Category Archives: Guaranteed Maximum Price

Utilizing a Risk Register to Manage the Construction Management at-Risk Change Order Process

The construction management at-risk (CMAR) delivery model requires contractors, engineers, and owners to think differently about how, why, and when change orders are executed. For the sake of this topic, we will assume that the owner has a separate and autonomous contract with the contractor and the engineer and the project is a guaranteed maximum price (GMP) arrangement for a collaborative delivery.

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Topics: CMAR, Crist Engineers, Guaranteed Maximum Price, Risk Register.

Understanding the Differences in Guaranteed Maximum Price (GMP) and Fixed Price for Design-Build Delivery Projects

The intent of this article is to further an owner’s understanding of the commonly used pricing approaches for either design-build or CMAR delivery methods. For additional information on these topics, please review the appropriate sections in the Water and Wastewater Design-Build Handbook (5th edition. When discussing design-build projects, there are potentially two forms of final project pricing and compensation: guaranteed maximum price (GMP) or fixed price (FP). Owners and practitioners should be clear in their respective understanding of what each approach leads to in performance of services and responsibility for cost documentation.

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Topics: Design-Build, Fixed-Price Design-Build, Guaranteed Maximum Price.

Guaranteed Maximum Price Determination on Progressive Design-Build Projects

“OK, so what’s this going to cost?” That’s the multi-million-dollar question we all want to know when starting out on any progressive design-build venture. It’s followed closely by “When will we know?” With the proper team in place, cost certainty can be achieved early in the progressive design-build process.

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Topics: Guaranteed Maximum Price, Progressive Design-Build, Ulliman Schutte.

Project Spotlight: Longmont, Colorado, Water Treatment Plant

Located within Boulder County, the city of Longmont had been operating three water-treatment facilities: the Wade-Gaddis plant and two much older facilities known as the West plants. The city needed to replace the two aging plants due to more stringent regulator standards for drinking water and the increased demands of a growing population and economy. 

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Topics: Black & Veatch, Guaranteed Maximum Price.