Common use of Initial Guaranteed Maximum Price Proposal Clause in Contracts

Initial Guaranteed Maximum Price Proposal. Within sixty (60) days after the CM is furnished the Construction Documents at Design Development Phase of the entire Work or a Work Package by the A/E and with the Owner's approval thereof, the CM shall submit its Initial Guaranteed Maximum Price Proposal ("IGMP Proposal") for the entire Work or the Work Package, respectively, in such form and with such backup documentation as required for the GMP Proposal. Except as may otherwise be agreed by the Owner and the CM, the IGMP Proposal shall include a Construction Contingency of five percent (5%) of the estimated Cost of the Work. If the IGMP Proposal is accepted by the Owner, the estimated Cost of the Work component of the IGMP for the Work covered by such Proposal (including the Construction Contingency) shall constitute a fixed limit of the Cost of the Work covered by the Proposal (the "Construction Costs Fixed Limit").