either: 4.11.3.1 Issue a Change Order increasing or reducing the Incentive Benchmark (with any associated increase or decrease in the Contractor’s Fee) by the difference between the estimate of the cost for each Allowance item set forth in the Incentive Benchmark Amendment and the final amount agreed upon by Contractor and MSG to furnish or construct the Allowance item. For any such Change Order reducing the Incentive Benchmark, such reduction shall accrue solely to MSG; and/or 4.11.3.2 Direct Architect to undertake the redesign of the Allowance item or any other item of Work in such a manner that the Allowance item can be installed without the Incentive Benchmark being exceeded or the Construction Schedule being extended. If MSG elects to so redesign, Contractor agrees to cooperate with MSG, Architect, and any other consultant of MSG in order to reduce the cost of constructing or furnishing the Allowance item or any other item of Work. Contractor shall not be responsible for consultant fees incurred by MSG in the event of a redesign effort.