A Guaranteed Maximum Price contract allows the client to know highest cost of his project. Any expense beyond the cost of the work is paid by the contractor.
During the preconstruction phase, the contractor establishes a budget with the client, after having reviewed the project in detail. All costs over and above the amount established are at the expense of the contractor. This approach is generally associated with a cost-plus contract. The contractor is reimbursed based on the actual cost plus general fees and profit.
The GMP option means the work can begin before the design is complete. The owner has better control over the cost since it can be monitored as the work is being executed and changes can be made to the required quality and scope of work. Further involvement may be required from the consultant.
Within a GMP contract, the contractor assumes a greater risk, providing initiative for maximizing efficiency. Furthermore, financing is easier to obtain when there is a final contract price established.
Our large pool of experts in all construction specialties enables Pomerleau to offer among the most competitive prices on the market as well as superior and recognized workmanship quality.