A software development client entered into an agreement with a general contractor to build a simple 50,000 square foot office building with an open office concept. The client's architect questioned three estimate line items in the contractor's guaranteed maximum price proposal, which appeared to be heavy. The contractor responded that these costs may be needed and the owner will receive 90% of any savings, according to the terms of the contract. The contractor did not manage the project efficiently and finished four months late. Because of this delay, the contractor reported that they overran the bottom-line GMP and there were not any savings to share. If a contractor mismanages the work, does the owner lose an opportunity for savings? The architect closely monitored the work involved with the three subject estimate items and was confident that the contractor underran the estimate in these areas. The contractor indicated that it was not a "line item guaranteed maximum price estimate, but rather only the bottom line was what was guaranteed."

1. If there were savings on single line items, especially ones that were questioned early, can the contractor use these savings to offset overruns in other areas?

2. Will an audit now help either party?

3. What do standard contracts say?