Common use of Cost Estimate Clause in Contracts

Cost Estimate. Provide a cost estimate based upon a detailed take-off of labor, materials and equipment, based upon experience and nationally recognized Construction Specifications Institute (CSI) based estimating systems such as R.S. Means ® or other generally accepted standard cost estimating system acceptable to the Owner, and including an appropriate design contingency, bidding contingency, contractor’s overhead and profit, escalation and trade contractor or construction manager general conditions costs as directed by the Owner. The estimate shall be prepared using the Owner provided “Consultant Cost Estimating Workbook”. Upon prior written approval of the Owner, the Professional may prepare the estimate in an alternative format provided the estimate includes at a minimum, all information contained in the Owner supplied format. The Professional shall provide a reconciliation to the previous cost estimate and the Approved Construction Budget. The reconciliation shall include an explanation of any variances or overall increases.