Guaranteed Maximum Price (GMP)
A type of construction contract that establishes a maximum price to be paid, beyond which the contractor absorbs additional costs.
GMP is a contractual agreement where the contractor guarantees the project will not exceed a specified cost, providing cost certainty while allowing for shared savings if actual costs are lower.
Used in a sentence
The contract includes a Guaranteed Maximum Price, ensuring the project won't exceed a set budget.
Synonyms/variation
GMP
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