What does 'Guaranteed Maximum Costs' refer to in the Agreement?

'Guaranteed Maximum Costs' refers specifically to the City's payment obligation not exceeding the amount certified by the Controller. In this context, it establishes a financial limit within which the City agrees to pay for the work performed under the contract. This amount is certified by the Controller, ensuring a level of oversight and accountability regarding expenditures.

This provision is crucial as it provides financial certainty for both the City and the Contractor; the Contractor can confidently proceed with the project knowing that the payment will not exceed a specific capped amount, thereby managing fiscal exposure for both parties. It's important to note that while the anticipated total costs for the project and budget caps are relevant, they do not specifically address the City's obligation to pay or the limits certified by the Controller. Additionally, stating that it is the maximum amount the Contractor can charge could lead to misunderstandings about the contractor's rights to seek payment for work that may arise outside of the agreement's certified limits.