Document Type

Article

Publication Date

2011

Journal or Book Title

Journal of Construction Engineering and Project Management

Volume

1

Issue

1

First Page

1

Last Page

10

DOI

10.6106/JCEPM.2011.1.1.001

Abstract

This paper discusses the components of a guaranteed maximum price (GMP) and proposes a framework for the development of GMPs as contract payment provisions for construction manager-at-risk (CMR) and design-build (DB) contracts for transportation projects. The framework is the synthesis of a comprehensive literature review, a content analysis of CMR and DB solicitation documents and contracts, and case study project output from twelve projects in nine states worth $3.1 billion. The research also discusses the development of three common types of contingencies that are often utilized in projects with GMPs. The study concludes that owners should specify the structure of the GMP and its components to enhance clarity and understanding of the GMP’s composition. It recommends that this structure be included in the CMR and DB solicitation documents so that pricing proposals can be formulated in a manner that is consistent with the contract payment provisions that will be useful to practitioners that need to implement GMP-based contracts.

Research Focus Area

Construction Engineering and Management

Comments

This article is from Journal of Construction Engineering and Project Management 1 (2011): 1–10, doi:10.6106/JCEPM.2011.1.1.001. Posted with permission.

Copyright Owner

KICEM

Language

en

File Format

application/pdf

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