Common use of Buy-Out Savings Clause in Contracts

Buy-Out Savings. It is expected that some cost savings between the construction manager's GMP Proposal and the actual cost of the Work may be generated as a result of the final bidding negotiation of subcontracts and actual expenses incurred by the Construction Manager. Any cost savings which are realized as a result of this buy out process and actual Project expenditures shall be retained for the Owner’s benefit. The Construction Manager shall provide detailed, complete and consistent accounting of these savings throughout the Project duration, in such form as is satisfactory to the Owner. Any cost savings that are generated as a result of the final bidding or negotiation of the subcontracts, and actual expenses by the Construction Manager, which are less than those estimated in establishing the GMP shall be returned in full to the Owner by deductive change order to the GMP Proposal contract amount. The Construction Manager's fee or general conditions costs shall not be adjusted as a result of these savings.