A Guaranteed Maximum Price (GMP) contract is a popular form of agreement used in construction projects to establish a cap on the total project cost. Under a GMP contract, the contractor assumes the responsibility for completing the project within the agreed-upon...
In construction, “GMP” stands for “Guaranteed Maximum Price.” It is a contract whereby the General Contractor guarantees that the total cost of a project will not exceed a set amount. It is often a sort-of design-build kind of thing because the GC and its subs do the...