Construction Manager’s Contingency. The Guaranteed Maximum Price Proposal may include a Construction Manager’s Contingency amount to be used to fund increases in the Direct Construction Cost of the Project identified through the refinement, development and completion of the Construction Documents or procurement of the Work. Any re-allocation of funds from the Construction Manager’s Contingency to cover increases in the Direct Construction Cost must be approved by the Owner in advance and in writing, such approval not to be unreasonably withheld. In written requests to use the Construction Manager’s Contingency, the Construction Manager shall provide detailed documentation of the scope of work affected and the bases for any increases in costs. The Construction Manager’s Contingency is specifically not to be used for Contractor rework, unforeseen conditions, cost increases caused by lack of coordination or communication with the Project Architect or trade Subcontractors, or to correct errors or omissions in the Construction Documents. As the Construction Documents are finalized and the Buyout of the Work progresses the Construction Manager’s Contingency amount shall be reduced by mutual agreement of Owner and Contractor. Any balance in the Construction Manager’s Contingency fund remaining at the end of the Project shall be returned to the Owner as savings.
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