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12 <br />Progressive Design Build Contract <br /> <br />The final amount of the contingency shall be stated in the GMP Amendment and included in the <br />GMP amount. The contingency is a sum established for the Design-Builder’s sole use to <br />cover the Design-Builder’s costs that are properly reimbursable as a Cost of the Work but <br />not the basis for a Change Order, such as, for example, design errors and omissions, buy-out or <br />estimating error, post-GMP unanticipated market conditions, scope gaps, coordination between <br />trades, overtime, acceleration, failure of a Subcontractor of any tier, pandemic or epidemic, or <br />expediting costs for critical materials. <br /> <br />The Design-Builder shall use the contingency only with Owner’s prior written consent, which shall <br />not be unreasonably withheld or delayed. Design-Builder shall provide Owner notice of all <br />anticipated charges against the Contingency and shall provide Owner as part of the monthly status <br />report required by Section 2.1.2 of the General Conditions an accounting of the Contingency, <br />including all reasonably foreseen uses or potential uses of the Contingency in the upcoming three <br />(3) months. <br /> <br />Design-Builder agrees that with respect to any expenditure from the Contingency relating to a <br />Subcontractor default or an event for which insurance or bond may provide reimbursement, Design- <br />Builder will in good faith exercise reasonable steps to obtain performance from the Subcontractor <br />and/or recovery from any surety or insurance company. Design-Builder agrees that if Design- <br />Builder is subsequently reimbursed for said costs, then said recovery will be credited back to the <br />Contingency. <br /> <br />7.7.3 Savings. If the sum of the actual Design-Build Fee (as defined in 7.5 hereof), the <br />Construction General Conditions Price (Section 7.4), Pass-Through Costs (Section 7.6.3) plus the <br />Cost of the Phase 2 Work (Section 7.6.1) as provided in Article 7 hereof is less than the GMP, as <br />such GMP may have been adjusted over the course of the Project, the difference (“Savings”) may <br />be incorporated back into the Project as agreed, or returned to Owner. The Design Builder will keep <br />Owner informed of the status of all costs and opportunities to increase the outcomes of the project. <br /> <br />7.8 Allowance Items and Allowance Values. <br /> <br />7.8.1 Any and all Allowance Items, as well as their corresponding Allowance Values, shall be set <br />forth in the GMP Amendment. <br /> <br />7.8.2 Design-Builder and Owner will work together to review the Allowance Items and Allowance <br />Values based on design information then-available to determine that the Allowance Values <br />constitute reasonable estimates for the Allowance Items. Design-Builder and Owner will continue <br />working closely together during the preparation of the design to develop Construction Documents <br />consistent with the Allowance Values. Nothing herein is intended in any way to constitute a <br />guarantee by Design-Builder that the Allowance Item in question can be performed for the <br />Allowance Value. <br /> <br />7.8.3 No Work shall be performed on any Allowance Item without Design-Builder first obtaining <br />in writing advanced authorization to proceed from Owner. Owner agrees that if Design-Builder is <br />not provided written authorization to proceed by the date set forth in the Project Schedule approved <br />with the GMP Amendment, due to no fault of Design-Builder, Design-Builder may be entitled to an <br />adjustment of the Contract Time(s) and Contract Price. <br /> <br />7.8.4 The Allowance Value includes the direct cost of labor, materials, equipment, transportation, <br />taxes, and insurance associated with the applicable Allowance Item. <br /> <br />7.8.5 Whenever the actual cost for an Allowance Item is more than or less than the stated <br />Allowance Value, the Design-Builder shall report such difference to Owner so that Owner can <br />maintain a running tally of Allowance Item costs against Allowance Values. Prior to final payment, <br />the Contract Price shall be adjusted accordingly by Change Order, subject to Section 7.8.4. The <br />amount of the Change Order shall reflect the difference between actual costs incurred by Design- <br />Builder for all Allowance Items and the total Allowance Value.