PART 4 - ALLOWANCES

Question 1

GC 4.1 CASH ALLOWANCES

4.1.1

Answer 1

The contract price includes the cash allowances, if any, stated in the contract documents. The scope of the work or costs included in such cash allowances SHALL be as described in the contract documents.

Question 1

GC 4.1 CASH ALLOWANCES

4.1.2

Answer 1

The contract price, and NOT the cash allowances, includes the contractor’s overhead and profit in connection with such cash allowances.

Question 2

GC 4.1 CASH ALLOWANCES

4.1.3

Answer 2

Expenditures under cash allowances SHALL be authorized by the owner through the consultant.

Question 3

GC 4.1 CASH ALLOWANCES

4.1.4

Answer 3

Where the actual cost of the work under any cash allowance exceeds the amount of the allowance, any unexpended amounts from other cash allowances SHALL be reallocated, at the consultant’s direction, to cover the shortfall, and, in that case, there SHALL be no additional amount added to the contract price for overhead profit.

ONLY where the actual cost of the work under all cash allowances exceeds the total amount of all cash allowances SHALL the contractor be compensated for the excess incurred and substantiated, plus an amount for overhead and profit on the excess only, as set out in the contract documents.

Question 4

GC 4.1 CASH ALLOWANCES

4.1.5

Answer 4

The net amount of any unexpected cash allowances, after providing for any reallocations as contemplated in paragraph 4.1.4, SHALL be deducted from the contract price by change order without any adjustment for the contractor’s overhead and profit on such amount.

Question 5

GC 4.1 CASH ALLOWANCES

4.1.6

Answer 5

The value of the work performed under a cash allowance is eligible to be included in progress payments.

Question 6

GC 4.1 CASH ALLOWANCES

4.1.7

Answer 6

The contractor and the consultant SHALL jointly prepare a schedule that shows when the items called for under cash allowances must be ordered to avoid delaying the progress of the work.

Question 7

GC 4.2 CONTINGENCY ALLOWANCE

4.2.1

Answer 7

The contract price includes the contingency allowance, if any, stated in the contract documents.

Question 8

GC 4.2 CONTINGENCY ALLOWANCE

4.2.2

Answer 8

The contingency allowance includes the contractor’s overhead and profit in connection with such contingency allowance.

Question 9

GC 4.2 CONTINGENCY ALLOWANCE

4.2.3

Answer 9

Expenditures under the contingency allowance SHALL be authorized and valued as provided in

GC 6.1 - OWNER’S RIGHT TO MAKE CHANGES
GC 6.2 - CHANGE ORDERS
GC 6.3 - CHANGE DIRECTIVE

Question 10

GC 4.2 CONTINGENCY ALLOWANCE

4.2.4

Answer 10

The contract price SHALL be adjusted by change order to provide for any difference between the expenditures authorized under paragraph 4.2.3 and the contingency allowance.