Common use of Construction Phase Fee Clause in Contracts

Construction Phase Fee. The Construction Manager shall commence the Construction Phase upon receipt of a Notice to Proceed from the Owner. The Construction Manager’s compensation for work or services performed during the Construction Phase shall be described in the completed Exhibit D attached to the Request for Proposal Document. The Owner retains the right to review the need and effectiveness of any employee or employees assigned by the Construction Manager, should the Project Manager question the need for the employee or employees. The Construction Phase Fee shall be paid in equal monthly payments throughout the project based upon the duration of construction specified in the Notice to Proceed. The first monthly payment shall follow the issuance of the Notice to Proceed and the final monthly payment shall be paid only when construction of the project is finally completed and occupancy of the project accepted by the Owner. If construction is authorized only for a part of the project, the fee paid shall be proportionate to the amount of work authorized by the Owner.