GMP Contract Risk Management for Southwest Florida Owners
A Guaranteed Maximum Price contract protects the owner only if someone is reading it the way a contractor would. I structure and audit GMP contracts, cost-plus contracts, and self-perform arrangements so risk allocation, contingency use, and change order rights are clear before the first draw goes out, not argued about after.
Where Owners Lose Money on a GMP
The number on the cover page is rarely the number that matters. Allowance assumptions, unclear scope exclusions, contingency draw down rights, and change order markup language all shift risk quietly from contractor to owner if nobody negotiates them upfront. I have seen GMP buyouts where the stated savings evaporated within the first three pay applications because the contract never protected them in the first place.
What I Do on a GMP Engagement
I review the GMP proposal line by line against the actual drawings and specifications, not just the summary numbers. I negotiate contingency terms, allowance reconciliation language, and change order documentation requirements before signature. Once construction starts, I audit every pay application and change order against the contract and the schedule of values, and I challenge anything that does not hold up. On one recent buyout this work identified $1.95 million dollars in savings that would otherwise have been absorbed into the contract without question.
Who This Is For
Developers and private owners entering a GMP, cost-plus, or hybrid contract on a residential, multifamily, or mixed use project in Naples, Sarasota, St Petersburg, or Palm Beach, and owners already under a GMP who want an independent read on whether their draws and change orders are being handled correctly.
If you have a GMP proposal on your desk right now, send it over before you sign it.
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