Performance Bond and Direct Owner Purchases

[WI-Architect]

We have a project where by the municipal client will be undertaking owner direct purchases of materials to avoid the State sales taxes on these items. This is being handled by change order to the just executed owner-GC contract. The GC is seeking to have the performance bond for the amount of the contract minus the amount of the owner direct purchases. Is this normal? Does it limit protection for the owner? What happens if the material is damaged and the GC can no longer perform? Is this split between the performance bond and builder's risk?

[Admin]

I am sorry, but this question is beyond what we can provide here. You need to bring this to your legal counsel for review.