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Based on the Construction Management Plan and the <br />Construction Market Survey, the CMAR shall prepare a Project <br />and Construction Budget based on separate divisions of the <br />Work required for the Project and shall identify contingencies <br />for design and construction. The CMAR shall submit the <br />Project and Construction Budget to the Owner for acceptance. <br />If the CMAR believes that additional surveys, geotechnical <br />investigations, environmental assessments or other testing or <br />investigation is necessary and reasonable to fashion a reliable <br />Project and Construction Budget, the CMAR shall make <br />recommendations to the Owner for such services, with an <br />explanation of why the CMAR believes that the services are <br />reasonable and necessary.. The decision to procure such <br />services shall be solely in the discretion of the Owner, and shall <br />be at the Owner's expense. The Project and Construction <br />Budget shall be revised as directed by the Owner. <br />3.6.3 Preliminary Estimate and Budget Analysis <br />The CMAR shall analyze and report to the Owner the cost of <br />various design and construction alternatives, including the <br />assumptions by the CMAR in preparing its analysis, a variance <br />analysis between budget and preliminary estimate, and <br />recommendations for any adjustments to the budget. As a part <br />of the cost analysis, the CMAR shall consider costs relating to <br />efficiency, usable life, maintenance, energy, and operation. <br />3.6.4 Cost Control <br />Following the completion of each design phase milestone, the <br />CMAR shall prepare an estimate of the construction cost for the <br />Design Drawings and Specifications furnished by the Designer. <br />Each estimate shall be accompanied by a report to the Owner <br />and Designer identifying variances from the Project and <br />Construction Budget as well as the assumptions made by the <br />CMAR in preparing the estimate. The CMAR shall reconcile its <br />estimates with the Project Budget and the Construction Budget, <br />and with any independent estimates obtained by the Owner. <br />The CMAR shall coordinate the activities of the Owner and <br />Designer and provide cost estimating and value engineering <br />studies when changes to the design are required to remain <br />within the Project and Construction Budget. <br />3.6.5 Project and Construction Budget Revision <br />The CMAR shall make recommendations to the Owner <br />concerning design changes that may result in revisions to the <br />Project and Construction Budget and divisions of the Work <br />required for the Project. <br />3.6.6 Value Engineering Studies <br />The CMAR shall, provide value engineering recommendations <br />to the Owner and Designer for major construction components, <br />including cost evaluations of alternative materials and systems. <br />3.6.7 Estimates for Addenda <br />Prior to bidding, the CMAR shall notify the Owner and the <br />Designer if any addendum issued by the Designer could impact <br />the Cost of the Work of the Project, and will prepare an <br />estimate of costs for all such addenda and shall submit the <br />estimates to the Owner for approval. After approval by the <br />Owner, addenda shall be transmitted to bidders by the CMAR. <br />Once bids are received and contracts are awarded to each <br />Contractor, any addenda issued by the Designer which affects <br />a Contractor shall be processed through the change order <br />provisions in the Agreement. <br />3.6.8 Analyzing Bids: Upon receipt of bids, the CMAR shall <br />evaluate the bids, including alternate prices and unit prices, <br />and before award of any construction contract shall provide the <br />Owner and the Designer with a report summarizing the bids. <br />3.6.9 Schedule of Values (Each Contract) <br />The CMAR shall, in participation with the Contractors, <br />determine a Schedule of Values for each of the construction <br />contracts. The Schedule of Values shall be the basis for the <br />allocation of the Construction Contract price to the activities <br />shown on the Contractor's Construction Schedule. <br />3.6.10 Allocation of Costs to Contractor's Construction <br />Schedule <br />[Not used.] <br />3.6.11 Change Order Control <br />The CMAR shall establish and implement a change order <br />control system. <br />3.6.11.1 All proposed Owner-initiated change orders shall first <br />be described in detail in writing by the Owner, or the Designer if <br />so requested by the Owner, and forwarded to the CMAR. The <br />CMAR shall then forward a request for proposal to the <br />appropriate Contractor (or Contractors), accompanied by <br />technical Drawings and Specifications prepared by the <br />Designer. In response to the request for a proposal, the <br />Contractor shall submit to the CMAR for evaluation detailed <br />information concerning the costs and time adjustments, if any, <br />necessary to perform the proposed change order work. The <br />CMAR shall review the Contractor's proposal, shall discuss the <br />7