Opinion ID: 1041555
Heading Depth: 3
Heading Rank: 1

Heading: Key Contract Provisions

Text: The main compensation provision in the Contract is its Guaranteed Maximum Price (GMP), which is defined as the sum of the cost of work and the construction manager's fee. The GMP was not to exceed the maximum of $11,250,000 originally set by the contract, but was subject to additions and deductions by changes in the Work as provided in the Construction Documents. The GMPadjustment mechanism came in the form of Change Order Requests (CORs), under which Stonestreet could seek additional funds if project timing or cost requirements changed. Throughout the project, CORs were typically prepared by Stonestreet and submitted to Weybosset for approval and signature. Included in the GMP was $809,888, which represented a lump sum of Stonestreet's general conditions costs from the preconstruction and construction phases of the project. The lump sum included more specific line-item estimates, including the costs of an administrative assistant, project executive, and project manager. During the project, Stonestreet divided the lump sum equally across its monthly payment requisitions until the original lump sum was fully billed by November 2008. Generally, Stonestreet paid its subcontractors pursuant to its standard form contracts, which contained a pay-when-paid clause that stated: It is agreed that the Contractor [Stonestreet], as a condition precedent to payment of any monies -3- which become due to the Subcontractor, must first receive payment from the Owner. The timing disconnect between the pay-when-paid provision and the payment schedule under the Contract between Weybosset and Stonestreet, which was based on the overall progress of the project, led to several instances of subcontractors not being paid after their work was completed.