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This document outlines the agreement between the County of El Paso, Texas, and Urban Associates, Inc. for the design and construction of a project involving the remodeling of the Sheriff’s Jail

How to fill out guaranteed maximum price design

How to fill out GUARANTEED MAXIMUM PRICE DESIGN AND CONSTRUCTION AGREEMENT

1. Begin by gathering all necessary project details, including scope, budget, and timeline.
2. Review the standard form of the Guaranteed Maximum Price (GMP) agreement to understand its structure.
3. Clearly define the project scope of work, including specifications and drawings.
4. Identify and document all costs involved, including labor, materials, overhead, and contingency.
5. Establish the maximum price by negotiating and agreeing on the final amount with the contractor.
6. Outline the payment terms, including progress payments and any retainage.
7. Include clauses regarding changes or modifications to the project and how they will affect the GMP.
8. Review all legal terms and conditions, ensuring compliance with local laws and regulations.
9. Have all parties involved review the agreement before signing.
10. Sign the agreement and distribute copies to all relevant stakeholders.

Who needs GUARANTEED MAXIMUM PRICE DESIGN AND CONSTRUCTION AGREEMENT?

1. Developers and property owners looking to manage costs on construction projects.
2. Contractors who want to establish clear financial limits and responsibilities.
3. Architects and engineers involved in design-build projects where budget certainty is essential.
4. Financial institutions that require a clear understanding of project costs for funding purposes.

People Also Ask about

What is the maximum contract value?

Maximum Contract Value means the amount specified in the "Limitation of Expenditure" clause set out in the Contract; and “Minimum Contract Value “means 10% of the Maximum Contract Value.

What is the maximum allowable construction cost?

Maximum allowable construction cost . (MACC) means the maximum cost of the work to construct the project including a percentage for risk contingency, negotiated support services, and approved change orders.

What is guaranteed maximum price in construction?

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 guaranteed maximum project construction cost?

GMP meaning in construction, is a contract stipulation that states a maximum payment for the relevant contract. After reaching that payment milestone, the contractor is responsible for any additional costs. Whether that's labor, materials, or any other operating costs.

What is the guaranteed maximum price in a construction contract?

A guaranteed maximum price (GMP) contract sets a maximum price for a construction project, beyond which the contractor absorbs additional costs. Sometimes called a construction manager at risk contract, this type of construction agreement minimizes financial risk for the owner because it sets a project cost limit.

What is a GMP AIA contract?

A Guaranteed Maximum Price (GMP) contract is a construction agreement that sets a ceiling on the amount an owner must pay the contractor, regardless of the actual cost incurred. Under a GMP, the contractor absorbs any costs above the agreed-upon maximum price.

For pdfFiller’s FAQs

What is GUARANTEED MAXIMUM PRICE DESIGN AND CONSTRUCTION AGREEMENT?

A Guaranteed Maximum Price (GMP) Design and Construction Agreement is a contractual arrangement between a client and a contractor where the contractor agrees to complete a project for a price that does not exceed a specified maximum. This agreement outlines the scope of work, budget constraints, and conditions for any changes in the project scope.

Who is required to file GUARANTEED MAXIMUM PRICE DESIGN AND CONSTRUCTION AGREEMENT?

Typically, the owner of the construction project and the contractor who will be completing the work are required to execute the GMP agreement. In some jurisdictions, additional parties may need to be involved, such as consultants or design professionals.

How to fill out GUARANTEED MAXIMUM PRICE DESIGN AND CONSTRUCTION AGREEMENT?

To fill out a GMP Design and Construction Agreement, one should specify the project details, including the scope of work, estimated costs, the maximum price, payment terms, deadlines, contingencies, and any relevant legal terms. Both the owner and contractor should review the document for clarity and agreement before signing.

What is the purpose of GUARANTEED MAXIMUM PRICE DESIGN AND CONSTRUCTION AGREEMENT?

The purpose of a GMP Design and Construction Agreement is to protect the client's budget while offering the contractor incentive to minimize costs and complete the project efficiently. It aims to establish clear expectations about project costs and timelines, ultimately fostering collaboration between all parties involved.

What information must be reported on GUARANTEED MAXIMUM PRICE DESIGN AND CONSTRUCTION AGREEMENT?

Information that must be reported in a GMP agreement includes the project description, detailed budget breakdown, maximum price cap, payment schedule, timelines for project completion, responsibilities of the parties involved, procedures for change orders, and any agreed-upon contingencies.