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12 <br /> Orange County, NC I CONSTRUCTION MANAGER AT RISK CONTRACT I CONFIDENTIAL DRAFT <br /> General Conditions shall not include any home office costs, home office personnel, officers' costs, or any other <br /> costs deemed included in the CMAR Fee. <br /> 6.4 General Conditions — Field Personnel Billing <br /> On-site field personnel costs shall be billed at Direct Personnel Expense (actual salary plus customary payroll <br /> burden including FICA, FUTA, SUTA, 401(k), health insurance, workers' compensation, paid leave not <br /> exceeding thirty (30) days per year). No mark-up for overhead shall be applied to field personnel costs. <br /> 6.5 General Conditions Overruns <br /> Expenditures in excess of a General Conditions category total are permitted only if the CMAR certifies that <br /> identified savings in other General Conditions categories within the same GMP are sufficient to offset the <br /> overrun. The CMAR shall be reimbursed only for actual General Conditions costs incurred, with no mark-up. <br /> Any General Conditions costs exceeding the total not-to-exceed allowance shall be borne by the CMAR and <br /> deemed included in the CMAR Fee, unless arising from an Owner-directed Change Order that extends the <br /> construction duration. <br /> 6.6 Unused General Conditions <br /> Any unused portion of the General Conditions allowance at Final Completion shall revert to the Owner. Unused <br /> General Conditions savings are not eligible for Shared Savings treatment under Article 7; only Cost of the Work <br /> savings below the GMP give rise to Shared Savings. <br /> 6.7 Retainage on Fee <br /> No retainage shall be withheld on the CMAR Fee, General Conditions, bonds, insurance, or General <br /> Requirements line items. Retainage as described in Article 17 applies only to Cost of the Work (subcontract <br /> costs). <br /> ARTICLE 7: CONTINGENCY AND SHARED SAVINGS <br /> 7.1 Owner's Construction Contingency <br /> The Owner shall maintain an Owner's Construction Contingency outside the GMP to fund: (a) Owner-directed <br /> scope changes; (b) design errors not reasonably detectable during Phase 1 constructability review; and (c) <br /> other costs arising from Owner-initiated changes. The Owner's Contingency shall be established at the time of <br /> GMP approval and shall not be included in the GMP. Expenditure of the Owner's Contingency requires written <br /> authorization from the Owner and shall be processed as a Change Order. <br /> 7.2 CMAR-GMP Contingency <br /> The amount of the CMAR-GMP Contingency is to be reviewed by the Owner as part of its review of <br /> each GMP. The Owner retains the right to specifically request revisions to the amount of the CMAR- <br /> GMP Contingency prior to the Owner's acceptance and approval of each GMP. If, after a contingency <br /> is fixed as part of a GMP proposal, the contract prices are lower than anticipated, the CMAR and <br /> Owner agree that the CMAR-GMP Contingency shall not be reduced prior to completion of that GMP <br /> phase. If the CMAR is not required to use any or all of the CMAR-GMP Contingency for a particular <br /> GMP it shall be carried forward to each subsequent GMP. After final completion of the Project, the <br /> Owner shall pay the CMAR Thirty percent (30%) of the unused CMAR-GMP Contingency. In the event <br /> that there are any funds remaining in any special or dedicated Owner's allowance, those funds shall <br /> be retained solely by the Owner. 7.3 Shared Savings <br /> Page 9 of 35 <br />