Common use of Construction Fee Clause in Contracts

Construction Fee. For the construction services, as described in Section 3 of the General Requirements, provided by CM/GC, Owner shall pay to CM/GC a Construction Fee representing the gross profit relative to the construction services, in accordance with Section 4, Part 3 below. Adjustments in the CM/GC’s Fees. The CM/GC’s Fee can only be changed by a written Change Order executed by both parties. The Fee can only be adjusted for material changes in the scope of the Work, which includes without limitation the management of the replacement of an insured or uninsured loss. CM/GC’s Preconstruction Costs and Construction Overhead Costs. The maximum allowable amount for preconstruction costs and construction overhead costs shall be not in excess of the amount specified in Paragraph 6 of the Contract, established by agreement with the Owner based upon the CM/GC Fee Proposal, set forth in Exhibit E, and by using the Project Cost Matrix included therein. These costs and limitations consist of the following: Preconstruction Costs and Expenses. The Preconstruction Costs and Expenses are inclusive of all costs for professional consulting services and all direct and incidental expenses not related to construction activities or the Work, including but not limited to cost estimating services, scheduling services, value engineering, constructability, toll telephone calls, facsimile charges, postage and use of courier services, photocopying and reproduction expenses, bond premiums, reproduction, salaries, wages, fees to consultants and subcontractors assisting the CM/GC, design coordination expenses and related services, based upon Actual Cost not exceeding, in the aggregate, the amounts for Preconstruction Cost And Expense items shown on the completed Project Cost Matrix in Exhibit E. The maximum allowable amount the Owner shall be liable to CM/GC for Preconstruction Costs and Expenses is shown in Exhibit E and the aggregate of all Overhead Costs and Expenses shall not exceed the amount shown in Paragraph 6 of the Contract.