Guaranteed Maximum Price (GMP)

An approach to pricing services in a collaborative delivery proposal and contract. The GMP is the sum of all reimbursable costs, plus a fee that usually includes overhead and profit. Costs incurred above the GMP are the responsibility of the design-builder or CMAR firm unless they result from an owner-approved change in project scope. GMP pricing is commonly used when an owner chooses either progressive design-build or construction management at-risk project delivery.