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2.2.7 Bids in Excess of Budqet. If bids for any Trade Contract exceed the amount specified for that work in the Project Budget and City/Agency authorizes re-bidding of all or portions of the Project, CM/GC shall make recommendations to the City/Agency for revising the scope and the quality of the Work as required to reduce the construction costs for the Project. CM/GC shall cooperate with City/Agency and Architect as necessary to bring construction costs for each Trade Contract within the Project Budget. 2.2.8 Contract Issuance. CM/GC shall prepare and issue the appropriate notice-to-proceed letters and contracts for each Trade Contractor as directed by City/Agency. 2.2.9 Analysis of Labor. CM/GC shall proYide an analysis of the types and quantities of labor required for the Project and review the availability of appropriate categories of labor required for critical phases. CM/GC shall make recommendations to minimize adverse effects of labor shortages. 2.2.10 Schedule of Values. CM/GC shall prepare a schedule of values for the Project. The schedule of values shall allocate the Final Agreed Price to the activities shown on the Master Schedule. The sum of the schedule of values shall equal the Final Agreed Price. CM/GC shall verify that the schedule of values is reasonable and is made in accordance with the Contract Documents. Progress payments to each Trade Contractor shall be based on the Schedule of Values, the Trade Contractors' percentage of completion of the scheduled activities, and compliance with the Contract Documents. 2.3 CONSTRUCTION PHASE. 2.3.1 It is the intent of the City/Agency to award the Trade Contracts, then assign the Trade Contracts to CM/GC. CM/GC shall manage the Work and payments to the Trade Contractors. CM/GC shall make payments appropriate under the terms of the Trade Contracts and applicable law, taking into account such factors as performance, prevailing wage requirements, statutory lien releases and other relevant criteria. 2.3.2 Pre-Construction Conference(s). CM/GC shall, in conjunction with City/Agency, conduct pre-construction conference(s) for the Trade Contractors. The conference will inform the Trade Contractors of reporting procedures and site rules prior to the commencement of actual construction. Atty/Agr/2005.003 030805/L. Beck/507588v 7 Page 23 of 30 ,..-,- ",.., ,-_.., ?'