PREFACE EXECUTIVE SUMMARY Sample Clauses

PREFACE EXECUTIVE SUMMARY. BASIC TENETS OF THE CONTRACT This Agreement implements the “design-build” project delivery method as described in The State Construction Manual. The usual method of procurement is by solicitation of competitive sealed proposals, although other procurement methods may be utilized, as permitted by law. The Design Builder is under contract to supply both design services and construction services for the completion of the project and place the Owner in occupancy of the project in a “turnkey” fashion. Once either a Guaranteed Maximum Price (GMP) or a Lump Sum Price is agreed between the Owner and the Design Builder, the Design Builder is “at risk” for project price, project schedule, and completion of all construction as set forth in the Contract Documents. The Design Builder holds all trade contracts and trade supplier contracts. The Owner will designate a Program Manager to assist the Owner in monitoring the design and cost control for the Project. In some situations the Owner may elect to have the Program Manager perform program management duties. The Program Manager does not take on any of the responsibilities of design or construction and does not relieve the Design Builder from the complete management responsibility for the project. To avoid confusion, the Design-Builder’s management leader is designated the “Project Manager.” The Program Manager acts for the Owner to discharge the Owner’s obligations to the Project and coordinates the interaction of the Project Team. The Program Manager’s agreement is independently drafted to meet the particular management needs of the Project. The Request for Proposals should identify whether a Program Manager will be utilized for the Project. The price and financial structure of this Agreement is the “cost-plus” method, with an absolute cap on the total price of the contract (the GMP), and certain other maximum price allowances. The sole basis for the “plus” under this Agreement is the Design Builder’s Fee, which is the Design Builder’s “gross profit” as defined in the contract. Certain items of overhead cost, such as home office overhead and bonding of subcontractors, are not permissible overhead costs for the project and are considered a part of the “gross profit” The sole basis for “cost” throughout the Agreement is Actual Cost, as defined therein. In addition to the GMP, there are total cost limitations imposed on Actual Costs for allowable overhead, salary and labor costs. In addition to the GMP, there are total c...