IMCO General Construction 5/9/2022

7.6.3 Savings. 7.6.3.1 If the sum of the actual Design-Build Fee (as defined in 7.4 hereof), the Construction General Conditions Fee (Section 7.3), Pass-Through Costs (Section 7.5.3) plus the Cost of the Phase 2 Work (Section 7.5.1) as provided in Article 7 hereof is less than the GMP, as such GMP may have been adjusted over the course of the Project,the difference("Savings")shall accrue 60%to the Owner and 40% to the Design-Builder. 7.7 Allowance Items and Allowance Values. 7.7.1 Any and all Allowance Items, as well as their corresponding Allowance Values, shall be set forth in the GMP Amendment. 7.7.2 Design-Builder and Owner will work together to review the Allowance Items and Allowance Values based on design information then-available to determine that the Allowance Values constitute reasonable estimates for the Allowance Items. Design-Builder and Owner will continue working closely together during the preparation of the design to develop Construction Documents consistent with the Allowance Values. Nothing herein is intended in any way to constitute a guarantee by Design-Builder that the Allowance Item in question can be performed for the Allowance Value. 7.7.3 No Work shall be performed on any Allowance Item without Design-Builder first obtaining in writing advanced authorization to proceed from Owner. Owner agrees that if Design-Builder is not provided written authorization to proceed by the date set forth in the Project Schedule approved with the GMP Amendment, due to no fault of Design-Builder, Design-Builder may be entitled to an adjustment of the Contract Time(s)and Contract Price. 7.7.4 The Allowance Value includes the direct cost of labor, materials,equipment,transportation, taxes, and insurance associated with the applicable Allowance Item. 7.7.5 Whenever the actual cost for an Allowance Item is more than or less than the stated Allowance Value, the Design-Builder shall report such difference to Owner and shall maintain a running tally of Allowance Item costs against Allowance Values. Prior to final payment, the Contract Price shall be adjusted accordingly by Change Order, subject to Section 7.7.4. The amount of the Change Order shall reflect the difference between actual costs incurred by Design-Builder for all Allowance Items and the total Allowance Value. Article 8 Procedure for Payment 8.1 Phase 1 Payments. Phase 1 Services shall be paid by Owner based on the not-to-exceed Phase 1 price and the all-inclusive billing rates and labor categories both set forth in Exhibit E(Supporting Pricing Information). No markups beyond those included in Exhibit E shall be added to billings from any subconsultants or subcontractors for Phase 1 services. All-inclusive billing rates and labor categories shall not be subject to any overtime pay obligations incurred by Design-Builder nor any rate increases during Phase 1. 8.2 Phase 2 Payments. 8.2.1 Progress payments will be made monthly for work duly certified, approved, and performed during the calendar month preceding the Application in accordance with the following procedure: 8.2.1.1 Draft Application. In accordance with the current City of Everett Construction Management Payment Schedule, Design-Builder shall submit to Owner a report on the PROGRESSIVE DESIGN-BUILD CONTRACT,Page 14