Common use of CMR Contingency Clause in Contracts

CMR Contingency. The Construction Management at Risk Contingency is generally defined as that component of the Guaranteed Maximum Price set aside to address the cost of the Work or other components of the GMP that were reasonably unforeseen at the time the GMP was developed. Potential costs include, but are not necessarily limited to: refinements to the Project documents as a result of the continuing development of the design, scope gaps between trade contractors, contract default by subcontractors, costs of corrective work not provided for elsewhere, constructability issues, and issues related to field conditions which a prudent CMR reasonably should have detected during discharge of any preconstruction duties provided by this CMR. The CMR Contingency is not intended to address the cost of project scope changes made after the GMP was developed. The CMR Contingency may be applied to any Work or other component of the GMP without the necessity of a Change Order. Use of a portion of the CMR Contingency does not change the Contract Sum which is based on the GMP, but does increase the amount of money to be paid the CMR for the Work while simultaneously and equally decreasing the amount of money remaining in the CMR Contingency. Use of the CMR Contingency may only be made with the written approval of the Owner. The Owner shall specify the procedure for the CMR to request the use of any portion of the CMR Contingency. The CMR shall periodically report to the Owner as is reasonably determined by Owner to be necessary but no less than monthly specifying: the amount of the CMR Contingency used, the reasons for the requirement to use the CMR Contingency, and the justifications for the use of the CMR Contingency. Unless otherwise specified in the Contract, all CMR Contingency remaining at Project conclusion shall be retained by the Owner. The Owner may, through Supplemental General Conditions, define subcategories of the CMR Contingency and prescribe the uses of funding within the subcategories.