Get the free AMENDMENT(s) FOR CONSTRUCTION MANAGER (CM) CONTRACT TO ESTABLISH GUARANTEED MAXIMUM ...

This document outlines the procedures for amending the Construction Manager Contract to establish a Guaranteed Maximum Price, including responsibilities, action steps, and required documentation.

How to fill out amendments for construction manager

How to fill out AMENDMENT(s) FOR CONSTRUCTION MANAGER (CM) CONTRACT TO ESTABLISH GUARANTEED MAXIMUM PRICE (GMP)

1. Review the original Construction Manager (CM) contract to understand the scope.
2. Discuss the project's scope and budget with relevant stakeholders to determine the Guaranteed Maximum Price (GMP).
3. Prepare a detailed estimate that covers all elements of the project including materials, labor, and overhead costs.
4. Draft the amendment document including necessary clauses, specifying the GMP and any conditions attached.
5. Include signatures from all relevant parties, indicating their agreement to the terms outlined in the amendment.
6. Distribute copies of the signed amendment document to all parties for their records.

Who needs AMENDMENT(s) FOR CONSTRUCTION MANAGER (CM) CONTRACT TO ESTABLISH GUARANTEED MAXIMUM PRICE (GMP)?

1. Construction Managers (CM) involved in managing construction projects.
2. Developers who are looking to establish financial caps on construction costs.
3. Investors or stakeholders in construction projects aiming for risk management in budgeting.

People Also Ask about

What does GMP mean in a construction contract?

A GMP contract includes a contingency fund to cover unexpected costs such as material price fluctuations, weather-related delays, or minor design changes. However, how this fund is used depends on the contract terms: In some cases, the contractor controls the contingency and decides how to allocate it.

What is the difference between fixed fee and GMP?

Cost-Plus Fixed Fee - the contractor is paid a fixed fee that covers their profit apart from the actual cost of construction. Cost-Plus Fixed Fee With Guaranteed Maximum Price (GMP) - the client agrees to reimburse the contractor for materials, labor and the contractor's fee that covers profit plus overhead.

What is the addendum to a construction contract?

GMP stands for the guaranteed maximum price. That refers to the highest amount of labor, materials and profit costs the contractor can charge the customer in the construction industry.

What is a guaranteed maximum price amendment?

What is a Guaranteed Maximum Price Amendment? A guaranteed maximum price amendment is a contract between a contractor and client that sets a certain maximum price the client pays for construction services.

What are the disadvantages of GMP contracts?

Disadvantages of GMP contracts Complex cost tracking: Accurate cost tracking is essential in a GMP contract. It can be challenging and requires careful monitoring, detailed invoicing, and transparency between client and contractor to avoid misunderstandings.

How does a guaranteed maximum price contract work?

A guaranteed maximum price (also known as GMP, not-to-exceed price, NTE, or NTX) contract is a cost-type contract (also known as an open-book contract) such that the contractor is compensated for actual costs incurred plus a fixed fee, which is limited to a maximum price.

What is an example of a guaranteed maximum price?

For example, in a Guaranteed Maximum Price contract to build a grain silo, the cost breakdown might look like this: Hard costs (materials and labor): $150,000. Overhead costs (administration, site management): $20,000. Contractor's fee (profit): $15,000. Total contract price: $185,000.

For pdfFiller’s FAQs

What is AMENDMENT(s) FOR CONSTRUCTION MANAGER (CM) CONTRACT TO ESTABLISH GUARANTEED MAXIMUM PRICE (GMP)?

The AMENDMENT for a Construction Manager (CM) Contract to establish a Guaranteed Maximum Price (GMP) is a contractual document that modifies the original agreement to set a maximum limit on the total price for the construction project. This ensures that the project owner will not pay more than the established GMP.

Who is required to file AMENDMENT(s) FOR CONSTRUCTION MANAGER (CM) CONTRACT TO ESTABLISH GUARANTEED MAXIMUM PRICE (GMP)?

Typically, the Construction Manager (CM) is required to file the amendment, as they are responsible for managing the construction process and ensuring that the project adheres to the established GMP.

How to fill out AMENDMENT(s) FOR CONSTRUCTION MANAGER (CM) CONTRACT TO ESTABLISH GUARANTEED MAXIMUM PRICE (GMP)?

To fill out the amendment, include the project details, original contract reference, a breakdown of the costs leading to the GMP, any changes to the scope of work, and signatures from authorized representatives of both the owner and the CM.

What is the purpose of AMENDMENT(s) FOR CONSTRUCTION MANAGER (CM) CONTRACT TO ESTABLISH GUARANTEED MAXIMUM PRICE (GMP)?

The purpose of the amendment is to provide clarity on the financial limits of the project, protect the owner from exceeding the budget, and establish a clear framework for cost control and project management.

What information must be reported on AMENDMENT(s) FOR CONSTRUCTION MANAGER (CM) CONTRACT TO ESTABLISH GUARANTEED MAXIMUM PRICE (GMP)?

The information required includes the project name, description of work, original contract details, proposed GMP, itemized cost breakdown, any changes to terms, and signatures from the involved parties.