Cost Plus Fixed Fee and Target Price. In full consideration for the performance of the Work and all other obligations of Contractor hereunder, Princeton University agrees to pay the Cost of the Work plus a Fixed Fee (the “Cost Plus Fixed Fee” and/or “CPFF”). The Contractor’s “Fixed Fee” is the fixed amount set forth in the summary below. The term “Target Price” as it appears in this Contract shall mean the total estimated amount for the Cost Plus Fixed Fee (CPFF). The total amount established for the Target Price is $XXX,XXX,XXX (Enter dollar value text). The elements comprising this Target Price amount are more fully detailed in the Target Price Breakdown and Basis Documents set forth in Part III and are summarized here as follows: Subcontractor/Trade Costs $xx,xxx,xxx General Requirements $x,xxx,xxx Subtotal Direct Work $xx,xxx,xxx General Conditions Costs $x,xxx,xxx Subtotal Construction Costs $xxx,xxx,xxx GL/Excess Insurance $x,xxx,xxx Subcontractor Default Insurance (SDI) $x,xxx,xxx Builders Risk Insurance (BRI) $xxx,xxx Total Cost of the Work $xxx,xxx,xxx Contractor’s Fixed Fee $x,xxx,xxx TOTAL Target Price $XXX,XXX,XXX The Target Price is established for the purpose of providing Princeton University with a projection of the estimated total cost of construction for the Project. The Target Price shall not be construed as a limitation on the total amount payable to the Contractor under this Contract nor shall it be construed as an entitlement to the Contractor in the event of an underrun. However, notwithstanding the preceding, changes to the estimated Target Price shall be made only by the issuance of an appropriately authorized Change Order signed by Princeton University subject to the terms and limitations in this Article IV and elsewhere in this this Agreement and in the General Terms & Conditions.
