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11 <br />Progressive Design Build Contract <br /> <br />7.6.2.2 General expenses not specifically provided for herein. <br /> <br />7.6.2.3 The cost of Design-Builder’s capital used in the performance of the Work. <br /> <br />7.6.2.4 If the parties have agreed on a GMP, costs that would cause the GMP, as adjusted <br />in accordance with the Contract Documents, to be exceeded, unless Owner has approved <br />an Adjustment or Change Order. <br /> <br />7.6.2.5 Any bonuses or incentive pay that is the obligation of Design-Builder to pay. <br /> <br />7.6.3 Pass-Through Costs. The following costs shall be “passed through” and paid without <br />mark-up or any added Design-Build Fee: <br /> <br />7.6.3.1 Sales, use, or similar taxes, tariffs, or duties incurred in the performance of the <br />Work. <br /> <br />7.6.3.2 Costs for permits, royalties, licenses, tests, and inspections. <br /> <br />7.6.3.3 Premiums for insurance and bonds required by this Contract or the performance <br />of the Work. <br /> <br />7.7 The Guaranteed Maximum Price. <br /> <br />7.7.1 GMP. Design-Builder guarantees that the Contract Price shall not exceed the Guaranteed <br />Maximum Price (“GMP”) established in the GMP Amendment. Documents used as basis for the <br />GMP shall be identified in the GMP Amendment. Design-Builder agrees that it will be responsible <br />for all costs of completing the Work which exceed the GMP, as it may be adjusted in accordance <br />with the Contract Documents. <br /> <br />7.7.2 Contingency. The GMP shall include a Design-Builder’s contingency, in an amount that <br />is no less than two-point five percent (2.5%) and no more than five percent (5%) of the estimated <br />Cost of the Work, which will be negotiated between the Design-Builder and Owner as a part of the <br />Phase 2 Proposal. The percentage shall depend upon the level of completion of the Design-Build <br />Documents and certainty of subcontractor pricing at that time and depending upon any other risk <br />factors agreed upon between the Design Builder and Owner. <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.