Initial Guaranteed Maximum Price Sample Clauses
The Initial Guaranteed Maximum Price clause sets a cap on the total amount that can be charged for a project or service at the outset of an agreement. This clause typically applies to construction or service contracts, where the contractor provides an upfront maximum price that will not be exceeded unless specific changes are agreed upon. By establishing this financial ceiling, the clause protects the client from unexpected cost overruns and provides budget certainty throughout the project.
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Initial Guaranteed Maximum Price. At the time when the final bids from the Trade Contractors are received for the First Bid Package, the Construction Manager will establish an Initial Guaranteed Maximum Price, guaranteeing the maximum price to the Owner for the Cost of that portion of the Project and other costs as defined in this contract. Each successive Bid Package will be handled in the same manner adding to the previous amount, which will create a Revised Guaranteed Maximum Price. Once the Final Design Drawings are issued by the Architect for the final portions of the Work, the Construction Manager will select the Trade Contractors in accordance with 2.2.2 herein and then provide a Final Guaranteed Maximum Price to the Owner for its written approval. Such Guaranteed Maximum Price will be subject to modification for changes in the project as provided in this Contract. Savings from bids will accrue to the Owner. There will not be a guarantee for the value of any individual line item contained in the GMP other than the Construction Manager fee and of course the GMP itself.
Initial Guaranteed Maximum Price. Based on the Initial Information provided within Article 1, 50% Design Documents and Owner’s Estimated Construction Cost, an Initial Guaranteed Maximum Price Proposal will be provided by Construction Manager within 30 days of issuance of the 50% Design Documents. Through the performance of Preconstruction Services, Construction Manager will work with Owner, Architect, and other members of the Project Team to fully develop the Drawings and Specifications to enable the Construction Manager to prepare and submit to the Owner a Final Guaranteed Maximum Price Proposal with all information required in Section 3.2.2 below. Construction Manager acknowledges and understands that, other than through an Owner-approved Change Order, the amount of the Final Guaranteed Maximum Price in the Final Guaranteed Maximum Price Amendment shall not exceed the Initial Guaranteed Maximum Price set forth in this Section 3.2.1.
Initial Guaranteed Maximum Price. The Initial Guaranteed Maximum Price (“iGMP”) is $x,xxx,xxx as set in the amount of the Design-Build Entity’s Total Fee Proposal. The iGMP shall serve as an initial contract amount, a budget for internal financial purposes for the District, as well as a budget to guide the Design-Build Entity’s design work. The iGMP shall be superseded by the Guaranteed Maximum Price established in the GMP Addendum prior to Phase 2 of the project.