Common use of GUARANTEED MAXIMUM PRICE FOR CONSTRUCTION Clause in Contracts

GUARANTEED MAXIMUM PRICE FOR CONSTRUCTION. 7.1 When the construction documents are sufficiently complete to establish the scope of work for a Project or any portion thereof, the Construction Manager will establish and submit in writing to the Owner for his approval a Guaranteed Maximum Price, guaranteeing the maximum price to the Owner, for the construction of the Project or designated part thereof. 7.2 The Guaranteed Maximum Price will be subject to modification for changes in the Project as provided in Article 10. However, the actual price paid for the work by the Owner shall be the actual cost of all work subcontracts, supply contracts, direct labor costs, direct supervision costs, and direct job costs as defined under Article 9, plus the Construction Manager's fees or the GMP, whichever is less when the Project is complete. 7.3 The GMP will only include taxes for items in the Direct Cost of the Work that are legally enacted at the time the GMP is established. Pursuant to Florida Statutes, the Owner is exempt from sales tax on the purchase of certain construction material. The Owner has elected to exercise this right by directly purchasing various construction material, supplies and equipment that shall be made a part of each Project. 7.4 The Construction Manager shall facilitate the direct purchases without any additional cost to Owner. The Construction Manager and Subcontractors shall include the items eligible for direct purchase in their GMP including applicable sales tax. Upon execution of the GMP the Construction Manager shall prepare a credit change order with sufficient backup to allow the Owner to purchase the materials from the vendors selected by the Subcontractors at the price originally negotiated by the Subcontractors. The coordination, delivery, storage, handling, installation, startup, warranty, and all other obligation related to said purchase shall remain that of the Subcontractors as if they purchased the materials directly. The GMP shall include a good faith estimate of the estimated sales tax recovery/savings. 7.5 In addition to the Direct Cost of Work, a GMP will include an agreed upon sum as the construction contingency. The Construction Manager will be required to furnish documentation evidencing expenditures charged to this contingency prior to the release of funds by the Owner. Use of the Contingency shall be approved by Owner, documented on the appropriate DCPS form and displayed in the monthly report. The Owner’s Representative and Architect/Engineer shall verify the actual costs. If bids are received prior to completion of contract documents, any surplus or deficit will be drawn from or added to the contingency. However, such events shall not cause the GMP to increase. 7.6 The contingency may be utilized, with the Owner’s concurrence, for the following reasons: A. Errors or omissions in the Construction Manager’s bidding and scoping processes. B. Reasonable schedule recovery. X. Xxxxx, methods, and materials reasonably inferred from the Construction Documents. D. Subcontractor non-performance or default after any bonding reimbursements have been recovered. E. Work not included in the construction documents which are necessary to cause the Project to conform to applicable building codes but was not identified during the review of Construction Documents (through no fault of the Construction Manager). F. Other costs incurred by the Construction Manager that are not part of the Cost of the Work 7.7 When the Project is bid and the majority of the subcontracts have been executed, and 50% of the work has been completed, the original contingency amount stated within the GMP may be decreased by change order and made available for the Owner's use and at the Owner’s discretion in proportion to the percent of the work completed. The remaining contingency amount must be equal to or greater than the percentage of the remaining work to be performed by the Construction Manager as defined in the original scope of work. After bid and award to Subcontractors, GMP buy-out savings shall be added to contingency and made immediately available to Owner. 7.8 If bids are not received for a portion of the work at or below the applicable line-item amount in the GMP, the Construction Manager may request the right to perform that portion of the work for the specified line-item lump sum amount or less. 7.9 All costs savings for the not-to-exceed value of the GMP shall be returned to the Owner as part of the savings established when final accounting is submitted upon Final Completion of the Work, except as otherwise provided herein or agreed to by the Owner and Construction Manager. “Cost Savings” are the difference between the final GMP and (a) the documented Construction Manager’s Fee (b) the expended portions of the contingency, and c) the actual expenditures representing the Direct Cost of the Work as defined in Article 9 herein. At the end of each Project, any remaining contingency shall be refunded to Owner together with a proportionate share of the Construction Manager’s Fee as provided in 8.1.2. 7.10 At the time of submission of a Guaranteed Maximum Price, the Construction Manager will verify the schedule for activities and work, which were previously adopted by the Construction Team and used to determine the Construction Manager's Cost of Work.

