Common use of Construction Contingencies Clause in Contracts

Construction Contingencies. Each IGMP and GMP for the Work or any Work Package shall include a Construction Contingency in the amount as expressly authorized in this Agreement. Such Construction Contingency shall be shown in the respective Schedule of Values and clearly identified as the "Construction Contingency". The Construction Contingency shall not be allocated to any particular item of the Cost of the Work and is established for increases in Cost of the Work incurred by the CM for unforeseen causes or details not capable of reasonable anticipation at the time of the execution of this Agreement or the respective Work Authorization Amendment and is not intended for changes in the scope of the Work or for reimbursement of expenses and costs not otherwise recoverable as Cost of the Work under Article 7 of this Agreement. It is understood that the amount of any such Construction Contingency, except as otherwise provided in this Agreement, is the maximum sum available to the CM to cover cost incurred as a result of such unforeseeable causes or details and that cost overruns in excess of the amount of the Construction Contingency will be borne by the CM. The CM will not be allowed to use any part of the Construction Contingency without prior written approval from the Owner, such approval not to be unreasonably withheld.