CM’s Contingency Sample Clauses
The "CM’s Contingency" clause establishes a specific budget or allowance set aside by the Construction Manager (CM) to cover unforeseen costs or risks that may arise during a construction project. This contingency fund is typically used for unexpected expenses such as design changes, errors, omissions, or other unanticipated site conditions that are not covered by the original contract scope. By including this clause, the contract ensures that there are dedicated resources to address uncertainties, thereby reducing the risk of project delays or disputes over additional costs.
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CM’s Contingency. 13.3.1 The GMP proposal may include a CM Contingency amount to be used to fund increases in the Direct Construction Cost of the Project identified through the refinement, development and completion of the Construction Documents or procurement of the Work. The CM Contingency shall be as set forth in the Special Conditions, if any, or as negotiated between the parties and it shall reflect the risk inherent in the state of completion of the Construction Documents at the time the GMP proposal is submitted.
13.3.2 Any re-allocation of funds from the CM’s Contingency to cover increases in the Direct Construction Cost must be approved by the Owner in advance and in writing, such approval not to be unreasonably withheld. In written requests to use the CM’s Contingency, the CM shall provide detailed documentation of the scope of work affected and the basis for any increases in costs resulting in the need to use CM Contingency funds.
13.3.3 As the Construction Documents are finalized and the Buyout of the Work progresses the CM’s Contingency amount shall be reduced by mutual agreement of Owner and CM. The Buyout shall occur within the first twenty percent (20%) of the construction duration for each Notice to Proceed issued for construction. Should savings occur after the Buyout stage, such savings, and related reductions to the CM’s Contingency amount, will be handled in accordance with the provisions of Article 15.
CM’s Contingency. 13.3.1 The Guaranteed Maximum Price Proposal may include a CM Contingency amount to be used to fund increases in the Direct Construction Cost of the Project identified through the refinement, development and completion of the Construction Documents or procurement of the Work. The CM Contingency shall be negotiated between the parties and it shall reflect the risk inherent in the state of completion of the Construction Documents at the time the GMP proposal is submitted.
13.3.2 Any re-allocation of funds from the CM’s Contingency to cover increases in the Direct Construction Cost must be approved by the Owner in advance and in writing, such approval not to be unreasonably withheld. In written requests to use the CM’s Contingency, the CM shall provide detailed documentation of the scope of work affected and the basis for any increases in costs resulting in the need to use CM Contingency funds.
13.3.3 As the Construction Documents are finalized and the Buyout of the Work progresses the CM’s Contingency amount shall be reduced by mutual agreement of Owner and Contractor. The Buyout shall occur within the first 20% of the construction duration for each NTP issued for construction. Should savings occur after the Buyout stage, such savings, and related reductions to the CM’s Contingency amount, will be handled in accordance with the provisions of Article 15.
CM’s Contingency. 9.2.6.1 After the parties enter into the GMP Amendment and thereby establish the original balance of the CM’s Contingency, the CM’s Contingency will be further funded by the “buy-out savings,” if any, realized as result of a CM’s estimate of the cost of a particular Subcontract scope of Work or Self-Performed scope of Work that is higher than the actual cost of that scope of Work at the time the Contracting Authority approved of (1) the award of the related Subcontract or (2) the Self-Performance of that scope of Work by the CM or a CM Affiliated Entity.
.1 If the Project involves more than one Phase as explicitly identified in the Agreement, (1) the CM’s Contingency will be funded on a per-Phase basis; and (2) the CM shall account for, use, and release the CM’s Contingency on a per-Phase basis. The CM will not be entitled to transfer unused CM’s Contingency from one Phase to one or more other Phases.
9.2.6.2 After the parties enter into the GMP Amendment and after the Date of Commencement:
.1 the CM may use the CM’s Contingency in its discretion (subject to the concurrence of the Owner and the Contracting Authority) to pay for unexpected events such as: (1) a CM’s GMP Amendment estimate of the subcontract sum of a particular Subcontract that is lower than the actual subcontract sum of that Subcontract (provided, however, that the foregoing use does not include the scope of any Work Self- Performed by the CM or a CM Affiliated Entity); (2) a Subcontractor’s breach of its Subcontract;
CM’s Contingency. 9.2.5.1 After the parties enter into the GMP Amendment and thereby establish the original balance of the CM’s Contingency, the CM’s Contingency will be further funded by the “buy-out savings,” if any, realized as result of a CM’s estimate of the cost of a particular Subcontract or CM self-performed scope of Work that is higher than the actual cost of that scope of Work at the time the Contracting Authority approved of (1) the award of the related Subcontract or (2) the performance of that scope of Work by the CM or a CM Affiliated Entity.
9.2.5.2 After the parties enter into the GMP Amendment and after the Date of Commencement:
.1 the CM may use the CM’s Contingency in its discretion (subject to the concurrence of the Owner and the Contracting Authority) to pay for unexpected events such as: (1) a CM’s GMP Amendment estimate of the subcontract sum of a particular Subcontract that is lower than the actual subcontract sum of that Subcontract (provided, however, that the foregoing use does not include the scope of any Work performed by the CM or a CM Affiliated Entity); (2) a Subcontractor’s breach of its Subcontract; (3) remediation of Defective Work; and (4) additional costs required to complete the Work within the Contract Times where the CM would not be entitled to a Modification; and
CM’s Contingency. This Amendment is contingent upon the prior written approval of the Centers for Medicare and Medicaid Services (“CMS”). In the event that CMS does not approve the Amendment, this Amendment shall be null and void.