Contractor’s Contingency Clause Samples

Contractor’s Contingency. 11.3.1 The Guaranteed Maximum Price Proposal shall include a Contractor’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. 11.3.2 Any re-allocation of funds from Contractor’s Contingency to cover increases in the Direct Construction Cost must be approved by Owner in advance and in writing, such approval not to be unreasonably withheld. In written requests to use Contractor’s Contingency, Contractor shall provide detailed documentation of the scope of work affected and the bases for any increases in costs. 11.3.3 Contractor’s Contingency is specifically not to be used for Contractor rework, or cost increases caused by lack of coordination or communication with A/E or trade Subcontractors. 11.3.4 As the Construction Documents are finalized and the buyout of the Work progresses, Contractor’s Contingency amount shall be reduced by mutual agreement of Owner and Contractor. Any balance in Contractor’s Contingency fund remaining at the end of the Project shall be returned to Owner as savings.

Contractor’s Contingency. The TI Construction Contract shall be a Guaranteed Maximum Price contract and may upon Tenant’s approval, which shall not be unreasonably withheld, conditioned or delayed, include a contractor’s contingency for the Contractor’s use to cover increased costs resulting from further development of the plans and specifications and other items, which are properly reimbursable to Landlord as a cost of Landlord’s Work but are not the subject of a change order. The Contractor will be required to inform Landlord and Tenant of its use of said contingency. The status of said contingency and the record of use of said contingency shall be submitted monthly with each application for payment. The monthly requisition is to be fully substantiated and provided to Tenant for review and approval. Information required within each requisition must include: • An application for payment and sworn statement of Contractor substantially in the form of AIA Document G-702 covering all work for which disbursement is to be made to a date specified therein. • Included with each application for payment, Contractor will include a Work-in-Progress report (“WIP”) for the month being invoiced. The WIP report will show all individual cost items that make up the application for payment including a breakdown of Contractor’s own labor showing hours, rates, and phase code (general task) performed with that labor. • All subcontractor, material supplier and service provider invoices included in the requisition. Supporting documentation must reconcile with each line item amount invoiced for the period on the G-703 continuation sheet for requisitions to be approved and process. • Fully completed and notarized Contractor, subcontractor’s and material supplier’s waivers of lien. Together with such other items as may be reasonably requested by Tenant, Landlord or Landlord’s lender. There will be no shared savings clause incorporated into the TI Construction Contract Guaranteed Maximum Price and any unused portion of the contingency shall revert to Tenant.

Contractor’s Contingency. The Contractor’s GMP Proposal contains, as part of the estimated Cost of the Project, the Contractor’s Contingency, a sum agreed upon to cover costs which are properly reimbursable as a Cost of the Project, whether or not such cost is the basis for a Change Order. The Contractor shall regularly (no less than on a monthly basis during the term of this Agreement) provide The City of West Lafayette with an accounting of all charges against the Contractor’s Contingency.

Contractor’s Contingency. 10.3.1 If the GMP is priced prior to completion of 100% Construction Documents, the Guaranteed Maximum Price Proposal may include Contractor’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. 10.3.2 When the GMP is priced based upon 100% Construction Documents, the Contractor's Contingency shall be established at 5% of the GMP Direct Construction Cost. When buyout of the Project is at least 95% complete, the Owner may elect to recognize any savings achieved to that point in excess of 5% of the GMP value by issuing a deductive change order for the saved amount. 10.3.3 Any re-allocation of funds from Contractor’s Contingency to cover increases in the Direct Construction Cost must be approved by Owner in advance and in writing, such approval not to be unreasonably withheld. In written requests to use Contractor’s Contingency, Contractor shall provide detailed documentation of the scope of work affected and the bases for any increases in costs. 10.3.4 Contractor’s Contingency is specifically not to be used for Contractor rework, unforeseen conditions, cost increases caused by lack of coordination or communication with CM or trade Subcontractors, or to correct errors or omissions in the Construction Documents, general conditions costs, or costs otherwise recoverable by insurance, bonds, subcontractors or suppliers. At Final completion, the uses of contingency are restricted and may not be used. The Owner requires that 100% of the savings between the GMP and the actual Cost of the Work accrue to the Owner. 10.3.5 Owner shall compensate Contractor by Change Order for changes in the design and for unforeseen conditions not reasonably evident or known at the time of the Notice to Proceed through a contingency held and maintained by the Owner. 10.3.6 As the buyout of the Work progresses, Contractor’s Contingency amount shall be reduced by mutual agreement of Owner and Contractor. Any balance in Contractor’s Contingency fund remaining at the end of the buyout shall be returned to Owner as savings. 10.3.7 Any expenditure of the Contractor's Contingency must have approval of the Owner prior to payment.

Contractor’s Contingency. 1. The GMP Proposal may include an amount (the “Contractor’s Contingency”) to be used to fund increases in the Direct Construction Costs of the Project identified through the refinement, development and completion of the Construction Documents or procurement of the Work. The Contractor’s Contingency shall be negotiated between the Parties and it shall reflect the risk inherent in the state of completion of the Construction Documents at the time the GMP Proposal is submitted. 2. Any re-allocation of funds from the Contractor’s Contingency to cover increases in the Direct Construction Costs must be approved by the Town in advance and in writing, which approval shall not to be unreasonably withheld. In written requests to use the Contractor’s Contingency, the Contractor shall provide detailed documentation of the scope of work affected and the basis for any increases in costs resulting in the need to use Contractor’s Contingency funds. 3. As the Construction Documents are finalized and the buyout of the Work progresses the Contractor’s Contingency amount shall be reduced by mutual agreement of the Town and Contractor. The buyout shall occur within the first 20% of the construction duration for each Notice to Proceed issued for construction. Should savings occur after the buyout stage, such savings, and related reductions to the Contractor’s Contingency amount, will be retained by the Town.

Contractor’s Contingency. Owner and Contractor have entered into that certain Ground Lease dated on or about the date hereof, for the lease of the Land to Contractor (the “ Ground Lease”). Notwithstanding anything to the contrary contained herein, in the event Contractor, as tenant under the Ground Lease, elects to terminate the Ground Lease pursuant to Section 6(a) thereof, then this Agreement shall automatically terminate upon such termination of the Ground Lease, and neither party shall have any further rights or obligations hereunder.

Contractor’s Contingency. The Guaranteed Maximum Price includes Contractor’s Contingency. The Contractor’s Contingency is a sum of money unassociated with any specific work to allow the Contractor to accommodate market changes and/or estimating errors in order to complete the Project within the Guaranteed Maximum Price.

Contractor’s Contingency. The Contractor’s GMP Proposal contains, as part of the estimated Cost of the Project, the Contractor’s Contingency, a sum agreed upon to cover costs which are properly reimbursable as a Cost of the Project, whether or not such cost is the basis for a Change Order. The Contractor shall regularly (no less than on a monthly basis during the term of this Agreement) provide The City of Fishers with an accounting of all charges against the Contractor’s Contingency.