Common use of Allowance for Profit Clause in Contracts

Allowance for Profit. Allowance for profit is an amount to be added to the cost of any change in Contract Sum, but not to the cost of change in Guaranteed Completion Date(s) for which Design-Builder has been compensated pursuant to the conditions set forth in Section 10.6.2. It shall be limited 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 / Subcontractor Markup for Self-Performed Work: For Design-Builder or Subcontractor of any tier for work performed by their forces, 6% of the cost developed in accordance with Section 9.2.8 a. – e. (2) Design-Builder / Subcontractor Markup for Work Performed at Lower Tier: For Design-Builder or Subcontractor of any tier for work performed by a subcontractor of a lower tier, 4% of the subcontract cost developed in accordance with Section 9.2.8 a. – i.