Common use of CM’s Contingency Clause in Contracts

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;