Common use of Contingency and Allowances Clause in Contracts

Contingency and Allowances. The amounts set forth below for Construction Contingency and Allowances shall be included in the GMP and shown as separate line items in the Pricing Schedule (Exhibit 3), all Control Estimates, and the Final GMP Proposal. Design-Build Firm shall give Owner written notification of its intent to use funds from the Construction Contingency or an Allowance and submit to Owner upon request additional information justifying the appropriateness of the use thereof. Within ( ) Days after its receipt of such notification and any requested information, Owner may object to the use of funds in the Construction Contingency or an Allowance and, unless otherwise agreed, the Parties shall resolve such objection prior to the use thereof, through the dispute resolution process if necessary. Funds to be expended from the Construction Contingency or Allowances may only be applied to pay for the items described therein, and Design-Build Firm shall bear any cost therefor that exceeds the maximum allowable amount available in the Construction Contingency or Allowance. Expenditures from Contingency or Allowances for materials and equipment shall be based on the actual value thereof when delivered at the site, including shipping costs, but not costs to unload, store or stage at the Worksite. In no event shall an expenditure of funds from the Construction Contingency or an Allowance be permitted if such expenditure will cause the GMP to be exceeded. Upon Substantial Completion of the Project (or at such earlier time as otherwise provided below, the GMP shall be adjusted (reduced) to exclude amounts of the Construction Contingency and Allowances that have not been expended in accordance with this Agreement.