Common use of Construction Contingency Clause in Contracts

Construction Contingency. The Guaranteed Maximum Price will contain a separately identified contingency factor (the "Construction Contingency") in the amount of $ . The Construction Contingency is not allocated to any particular item of the Cost of the Project, and is established for the Construction Manager's use as may be required for costs incurred in the Work from unforeseen causes or details which should have been anticipated by the Construction Manager at the time of the Owner's approval of the Guaranteed Maximum Price. Such unanticipated causes or details include, but are not limited to, refinement of details of design within the scope of standards, quality and quantities which are reasonably inferable from the Guaranteed Maximum Price documents, the correction of minor defects not relating to design, delays in receipt of materials due to the fault of the Construction Manager, corrections in the Work provided the Construction Manager has exhausted all reasonable means to obtain correction of same from the responsible Trade Contractor, labor and material overruns, and additional costs relating to Trade Contractor defaults, provided any such default is not due to the Owner's actions or failure to act, costs incurred by the Owner caused by the Construction Manager or Trade Contractors such as additional roof inspection, additional furniture move costs, furniture damage and costs associated with more than two (2) punch list visits to the same area. In the event the default of a Trade Contractor is due to the Owner's actions or failure to act, the Construction Manager will be entitled to an appropriate adjustment in the Guaranteed Maximum Price in accordance with the terms of this Agreement. The Construction Manager may utilize the Construction Contingency for any items within the Cost of the Project without the necessity of a Change Order, without constituting a Change in the Project, and without resulting in any change in the Guaranteed Maximum Price. At the conclusion of the project any remaining balance in the Construction Contingency becomes the property of the Owner. The Construction Contingency will not be used to increase the Construction Manager’s fee.

Construction Contingency. The Within the Contractor’s Guaranteed Maximum Price will contain a separately identified contingency factor (“GMP”) the "Contractor shall maintain and control the Project’s Construction Contingency") in Contingency for the amount benefit of $ District. The Construction Contingency can be used for construction-related changes, subject to prior District authorization. Proposed change orders (“PCO”) for use of Construction Contingency funds shall be classified and tracked in one or more of the following categories: unforeseen site conditions (other than those contemplated in section 3.10.3 below) or cost increases arising from omissions remaining in the Contract Documents or other errors in the constructability review services provided under the Preconstruction Services Agreement. Any expenditure attributable to Contractor’s sole negligence, error, or omission shall be recoverable by District from Contractor, in which case District may withhold such amount from any outstanding funds due Contractor. The amount for Construction Contingency is included in the Guaranteed Maximum Price as an amount to be applied at Contractor’s discretion, to defray contractually allowable costs, including General Conditions and other Project Costs, for which the Contractor is not allocated otherwise entitled to any particular item of the Cost of the Project, and is established for the Construction Manager's use as may be required for costs incurred in the Work from unforeseen causes or details which should have been anticipated by the Construction Manager at the time of the Owner's approval of a Change Order increasing the Guaranteed Maximum Price. Such unanticipated causes or details Examples of allowable uses of Construction Contingency include, but are not limited to, refinement of details of design within the scope of standards, quality and quantities which are reasonably inferable from the Guaranteed Maximum Price documents, the correction of minor defects not relating to design, delays gaps in receipt of materials due to the fault buyout of the Construction ManagerWork, corrections excusable, non-compensable delays, errors in the Work provided the Construction Manager has exhausted all reasonable means to obtain correction of same from the responsible Trade Contractor, labor and material overruns, and additional costs relating to Trade Contractor defaults, provided any such default is not due to the Owner's actions or failure to act, costs incurred by the Owner caused by the Construction Manager negligence of the Contractor or its Trade Contractors such as additional roof inspectionContractors, additional furniture move costsTrade Contractors, furniture necessary increases to prior negotiated or awarded Trade Contracts or purchase orders, and cleanup or repair of damage and costs associated with more than two (2) punch list visits to the same areaWork not identifiable to a particular Trade Contractor. In the event the default of a Trade Construction Contingency is not to be used to defray costs for which Contractor is due to the Owner's actions or failure to act, the Construction Manager will be entitled to an appropriate adjustment increase in the Guaranteed Maximum Price in accordance with the terms of this Agreement. The Construction Manager may utilize the Construction Contingency for any items within the Cost of the Project without the necessity of a by Change Order, without constituting a Change in the Project, and without resulting in any change in the Guaranteed Maximum Pricesuch as for design changes or design corrections. At the conclusion of the project any remaining balance in Project, all unused portions of the Construction Contingency becomes shall be returned to the property of the Owner. The Construction Contingency will not be used to increase the Construction Manager’s feeDistrict via deductive change order.

