Agmt03 BHV Innisfree Ven... (3) - Laserfiche WebLink

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3. If, upon final completion of the Public Parking Facility, the City and Agency determine after auditing the actual Parking Facility Costs that the Parking Facility Costs paid by the City and Agency (including any payment from the Construction Contingency) are less than the Not-to-Exceed Parking Facility Cost, City and Agency shall pay Developer an incentive payment in an amount equal to two percent (2%) of the Cost of the Work as confirmed by audit. The sole source of this incentive payment, and the maximum amount of any incentive payment, shall be the unexpended Construction Contingency. The total amount paid to Developer for Parking Facility Costs plus this incentive fee shall not be more than the Not-to-Exceed Parking Facility Cost set forth in paragraph 3(A). 4. After the construction documents are finalized and accepted by City and Agency, Developer may present Value Engineering Proposals ("VEP") for alternative systems, means, methods, finishes, equipment and the like that satisfy the general design criteria of the Project, but which result in savings of time or money in constructing or operating and maintaining the Public Parking Facility. Each VEP shall describe the proposed change, identify all aspects of the Public Parking Facility directly or indirectly affected by the change, specify the cost or time savings to be achieved if the VEP is accepted, and detail any anticipated effect on the Project's service life, economy of operation, ease of maintenance, appearance, design or safety standards. The City and Agency shall be the sole judge of the acceptability of a VEP and of the estimated net savings in the Cost of the Work on account of the proposal. Any accepted VEP will be incorporated into a change order that sets forth the changes in the plans and specifications, any conditions on acceptance of the VEP, and the estimated savings in construction costs. City and Agency shall not be obligated to consider or adopt any VEP. Developer shall be solely responsible for all costs associated with preparation and presentation of a VEP. If the City and Agency adopt a VEP, Developer shall receive one half (50%) of any savings in the Cost of the Work realized solely on account of the VEP. City and Agency shall pay half of the cost to prepare a VEP if the VEP is accepted by City and Agency. The amount of the VEP savings to be paid to Developer, if any, will be determined when the Public AttylAgr/Agr.147 101403 Final L. Beck 9