Owner’s Project Allowances Clause Samples

Owner’s Project Allowances. 11.10.1 As the Drawings and Specifications may not be finished at the time the Contract is awarded, the Contractor shall provide amounts for the Owner’s Project Allowances in the Contract Sum. Allowances shall be limited to use for items which require further development of the Drawings and Specifications by the Architect that is consistent with the Contract Documents and reasonably inferable therefrom. Such further development does not include such things as changes in scope, systems, kinds and quality of materials, finishes or equipment, all of which, if required, shall be incorporated by Contingency Expenditure Authorization (CEA) or Change Order. 11.10.2 Proposals for expenditures from the Owner’s Project Allowances must be requested by an Allowance Expenditure Proposal (AEP) and the AEP must conform to the same documentation requirements as are required for Change Order Proposals in Section 11.8.1. 11.10.3 For changes funded from Owner’s Project Allowances, the Contractor shall not be entitled to any markup for overhead or profit, regardless of whether the work is self-performed or performed by subcontractors. For work performed by subcontractors and funded from the Owner’s Project Allowances, the subcontractors will be allowed their actual costs for materials, the total amount of actual wages paid for labor, the total actual cost paid for state and federal payroll taxes and for Worker’s Compensation. To the total of the above costs, the subcontractor will be allowed to add a percentage as noted below to cover overhead and profit combined. Overhead shall be considered to include insurance, field and office supervisors and assistants, including safety and scheduling personnel, use of small tools, incidental job burdens and general Home Office expenses, all other general conditions/general requirements costs, and no separate allowance will be made therefor. Allowable percentages for overhead and profit on changes will not exceed 15 percent if the total cost of the work is less than or equal to $10,000, will not exceed 10 percent if the total cost of the work is between $10,000 and $20,000, and will not exceed 7.5 percent if the total cost of the work is over $20,000, for any specific change priced. 11.10.4 The balance of any remaining Owner’s Project Allowances funds belong to the Owner and shall be credited to the Owner at the end of the Project by deductive Change Order, including a credit for any corresponding overhead and profit calculated on such u...