Use of Contingency Contained Within GMP. At the time of submission of a 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 GMP. In addition to the cost of Work and fee, a GMP will include an agreed upon sum as the construction contingency which is included for the purpose of defraying the expenses incurred by Contractor in performing the Work, due to unforeseen circumstances relating to construction. The Construction Manager will be required to furnish documentation evidencing expenditures charged to this contingency prior to the release of funds by the Owner. Documentation for use of the contingency shall be determined by the Construction Team, included in the Project Manual and displayed monthly in the PMIS. The Architect-Engineer shall verify the actual costs. If bids are received below the applicable line items in the GMP, the surplus will be added to the contingency. 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 cause 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. Any balance remaining at the end of the Construction Phase shall belong to the Owner.
Use of Contingency Contained Within GMP. At the time of submission of a Guaranteed Maximum Price, the DESIGN-BUILD FIRM will verify the time schedule for activities and work which were adopted by the DESIGN-BUILD TEAM and used to determine the DESIGN-BUILD FIRM's Cost of Work. In addition to the Cost of Work, the GMP will include an agreed upon sum as the Construction Contingency which is included for the purpose of defraying the expenses due to unforeseen circumstances relating to construction. The DESIGN-BUILD FIRM will be required to receive written authorization from OWNER prior to using any of the contingency funds. Documentation for use of the Contingency shall be determined by the OWNER, reflected in the Project Manual and displayed monthly in the report. If bids are received below the applicable line items in the GMP, the surplus will be added to the contingency. If bids are received above the applicable line item in the GMP the deficiency will be taken from the contingency upon approval of OWNER, however such events shall not be cause to increase the GMP. At the negotiation of the GMP, the OWNER and DESIGN-BUILD FIRM will determine how any unused contingency funds will be split among the parties or if it will all revert to the OWNER. Whatever is mutually decided will be formalized in the GMP amendment.
