2008-11-10 Regular Meeting, Public Hearing and Workshop Meeting of the La Porte City Council

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The Construction Manager does not warrant or guarantee estimates and schedules except as may be included as part of the Guaranteed Maximum Price. The recommendations and advice of the Construction Manager concerning design alternatives and potential cost savings shall be subject to the review and approval of the Architect, Owner and the Owner's professional consultants. It is not the Construction Manager's responsibility to ascertain that the Drawings and Specifications are in accordance with applicable laws, statutes, ordinances, building codes, rules and regulations. However, if the Construction Manager recognizes or reasonably should recognize that portions of the Drawings and Specifications are at variance with applicable laws, statutes, ordinances, building codes rules or retyulations, the Construction Manager shall promptly notify the Architect and Owner in writing. § 2.2.1 When all design elements of the Drawings and Specifications are at least 95% complete, as determined by the Architect and the Construction Manner, the Construction Manager shall propose a Guaranteed Maximum Price, which shall be the sum of the estimated Cost of the Wofk and the Genstmetion Manager's Fee Work, General Conditions of the Contract, and the Construction Manager's Fee for the Work. The Construction Manager may propose separate Guaranteed Maximum Prices for separate works within the Project, as schedules and efficiencies dictate. The Construction Manager will work with the Architect to achieve a Guaranteed Maximum Price that is fully acceptable to Owner and is within the Owner's budget for the Work and for the Project. § 2.2.2 As the Dr- and Spe ., :f:et: may bf:„:..1of e eat the time the f_ua f-anteed Mam4ffmfnDz-.mac-pcvposal thi q.,�1 f R a al finishes of equipment all of wWeh if a i ll t+ a b G n..a -1 r The Guaranteed Maximum Price will contain a separately identified contingency factor (the "Construction Contingency"). The Construction Contingency is not allocated to anVparticular item of the Cost of the Work and is established for the Construction Manager's use as may be required for costs incurred in the Work from unforeseen causes or details which should have been anticipated by the Construction Manager at the time of the Owner's approval of the Guaranteed Maximum Price. Such unanticipated causes or details include but are not limited to refinement of details of design within the scope of standards quality and quantities which are reasonably inferable from the Guaranteed Maximum Price documents the correction of minor defects not relating to design delays in receipt of materials, and additional costs relating to Subcontractor defaults not reimbursed by the Subcontractor's bonding company. The Construction Manager, with Owner's written approval may utilize the Construction Contingency for any of the above items within the Cost of the Work without the necessity of a Change Order and without constituting a Change in the Scope of the Work as long as same does not result in an increase in the Guaranteed Maximum Price. All savings will accrue and be available for use only as detailed above by the documentation for all uses of the Construction Contingency shall be provided to Owner. Upon final accounting all remaining monies in the Construction Contingency shall accrue to the Owner. The Guaranteed Maximum Price shall also contain a separately identified contingency factor for Owner's use ("Owner's Contingency") more fully described in subparagraph 3.1.3 herein. PAGE 6 .6 The Date of Final Completion upon which the proposed Guaranteed Maximum Price is based which date must be acceptable to Owner. .7 The Guaranteed Maximum Price proposal may not be based in any part on any subcontract or material supply contract which would require the Owner to compensate the Construction Manager on other than a maximum cost basis. § 2.2.4.1 The Initial Maximum Price is $2 75 Million dollars excluding The Musco Lighting Contract of $975 000 by separate contract. The Initial Budget and desired Maximum Price is $2 75 Million dollars § 2.2.6 Owner shall be allowed not less than thirty days after receipt to review and take action on the Construction Manager's Guaranteed Maximum Price proposal Unless the Owner accepts the Guaranteed Maximum Price Additions and Deletions Report for AIA Document A121 T"CMc — 2003 and AGC Document 565. Copyright © 1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING: This document is protected by U.S. Copyright Law and international Treaties. Unauthorized reproduction or distribution of this document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 16:02:34 on 12/01 /2008 under Order No.1000375455_1 which expires on 10/20/2009, and is not for resale. User Notes: (4283007293)