Common use of Construction Manager’s Contingency Clause in Contracts

Construction Manager’s Contingency. 14.3.1 The GMP Proposal may include a Construction Manager’s 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, as set forth in Section 8.5. 14.3.2 Any re-allocation of funds from Construction Manager’s Contingency to cover increases in the Direct Construction Cost must be approved by Owner in advance and in writing, such approval not to be unreasonably withheld. In written requests to use Construction Manager’s Contingency, Construction Manager will provide detailed documentation of the Scope of Work affected and the bases for any increases in costs. 14.3.3 Construction Manager’s Contingency is specifically not to be used for Contractor rework, unforeseen conditions, cost increases caused by lack of coordination or communication with A/E or trade Subcontractors, or to correct errors or omissions in the Construction Documents. 14.3.4 As the Construction Documents are finalized and the Buyout of the Work progresses Construction Manager’s Contingency amount will be reduced by mutual agreement of Owner and Contractor. Any balance in Construction Manager’s Contingency fund remaining at the end of the Project will be returned to Owner as savings.