Common use of Preliminary Cost Estimates Clause in Contracts

Preliminary Cost Estimates. § 2.1.5.1 When the Owner has sufficiently identified the Project requirements, and the Design Professional has prepared other basic design criteria, and based on such preliminary design and other design criteria, the CM/GC shall prepare preliminary estimates of the Cost of the Work or the cost of program requirements using area, volume or similar conceptual estimating techniques for the Design Professional’s review and Owner’s approval. If the Design Professional or CM/GC suggests alternative materials and systems, the CM/GC shall provide cost evaluations of those alternative materials and systems. The CM/GC, and not the Design Professional, shall ultimately be responsible for cost estimates. § 2.1.5.2 As the Design Professional progresses with the preparation of the Schematic Design, Design Development and Construction Documents, the CM/GC shall prepare and update, at the end of 100% Schematic Design, 100% Design Development, 50% Construction Documents, and at 95% Construction Documents as agreed to by the Owner, CM/GC and Design Professional, estimates of the Cost of the Work of increasing detail and refinement and allowing for the further § 2.1.5.3 If the total cost of all bids received for the Project (“the Bids”) exceeds the Guaranteed Maximum Price, the CM/GC must re-bid the project at no cost to Owner. If new or modified drawings are required, the CM/GC shall re-bid the Project based on the new drawings and Construction Documents at no cost to the Owner. If the Bids exceed the Guaranteed Maximum Price by 10%, then the CM/GC must provide a flat fee of [AMOUNT] ($00.00) to the Owner’s Design Professional. If the Bids exceed the Guaranteed Maximum Price by 20%, then the CM/GC must provide a flat fee of [AMOUNT] ($00.00) to the Owner’s Design Professional.

Preliminary Cost Estimates. § 2.1.5.1 When the Owner has sufficiently identified the Project requirements, and the Design Professional has prepared other basic design criteria, and based on such preliminary design and other design criteria, the CM/GC shall prepare preliminary estimates of the Cost of the Work or the cost of program requirements using area, volume or similar conceptual estimating techniques for the Design Professional’s review and Owner’s approval. If the Design Professional or CM/GC suggests alternative materials and systems, the CM/GC shall provide cost evaluations of those alternative materials and systems. The CM/GC, and not the Design Professional, shall ultimately be responsible for cost estimates. § 2.1.5.2 As the Design Professional progresses with the preparation of the Schematic Design, Design Development and Construction Documents, the CM/GC shall prepare and update, at the end of 100% Schematic Design, 100% Design Development, 50% Construction Documents, and at 95% Construction Documents as agreed to by the Owner, CM/GC and Design Professional, estimates of the Cost of the Work of increasing detail and refinement and allowing for the further § 2.1.5.3 If the total cost of all bids received for the Project (“the Bids”) exceeds the Guaranteed Maximum PriceFinal Cost Estimate, the CM/GC must re-re- bid the project at no cost to Owner. If new or modified drawings are required, the CM/GC shall re-bid the Project based on the new drawings and Construction Documents at no cost to the Owner. If the Bids exceed the Guaranteed Maximum Price by 10%, then the CM/GC must provide a flat fee of [AMOUNT] ($00.00) to the Owner’s Design Professional. If the Bids exceed the Guaranteed Maximum Price by 20%, then the CM/GC must provide a flat fee of [AMOUNT] ($00.00) to the Owner’s Design Professional.