Common use of ALLOWANCE FOR OVERHEAD Clause in Contracts

ALLOWANCE FOR OVERHEAD. This is defined as costs of any kind attributable to direct and indirect delay, acceleration, or impact, added to the total cost to Owner of any change in the Contract Sum. If the Design-Builder is compensated under Section 10.6.2, the amount of such compensation shall be reduced by the amount Design-Builder is otherwise entitled to under this subsection (g). This allowance shall compensate Design-Builder for all non-craft labor, temporary construction facilities, field engineering, schedule updating, as-built drawings, home office cost, B&O taxes, office engineering, estimating costs, additional overhead because of extended time, and any other cost incidental to the change in the Work. It shall be strictly limited in all cases to a reasonable amount, mutually acceptable, or if none can be agreed upon to an amount not to exceed the rates below: (1) Design-Builder Markup on Design-Builder Work: For Design-Builder, for any Work actually performed by its own forces, 12% of the first $50,000 of the cost, and 4% of the remaining cost, if any. (2) Subcontractor Markup for Subcontractor Work: For each Subcontractor (including lower tier subcontractors), for any Work actually performed by its own forces, 12% of the first $50,000 of the cost, and 4% of the remaining cost, if any. (3) Design-Builder Markup for Subcontractor Work: For Design-Builder, for any Work performed by its Subcontractor(s), 4% of the first $50,000 of the amount due each Subcontractor, and 2% of the remaining amount if any. (4) Subcontractor Markup for Lower Tier Subcontractor Work: For each Subcontractor, for any Work performed by its Subcontractor(s) of any lower tier, 4% of the first $50,000 of the amount due the sub- Subcontractor, and 2% of the remaining amount if any.

ALLOWANCE FOR OVERHEAD. This is defined as costs of any kind attributable to direct and indirect delay, acceleration, or impact, added to the total cost to Owner of any change in the Contract Sum. If the Design-Builder is compensated under Section 10.6.2, the amount of such compensation shall be reduced by the amount Design-Builder is otherwise entitled to under this subsection (g). This allowance shall compensate Design-Builder for all non-craft labor, temporary construction facilities, field engineering, schedule updating, as-built drawings, home office cost, B&O taxes, office engineering, estimating costs, additional overhead because of extended time, and any other cost incidental to the change in the Work. It shall be strictly limited in all cases to a reasonable amount, mutually acceptable, or if none can be agreed upon to an amount not to exceed the rates below: (1) Design-Builder Markup on Design-Builder Work: For Design-Builder, for any Work actually performed by its own forces, 12% of the first $50,000 of the cost, and 4% of the remaining cost, if any. (2) Subcontractor Markup for Subcontractor Work: For each Subcontractor (including lower tier subcontractors), for any Work actually performed by its own forces, 12% of the first $50,000 of the cost, and 4% of the remaining cost, if any. (3) Design-Builder Markup for Subcontractor Work: For Design-Builder, for any Work performed by its Subcontractor(s), 4% of the first $50,000 of the amount due each Subcontractor, and 2% of the remaining amount if any. (4) Subcontractor Markup for Lower Tier Subcontractor Work: For each Subcontractor, for any Work performed by its Subcontractor(s) of any lower tier, 4% of the first $50,000 of the amount due the sub- Subcontractor, and 2% of the remaining amount if any.