Guaranteed Maximum Price (GMP)
The project owner and the CMAR next decide on when the Guaranteed Maximum Price (GMP) for the project should be presented. The required GMP presentation time is usually when the project design is at a certain point in its completion. It can be 50% complete, 70% complete, or any point that the project owner and CMAR decide on.
After the owner and the CMAR have reached a decision, the CMAR must estimate the project GMP. The GMP is meant to cover the total cost of construction. The CMAR must work with the architect of the project to determine what construction costs will be based on the architect’s completed portion of design. The CMAR must also estimate the cost of designs detailed after the GMP is presented to ensure that forthcoming construction requirements will not exceed the available budget decided upon in the GMP.