Common use of Initial Cost Estimate Clause in Contracts

Initial Cost Estimate. At such time as Preliminary Plans that have been approved in writing by both the UG and Manager have been prepared, the UG will prepare an estimate of the Total Cost based on the approved Preliminary Plans ("Initial Cost Estimate"). If the Initial Cost Estimate is less than or equal to the original Project Costs Budget, then Manager and the UG will be deemed to have approved the Initial Cost Estimate. If the Initial Cost Estimate is greater than Project Costs Budget, then the UG, at the UG's option, may (i) approve the Initial Cost Estimate in writing; or (ii) elect to value engineer portions of the Project, or eliminate or revise one or more items shown on the Preliminary Plans so as to reduce the Initial Cost Estimate to be within the Project Costs Budget; or (iii) elect to terminate the Agreement. Upon any termination hereof pursuant to this Section, the Agreement shall terminate, and, except as specifically set forth herein, the parties hereto shall have no further duty or obligation hereunder and without limiting the generality of the foregoing: (a) Manager shall be liable and responsible for all costs and expenses incurred by it with respect to the Agreement and the transactions contemplated hereby, and the UG shall have no duty or responsibility of any type or nature to reimburse or otherwise pay any such costs or expenses; and (b) the UG shall be liable and responsible for all costs and expenses incurred by it with respect to the Agreement and the transactions contemplated hereby, and Manager shall have no duty or responsibility of any type or nature to reimburse or otherwise pay any such costs or expenses.