Common use of EVALUATION OF THE BUDGET AND ESTIMATE OF CONSTRUCTION COST Clause in Contracts

EVALUATION OF THE BUDGET AND ESTIMATE OF CONSTRUCTION COST. When the Project Program requirements have been sufficiently identified, the Architect/Engineer shall prepare an Estimate of Construction Cost. This estimate may be based on current area, volume, similar conceptual or recent construction history estimating techniques. If Programming is included in the Architect/Engineer’s services under this Agreement, the Architect/Engineer shall update and refine the Estimate of Construction Cost throughout the programming process. The Architect/Engineer shall advise the Owner of any adjustments to previous Estimates indicated by changes in Project requirements or general market conditions. If at any time the Architect/Engineer’s Estimate of Construction Cost exceeds the Owner’s budgeted construction cost, the Architect/Engineer shall make appropriate recommendations to the Owner to adjust the Project’s size, quality, or budget. Evaluations of the Owner’s budget for the Project, the Estimate of Construction Cost, and updated Estimates of Construction Cost prepared by the Architect/Engineer, are to represent the Architect/Engineer’s best judgment as a design professional familiar with the construction industry. It is recognized, however, that neither the Architect/Engineer nor the Owner has control over the cost of labor, materials or equipment, the Contractor’s methods of determining bid prices, or over competitive bidding, market or negotiating conditions. Accordingly, the Architect/Engineer cannot and does not warrant or present that bids or negotiated prices will not vary from the Owner’s budget for the Project or from any Estimate of Construction Cost or evaluations prepared by the Architect/Engineer. The Construction Cost is part of the Project Budget and shall be the total “Hard” costs or, to the extent the Project is not completed, the estimated cost to the Owner of all elements of the Project programmed, designed, or specified by the Architect/Engineer. Estimates of Construction Cost shall include the cost at projected market rates of labor and materials and equipment designed, specified, selected or specially provided for by the Architect/Engineer, including the costs of management or supervision of construction or installation provided by a separate construction manager or contractor, plus a reasonable allowance for their overhead and profit. The Estimate of Construction Cost does not include “Soft” costs as defined in the Agreement.

EVALUATION OF THE BUDGET AND ESTIMATE OF CONSTRUCTION COST. When the Project Program requirements have been sufficiently identified, the The Architect/Engineer shall prepare an Estimate Estimates of Construction Cost. This estimate These estimates may be based on current area, volume, similar conceptual or recent construction history estimating techniquestechniques during Schematic and Design Development but shall be based upon direct quantity take-offs with correlation to current market trends throughout the Construction Documents phase. If Programming is included in the Architect/Engineer’s services under this Agreement, the The Architect/Engineer shall update and refine the Estimate of Construction Cost throughout at each phase of design and as requested by the programming processOwner. The Architect/Engineer shall advise the Owner of any adjustments to previous Estimates indicated by changes in Project requirements or general market conditions. If at any time the Architect/Engineer’s Estimate of Construction Cost exceeds the Owner’s budgeted construction costProject Budget, the Architect/Engineer shall make appropriate recommendations to the Owner to adjust the Project’s size, quality, or budget, and shall make modifications that are mutually agreed upon with the Owner in making such adjustments. Evaluations of the Owner’s budget for the Project, the Estimate of Construction Cost, Cost and updated Estimates of Construction Cost prepared by the Architect/Engineer, Engineer are to represent the Architect/Engineer’s best judgment as a design professional familiar with the construction industry. It is recognized, however, that neither the Architect/Engineer nor the Owner has control over the cost of labor, materials or equipment, over the Contractor’s methods of determining bid prices, or over competitive bidding, market or negotiating conditions. Accordingly, the Architect/Engineer cannot and does not warrant or present that bids or negotiated prices will not vary from the Owner’s budget for the Project or from any Estimate of Construction Cost or evaluations evaluation prepared or agreed to by the Architect/Engineer. The Construction Cost is part of the Project Budget and shall be the total “Hard” costs cost or, to the extent the Project is not completed, the estimated cost to the Owner of all elements of the Project programmed, designed, or designed and/or specified by the Architect/Engineer. Estimates of Construction Cost shall include the cost at projected market rates of labor and materials and equipment designed, specified, selected or specially provided for by the Architect/Engineer, including the costs of management or supervision of construction or installation provided by a separate construction manager or contractor, plus a reasonable allowance for their overhead and profit. The Estimate of Construction Cost does not include “Soft” costs as defined in the Agreement. If bidding or negotiations have not commenced within ninety (90) days after the Architect/Engineer submits the final, completed Construction Documents to the Owner, the Estimate of Construction Cost shall be adjusted to reflect changes in the general level of prices in the construction industry. Once the fixed limit of Construction Cost is established by the Owner in conjunction with the Project Program and the design, the Architect/Engineer shall determine, with the interaction of the Owner, what materials, equipment, components, systems, and types of construction are to be included in the Plans and Specifications, and to make reasonable adjustments in the Project Program and design to bring it within the fixed limit. The Architect/ Engineer shall also include bid Alternates, with the interaction of the Owner, to the Base Bid to enable the bids to be within the fixed limit of Construction Cost. If the final Estimate of Construction Cost provided at the end of Construction Documents exceeds the budgeted fixed limit of Construction Cost (including Alternates and bidding contingencies), the Owner may: Give written approval of an increase in the fixed limit of Construction Cost; or, Confer with the Architect/Engineer in revising the Project to reduce the final Estimate of Construction Cost. Such revisions shall be performed without additional compensation to the Architect/Engineer. If the lowest responsible bid or lowest negotiated proposal exceeds the fixed limit of Construction Cost (including any Alternates and bidding contingencies), the Owner may: Give written approval of an increase in the fixed limit of Construction Cost; Negotiate deductive changes, not to exceed 7% of the total cost of the project with the lowest responsible bidder. Documenting such negotiated changes in the Construction Documents and/or by addenda shall be at the expense of the Architect/Engineer and shall constitute his sole responsibility to the Owner in this regard. Negotiated deductive changes shall be documented by the Architect/Engineer through either re-design of the Project or in a manner similar to bid addenda at the discretion of the Owner, and then formally priced and signed by the lowest responsible bidder; or, Confer with the Architect/Engineer in revising the Project to reduce the final Estimate of Construction Cost and rebid the Project. Documenting such revisions in the Construction Documents and/or by addenda shall be at the expense of the Architect/Engineer, including all costs for re-bidding the project, and shall constitute his sole responsibility to the Owner in this regard.

