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Infrastructure:

Guaranteed Maximum Price

Description:

the Guaranteed Maximum Price (GMP) is “the maximum price that the Trustees and Construction Manager agree upon as payment for managing, providing and installing all the Work.” The GMP is the Not-to-Exceed Contract Amount.

Design-to Budget:

The Architect, in collaboration with the CM, is to provide a base design targeted to ninety-five percent (95%) of the Budgeted Direct Construction Cost (the Design-to Budget). The CM and Architect shall provide as a supplement to the base design of approximately five percent (5%) of additive alternate design enhancements for the Project. The design shall not require an additive alternate to be implemented to meet the Project program or scope requirements. The base design when taken with the five percent (5%) additive alternates shall represent the value of the Budgeted Direct Construction Cost.

The GMP Budget is the amount the Trustees have budgeted for the construction Contract. The award of a construction contract is contingent upon receiving an actual GMP within the GMP Budget. The CM shall guarantee its GMP price for 120 calendar days after submission of the final GMP and the letter warranting the construction documents to the Trustees. If the proposed Direct Construction Cost is five percent (5%) or more above the Budgeted Direct Construction Cost, the CM, in conjunction with the Architect, shall value engineer the Project and rebid as necessary to bring the GMP to within the Construction Budget, at no additional cost to the Trustees. If the Trustees determine it is best to rebid the Project to bring the GMP back to the budget, the Trustees may withhold the CM final preconstruction payment pending the rebid.

Trade Contractor Bid Packages:

The Architect shall coordinate with the CM to produce the bid packages when appropriate.

The CM shall develop the most logical, competitive, seamless and distinct trade contractor bid packages with all scopes of work included in the packages.

Refer to Stage 5, Construction, for additional GMP and biding information.

References:
  • RFP for Construction Manager Services at Risk with GMP