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How to Save General Contractor Agreement in PPR

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In this video tutorial presented by OFlaherty Law, Kevin O'Flaherty discusses general contractor construction contracts, focusing on key clauses and negotiation points. He emphasizes the importance of the scope of work clause, which defines the contractor's responsibilities in exchange for compensation, highlighting the need to minimize ambiguity to prevent litigation. The video references an associated article on learn-about-law.com that offers more detailed insights into these clauses, including additional ones not covered in the video. The tutorial aims to provide essential information for understanding and negotiating construction contracts effectively.

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What is an example of guaranteed maximum price?

For example, a GMP contract to build a grain silo would include the direct projects hard costs of $150,000, overhead costs of $20,000 and a fee including the contractors desired profit of $15,000 for a total price of $185,000.

What is the order of precedence for construction documents?

52.215-8 Order of Precedence-Uniform Contract Format. (a) The Schedule (excluding the specifications). (b) Representations and other instructions. (c) Contract clauses. (d) Other documents, exhibits, and attachments. (e) The specifications.

What is the difference between fixed price and GMP?

A GMP contract differs from a fixed-price contract, such as a lump sum contract, in that, for the latter, the price remains the same no matter how much a contractor spends to complete the project. GMP contracts are more flexiblethe property owner will reimburse the contractor for expenses up to the maximum.

What does GMP mean in finance?

A guaranteed maximum price (GMP) contract is a contract in which the owner or operator of a property agrees to pay their contractor for the cost of a project, plus a fixed fee up to a maximum price.

What is the difference between fixed price and GMP?

A GMP contract differs from a fixed-price contract, such as a lump sum contract, in that, for the latter, the price remains the same no matter how much a contractor spends to complete the project. GMP contracts are more flexiblethe property owner will reimburse the contractor for expenses up to the maximum.

What are the disadvantages of GMP?

Disadvantages for contractors GMP contracts increase contractors financial risk since they are on the hook if costs exceed the maximum price allowed.

What is the difference between a GMP and a lump sum contract?

Unlike a lump sum contract wherein a contractor is paid a flat fee for the work, the guaranteed maximum price contract allows the owner to potentially save money if the project ends up costing less than estimated.

What is the advantage of guaranteed maximum price?

Using a GMP contract can help customers secure financing more quickly and allow contractors to start the projects right away. It can also allow contractors to start without all the details because the set price limit allows customers to make final decisions on materials and designs as the project develops.

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Save General Contractor Agreement in PPR

Grasp your files and Save General Contractor Agreement in PPR

A straightforward guide on the way to Save General Contractor Agreement in PPR with DocHub

PDF editing simplified with DocHub

Drive efficiency with the DocHub add-on for Google Workspace

How to Save General Contractor Agreement in PPR

Related features

Got questions?

What is an example of guaranteed maximum price?

What is the order of precedence for construction documents?

What is the difference between fixed price and GMP?

What does GMP mean in finance?

What is the difference between fixed price and GMP?

What are the disadvantages of GMP?

What is the difference between a GMP and a lump sum contract?

What is the advantage of guaranteed maximum price?

See why our customers choose DocHub

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