EVALUATION OF THE BUDGET AND ESTIMATE OF CONSTRUCTION COST. When the Project Program requirements have been sufficiently identified, the The Architect/Engineer shall prepare an Estimate Estimates of Construction Cost. This estimate These estimates may be based on current area, volume, similar conceptual or recent construction history estimating techniquestechniques during Schematic and Design Development but shall be based upon direct quantity take-offs with correlation to current market trends throughout the Construction Documents phase. If Programming is included in the Architect/Engineer’s services under this Agreement, the The Architect/Engineer shall update and refine the Estimate of Construction Cost throughout at each phase of design and as requested by the programming processOwner. The Architect/Engineer shall advise the Owner of any adjustments to previous Estimates indicated by changes in Project requirements or general market conditions. If at any time the Architect/Engineer’s Estimate of Construction Cost exceeds the Owner’s budgeted construction costProject Budget, the Architect/Engineer shall make appropriate recommendations to the Owner to adjust the Project’s size, quality, or budget, and shall make modifications that are mutually agreed upon with the Owner in making such adjustments. Evaluations of the Owner’s budget for the Project, the Estimate of Construction Cost, Cost and updated Estimates of Construction Cost prepared by the Architect/Engineer, Engineer are to represent the Architect/Engineer’s best judgment as a design professional familiar with the construction industry. It is recognized, however, that neither the Architect/Engineer nor the Owner has control over the cost of labor, materials or equipment, over the Contractor’s methods of determining bid prices, or over competitive bidding, market or negotiating conditions. Accordingly, the Architect/Engineer cannot and does not warrant or present that bids or negotiated prices will not vary from the Owner’s budget for the Project or from any Estimate of Construction Cost or evaluations evaluation prepared or agreed to by the Architect/Engineer. The Construction Cost is part of the Project Budget and shall be the total “Hard” costs cost or, to the extent the Project is not completed, the estimated cost to the Owner of all elements of the Project programmed, designed, or designed and/or specified by the Architect/Engineer. Estimates of Construction Cost shall include the cost at projected market rates of labor and materials and equipment designed, specified, selected or specially provided for by the Architect/Engineer, including the costs of management or supervision of construction or installation provided by a separate construction manager or contractor, plus a reasonable allowance for their overhead and profit. The Estimate of Construction Cost does not include “Soft” costs as defined in the Agreement.