Construction Contingency. The Guaranteed Maximum Price will contain a separately identified contingency factor (the "Construction Contingency") in the amount of $ $_______. The Construction Contingency is not allocated to any particular item of the Cost of the Project, and is established for the Construction Manager's use as may be required for costs incurred in the Work from unforeseen causes or details which should have been anticipated by the Construction Manager at the time of the Owner's approval of the Guaranteed Maximum Price. Such unanticipated causes or details include, but are not limited to, refinement of details of design within the scope of standards, quality and quantities which are reasonably inferable from the Guaranteed Maximum Price documents, the correction of minor defects not relating to design, delays in receipt of materials due to the fault of the Construction Manager, corrections in the Work provided the Construction Manager has exhausted all reasonable means to obtain correction of same from the responsible Trade Contractor, labor and material overruns, and additional costs relating to Trade Contractor defaults, provided any such default is not due to the Owner's actions or failure to act, costs incurred by the Owner caused by the Construction Manager or Trade Contractors such as additional roof inspection, additional furniture move costs, furniture damage and costs associated with more than two (2) punch list visits to the same area. In the event the default of a Trade Contractor is due to the Owner's actions or failure to act, the Construction Manager will be entitled to an appropriate adjustment in the Guaranteed Maximum Price in accordance with the terms of this Agreement. The Construction Manager may utilize the Construction Contingency for any items within the Cost of the Project without the necessity of a Change Order, without constituting a Change in the Project, and without resulting in any change in the Guaranteed Maximum Price. At the conclusion of the project any remaining balance in the Construction Contingency becomes the property of the Owner. The Construction Contingency will not be used to increase the Construction Manager’s 's fee.. Proposal C2360-12-002-RFP – Attachment A – Construction Management Contract Page 14 of 28

