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Page 8 of 53 <br />5-2-25 <br /> <br />the Contract to reflect any GMP, in which event the Contract may be terminated <br />according to its terms. <br />4.6.4. The CMAR’s detailed construction cost estimates and GMP will be reviewed by the <br />Project Designer and the Owner for reasonableness and compatibility with the Total <br />Construction Budget. Meetings and negotiations between the Owner, Project Designer <br />and the CMAR will be held to resolve questions and differences that may occur between <br />the Project Construction Budget and the CMAR’s construction cost estimate and <br />corresponding GMP. If indicated by the Total Construction Budget limitations or other <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 />Docusign Envelope ID: 5A9E3BC2-EAE1-4C35-82D9-B4D6A375FA78