GUARANTEED MAXIMUM PRICE FOR CONSTRUCTION. 7.1 When the construction documents are sufficiently complete to establish the scope of work for a Project or any portion thereof, the Construction Manager will establish and submit in writing to the Owner for his approval a Guaranteed Maximum Price, guaranteeing the maximum price to the Owner, for the construction of the Project or designated part thereof. 7.2 The Guaranteed Maximum Price will be subject to modification for changes in the Project as provided in Article 10. However, the actual price paid for the work by the Owner shall be the actual cost of all work subcontracts, supply contracts, direct labor costs, direct supervision costs, and direct job costs as defined under Article 9, plus the Construction Manager's fees or the GMP, whichever is less when the Project is complete. 7.3 The GMP will only include taxes for items in the Direct Cost of the Work that are legally enacted at the time the GMP is established. Pursuant to Florida Statutes, the Owner is exempt from sales tax on the purchase of certain construction material. The Owner has elected to exercise this right by directly purchasing various construction material, supplies and equipment that shall be made a part of each Project. 7.4 The Construction Manager shall facilitate the direct purchases without any additional cost to Owner. The Construction Manager and Subcontractors shall include the items eligible for direct purchase in their GMP including applicable sales tax. Upon execution of the GMP the Construction Manager shall prepare a credit change order with sufficient backup to allow the Owner to purchase the materials from the vendors selected by the Subcontractors at the price originally negotiated by the Subcontractors. The coordination, delivery, storage, handling, installation, startup, warranty, and all other obligation related to said purchase shall remain that of the Subcontractors as if they purchased the materials directly. The GMP shall include a good faith estimate of the estimated sales tax recovery/savings. 7.5 In addition to the Direct Cost of Work, a GMP will include an agreed upon sum as the construction contingency. The Construction Manager will be required to furnish documentation evidencing expenditures charged to this contingency prior to the release of funds by the Owner. Use of the Contingency shall be approved by Owner, documented on the appropriate DCPS form and displayed in the monthly report. The Owner’s Representative and Architect/Engineer shall verify the actual costs. If bids are received prior to completion of contract documents, any surplus or deficit will be drawn from or added to the contingency. However, such events shall not cause the GMP to increase. 7.6 The contingency may be utilized, with the Owner’s concurrence, for the following reasons: A. Errors or omissions in the Construction Manager’s bidding and scoping processes. B. Reasonable schedule recovery. X. XxxxxC. Means, methods, and materials reasonably inferred from the Construction Documents. D. Subcontractor non-performance or default after any bonding reimbursements have been recovered. E. Work not included in the construction documents which are necessary to cause the Project to conform to applicable building codes but was not identified during the review of Construction Documents (through no fault of the Construction Manager). F. Other costs incurred by the Construction Manager that are not part of the Cost of the Work 7.7 When the Project is bid and the majority of the subcontracts have been executed, and 50% of the work has been completed, the original contingency amount stated within the GMP may be decreased by change order and made available for the Owner's use and at the Owner’s discretion in proportion to the percent of the work completed. The remaining contingency amount must be equal to or greater than the percentage of the remaining work to be performed by the Construction Manager as defined in the original scope of work. After bid and award to Subcontractors, GMP buy-out savings shall be added to contingency and made immediately available to Owner. 7.8 If bids are not received for a portion of the work at or below the applicable line-item amount in the GMP, the Construction Manager may request the right to perform that portion of the work for the specified line-item lump sum amount or less. 7.9 All costs savings for the not-to-exceed value of the GMP shall be returned to the Owner as part of the savings established when final accounting is submitted upon Final Completion of the Work, except as otherwise provided herein or agreed to by the Owner and Construction Manager. “Cost Savings” are the difference between the final GMP and (a) the documented Construction Manager’s Fee (b) the expended portions of the contingency, and c) the actual expenditures representing the Direct Cost of the Work as defined in Article 9 herein. At the end of each Project, any remaining contingency shall be refunded to Owner together with a proportionate share of the Construction Manager’s Fee as provided in 8.1.2. 7.10 At the time of submission of a Guaranteed Maximum Price, the Construction Manager will verify the schedule for activities and work, which were previously adopted by the Construction Team and used to determine the Construction Manager's Cost of Work.