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11 <br /> circumstances, the CMAR shall work with the Owner and Project Designer to reach <br /> mutually acceptable GMP. <br /> 4.7. Upon acceptance by the Owner of a GMP,the Owner shall prepare and the CMAR shall execute an <br /> amendment to this Contract to reflect the GMP. Within 10 days after the execution of the <br /> amendment provided herein, the CMAR shall provide the Owner with a Performance Bond and a <br /> Labor and Material Payment Bond each for 100%of the GMP in conformity with the terms of N.C. <br /> Gen. Stat.Chapter 44A and this Contract. <br /> 4.8. Upon acceptance of the GMP,the CMAR shall continue to advise and assist the Owner and Project <br /> Designer during any continuing design activities as described in the RFQ. <br /> 4.9. Upon completion of the Work, any and all non-expended funds remaining in any GMP will be <br /> retained by the Owner,except as specifically set forth above in Section 3 and below in Section 5. <br /> 5.CONTINGENCY ALLOWANCES <br /> 5.1. Owner's Contingency: An Owner's Construction Contingency will be established. Expenditures <br /> against this contingency will be available to cover all costs not covered by the GMP resulting from <br /> changes in scope and initiated by the Owner via a change order amendment issued by the Owner. <br /> 5.2. CMAR-GMP Contingency: Each GMP shall contain a CMAR-GMP Contingency fixed as an <br /> estimated lump sum for each GMP in an amount approved by the Owner, to help reduce the risks <br /> assumed by the CMAR in providing the GMP for the Project. The entire CMAR Contingency shall <br /> be fixed, based on the Total Construction Budget at the time of the final GMP, after which the <br /> CMAR-GMP Contingency shall not be adjusted unless an amount is negotiated with Owner <br /> requested Change Orders to the Work of the Project. In the event an adjustment to the CMAR <br /> Contingency is negotiated under this paragraph,a lump sum adjustment to the CMAR Contingency <br /> shall be equitably determined based on the nature of the changes to the Work, proven changes in <br /> the scope of services provided by the CMAR, and any other factor that would affect the CMAR <br /> risks due to changes to the Work <br /> 5.3. The Owner and the CMAR acknowledge that the contingency is included to compensate for <br /> eventualities which have not been taken into precise account in the establishment of the GMP, <br /> specifically unanticipated costs which do not result in, or cause a change order to the GMP, <br /> including (1) legal fees associated with defending bid protests or subcontract awards may be <br /> authorized by the Owner as expenditures within the GMP Contingency provided the CMAR is not <br /> negligent or at fault, (2) scope gaps between trade Subcontractors, (3) contract default by trade <br /> Subcontractors, (4)threat of or damage due to Acts of God to the extent not otherwise covered by <br /> insurance; (5) costs of corrective Work not provided for elsewhere and (6) unforeseen field <br /> conditions and design omissions which a prudent CMAR should reasonably have detected during <br /> the discharge of the CMAR's pre-construction duties. Costs incurred for such design omissions <br /> shall come from the CMAR-GMP Contingency. Design errors which the CMAR could not have <br /> reasonably detected will be resolved on a case-by-case basis. These may be paid from the Owner <br /> contingency,but shall not be chargeable to the CMAR-GMP Contingency. <br /> 5.4. The CMAR-GMP Contingency is not allocated to any particular item of the Cost of the Work, and <br /> is established for the CMAR's use as may be required for increases in costs as noted above. It is <br /> understood that the amount of the CMAR-GMP Contingency is the maximum sum available to the <br /> CMAR to cover costs incurred as a result of such unanticipated causes or details, and that cost <br /> overruns in excess of the amount of the CMAR-GMP Contingency will be borne by the CMAR. <br /> 5.5. The CMAR-GMP Contingency may be applied to any items within the Cost of the Work without <br /> the necessity of a change order,without constituting a change in the Work,and without resulting in <br /> any change in the GMP. The CMAR will notify the Owner and Project Designer in writing of the <br /> CMAR's intent to apply any part of the CMAR-GMP Contingency to any item within the Cost of <br /> the Work prior to any such application. The CMAR shall fully document the change on its copy of <br /> the Construction Documents for inclusion in the as-built record documents required by this <br /> Contract. <br /> Page 8 of 52 <br /> Revised 12/24,4/25 <br />