Design Contingency Clause Samples

Design Contingency. The Construction Budget shall not include the cost of labor, materials or equipment relative to Owner-supplied equipment for the Project (except the cost of installation by CM/GC of any Owner-supplied equipment as provided in the Construction Documents), compensation for Architect, or the costs of land, rights of way, financing or other items for which Owner is responsible.

Design Contingency. 14.2.1 Architect makes no warranty, express or implied, that its design is free of errors. Owner and Architect agree that certain increased costs and changes may be required and are anticipated due to omissions, errors or inconsistencies in drawings and specifications prepared by Architect. Architect recommends Owner set aside a design contingency in the amount of One percent (_1%) of the estimated cost as a contingency to be used, as needed, to pay for any such increased costs and changes during construction. Owner agrees to make no claim against Architect or its consultants with respect to any increased cost within this contingency amount, unless the cost increase was caused by a breach of the Architect’s standard of care. If costs due to changes resulting from design errors, omissions or inconsistencies exceed the contingency, then Architect shall be responsible for costs incurred by Owner above that sum. Cost increases as a result of Owner requests made after construction documents are issued for permit, changes in governmental agency requirements after previous approval, or unforeseen conditions are not costs due to errors, omissions or inconsistencies. In no event shall Architect be responsible for direct costs that Owner would have incurred in the construction contract.

Design Contingency. For the purposes of Design Contingency both phases will be separate on the fee schedule. PHASE 2

Design Contingency. The amount of any funds remaining in the Design Contingency upon the issuance of a Certificate of Final Completion of the entire Project, or upon the earlier termination of this Contract, shall be confirmed by the written certification of the Design-Builder to the Owner at the time of the issuance of the Final Certificate and any funds remaining in the Construction Contingency at the time of the issuance of the Final Certificate or at the time of any conversion to a Lump Sum Price and shall be returned to the Owner.

Design Contingency. The Design and Construction Budget shall contain a Design Contingency cost element to be estimated by the Design-Builder and approved by the Owner. As provided in Article 4.4.5 but only prior to the issuance of the Certificate of Final Completion, the Design Builder shall be entitled to payment of Design Contingency Cost items from the Design Contingency, but not in the aggregate in excess of the Design Contingency component of the GMP Change Order. Funds from the Design Contingency may not be encumbered without written direction from the Owner in the form of a Consent Change Order.

Design Contingency. DESIGN CONTINGENCY. Consultant makes no warranty, express or implied, that its design is free of errors. Client and Consultant agree that certain increased costs and changes may be required and are anticipated due to omissions, errors or inconsistencies in drawings and specifications prepared by Consultant. Therefore, Client agrees to set aside a reserve in the amount of 10% of the estimated total project cost as a contingency to be used, as needed, to pay for any such increased costs and changes. The percentage is intended to be for the whole project cost and not applied as a percentage to individual segments or quantities of a construction project. Client agrees to make no claim against Consultant with respect to any increased cost within this contingency amount. If costs due to changes resulting from design errors, omissions or inconsistencies exceed the contingency, then Consultant shall be responsible for damages incurred by Client above that sum but only to the extent caused by Consultant’s negligent performance. Cost increases as a result of Client requests made after construction documents are issued for permit, changes in governmental agency requirements after previous approval, or unforeseen conditions are not costs due to errors, omissions or inconsistencies. In no event shall Consultant be responsible for direct costs that Client would have incurred in the construction contract, including actual installed quantities during construction, but for Consultant’s error or omission.

Design Contingency. The Design Contingency identified in subsection (e) is intended to cover increases in the estimated construction costs beyond those identified in subsection (a) as a result of refinement or development of the Project design (but not increases in square footage or Owner-directed changes from the Program). As shown in the approved budget, the Design Contingency shall be reduced upon approval of the Design Development Documents, upon delivery and approval of the 50% Construction Document Phase Estimate, and upon the delivery and approval of the 90% Construction Document Phase Estimate. Upon approval of the Design Documents by the permitting agencies, and agreement with CM/GC on the PCE, the Design Contingency shall be reduced to the percentage specified as the Errors & Omissions Contingency in the Project Summary, and shall be used to cover costs associated with design errors and omissions during the Construction Phase as provided for in this Article.

Design Contingency. Contingency Funds may be used until execution of the 100% Construction Documents Change Order for resolving unforeseen issues during the design period, allowing for interfaces that may be designed later in the design process, for Work for which the design has not been completed and, for enhancing the project as recommended by the design team and agreed upon by the Owner.