Common use of GUARANTEED MAXIMUM PRICE FOR CONSTRUCTION Clause in Contracts

GUARANTEED MAXIMUM PRICE FOR CONSTRUCTION. 6.1 The Construction Manager shall submit a written Guaranteed Maximum Price (GMP) for Construction to the Owner when the Construction Documents are 100% complete, see Exhibit J to the Agreement. Work shall not commence prior to the issuance of a Building Permit by the Chief Building Official. This indicates that all mandatories have been met (defined as Building Department code requirements.) Further, the agreed upon comments are required to be incorporated into the drawings at this stage. When design review “approval” is withheld, the documents must be resubmitted. The GMP shall guarantee the maximum price for the construction cost of the project or designated part thereof, for phased projects, and shall be approved by the Owner. Such Guaranteed Maximum Price will be subject to modification for changes in the project as provided in Article 27 of the general conditions. However, the actual price paid for the Work by the Owner shall be the actual cost of all Work subcontracts, supply contracts, direct labor costs, direct supervision costs, and direct job costs as defined under Article 26 of the general conditions, plus the Construction Manager’s fees or the GMP, whichever is less when the Work is complete. OWNER SHALL NOT BE LIABLE FOR NOR SHALL IT PAY CONSTRUCTION MANAGER ANY SUMS IN EXCESS OF THE GUARANTEED MAXIMUM PRICE. CONSTRUCTION MANAGER AGREES THAT ANY AND ALL SAVINGS BELONG AND/OR REVERT BACK TO THE OWNER.

GUARANTEED MAXIMUM PRICE FOR CONSTRUCTION. 6.1 The Construction Manager Preparation of GMP - When the Drawings and Specifications are sufficiently complete to establish the scope of work for the Project or any portion thereof (which, in the absence of the Owner’s express, written consent, shall submit a written Guaranteed Maximum Price (GMP) for Construction to the Owner be when the Construction Documents Drawings and Specifications are 100% complete), see Exhibit J the Construction Manager will establish and submit in writing to the Agreement. Work shall not commence prior to the issuance of Owner for his approval a Building Permit by the Chief Building Official. This indicates that all mandatories have been met (defined as Building Department code requirements.) FurtherGuaranteed Maximum Price, the agreed upon comments are required to be incorporated into the drawings at this stage. When design review “approval” is withheld, the documents must be resubmitted. The GMP shall guarantee guaranteeing the maximum price to the Owner for the construction cost of the project or designated part thereof, for phased projects, Project and shall be approved by the OwnerConstruction Manager's fees. Such Guaranteed Maximum Price will be subject to modification for changes in the project Project as provided in Article 27 10. However, any and all other provisions of this Contract (or any of the general conditions. Howeverother Contract Documents) to the contrary notwithstanding, the actual price paid for the Work by the Owner shall be the actual cost of all Work subcontracts, supply contracts, direct labor costs, direct supervision costs, and direct job costs as defined under Article 26 of the general conditions9, plus the Construction Manager’s fees fees, or the GMP, whichever is less when the Work is finally complete. OWNER SHALL NOT BE LIABLE FOR NOR SHALL IT PAY CONSTRUCTION MANAGER ANY SUMS IN EXCESS OF THE GUARANTEED MAXIMUM PRICETaxes Included in the GMP - The GMP will only include those taxes in the cost of the Project which are legally enacted at the time the GMP is established. CONSTRUCTION MANAGER AGREES THAT ANY AND ALL SAVINGS BELONG AND/OR REVERT BACK TO THE OWNERConstruction Contingency - At the time of submission of the Guaranteed Maximum Price, the Construction Manager will verify the time schedule for activities and Work which were adopted by the Construction Team and used to determine the Construction Manager’s cost of the Work. In addition to the cost of the Work, the GMP will include a separately stated agreed upon sum as the Construction Contingency which is included for the purpose of defraying the expenses due to unforeseen circumstances relating to construction, or for such other purposes as the Owner may choose. No Construction Manager Fee shall be charge against the construction contingency. This contingency shall reflect the estimated costs associated with unknown conditions that are common in remodeling projects. The use of the contingency is subject to the College’s prior written approval through the execution of Construction Change Directives. All contingency balances shall revert back to the College at the end of the project. The Construction Manager will be required to furnish documentation evidencing expenditures charged to the Construction Contingency prior to the release of funds by the Owner. Documentation necessary for use of the Construction Contingency by the Construction Manager shall be determined by the Construction Team. The Architect-Engineer shall verify the actual costs. If bids are received above the applicable line item in the GMP, the deficiency will be taken from the contingency, however such events shall not be caused to increase the GMP. If bids are not received for a portion of the Work at or below the applicable line item amount in the GMP, the Construction Manager reserves the right to perform that portion of the Work as acknowledged by the Owner or negotiate for its performance for the specified line item lump sum amount or less. Adjustment of Construction Contingency - When the GMP Amendment is executed, the Construction Contingency within the GMP may, at the Owner’s sole discretion, be decreased in proportion to the percent of the Work completed. In other words, if 10% of the Work has been completed and the Owner requests that the Construction Contingency be adjusted, then 10% of the Construction Contingency will be removed from the GMP by Change Order, and the GMP will be reduced by that amount. The Construction Manager agrees that no additional Fees or Overhead and Profit charges of any kind shall be requested, or due and owing in relation to any changes (whether initiated by Owner or otherwise) which utilize any portion of the Construction Contingency. Moreover, if the Owner exercises its rights under this paragraph to reduce the Construction Contingency (and correspondingly, the GMP) and subsequently a change is requested or necessary (whether Owner initiated or otherwise) which requires the use of all or some of such Construction Contingency funds for the Work, the Construction Manager shall neither request, nor be owed, any additional Fees or Overhead and Profit charges to the extent of the use of such Construction Contingency funds and, subject to the provisions of paragraph 8.1.2(a)(iii) below, shall not be entitled to any additional Fees or Overhead and Profit charges so long as the GMP agreed upon in the GMP Amendment (i.e. the originally agreed upon GMP) is not exceeded.

