Processing the GMP Change Order Clause Samples

The "Processing the GMP Change Order" clause outlines the procedures for handling modifications to the Guaranteed Maximum Price (GMP) in a construction contract. It typically details the steps required for submitting, reviewing, and approving change orders that affect the GMP, including documentation, timelines, and necessary approvals from relevant parties. This clause ensures that any adjustments to the project’s cost ceiling are managed transparently and systematically, thereby preventing disputes and maintaining budgetary control.
Processing the GMP Change Order. When the Construction Documents for the entire project reach the stage of completion at which the CM/GC is required to propose a GMP Change Order, the Owner shall request the CM/GC to submit a GMP Change Order under the CM/GC’s Agreement for the construction of the entire Project under the Construction Documents. Design Professional shall confer with CM/GC in CM/GC's development of a GMP Change Order proposed in connection with those matters that affect the services of the Design Professional under this Agreement. Upon receipt of the proposed GMP Change Order, Design Professional shall review the proposed GMP Change Order to determine its compliance with the Using Agency’s Program and the CM/GC’s Agreement and shall recommend to the Owner approval or disapproval of the GMP Change Order. With its recommendation, Design Professional shall (i) provide to Owner any analysis of the GMP Change Order price as it relates to the prior Estimates of Probable Construction Cost submitted by the Design Professional and to the GMP Cost Limitation; (ii) shall recommend to Owner the amount to be established by Owner as an Owner's contingency reserve with respect to the work governed by the GMP Change Order if the Owner approves the GMP Change Order; (iii) shall determine whether the proposed GMP Change Order is consistent with the CM/GC’s Agreement, including the Project Schedule to the extent any changes to the Project Schedule proposed by the GMP Change Order affects the activities of the Design Professional under this Agreement and, if there is a variance, whether Design Professional agrees to such variance; and (iv) shall determine whether the proposed GMP Change Order and the assumptions on which it is based are consistent with the Using Agency’s Program or subsequent revisions, prepared by the Design Professional and theretofore approved by the Owner. 2.2.6.1 If the GMP Change Order proposes a Guaranteed Maximum Price which, taking into account recommended contingency reserves, exceeds the GMP Cost Limitation for construction of the Project, Design Professional shall recommend such corrective action which the Design Professional believes is necessary to reduce such price so that it is within the GMP Cost Limitation or which is necessary to alternatively procure such work. If the Owner agrees to a Guaranteed Maximum Price that exceeds the GMP Cost Limitation, then the GMP Cost Limitation shall be thereafter equal to the Guaranteed Maximum Price but there shall be no i...
Processing the GMP Change Order. When the Construction Documents for the entire project reach the stage of completion at which the Design-Builder is required to propose a GMP Change Order, the Owner shall request the Design- Builder to submit a GMP Change Order for the construction of the entire Project under the Construction Documents. Design Professional shall confer with Design-Builder in Design-Builder's development of a GMP Change Order proposed in connection with those matters that affect the services of the Design Professional. The Design Professional shall (i) provide to Owner any analysis of the GMP Change Order price as it relates to the prior Estimates of Probable Construction Cost submitted by the Design Professional and to the GMP Cost Limitation; (ii) shall recommend to Owner the amount to be established by Owner as an Owner's contingency reserve with respect to the work governed by the GMP Change Order Upon receipt of the proposed GMP Change Order, the Program Manager shall review the proposed GMP Change Order to determine its compliance with and the consistency of the assumptions on which it is based with the Using Agency’s Program.