Common use of Construction Cost Estimates Clause in Contracts

Construction Cost Estimates. Construction Cost Estimates are estimates of the then current costs of labor, materials, equipment, and services plus a reasonable allowance for the Trade Contractors' profit, overhead and administrative cost as necessary to complete construction of the Project in accordance with the Design Documents. Construction Cost Estimates shall include an appropriate allowance for contingencies relating to market conditions at the time of solicitation of Trade Contractor bids for the Project and Changes in the Work during construction of the Project. In the event any Construction Cost Estimate exceeds the Owner’s Project Budget by more than two percent (2%), the CM shall immediately inform the Owner and provide the Owner with specific recommendations for bringing the Construction Cost estimate back within the Project Budget.