What does GMP mean in construction?
Short definition
A GMP is a contract amount that sets the maximum price an owner should pay for the defined construction scope, subject to approved changes.
Longer explanation
GMP contracts are common in negotiated delivery methods and are often supported by estimates, contingencies, allowances, and assumptions.
Example in context
“The project team reviewed the GMP during the construction phase.”
Common users
- Owners
- Architects
- Contractors
- Construction managers
Related terms
Related resources
Construction AcronymsA curated index of common construction acronyms used in contracts, drawings, administration, safety, and project delivery.Construction Contract TermsContract and agreement terms used for pricing, obligations, general conditions, payment, changes, and claims.GMP vs Cost Plus ContractLearn how a guaranteed maximum price differs from a cost plus construction contract.Allowance vs ContingencyLearn the difference between an allowance and contingency in construction pricing.