D.C. Mun. Regs. r. 27-2631
The District may require the architect-engineer contractor to design the project so that construction costs will not exceed a contractually specified dollar limit. The amount of the construction funding limitation shall be established during negotiations between the firm and the contracting officer.
In negotiating the funding limitation amount, the contracting officer shall make available to the firm the information upon which the District has based its initial construction estimate and subsequently acquired information that may affect the construction costs.
If the price of construction proposed in response to a District solicitation exceeds the construction specified dollar funding limit in the architect-engineer contract, the firm shall be solely responsible for redesigning the project within the funding limitation.
Any redesign services required by § 2631.3 shall be performed at no increase in the price of the architect-engineer contract. However, if the cost of proposed construction is affected by events beyond the firm's reasonable control (such as an increase in material cost which could not have been anticipated or an undue delay by the District in issuing a construction solicitation), the District may be obligated for any additional costs.
If an architect-engineer firm's design fails to meet the contractual limitation on construction cost and the District determines that the firm should not redesign the project, the contracting officer shall place a written statement of the reasons for that determination in the contract file.
D.C. Mun. Regs. r. 27-2631