What is Gross Maximum Price (GMP)?
The Gross Maximum Price (GMP) is a pivotal concept in the Design-Build delivery method. It represents the all-encompassing figure that shows the maximum cost a project will entail, covering both design and construction. Within this framework, clients can confidently embark on their construction journey, knowing the financial boundaries within which the project will be executed.
How is a GMP determined?
The goal of a GMP in the Design-Build process is to provide the Owner with a clear understanding of the project's cost while delivering a successful outcome that meets their requirements.
Preliminary Design and Estimation: Design-build team creates early design and initial cost estimates.
- Value Engineering: Collaborative effort to optimize design for cost savings.
- Detailed Design and Refinement: Detailed design development, refining cost estimates.
- GMP Proposal: Submission of comprehensive proposal with detailed design and cost breakdown.
- Owner Approval: Owner reviews and approves the proposed GMP.
- Construction: Project execution aligned with approved design and budget.
Conlon’s Design-Build Experts Maintain Cost Controls Throughout the Project
The Conlon Difference
Project success hinges on collaboration, precision, and understanding, and Conlon Construction's process to determine the Gross Maximum Price is a collaboration of strategic planning and expertise. By crafting a GMP that balances financial realities and aspirational goals, Conlon paves the way for successful construction and long-term building partnerships. Conlon’s Design-Build approach allows for adjustments and refinements throughout the process, ensuring that the final project aligns with the Owner's vision while maintaining cost controls.