Construction Contingency. The Guaranteed Maximum Price will contain a separately identified contingency factor (the "Construction Contingency") in the amount of $ . 9.1 The Construction Contingency is shall be available, subject to Owner’s prior written approval, which shall not allocated be unreasonably withheld, to cover unanticipated costs which would otherwise cause Construction Manager’s costs to exceed the applicable GMP, excluding: 9.1.1 Subcontractor defaults; costs occasioned by, and costs to correct, defective Work of Construction Manager and its Subcontractors or any particular item party for whom they are responsible; overtime and other acceleration costs of Construction Manager and Subcontractors necessitated by Construction Manager’s failure to properly manage or coordinate the Work, or by a default of or delay caused by Construction Manager or its Subcontractor; costs, losses or damages caused by Construction Manager’s or its Subcontractors’ negligence, gross negligence or intentional misconduct or failure to fulfill a specific responsibility of their respective contract; fines and violations assessed by governmental authorities; satisfaction of Construction Manager’s indemnification obligations; and reimbursement for any liquidated damages assessed against Construction Manager. Construction Manager shall provide an accounting of the Cost Construction Contingency as part of the Project, and is established Construction monthly Progress Report. Any costs which are the basis of a Change Order under this Agreement shall not be funded by the Contingency. 9.2 The Construction Contingency shall be available for costs of repairing damaged Work executed by the Construction Manager's use as may be required for costs incurred in , Subcontractors, or suppliers, provided that such damaged Work was not caused by the Work from unforeseen causes negligence of, or details which should have been anticipated failure to fulfill a specific responsibility by, the Construction Manager, and only to the extent that the cost of repair is not recovered by the Construction Manager, after Construction Manager’s exercise of diligent efforts, from insurance, sureties, Subcontractors, suppliers, or others. 9.3 Subject to Part II, Section 9.3.1, no amounts may be charged to the Construction Contingency except with prior written approval of Owner, which approval shall not be unreasonably withheld, and then only to the extent that such amounts have actually been paid or are to be paid by Construction Manager. Construction Contingency funds are further subject to the following restrictions: 9.3.1 Construction Manager shall have the right to charge up to $10,000.00 in each instance, against the Construction Contingency without Owner’s prior written approval, provided that such funds are for emergency use and Construction Manager was unable, after exercising reasonable efforts, to contact Owner concerning such use of the Contingency. Construction Manager shall provide Owner with written notice of such use within twenty four (24) hours and documentation evidencing the corresponding costs incurred, and a reasonable estimate of additional anticipated costs, within twenty (20) days of such written notice. In no event will Construction Manager charge in excess of $25,000.00 for multiple events in any two week period, without Owner’s prior written approval. 9.3.2 No sums may be charged to the Construction Contingency for Work for which Construction Manager is entitled to a Change Order hereunder. 9.3.3 Construction Manager is not entitled to payment of amounts which would otherwise be properly chargeable to the Construction Contingency to the extent that: (1) such amounts are properly chargeable to a Subcontractor or other responsible person or entity; (2) Construction Manager failed to notify Owner or its insurance carrier, if applicable, of the event which results in the claim to the Construction Contingency within ten (10) calendar days of such event; or (3) such amounts exceed the Construction Contingency set forth in the applicable GMP. 9.4 Any unused portion of the Construction Contingency, which sum will be calculated at the time of the Owner's approval of the Guaranteed Maximum Price. Such unanticipated causes or details includefinal payment, but are not limited toshall be shared equally as provided in Part II, refinement of details of design within the scope of standards, quality and quantities which are reasonably inferable from the Guaranteed Maximum Price documents, the correction of minor defects not relating to design, delays in receipt of materials due to the fault of the Construction Manager, corrections in the Work provided the Construction Manager has exhausted all reasonable means to obtain correction of same from the responsible Trade Contractor, labor and material overruns, and additional costs relating to Trade Contractor defaults, provided any such default is not due to the Owner's actions or failure to act, costs incurred by the Owner caused by the Construction Manager or Trade Contractors such as additional roof inspection, additional furniture move costs, furniture damage and costs associated with more than two (2) punch list visits to the same area. In the event the default of a Trade Contractor is due to the Owner's actions or failure to act, the Construction Manager will be entitled to an appropriate adjustment in the Guaranteed Maximum Price in accordance with the terms of this Agreement. The Construction Manager may utilize the Construction Contingency for any items within the Cost of the Project without the necessity of a Change Order, without constituting a Change in the Project, and without resulting in any change in the Guaranteed Maximum Price. At the conclusion of the project any remaining balance in the Construction Contingency becomes the property of the Owner. The Construction Contingency will not be used to increase the Construction Manager’s feeSection 7.5.

Construction Contingency. The Guaranteed Maximum Price will contain a separately identified contingency factor (the "Construction Contingency") in the amount of $ $_ _. The Construction Contingency is not allocated to any particular item of the Cost of the Project, and is established for the Construction Manager's use as may be required for costs incurred in the Work from unforeseen causes or details which should have been anticipated by the Construction Manager at the time of the Owner's approval of the Guaranteed Maximum Price. Such unanticipated causes or details include, but are not limited to, refinement of details of design within the scope of standards, quality and quantities which are reasonably inferable from the Guaranteed Maximum Price documents, the correction of minor defects not relating to design, delays in receipt of materials due to the fault of the Construction Manager, corrections in the Work provided the Construction Manager has exhausted all reasonable means to obtain correction of same from the responsible Trade Contractor, labor and material overruns, and additional costs relating to Trade Contractor defaults, provided any such default is not due to the Owner's actions or failure to act, costs incurred by the Owner caused by the Construction Manager or Trade Contractors such as additional roof inspection, additional furniture move costs, furniture damage and costs associated with more than two (2) punch list visits to the same area. In the event the default of a Trade Contractor is due to the Owner's actions or failure to act, the Construction Manager will be entitled to an appropriate adjustment in the Guaranteed Maximum Price in accordance with the terms of this Agreement. The Construction Manager may utilize the Construction Contingency for any items within the Cost of the Project without the necessity of a Change Order, without constituting a Change in the Project, and without resulting in any change in the Guaranteed Maximum Price. At the conclusion of the project any remaining balance in the Construction Contingency becomes the property of the Owner. The Construction Contingency will not be used to increase the Construction Manager’s 's fee.