A Guaranteed Maximum Price (GMP) is a contract mechanism in which the contractor commits to a ceiling price for the work, absorbing costs above it while savings below it are shared or returned to the owner per the contract. In data-center delivery GMPs are common under CM-at-risk and design-build, giving cost certainty while allowing design to be finalized after the price is set.
Category: Construction & Project Management · Subcategory: Contracts, Procurement & Commercial Control · Part of the AIDC Technical Terminology reference.