Project Development Agreement Page 2
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5PHASE II:
SPECIFICATIONS & BUDGET
PHASE II services as described below shall be initiated with a deposit of $
; which shall be
applied to PHASE II Fee.
I.
Existing Conditions Survey
In order to form a proper basis from which to evaluate changes, required materials and services, and overall
Project costs, existing conditions must be known in detail. Contractor shall perform as many of the following
services as needed.
Site visits by Production Coordinator/Estimator and/or Trade Contractors.
Digital Photography.
Collect Owner information and documentation.
Measurement of interior and exterior spaces.
Identification of existing mechanical components and systems.
Identification of existing construction systems and components.
Identification of existing finishes and components.
II.
Value Engineering
Value Engineering draws on the experience and knowledge of the Contractor and, when applied, can
exponentially increase the Project value to the Owner. Contractor will consult with Owner regarding areas,
either within the plans, within requested specifications, or otherwise related to site conditions that may be
modified or adjusted to increase perceived value. As part of PHASE II Contractor will make suggestions based
on Contractor’s understanding of Owner’s goals as they apply to plans and specifications as presented.
III.
Preliminary Specifications
Contractor shall produce Preliminary Specifications to more clearly communicate details not included in the
provided plans. These specifications help assure a comprehensive Interim Budget; and also serve as a template
for final specifications to be included with the Construction Contract.
Interim Specifications shall consist of written descriptions of elements to be incorporated into the Project as
determined through the above process and as needed to elaborate beyond information provided in the Plans.
Allowances shall be incorporated as needed for selections not yet determined.
IV.
Interim Budget
Interim budgeting is a valuable tool for “constructability review” and is more reliable than “ballpark” or unit
pricing such as “per square foot”; but is not intended as a fixed Contract Price.
Contractor uses in-house estimates in lieu of obtaining quotes from trade contractors and allowance values
are used in place of finalized Owner selections or where exactitude is not practical and/or possible.
Contractor shall continue to provide Interim Budgets for plan and/or specification modifications until such
time that Owner is satisfied with the project or elects to terminate this agreement.
PHASE II Fee
PHASE II Fee shall be a percentage of the Interim Budget as noted below and shall be due at presentation of
first Interim Budget.
o 1% for budgets up to $200,000.
o .75% for budgets between $200,000 and 400,000, but not less than $2,000.
o .5% for budgets over $400,000 but not less than $3,000.
Repetitions of Interim Budgeting for additional value engineering or design revisions shall not incur
additional PHASE II Fees.
Upon execution of Construction Contract, PHASE II Fee shall be refunded as a credit to the
Construction Contract Deposit.
When a Master Plan is designed and the Construction Commitment Agreement is only for
o
portion(s) of the Master Plan, then only the related portion of the PHASE II Fee shall be
refunded.
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