What it means
Under a GMP contract the contractor is paid its actual costs plus a fee, but the total cannot exceed the guaranteed maximum, unless the scope changes. How any savings are shared is set out in the contract and varies.
The GMP is based on a defined scope, so the quality of the drawings and assumptions behind it matters.
Why it matters
A GMP gives owners a ceiling for budgeting and approvals, and it keeps the contractor motivated to manage cost. It also allows work to start before drawings are complete, which can shorten the schedule.
It works best when the scope is well defined and a contingency is set aside for known unknowns. Owners should read what is included, what is excluded and how changes are priced.
How HSM handles it
HSM sets a GMP only after reviewing the design and site, so the number reflects real conditions. We list the assumptions and exclusions clearly and carry a contingency within the price.
Because we self-perform much of the work, a large share of the GMP is built from our own labour rates and our own crews' productivity, not from subcontractor bids. That helps keep the estimate accurate and the cost under control during construction.
We report costs openly so you can see where the budget stands at any point.
What to plan for
Ask how savings are shared, what the GMP excludes and how changes are priced. These three points matter more than the headline number, and we are happy to go through them with you.