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Exhibit A to Administrative Order No. 44-23-01-F
<br />City of Eugene Public Contracting Rules 2022 – Part 2 Page 128
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<br />produced establishing the scope of construction Work contemplated by the GMP, fixed
<br />Contract Price or other maximum Contract Price.
<br />c) Adjustments to the GMP, Fixed Contract Price, or Other Maximum Contract Price. The
<br />Contract shall clearly identify the standards or factors under which changes, or additional
<br />construction Work will be considered outside of the Work scope that warrants an
<br />increase in the GMP, fixed Contract Price, or other maximum Contract Price, as well as
<br />criteria for decreasing the GMP, fixed Contract Price, or other maximum Contract Price.
<br />The GMP, fixed Contract Price, or other maximum Contract Price shall not be increased
<br />without a concomitant increase to the scope of the Work defined at the establishment of
<br />the GMP, fixed Contract Price, or other maximum Contract Price or most recent
<br />amendment to the GMP, fixed Contract Price, or other maximum Contract Price. An
<br />increase to the scope of the Work may take the form of conventional additions to the
<br />project scope, as well as corrections to the Contract terms and conditions, additions to
<br />insurance coverage required by the Contracting Agency and other changes to the Work.
<br />d) Cost Savings. The Contract shall clearly identify the disposition of any Cost Savings
<br />resulting from completion of the Work below the GMP, fixed Contract Price, or other
<br />maximum Contract Price; that is, under what circumstances, if any, the CM/GC might
<br />share in those Cost Savings, or whether the Cost Savings accrue only to the Contracting
<br />Agency's benefit. Unless there is a clearly articulated reason for sharing the Cost
<br />Savings set forth in the Contract, the Cost Savings must accrue to the Contracting
<br />Agency.
<br />e) Cost Reimbursement. The Contract shall clearly identify what items or categories of
<br />items are eligible for cost reimbursement within the GMP, fixed Contract Price or other
<br />maximum Contract Price, including any category of GC Work costs, and may also
<br />incorporate a mutually-agreeable cost-reimbursement standard.
<br />f) Audit. Cost reimbursements shall be made subject to final audit adjustment, and the
<br />Contract shall establish an audit process to ensure that Contract costs are allowable,
<br />properly allocated and reasonable.
<br />g) Fee. Compensation for the CM/GC's Personal Services and construction Work, where
<br />the Contract uses a GMP, shall include a fee that is inclusive of profit, overhead, and all
<br />other indirect or non-reimbursable costs. Costs determined to be included within the fee
<br />shall be expressly defined in the Contract terms and conditions at the time the
<br />Contracting Agency selects the CM/GC. The fee, which may be expressed as either a
<br />fixed dollar amount or as a proposed percentage of all reimbursable costs, shall be
<br />identified during and become an element of the selection process. It shall subsequently
<br />be expressed as a fixed amount for particular construction Work authorized to be
<br />performed, when Early Work is added to the Contract through an amendment and when
<br />the GMP is established. The CM/GC fee does not include any fee paid to the CM/GC for
<br />performing pre-construction services during a separate pre-construction phase.
<br />h) Incentives. The Contract shall clearly identify any economic incentives, the specific
<br />criteria that apply, and their relationship to other financial elements of the Contract
<br />(including the GMP, fixed Contract Price or other maximum Contract Price).
<br />i) Controlled Insurance Programs. For projects where an owner-controlled or contractor-
<br />controlled insurance program is permitted under ORS 737.602, the Contract shall clearly
<br />identify whether an owner-controlled or contractor-controlled insurance program is
<br />anticipated or allowable. If so, the Contract shall clearly identify (1) anticipated cost
<br />savings from reduced premiums, claims reductions, and other factors, (2) the allocation
<br />of cost savings, and (3) safety responsibilities, incentives, or both safety responsibilities
<br />and incentives.
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