What is a GMP in construction?

GMP stands for the guaranteed maximum price. That refers to the highest amount of labor, materials and profit costs the contractor can charge the customer in the construction industry.

What is a GMP set of drawings?

Guaranteed Maximum Price (GMP) The agreed upon maximum price between the Contractor and Owner to build a project per the drawings and specifications developed.

What is a GMP proposal?

A GMP proposal is a statement by a contractor manager of Guaranteed Maximum Price. It is added as an “Amendment and Agreement” after all the details of the construction are discussed with the construction manager, the architect/engineer team and the hiring company.

What does the term GMP mean in construction?

guaranteed maximum price
Lump sum — or fixed price — and cost-based contracts are the two main players in this arena, the latter of which is the basis for the cost-plus-fee with a guaranteed maximum price contract, or GMP. There is a cap on how much the owner will pay the contractor, and this cap is the guaranteed maximum price.

What is GMP project management?

What is a GMP? A GMP, or a Guaranteed Maximum Price, is one of the most common pricing structures used by construction contractors. Under a GMP contract, the contractor is compensated for actual costs incurred, plus a fixed fee which covers risk.

What is GMP drawing set?

GMP Drawings means such architectural renderings, design drawings, construction and engineering drawings of the Project as are necessary and sufficient for AHA to obtain a guaranteed maximum price bid for the construction of the Project from the General Contractor with a schedule of values that is consistent with the …

What are GMP plans?

What is a Guaranteed Maximum Price (GMP) Contract? A guaranteed maximum price contract sets a limit, or maximum price, that the customer will have to pay their contractor or subcontractor, regardless of the actual costs incurred.