The Dotted Line: How GMP Contracts Keep Projects From Endless 'Costs and Costs and Costs' - Michelle Schaap
Member of the firm's Construction group, Michelle Schaap was quoted in a ConstructionDIVE article titled "The Dotted Line: How GMP contracts keep projects from endless 'costs and costs and costs.'" The article, published on January 12, 2016, is the first installment of ConstructionDIVE's "The Dotted Line" series, which takes an in-depth look at different construction contract types. In this article, a guaranteed maximum price contract ("GMP") is described and Michelle suggests that determining when to use a GMP depends largely on the status of the plans.
According to Michelle, "If you don't have a complete set of plans, then you generally won't do a lump sum, which is why you might instead opt for the cost-plus, preferably with a guaranteed maximum price for the obvious reason that if you do the cost-plus without the guaranteed maximum price, then it’s just costs and costs and costs,"
To read the full article, please visit ConstructionDIVE's website.