Common use of Where Bids Exceed Budget Clause in Contracts

Where Bids Exceed Budget. If the lowest responsible, responsive bid received from a Contractor exceeds the latest accepted estimate of construction costs, District may, at its discretion: 5.2.1 Award the contract to the lowest responsible, responsive bidder, and give written approval of an increase in District’s budget. 5.2.2 Reject all bids and rebid the contract. 5.2.3 If the bid amount is more than 6% greater than the Consultant’s latest accepted estimate of construction cost rendered during the Construction Documents Phase, District may require Consultant to revise the scope of work to be performed by the Contractor or its quality, or both, so as to reduce the Project’s estimated construction cost for the work to be performed by the Contractor, while still meeting District’s project objectives. Consultant shall at its expense, if so directed by District, modify the Construction Documents in order to reduce the Project’s estimated construction costs for the work to be performed by the Contractor within the Project budget for that Contractor’s work. Whenever possible, alternates will be additive, not deductive. Deductive alternate shall not be used to meet the 6% limit above. 5.2.4 Abandon the Project and terminate this Contract.