GUARANTEED MAXIMUM PRICE FOR CONSTRUCTION. 6.1 The Construction Total Program Manager shall submit a written Guaranteed Maximum Price (GMP) for Construction to the Owner SBBC when the Total Program Manager has received bids for the construction Work under this agreement. A Notice to Proceed for Construction will be issued upon SBBC approval of the GMP and when Construction Documents are 100% completecomplete as determined by the Facilities and Construction Management Division staff having issued either “approved” status, see Exhibit J to the Agreement. Work shall not commence prior to the and, issuance of a Building Permit by the Chief Building Official. This indicates that all mandatories have been met (defined as Building Department code requirements.) Further, the agreed upon comments are required to be incorporated into the drawings at this stage. When design review “approval” is withheld, the documents must be resubmitted. The GMP shall guarantee the maximum price for the construction cost of the project work(s) or designated part thereof, thereof for phased projects, each individual project in the program and shall be approved only by the OwnerSBBC. Such Guaranteed Maximum Price will be subject to modification for changes in the project project(s) as provided in Article 27 of the general conditionsconditions except that the Total Program Manager’s Overhead/Profit shall be as set forth herein. However, the actual price paid for the Work by the Owner SBBC shall be the actual cost of all Work subcontracts, supply contracts, direct labor costs, direct supervision costs, and direct job costs as defined under Article 26 of the general conditions, plus the Construction Total Program Manager’s fees or the GMP, whichever is less when the Work is complete. OWNER SBBC SHALL NOT BE LIABLE FOR NOR SHALL IT PAY CONSTRUCTION TOTAL PROGRAM MANAGER ANY SUMS IN EXCESS OF THE GUARANTEED MAXIMUM PRICE. CONSTRUCTION TOTAL PROGRAM MANAGER AGREES THAT ANY AND ALL SAVINGS BELONG AND/OR REVERT BACK TO THE OWNERSBBC.