Common use of Modification of Budget Clause in Contracts

Modification of Budget. Notwithstanding anything to the contrary in this Agreement, if Contractor reasonably determines that the actual cost of any component of the Work is less than the portion of the Contract Sum allocated to that component in the Budget, then Contractor may, no more than once a month revise the Budget to reallocate such savings to other components in the Budget. Further, no more than once a month, Contractor may reallocate the “Contingency Amount” (as such term is reflected in the Budget) and apply such reallocated amounts to any component of the Work to pay for the costs incurred in connection with such component of the Work. Finally, Contractor may reallocate costs in the Budget amongst the various components of the Budget so long as Contractor reasonably determines that the amounts for each such component will be sufficient after such reallocation. All modifications to the Budget pursuant to this Section 4.1.3 shall be effective when Contractor submits a revised Budget to Owner. Notwithstanding anything to the contrary contained herein, in no event shall the Budget be modified to increase the Contract Sum without Owner’s prior written consent. If Owner properly disapproves Contractor’s proposed reallocation of Budget savings or in the event of any other dispute between Owner and Contractor under this Section 4.1.3, such dispute shall be resolved by the Civil Engineer.