Design Within Funding Limit Clause Samples
The "Design Within Funding Limit" clause requires that the project's design and associated plans are developed to ensure that the total cost does not exceed a specified budget or funding cap. In practice, this means architects and engineers must tailor their designs, material selections, and specifications to stay within the financial constraints set by the client or funding entity. This clause helps prevent cost overruns and ensures that the project remains financially viable, addressing the risk of designs that are unaffordable or require significant revisions to meet budgetary limits.
Design Within Funding Limit. When the Services under the WOC include preparation of design plans for the project: Consultant shall accomplish the design Services required under the WOC so as to permit construction of the project within Agency’s budget for construction as set forth in the WOC. Consultant shall promptly advise Agency’s WOC Administrator if it finds that the project being designed will exceed or is likely to exceed the funding limitations and it is unable to design a usable project within these limitations. Upon receipt of such information, the WOC Administrator will review Consultant’s revised estimate of construction cost. Agency may, if it determines that the estimated construction contract price set forth in the WOC is so low that award of a construction contract not in excess of such estimate is improbable, authorize a change in scope or materials as required to reduce the estimated construction cost to an amount within the estimated construction contract price set forth in the WOC, or Agency may adjust such estimated construction contract price. Prior to releasing the bid for the construction contract, Agency will prepare an estimate of constructing the design submitted. If Agency’s estimator(s) determines Consultant’s design exceeds Agency’s budget for the construction contract as set forth in the WOC {and as may be revised per Section (i) above}, then Consultant shall perform such redesign and other Services as are necessary to permit contract award within the funding limitation. These additional Services shall be performed at no increase in the price of the WOC. However, Consultant shall not be required to perform such additional Services at no cost to Agency if Consultant’s design exceeds Agency’s budget (as set forth in the WOC) as a result of conditions beyond Consultant’s reasonable control.
Design Within Funding Limit. RESERVED
11. Ownership of Work Product
a. Definitions. The following terms have the meanings set forth below:
Design Within Funding Limit. RESERVED