مدونة
الأسئلة المتداولة
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A GMP (Guaranteed Maximum Price) contract sets a cost ceiling for a project, ensuring that the owner does not pay more than the agreed maximum, while allowing for cost transparency and adjustments within the budget. A lump-sum contract, on the other hand, provides a fixed total price with little flexibility, placing all cost risks on the contractor.
In a GMP contract, the contractor is responsible for covering any cost overruns beyond the agreed maximum price, unless changes are made to the project scope through approved change orders. This structure incentivizes efficient cost management and risk mitigation.
The main drawbacks of a GMP contract include high financial risk for contractors, the need for detailed pre-construction cost estimates, potential disputes over cost allocations, and administrative complexity due to ongoing cost tracking and reporting requirements.
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