Disclaimer
The information provided serves solely as a general illustration concerning contractual arrangements where a fixed maximum expenditure is established for a construction project. It is not intended as legal advice and should not replace consultation with a qualified attorney specializing in construction law or contracts. Regulations and laws may differ based on jurisdiction, so adjustments may be necessary to ensure local compliance. The use of this example is at the user’s own risk, and no liability is assumed for errors, omissions, or consequences resulting from its use without professional legal review.
Please note: This is a sample Guaranteed Maximum Price (GMP) Contract template for reference purposes only. Actual terms should be tailored to specific project requirements and legal standards.
Guaranteed Maximum Price Contract Sample
Parties Involved:
Owner: XYZ Construction LLC
Address: 100 Main Street, Los Angeles, CA 90012
Contractor: ABC Builders Inc.
Address: 200 Elm Avenue, Los Angeles, CA 90015
Project Description:
The project involves the construction of a commercial building located at 1234 Sunset Blvd, Los Angeles, CA 90026, or other designated site as detailed in the project scope.
Contract Terms:
The contractor agrees to complete the project within a Guaranteed Maximum Price of $2,500,000, with detailed scope, schedule, and cost controls specified herein. The GMP includes all labor, materials, and overhead costs, except as explicitly excluded.
Contractor Responsibilities:
The contractor shall perform all work in accordance with the project drawings, specifications, and applicable laws, ensuring quality control and timely completion within the GMP.
Owner Responsibilities:
The owner shall provide necessary permits, timely approvals, and access to the site, and shall make payments as specified in this agreement.
Cost and Payment Schedule:
Payments shall be made in accordance with milestones outlined in the project schedule, with the total not exceeding the GMP of $2,500,000. Any change orders requiring adjustments to the GMP must be mutually approved in writing.
Governing Law:
This agreement shall be governed by the laws of the State of California. Disputes shall be resolved within the jurisdiction of Los Angeles courts.
Additional Provisions:
- Any change to the scope or cost must be documented and approved in writing.
- The contractor guarantees that the total cost will not exceed the GMP unless authorized by change order.
- Both parties agree to adhere to the project schedule and quality standards.
Los Angeles, ______________________
John Doe (Owner)
Jane Smith (Contractor)