Source: https://www.quantsurv.com/resources/glossary/gmp Content format: Markdown version of the public page. Content reviewed: 2026-09-30 # GMP (guaranteed maximum price): definition and example A contractual pricing arrangement setting a maximum for defined work, subject to its agreed adjustment rules and exceptions. By [Jack Butler-Kettle]() · Updated 30 September 2026 Guidance for England and Wales. Check the contract, amendments and facts that apply to your job. ## What it means in practice 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 [pre-signing contract review]() can identify where a proposed ceiling transfers uncertainty to your package. ## Worked example ### The facts A package has a stated £100,000 maximum for defined work, with a written change mechanism. ### What happens 1. The subcontractor distinguishes its own overspend from work added by a later instruction. 2. It checks whether that instruction changes the cap under the agreed terms. ### What this shows The cap and its adjustment rules must be read together; neither an overrun nor an instruction answers the question alone.