Guaranteed Maximum Price Clause

Summary

This Guaranteed Maximum Price clause may be included in a construction management agreement where the construction manager is acting as the contractor. This clause sets forth the procedure for establishing and adjusting the guaranteed maximum price, and the parties' rights and responsibilities in relation to cost of work. For a list of key resources covering construction-related tasks for associates, in-house attorneys, and interns, see First Year Associate Resource Kit: Construction, Junior Associate Resource Kit: Construction, Summer Associate Resource Kit: Construction, In-House Construction Resource Kit, and Federal Government Summer Intern Resource Kit: Construction. For guidance on owner and contractor agreements, see Owner and Contractor Agreement Resource Kit. For a full listing of key content covering construction, see Construction Resource Kit. For an explanation of the methods of compensation and payment terms used for fixed price contracts and cost-reimbursable contracts with a guaranteed maximum price, see Construction Contract Methods of Compensation and Payment. See also Guaranteed Maximum Price Construction Agreements. For a related treatise, see Construction Law P 7.01.