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Article
A Framework for Guaranteed Maximum Price and Contingency Development for Integrated Delivery of Transportation Projects
Journal of Construction Engineering and Project Management
  • Douglas D. Gransberg, Iowa State University
  • Jennifer S. Shane, Iowa State University
  • Junyong Ahn, Iowa State University
Document Type
Article
Publication Date
1-1-2011
DOI
10.6106/JCEPM.2011.1.1.001
Abstract
This paper discusses the components of a guaranteed maximum price (GMP) and proposes a framework for the development of GMPs as contract payment provisions for construction manager-at-risk (CMR) and design-build (DB) contracts for transportation projects. The framework is the synthesis of a comprehensive literature review, a content analysis of CMR and DB solicitation documents and contracts, and case study project output from twelve projects in nine states worth $3.1 billion. The research also discusses the development of three common types of contingencies that are often utilized in projects with GMPs. The study concludes that owners should specify the structure of the GMP and its components to enhance clarity and understanding of the GMP’s composition. It recommends that this structure be included in the CMR and DB solicitation documents so that pricing proposals can be formulated in a manner that is consistent with the contract payment provisions that will be useful to practitioners that need to implement GMP-based contracts.
Comments

This article is from Journal of Construction Engineering and Project Management 1 (2011): 1–10, doi:10.6106/JCEPM.2011.1.1.001. Posted with permission.

Copyright Owner
KICEM
Language
en
Date Available
2014-04-21
File Format
application/pdf
Citation Information
Douglas D. Gransberg, Jennifer S. Shane and Junyong Ahn. "A Framework for Guaranteed Maximum Price and Contingency Development for Integrated Delivery of Transportation Projects" Journal of Construction Engineering and Project Management Vol. 1 Iss. 1 (2011) p. 1 - 10
Available at: http://works.bepress.com/douglas_gransberg/12/