Common use of Cost Control Prior to GMP Clause in Contracts

Cost Control Prior to GMP. At appropriate intervals prior to agreement on the GMP change order, the Design Professional shall review the Construction Cost Estimate provided by the CM/GC and with the CM/GC develop the Reconciled Construction Cost Estimate, consisting of a composite of the Design Professional's Estimate of Probable Construction Cost and the CM/GC's Construction Cost Estimate, each separately derived and each based upon the Program and design documents prepared by the Design Professional. If at any time the Design Professional's Estimate of Probable Construction Cost and the Construction Cost Estimate of the CM/GC, are, in the Owner's judgment, not reconcilable or exceed corresponding Components of the Project Budget, the Owner, the Design Professional and the CM/GC shall confer to resolve such differences; and if such differences cannot be resolved, to recommend to the Owner such actions as may be necessary or appropriate to resolve such differences. Cost accounting shall comply with GASB 34 accounting requirements.