GMP (guaranteed maximum price)
A contractual pricing arrangement setting a maximum for defined work, subject to its agreed adjustment rules and exceptions.
by Jack Butler-Kettle · About 1 min readShare
Further detail
A guaranteed maximum price is a contractual pricing arrangement, not a universal promise covering every eventuality. Its scope, allowances, exclusions and adjustment events determine the ceiling. A budget estimate or target cost should not be assumed to be a guaranteed maximum merely because a figure is stated.
Read the cap alongside its exceptions. A Construction contract review before signing can identify where a proposed ceiling transfers uncertainty to your package.