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AIA cost plus to a Guaranteed Maximum Price

AlabamaChange OrdersConstruction AccountingConstruction Contract

I have two questions both using an AIA cost plus contract with a guarrenteed maximum price. What documents would you normally expect to be in a final accounting? Down to drayage tickets and certified payrolls? The General Contractor has a contingency in the schedule of values. If not used, the contingency fund belongs to the owner. The General Contractor has tried to use Change Orders and charge the amount of the Contingency, without prior notice and without approval of the Owner. I thought you could not use a change order against the contingency

1 reply

Jun 20, 2020
Documentation of costs should include invoices for materials and equipment, subcontracts, purchase orders and pay applications for subcontract work, and proof of labor rates and hours worked for contractor-furnished labor. As for the cost plus question, I would argue that the contingency is there to cover the gray area where the work is anticipated but the cost isn't known. Change orders, on the other hand, cover a change in the scope of work. Change orders should increase the GMP, not deplete the contingency fund.
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