Common use of GUARANTEED MAXIMUM PRICE FOR CONSTRUCTION Clause in Contracts

GUARANTEED MAXIMUM PRICE FOR CONSTRUCTION. 7.1 When the Documents are sufficiently complete to establish the scope of work for a project or any portion thereof, as generally defined by a design document which is to be used only as a guide in developing the specifications and plan data necessary to establish a Guaranteed Maximum Price, or at such time thereafter designated by the Owner, Contractor will establish and submit in writing to the Owner for Owner’s approval a Guaranteed Maximum Price, guaranteeing the maximum price to the Owner, for the construction cost of the project or designated part thereof. Such Guaranteed Maximum Price will be subject to modification for changes in the project as provided herein. However, the actual price paid for the work by the Owner shall be the actual cost of all work subcontracts, supply contracts, direct labor costs, direct supervision costs, and direct job costs as defined herein, plus Contractor's fees or the GMP, whichever is less when the work is complete.

GUARANTEED MAXIMUM PRICE FOR CONSTRUCTION. 7.1 When the Documents are sufficiently complete to establish the scope of work for a project or any portion thereof, as generally defined by a design document which is to be used only as a guide in developing the specifications and plan data necessary to establish a Guaranteed Maximum PricePrice (“GMP”), or at such time thereafter designated by the Owner, Contractor will establish and submit in writing to the Owner for Owner’s approval a Guaranteed Maximum PriceGMP , guaranteeing the maximum price to the Owner, for the construction cost of the project or designated part thereof. Such Guaranteed Maximum Price GMP will be subject to modification for changes in the project as provided herein. However, the actual price paid for the work by the Owner shall be the actual cost of all work subcontracts, supply contracts, direct labor costs, direct supervision costs, and direct job costs as defined herein, plus Contractor's fees or the GMP, whichever is less when the work is complete.