Common use of Expected Cost Clause in Contracts

Expected Cost. 9.4.1 As part of the Validation Study, the Architect, in collaboration with the IPD Team Members, shall prepare an Expected Cost, which shall comprise the following: (a) total cost to Owner of all elements of the Cost of the Work for the Project, including the total costs of professional services, labour, materials and supervision to be furnished by Architect and CM/GC during the Validation Phase, the Design and Procurement Phase, the Construction Phase and the Post-Construction Phase; (b) At-Risk Amounts; (c) the IPD Team Contingency; (d) General Conditions; and (e) all Allowances; each in the amount agreed upon by the Core Group during the Validation Phase. The Expected Cost shall not include amounts for Owner’s Retained Costs, Owner’s Contingency or the costs of land, rights of way, financing or other items for which Owner is responsible. 9.4.2 The IPD Team Contingency is a contingency amount determined by the initial Core Group during the Validation Phase that is available to address Deficient Work (whether violating the standard of care or not) as provided in Section 7.2.3 and to pay for items that are properly considered a Cost of the Work but which do not form the basis of a Change Order. The Core Group will determine when and how the IPD Team Contingency will be allocated among budget line items. Although it is identified as a line item in the Project budget, the IPD Team Contingency is not a separate fund, but is tracked separately for the sole purpose of a risk and cost management tool.