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Common use of Guaranteed Maximum Price (GMP Clause in Contracts

Guaranteed Maximum Price (GMP. Upon completion of the Design Development Documents by Design Professional, the Construction Manager shall submit to the University for review and acceptance a proposal to establish a GMP for the Project, guaranteeing the maximum price to the University of the Contract Sum. The Construction Manager shall provide a Guaranteed Maximum Price proposal in a format acceptable to the University. The GMP shall be inclusive of all Allowable Costs (including both the Cost of the Work and the Indirect Cost of the Work), including taxes upon the Work which Construction Manager is legally obligated to pay, and all costs for Trade Contracts, labor, materials, equipment, supervision, fees and costs of whatever nature, necessary to complete the Project in accordance with the approved Design Development Documents. The GMP shall be comprised of the following not-to-exceed values which shall be each operate as independent caps on costs and fees comprising the Contract Sum: a) Cost of the Work b) Indirect Cost of the Work: 1. Cost of General Conditions 2. Cost of On-Site Project Management Staff 3. Preconstruction Costs c) Construction Manager’s Overhead and Profit (Fee) d) Construction Contingency The GMP shall include the preconstruction services cost, the construction Cost of Work, general conditions, general requirements, reimbursable expenses, construction contingencies, overhead and profit, and shall be subject to the written approval and acceptance by the University. The GMP may be subject to modification to reflect changes in the Project only through issuance of written Change Orders executed by the Construction Manager and the University. The Construction Manager shall be responsible for all costs exceeding the GMP.

Appears in 3 contracts

Samples: Contract for Construction Management Services, Contract for Construction Management Services, Construction Management Agreement

Guaranteed Maximum Price (GMP. Upon completion of the Design Development Construction Documents by Design Professional, the Construction Manager shall submit to the University for review and acceptance a proposal to establish a GMP for the Project, guaranteeing the maximum price to the University of the Contract Sum. The Construction Manager shall provide a Guaranteed Maximum Price proposal in a format acceptable to the University. The GMP shall be inclusive of all Allowable Costs (including both the Cost of the Work and the Indirect Cost of the Work), including taxes upon the Work which Construction Manager is legally obligated to pay, and all costs for Trade Contracts, labor, materials, equipment, supervision, fees and costs of whatever nature, necessary to complete the Project in accordance with the approved Design Development Construction Documents. The GMP shall be comprised of the following not-to-exceed values which shall be each operate as independent caps on costs and fees comprising the Contract Sum: a) Cost of the Work b) Indirect Cost of the Work: 1. Cost of General Conditions 2. Cost of On-Site Project Management Staff 3. Preconstruction Costs c) Construction Manager’s Overhead and Profit (Fee) d) Construction Contingency The GMP shall include the preconstruction services cost, the construction Cost of Work, general conditions, general requirements, reimbursable expenses, construction contingencies, overhead and profit, and shall be subject to the written approval and acceptance by the University. The GMP may be subject to modification to reflect changes in the Project only through issuance of written Change Orders executed by the Construction Manager and the University. The Construction Manager shall be responsible for all costs exceeding the GMP.

Appears in 1 contract

Samples: Construction Management Services Agreement