Common use of Fixed Limit of Construction Cost Clause in Contracts

Fixed Limit of Construction Cost. Upon the completion of Schematic Design, the Contractor shall furnish a detailed estimate of construction costs for the Project. From this estimate, the Owner and Contractor shall negotiate a Fixed Limit of Construction Cost (“FLCC”). This FLCC shall include an escalation factor and contingencies as agreed upon by all parties. The Contractor shall be responsible for maintaining construction costs within the FLCC. No changes or revisions to the FLCC shall be made without the Owner’s prior approval. During the Pre-Construction Phase, it is the responsibility of Contractor to adjust the FLCC, if deemed necessary; such an adjustment, if accepted by the Owner, will be effectuated through an amendment to this MOU.