Common use of Design and Construction Costs Clause in Contracts

Design and Construction Costs. 3.3.1 It is the desire of the Principal Representative to incorporate as many alternate bid items into the Project as reasonable, to maximize the scope for the Fixed Limit of Design & Construction Cost. All parties recognize that although the availability of costs to perform the Work depend, in part, upon favorable market conditions. With thorough and careful planning, cost estimating and cooperation, funds may become available for the alternates through the procurement process at less than the Design/Build Entity’s estimated cost therefore. Together with savings through the unexpended portion of the bidding contingency, the Principal Representative may authorize alternates and/or additional scope, all within the Fixed Limit of Design & Construction Cost. 3.3.2 To accomplish the inclusion of alternates and/or increases, the project contingency shall be as follows and included in the GMP: a) The bidding contingency for all Bid Packages together with the construction of the Work shall be equal to at least two point five percent (2.5%) of the total Guaranteed Maximum Price, all within the Fixed Limit of Construction Cost. The bidding contingency shall be allocated between the presently Insert number of packages ( ) Bid Packages, equally proportionate to the value associated with each Bid Package. The Design Build Entity shall notify, in writing, the Principal Representative of the allocation of the bidding contingency for each Bid Package. b) The construction contingency for the Work shall be equal to at least three percent (3%) of the total Guaranteed Maximum Price, all within the Fixed Limit of Construction Cost. 3.3.3 At the conclusion and award of the Bid Packages, all differences between the Design/Build Entity’s estimated cost of the Work contained within the Bid Packages, exclusive of contingency, versus the actual cost thereof as determined by bidding and award (buyouts) shall be promptly calculated and totaled. If the total of all of the buyouts exceed the Design/Build Entity estimated cost therefore, the bidding contingency identified in paragraph 3.3.2.1 shall be applied by the Design/Build Entity, after prior written notice to the Principal Representative, to cover any overrun per Bid Package. 3.3.4 After all of the Bid Packages have been bought out, any and all savings achieved through the buyouts of the Bid Packages together with all unexpended sums remaining in the bidding contingencies shall forthwith accrue to the Principal Representative to be applied by the Principal Representative, in its sole and absolute discretion, to the inclusion of desired alternates into the Work or to otherwise increase the scope of Work to be performed by the Design/Build Entity, and/or to reduce the Guaranteed Maximum Price. 3.3.5 The construction contingency shall only be used to cover costs for labor, materials, equipment and similar costs for items or Work to be furnished during the construction phase of the Project. It is not the intent of this Agreement to use the construction contingency for costs incurred during the Pre-Construction phase or bidding phase or for costs to correct any errors, omissions, mistakes or rejected Work caused by subcontractors. The construction contingency may be used to cover the Design/Build Entity’s costs (i) arising from estimating cost overruns in the costs of Exhibit H.4 Allowance Schedule; (ii) unexpected additional trade coordination costs incurred for Work directly performed by the Design/Build Entity that could not have been reasonably contemplated;

Design and Construction Costs. 3.3.1 It is the desire of the Principal Representative to incorporate as many alternate bid items into the Project as reasonable, in order to maximize the scope for the Fixed Limit of Design & Construction Cost. All parties recognize that although the availability of costs to perform the Work depend, in part, upon favorable market conditions. With thorough and careful planning, cost estimating and cooperation, funds may become available for the alternates through the procurement process at less than the Design/Build Entity’s estimated cost therefore. Together with savings through the unexpended portion of the bidding contingency, the Principal Representative may authorize alternates and/or additional scope, all within the Fixed Limit of Design & Construction Cost. 3.3.2 To accomplish the inclusion of alternates and/or increases, the project contingency shall be as follows and included in the GMP: a) The bidding contingency for all Bid Packages together with the construction of the Work shall be equal to at least two point five percent (2.5%) of the total Guaranteed Maximum Price, all within the Fixed Limit of Construction Cost. The bidding contingency shall be allocated between the presently Insert number of packages ( ) Bid Packages, equally proportionate to the value associated with each Bid Package. The Design Build Entity shall notify, in writing, the Principal Representative of the allocation of the bidding contingency for each Bid Package. b) The construction contingency for the Work shall be equal to at least three percent (3%) of the total Guaranteed Maximum Price, all within the Fixed Limit of Construction Cost. 3.3.3 At the conclusion and award of the Bid Packages, all differences between the Design/Build Entity’s estimated cost of the Work contained within the Bid Packages, exclusive of contingency, versus the actual cost thereof as determined by bidding and award (buyouts) shall be promptly calculated and totaled. If the total of all of the buyouts exceed the Design/Build Entity estimated cost therefore, the bidding contingency identified in paragraph 3.3.2.1 shall be applied by the Design/Build Entity, after prior written notice to the Principal Representative, to cover any overrun per Bid Package. 3.3.4 After all of the Bid Packages have been bought out, any and all savings achieved through the buyouts of the Bid Packages together with all unexpended sums remaining in the bidding contingencies shall forthwith accrue to the Principal Representative to be applied by the Principal Representative, in its sole and absolute discretion, to the inclusion of desired alternates into the Work or to otherwise increase the scope of Work to be performed by the Design/Build Entity, and/or to reduce the Guaranteed Maximum Price. 3.3.5 The construction contingency shall only be used to cover costs for labor, materials, equipment and similar costs for items or Work to be furnished during the construction phase of the Project. It is not the intent of this Agreement to use the construction contingency for costs incurred during the Pre-Construction Pre‐Construction phase or bidding phase or for costs to correct any errors, omissions, mistakes or rejected Work caused by subcontractorsSubcontractors. The construction contingency may be used to cover the Design/Build Entity’s costs (i) arising from estimating cost overruns in the costs of Exhibit H.4 Allowance Schedule; (ii) unexpected additional trade coordination costs incurred for Work directly performed by the Design/Build Entity that could not have been reasonably contemplated;