Common use of Subcontractor Bids Clause in Contracts

Subcontractor Bids. As Drawings and Specifications are deemed sufficient to call for tenders for a particular portion of the Work, Contractor shall propose and obtain bona fide bids from a minimum of three Subcontractors and/or Vendors for such portion of the Work and, in accordance with Section 9.2 hereof, make a recommendation to Owner in writing as to which bid Owner should select. 3.1.9.1 If the amount of the bid selected by Owner exceeds the amount budgeted in the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) for that item or portion of the Work and the increase in cost is due to the failure of the Drawings and Specifications to substantially conform to the Original Project Guaranteed Maximum Price Premises and Assumptions or the Expansion Project Guaranteed Maximum Price Premises and Assumptions (as applicable), then to the extent that the applicable Drawings and Specifications were not prepared by any of Owner’s Consultants, there shall be no adjustment to the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) and, at Owner’s option, (a) Contractor shall cause Architect/Engineer to rework the Drawings and Specifications to cause the Work depicted therein to conform to the Original Project Guaranteed Maximum Price Premises and Assumptions or the Expansion Project Guaranteed Maximum Price Premises and Assumptions (as applicable); or (b) Contractor shall allocate a portion of the Original Project Construction Contingency or the Expansion Project Construction Contingency (as applicable) to such increased cost pursuant to Section 3.1.8; or (c) Owner may require Contractor to cause some revisions to be made to such Drawings and Specifications to bring down the cost while allocating a portion of the Original Project Construction Contingency or the Expansion Project Construction Contingency (as applicable) to any remaining increased cost. 3.1.9.2 If the amount of the bid selected by Owner exceeds the amount budgeted in the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) for that item or portion of the Work and the increase in cost is due to the failure of the Drawings and Specifications to substantially conform to the Original Project Guaranteed Maximum Price Premises and Assumptions or the Expansion Project Guaranteed Maximum Price Premises and Assumptions (as applicable), then to the extent any of the applicable Drawings and Specifications were prepared by any of Owner’s Consultants, Owner shall, at its option, (a) increase the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) by the amount of such increase in cost; or (b) cause such Owner’s Consultant(s) to rework such Drawings and Specifications to cause the Work depicted therein to conform to the Original Project Guaranteed Maximum Price Premises and Assumptions or the Expansion Project Guaranteed Maximum Price Premises and Assumptions (as applicable); or (c) allocate a portion of the Original Project Owner Contingency or the Expansion Owner Contingency (as applicable) to such increased cost pursuant to Section 3.1.7; or (d) do any combination of the foregoing as necessary to cover such increase in cost. 3.1.9.3 If the amount of the bid recommended by Contractor and accepted by Owner exceeds the amount allocated or budgeted in the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) for that item or portion of the Work, and the Drawings and Specifications substantially conform to the Original Project Guaranteed Maximum Price Premises and Assumptions or the Expansion Project Guaranteed Maximum Price Premises and Assumptions (as applicable), then Contractor shall perform such Work and such increase in costs shall be solely Contractor’s responsibility, except that Contractor shall be entitled to use a portion of the Original Project Construction Contingency or the Expansion Project Construction Contingency (as applicable) to cover such cost increase to the extent permitted under Section 3.1.8 hereof (provided, however, if no funds remain in the Original Project Construction Contingency or the Expansion Project Construction Contingency (as applicable), Contractor shall still be responsible for the increased cost of the Work), and Contractor shall not be entitled to, and will not seek, any increase in the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) with regard thereto. 3.1.9.4 Notwithstanding the provisions of Sections 3.1.9.1 through 3.1.9.3 above, if Contractor failed to comply with its obligations under Section 7.3 of this Agreement and, as a result, the amount of the bid selected by Owner exceeds the amount allocated or budgeted in the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) for that item or portion of the Work, Contractor shall perform such Work and such increase in costs shall be solely Contractor’s responsibility, except that Contractor may use a portion of the Original Project Construction Contingency or the Expansion Project Construction Contingency (as applicable) to cover such increased costs to the extent permitted under Section 3.1.8 hereof (provided, however, if no funds remain in the Original Project Construction Contingency or the Expansion Project Construction Contingency (as applicable), Contractor shall still be responsible for the increased costs of such Work), and Contractor shall not be entitled to, and will not seek, any increase in the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) with regard thereto. 3.1.9.5 If the amount of the bid selected by Owner plus the additional and customary cost to complete the bid Work (if such additional and customary amount is so required as mutually determined between Owner and Contractor) is less than the amount budgeted in the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) for that item or portion of the Work, then the savings shall remain within the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) and be made available to pay for the Cost of the Work, but shall not be allocated to the Original Project Construction Contingency or the Expansion Project Construction Contingency (as applicable) until Original Project Substantial Completion or the Expansion Project Substantial Completion (as applicable) of the applicable portion of the Work. 3.1.9.6 Notwithstanding the foregoing provisions of this Section 3.1.9, if Owner elects in accordance with the terms of this Agreement to have a party other than the Contractor perform a portion of the Work, or otherwise eliminates or reduces the scope of a portion of the Work to be performed by the Contractor, the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable)e shall be reduced in accordance with Article 18.

