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HomeMy WebLinkAboutSection 2WHEREAS, the current agreement calls for any funds remaining in the Construction Manager's Contingency that exceeded the initially approved contingency to accrue one hundred percent (100%) to the City; and, WHEREAS, this Amendment No. 3 changes this language to provide distribution of any remaining balance in the Construction Manager's contingency at forty percent (40%) for the Construction Manager and sixty percent (60%) for the City, to be applied also in the event that the remaining balance exceeds the amount initially included in the Guaranteed Maximum Price; and, NOW THEREFORE, for the considerations of the foregoing, the parties hereby amend the Agreement in the following particulars: Section 2 — Pre -Construction Phase Article 11: Guaranteed Maximum Price ...Construction Manager shall include a line item for Construction Manager's Contingency amount in the Schedule of Values for the Project, which Contingency amount, if accepted by the City, shall be included within the GMP and to the GMP Agreement for the Project, and, subject to the prior agreement of the City. The Contingency shall be used as the source of funds for unforeseen costs that are reasonably and necessarily incurred and paid by the Construction Manager, which costs shall be at rates not higher than the standard paid in Miami -Dade County, as follows: (a) first, in connection with the proper performance of Worts required hereunder which Work was unforeseeable by the Construction Manager, the Consultant, and the City at the time of execution of the GMP Agreement, (b) second, to the extent that any portion of the Contingency remains unallocated on the date of Final Completion and after the issuance of final payment for the Project, such remaining portion of the Contingency shall be split between the City and the Construction Manager. The Construction Manager shall receive 40% and the City 60% of the remaining balance of the Construction Manager's Contingency initially iRGlI_IdP_d in the GMP. Any funds remaining in the Construction Manager's Contingency that exceeded the initially approved Contingency shall also be distributed 40% to the Construction Manager and 60% to the it ° . The Construction Manager's Contingency amount shall be set forth in the GMP Agreement for the Project, and within the Schedule of Values attached thereto. Use of the Construction Manager's Contingency shall be at the sole discretion of the City and requires the prior written approval of the City's Project Manager. The Construction Manager's Contingency shall not be used for rework, cost increase caused by a lack of coordination or communication with the Consultant or Subcontractors, or to correct errors and omissions in the Contract Documents. Page 2 of 3