CONTRACT SAVINGS, ALLOWANCES, REBATES AND REFUNDS. If the allowable, final, verified, audited amount of the cost of General Conditions, Cost of the Work, Allowance items and Design/Build Contractor’s Contingency is less than the amount established for each of those categories in the originally approved Guaranteed Maximum Price Proposal, the entire difference shall be credited to the Owner as savings and the final contract amount shall be adjusted accordingly. When buyout of the Project is at least 85% complete, the Owner may recognize any savings achieved to that point by issuing a deductive change order for the saved amount. Items to be provided for through Owner’s Special Cash Allowances shall be clearly identified in the Construction Documents and the Guaranteed Maximum Price proposal. The Cost of the Work included in the Allowances shall be determined in accordance with the Uniform General Conditions for University of Texas System Building Construction Contracts. Any claim by the Design/Build Contractor for an adjustment to an Allowance amount included in the Guaranteed Maximum Price based on the cost of Allowance work shall be made within a reasonable time after the issuance of the Construction Documents for the Allowance items. The Design/Build Contractor shall not be entitled to any increase in its Construction Phase Fee for increases to Allowance amounts that were initially based on estimates provided by the Design/Build Contractor. Owner shall be entitled to retain 100% of the balance of any unused Allowance amount. The Owner shall be entitled to deduct amounts for the following items from any Application for Payment or from the Request for Final Payment submitted by the Design/Build Contractor: The fair market value of all tools, surplus materials, construction equipment, and temporary structures that were charged to the Work (other than rental items) but were not consumed during construction or retained by the Owner. Upon completion of the Work or when no longer required, Design/Build Contractor shall either credit the Owner for the fair market value (as approved by the Owner) for all surplus tools, construction equipment and materials retained by the Design/Build Contractor or, at Owner’s option, use commercially reasonable efforts to sell the surplus tools, construction equipment and materials for the highest available price and credit the proceeds to the Owner’s account. Discounts earned by the Design/Build Contractor through advance or prompt payments funded by the Owner. The Design/Build Contractor shall obtain all possible trade and time discounts on bills for material furnished, and shall pay bills within the highest discount periods. The Design/Build Contractor shall purchase materials for the Project in quantities that provide the most advantageous prices to the Owner. Rebates, discounts, or commissions obtained by the Design/Build Contractor from material suppliers or Subcontractors, together with all other refunds, returns, or credits received for materials, bond premiums, insurance and sales taxes. Deposits made by Owner and forfeited due to the fault of the Design/Build Contractor. Balances remaining on any Allowances, the Design/Build Contractor’s Contingency, or any other identified contract savings. Owner shall be entitled to recover any savings realized between the Guaranteed Maximum Price and the buyout price for subcontracting work, provided however, that Design/Build Contractor may use such savings to offset other buyout packages that exceed the amounts identified in the initial Guaranteed Maximum Price, so long as the total Cost of Work proposed in the Guaranteed Maximum Price does not increase. Owner shall be entitled to recognize and recover 100% of any savings identified by cost review or audit at any time, before or after Final Payment.
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CONTRACT SAVINGS, ALLOWANCES, REBATES AND REFUNDS. If the allowable, final, verified, audited amount of the cost of General Conditions, Cost of the Work, Allowance items and Design/Build Contractor’s Contingency is less than the amount established for each of those categories in the originally approved Guaranteed Maximum Price Proposal, the entire difference shall be credited to the Owner as savings and the final contract amount shall be adjusted accordingly. When buyout of the Project is at least 85% complete, the Owner may recognize any savings achieved to that point by issuing a deductive change order for the saved amount. Items to be provided for through Owner’s Special Cash Allowances shall be clearly identified in the Construction Documents and the Guaranteed Maximum Price proposal. The Cost of the Work included in the Allowances shall be determined in accordance with the Uniform General Conditions for University of Texas System Building Construction Contractsand Supplementary Conditions. Any claim by the Design/Build Contractor for an adjustment to an Allowance amount included in the Guaranteed Maximum Price based on the cost of Allowance work shall be made within a reasonable time after the issuance of the Construction Documents for the Allowance items. The Design/Build Contractor shall not be entitled to any increase in its Construction Phase Fee for increases to Allowance amounts that were initially based on estimates provided by the Design/Build Contractor. Owner shall be entitled to retain 100% of the balance of any unused Allowance amount. The Owner shall be entitled to deduct amounts for the following items from any Application for Payment or from the Request for Final Payment submitted by the Design/Build Contractor: The fair market value of all tools, surplus materials, construction equipment, and temporary structures that were charged to the Work (other than rental items) but were not consumed during construction or retained by the Owner. Upon completion of the Work or when no longer required, Design/Build Contractor shall either credit the Owner for the fair market value (as approved by the Owner) for all surplus tools, construction equipment and materials retained by the Design/Build Contractor or, at Owner’s option, use commercially reasonable efforts to sell the surplus tools, construction equipment and materials for the highest available price and credit the proceeds to the Owner’s account. Discounts earned by the Design/Build Contractor through advance or prompt payments funded by the Owner. The Design/Build Contractor shall obtain all possible trade and time discounts on bills for material furnished, and shall pay bills within the highest discount periods. The Design/Build Contractor shall purchase materials for the Project in quantities that provide the most advantageous prices to the Owner. Rebates, discounts, or commissions obtained by the Design/Build Contractor from material suppliers or Subcontractors, together with all other refunds, returns, or credits received for materials, bond premiums, insurance and sales taxes. Deposits made by Owner and forfeited due to the fault of the Design/Build Contractor. Balances remaining on any Allowances, the Design/Build Contractor’s Contingency, or any other identified contract savings. Owner shall be entitled to recover any savings realized between the Guaranteed Maximum Price and the buyout price for subcontracting work, provided however, that Design/Build Contractor may use such savings to offset other buyout packages that exceed the amounts identified in the initial Guaranteed Maximum Price, so long as the total Cost of Work proposed in the Guaranteed Maximum Price does not increase. Owner shall be entitled to recognize and recover 100% of any savings identified by cost review or audit at any time, before or after Final Payment.
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Samples: Agreement