Appears in 1 contract

Sources: Design Build Agreement (Wynn Resorts LTD)

Subcontractor Bids. As Drawings and Specifications are deemed sufficient to call for tenders for a particular portion of the Work, Contractor shall propose and obtain bona fide bids from a minimum of three Subcontractors and/or Vendors for such portion of the Work and, in accordance with Section 9.2 hereof, make a recommendation to Owner in writing as to which bid Owner should select. 3.1.9.1 3.1.7.1 If the amount of the bid selected by Owner exceeds the amount budgeted in the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) for that item or portion of the Work and the increase in cost is due to the failure of the Drawings and Specifications to substantially conform to the Original Project Guaranteed Maximum Price Premises and Assumptions or the Expansion Project Guaranteed Maximum Price Premises and Assumptions (as applicable)Assumptions, then to the extent that the applicable Drawings and Specifications were not prepared by any of Owner’s Consultants, there shall be no adjustment to the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) and, at Owner’s option, (a) Contractor shall cause Architect/Engineer to rework the Drawings and Specifications to cause the Work depicted therein to conform to the Original Project Guaranteed Maximum Price Premises and Assumptions or the Expansion Project Guaranteed Maximum Price Premises and Assumptions (as applicable)Assumptions; or (b) Contractor shall allocate a portion of the Original Project Construction Contingency or the Expansion Project Construction Contingency (as applicable) to such increased cost pursuant to Section 3.1.83.1.6; or (c) Owner may require Contractor to cause some revisions to be made to such Drawings and Specifications to bring down the cost while allocating a portion of the Original Project Construction Contingency or the Expansion Project Construction Contingency (as applicable) to any remaining increased cost. 3.1.9.2 3.1.7.2 If the amount of the bid selected by Owner exceeds the amount budgeted in the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) for that item or portion of the Work and the increase in cost is due to the failure of the Drawings and Specifications to substantially conform to the Original Project Guaranteed Maximum Price Premises and Assumptions or the Expansion Project Guaranteed Maximum Price Premises and Assumptions (as applicable)Assumptions, then to the extent any of the applicable Drawings and Specifications were prepared by any of Owner’s Consultants, Owner shall, at its option, (a) increase the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) by the amount of such increase in cost; or (b) cause such Owner’s Consultant(s) to rework such Drawings and Specifications to cause the Work depicted therein to conform to the Original Project Guaranteed Maximum Price Premises and Assumptions or the Expansion Project Guaranteed Maximum Price Premises and Assumptions (as applicable)Assumptions; or (c) allocate a portion of the Original Project Owner Owner’s Contingency or the Expansion Owner Contingency (as applicable) to such increased cost pursuant to Section 3.1.73.1.5; or (d) do any combination of the foregoing as necessary to cover such increase in cost. 3.1.9.3 3.1.7.3 If the amount of the bid recommended by Contractor and accepted by Owner exceeds the amount allocated or budgeted in the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) for that item or portion of the Work, and the Drawings and Specifications substantially conform to the Original Project Guaranteed Maximum Price Premises and Assumptions or the Expansion Project Guaranteed Maximum Price Premises and Assumptions (as applicable)Assumptions, then Contractor shall perform such Work and such increase in costs shall be solely Contractor’s responsibility, except that Contractor shall be entitled to use a portion of the Original Project Construction Contingency or the Expansion Project Construction Contingency (as applicable) to cover such cost increase to the extent permitted under Section 3.1.8 3.1.6 hereof (provided, however, if no funds remain in the Original Project Construction Contingency or the Expansion Project Construction Contingency (as applicable)Contingency, Contractor shall still be responsible for the increased cost of the Work), and Contractor shall not be entitled to, and will not seek, any increase in the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) with regard thereto. 3.1.9.4 3.1.7.4 Notwithstanding the provisions of Sections 3.1.9.1 3.1.7.1 through 3.1.9.3 3.1.7.3 above, if Contractor failed to comply with its obligations under Section 7.3 of this Agreement and, as a result, the amount of the bid selected by Owner exceeds the amount allocated or budgeted in the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) for that item or portion of the Work, Contractor shall perform such Work and such increase in costs shall be solely Contractor’s responsibility, except that Contractor may use a portion of the Original Project Construction Contingency or the Expansion Project Construction Contingency (as applicable) to cover such increased costs to the extent permitted under Section 3.1.8 3.1.6 hereof (provided, however, if no funds remain in the Original Project Construction Contingency or the Expansion Project Construction Contingency (as applicable)Contingency, Contractor shall still be responsible for the increased costs of such Work), and Contractor shall not be entitled to, and will not seek, any increase in the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) with regard thereto. 3.1.9.5 3.1.7.5 If the amount of the bid selected by Owner plus the additional and customary cost to complete the bid Work (if such additional and customary amount is so required as mutually determined between Owner and Contractor) is less than the amount budgeted in the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) for that item or portion of the Work, then the savings shall remain within the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable) and be made available to pay for the Cost of the Work, but shall not be allocated to the Original Project Construction Contingency or the Expansion Project Construction Contingency (as applicable) until Original Project Substantial Completion or the Expansion Project Substantial Completion (as applicable) of the applicable portion of the Work. 3.1.9.6 3.1.7.6 Notwithstanding the foregoing provisions of this Section 3.1.93.1.7, if Owner elects in accordance with the terms of this Agreement to have a party other than the Contractor perform a portion of the Work, or otherwise eliminates or reduces the scope of a portion of the Work to be performed by the Contractor, the Original Project Guaranteed Maximum Price or the Expansion Project Guaranteed Maximum Price (as applicable)e shall be reduced in accordance with Article 18.

Appears in 1 contract

Sources: Design Build Agreement (Wynn Resorts LTD)