GMP Contract Sample Clauses
A GMP (Guaranteed Maximum Price) contract is a construction agreement where the contractor commits to completing the project for a price not exceeding a specified maximum amount. Under this arrangement, the contractor is reimbursed for actual costs incurred plus a fee, but any costs above the agreed cap are typically the contractor's responsibility unless there are approved changes. This clause is used to provide cost certainty for the project owner while incentivizing the contractor to control expenses, thereby allocating the risk of cost overruns to the contractor and protecting the owner's budget.
POPULAR SAMPLE Copied 1 times
GMP Contract. An Amendment to the CM/GC Contract, executed by and between the parties, to describe the work required for construction of the Project and any related Construction Phase Services, and to establish the GMP and GMP Supporting Documents.
GMP Contract. Exhibit B Governmental Approvals............................................................................................................ 59
GMP Contract. Landlord covenants that it will use commercially reasonable efforts to, within one-hundred fifty (150) days following the Effective Date, enter into a guaranteed maximum price contract between Landlord and General Contractor which shall provide for the one hundred percent (100%) lien-free completion of the Building Improvements, in accordance with the Budget (the “GMP Contract”). The GMP Contract shall be in form and substance reasonably acceptable to Tenant and contain a complete line item budget to complete the Building Improvements. Tenant shall be a named indemnified party with respect to any indemnities provided by the General Contractor under the GMP Contract, and shall be a third party beneficiary with respect to each warranty and indemnity made by the General Contractor under the GMP Contract.
GMP Contract. Following the completion of the Approved Core and Shell Plans, Landlord shall cause the General Contractor to solicit bids from at least three subcontractors for each significant subcontract and material supplier (unless fewer than three qualified bidders are available) and shall provide to, and review the bids with, Tenant. In the event that the General Contractor desires to self-perform a significant subcontract scope of work, either Landlord shall require the General Contractor to obtain at least two subcontractor bids for each trade to be self-performed, or Landlord shall engage a third-party cost estimator (as a Construction Cost) to provide an estimate of the same scope of work, and cause such cost estimator and General Contractor to reconcile estimates within +/-5% prior to approving the General Contractor’s bid. Landlord shall select the lowest qualified bid unless otherwise instructed by Tenant. Landlord covenants that it will, within thirty (30) days following the completion of bidding, enter into a guaranteed maximum price contract between Landlord and General Contractor, which shall provide for the one hundred percent (100%) lien-free completion of the Landlord’s Construction Work, provide for a correction period for defective work of at least twelve (12) (and not more than twenty-four (24)) months (as set forth in the contract, the “Corrective Period”), and be based on the final bids and otherwise approved terms of the form of construction contract ((the “GMP Contract”). The GMP Contract shall contain a complete line item budget to complete the Landlord’s Construction Work in a manner consistent with similar projects. The parties acknowledge that certain long lead packages may be bid and procured separately by Landlord prior to the execution of the GMP Contract. The parties further acknowledge that it may be prudent, on the advice of the General Contractor or any other consultant providing pre-construction services, to procure some long lead items contained within the Landlord’s Construction Work prior the execution of the GMP Contract or to place deposits for the acquisition of the same, in each case as a means to mitigate against potential supply chain issues during construction. The parties shall collaborate and cooperate in discussing opportunities for such mitigation. In connection with any agreement to spend such amounts prior to the Effective Date, the parties shall agree on how such sums shall be treated for the purposes of Constructio...