Common use of Basis of Fee Clause in Contracts

Basis of Fee. The CM/GC’s fee is the amount, established by and agreed to by both parties, that is the full amount of compensation due to the CM/GC as gross profit, and for any and all expenses of the Project not included and identified as a Cost of the Work or the CM/GC’s Overhead Cost, provided that the CM/GC performs all the requirements of the Contract Documents within the time limits established. The CM/GC’s Fee consists of the following: Preconstruction Fee. For the preconstruction consulting services provided by CM/GC, including design consultation services, as described in Section 2of the General Requirements, Owner shall pay to CM/GC a Preconstruction Fee representing the gross profit relative to the preconstruction services, in accordance with Section 4, Part 2 below.