GMP Proposal and Amendment Clause Samples
The GMP Proposal and Amendment clause defines the process by which a Guaranteed Maximum Price (GMP) is initially proposed and subsequently modified during a project. Typically, this clause outlines the requirements for submitting the original GMP proposal, including supporting documentation and cost breakdowns, as well as the procedures for requesting and approving amendments if project scope or conditions change. Its core function is to ensure transparency and control over project costs, providing a structured method for adjusting the GMP to reflect agreed-upon changes and thereby minimizing disputes over budget increases.
GMP Proposal and Amendment. 4.4.1 The Criteria A/E shall receive from the Contracting Authority and promptly review a copy of the Contractor’s GMP Proposal.
4.4.2 Within 7 days after receiving a copy of the Contractor’s GMP Proposal, the Criteria A/E shall review and analyze it in detail and submit a written report to the Contracting Authority and Owner through which the Criteria A/E shall individually address each of the following topics at a minimum as appropriate for the Stage in the Project when the Contractor submits the GMP Proposal:
4.4.2.1 clarity of the GMP Proposal;
4.4.2.2 completeness of the GMP Proposal;
4.4.2.3 coordination of the documents comprising the GMP Proposal;
4.4.2.4 whether the Work described in the GMP Proposal appears consistent with the Final Concept and Design Criteria Documents;
4.4.2.5 whether the Work described in the GMP Proposal appears consistent with the Construction Budget; and
4.4.2.6 whether the Work described in the GMP Proposal appears consistent with the Project Schedule.
4.4.3 If it is the Criteria A/E’s opinion that the clarity, completeness, or coordination of the Contractor’s GMP Proposal is deficient, the Criteria A/E shall also describe and identify in its report specific examples of the deficiencies. If the Criteria A/E finds that the Work described in the Contractor’s GMP Proposal appears inconsistent with the Final Concept and Design Criteria Documents, Construction Budget, or Project Schedule, the Criteria A/E shall also describe and identify in its report specific examples of the inconsistencies.
4.4.4 If the Contracting Authority requests, the Criteria A/E shall meet with the Contracting Authority, Owner, and Contractor to review the Criteria A/E’s report.
4.4.5 If the Contracting Authority requests, the Criteria A/E shall assist the Contracting Authority and Owner with negotiation of the Contractor’s GMP Amendment.
GMP Proposal and Amendment. 4.4.1 The Criteria A/E shall receive from the Contracting Authority and promptly review a copy of the Contractor’s GMP Proposal.
GMP Proposal and Amendment. 2.5.1 The AOR shall prepare conformed drawings, specifications, and other design-related documents to be included in the GMP Amendment.