Guaranteed Max Price (GMP)

During pre-construction design costs, permitting, land acquisition, and life-cycle costs may be evaluated. In delivering pre-construction services, Bluepoint Construction may also be negotiating for the project construction cost of services. Often, but not always, this may be accomplished by agreeing on a guaranteed maximum price (GMP) for the project. A GMP is a cost-based contract where the contractor is paid a fixed price to manage the construction and a fixed percentage for overhead and profit, based on an agreed-upon scope of work.  In a GMP contract, Bluepoint Construction would then deliver the project and typically the owner and the firm share any cost savings realized during construction.

The GMP proposal established after the design development plan will constitute a GMP contract and this “cap” will not be exceeded provided your program or design does not vary. Not all jobs are good fits for GMP contracts. Bluepoint Construction offers many years of experience with all types of contracts and can help you determine what is the best fit for your job.