Guaranteed Maximum Price is associated with which delivery-method combination?

Guaranteed Maximum Price is associated with which delivery-method combination?

• A. Traditional, Multiple Prime
• B. CM-At-Risk, Design-Bid-Build
• C. Time and Material, Unit Price
• D. CM-At-Risk, Design-Build

Answer: (D)

Guaranteed Maximum Price represents cost certainty where the construction manager accepts responsibility for delivering the project at or below a capped price. This setup is the hallmark of the CM at risk approach: the CM collaborates with the owner during design, then commits to a GMP that sets the maximum the owner will pay, with the CM absorbing cost overruns and sharing savings. In a design-build context, the design and construction are combined under one contract, making it practical to establish a GMP once the scope is defined, so cost control remains centralized under the integrated team. For these reasons, the combination of CM-At-Risk with Design-Build best aligns GMP with the delivery method. Traditional design-bid-build, time-and-material or unit-price pricing, and purely separate design and construction do not inherently center around a GMP in the same way.

Guaranteed Maximum Price represents cost certainty where the construction manager accepts responsibility for delivering the project at or below a capped price. This setup is the hallmark of the CM at risk approach: the CM collaborates with the owner during design, then commits to a GMP that sets the maximum the owner will pay, with the CM absorbing cost overruns and sharing savings. In a design-build context, the design and construction are combined under one contract, making it practical to establish a GMP once the scope is defined, so cost control remains centralized under the integrated team. For these reasons, the combination of CM-At-Risk with Design-Build best aligns GMP with the delivery method. Traditional design-bid-build, time-and-material or unit-price pricing, and purely separate design and construction do not inherently center around a GMP in the same way.