Construction Guaranteed Maximum Price Clause Samples

Construction Guaranteed Maximum Price. (GMP) Within ten (10) working days after OWNER approval of the 100% reconciled cost estimate, or at a time mutually agreed upon between the OWNER and the CM, the CM will provide to the OWNER a proposed GMP which will include all trade contract values, and all other project costs including without limitation the CM construction phase fee, the CM-GMP contingency pursuant to Section 10.2 of this Appendix, and the General Conditions allowance. The GMP shall set out each anticipated trade contract amount, the CM's fixed fee, the General Conditions reimbursable cost items including on-site field staff, and all project related costs including but not limited to labor and material and performance bonds and personnel payroll benefits, and the CM GMP contingency. The GMP will not include the CM’s pre-construction costs. The GMP document shall identify the construction documents dates for each trade value on which the GMP is based. Included with its GMP proposal, the CM shall provide two complete, bound sets of the drawings, specifications, plans, sketches, instructions, requirements, materials, equipment specifications, and other information or documents that fully describe the Project as developed at the time of the GMP and that are relevant to the establishment of the GMP. In developing the GMP Proposal, the CM shall coordinate efforts with the Project Designer to identify qualifications, clarifications, assumptions, exclusions, value engineering and any other factors relevant to the establishment of the GMP. The CM shall review the development of the GMP with the OWNER on an ongoing basis to address clarifications of scope and pricing, distribution of contingencies, schedule assumptions, exclusions and other matters relevant to the establishment of the GMP. The use of general allowances in subcontracts is prohibited. The use of specific allowances may be permitted. Any specific allowances must be submitted by the CM to the Owner for approval, on a case by case basis. The GMP shall include the CM’s lump sum fee for the management of the trade work and the general conditions. The lump sum fee includes all CM home office costs, including officers as well as home office and local office support staff, together with all CM overhead costs and profit. The fee shall also include all required services of a home office Project Executive, by whatever name calledand includes the management of the General Conditions work. No additional overhead or profit on direct labor for t...