Contingency Transfers

Project Contingencies – The Police Facility project is negotiated with a Guaranteed Maximum Price. This permits the City to determine project teams by selecting contractors and sub-contractors by qualifications (as well as pricing). Through this method, the fee and general conditions are set at the start of the project, subcontractors are selected early in the project process, and the reporting of the “Schedule of Values” is completely transparent. Within the Guaranteed Maximum Price, the Contractor and the City hold two types of contingency: construction and owner.

  1. Construction Contingency – Reserved for the Contractor’s needs, this contingency shall reflect the risk inherent in the state of completion of the Construction Documents at the time the Guaranteed Maximum Price proposal is submitted.
  2. Owner Contingency – Project Contingency is held by the owner and is used only for “unforeseen” conditions and for filling gaps where the design does not fully permit the project to accomplish the desired scope. Examples of unforeseen conditions include soil problems, severe weather, impacts to work force, and lack of availability of important components of the work due to market conditions or other events.

Contingency Transfers