Guaranteed Maximum Price

From Wikipedia, the free encyclopedia

There are very few or no other articles that link to this one.
Please help introduce links in articles on related topics. After links have been created, remove this message.
This article has been tagged since January 2007.

A Guaranteed Maximum Price (also known as GMP, Not-To-Exceed Price, NTE, or NTX) contract is a cost-type contract (also known as an open-book contract) where the contractor is compensated for actual costs incurred plus a fixed fee subject to a ceiling price. The contractor is responsible for cost overruns, unless the GMP has been increased via formal change order (only as a result of additional scope from the client, NOT price overruns, errors, or omissions). Savings resulting from cost underruns are returned to the owner. This is different from a Fixed-Price (also known as Stipulated Price or Lump Sum) contracts, where cost savings are typically retained by the contractor, and essentially become additional profits.

Retrieved from "http://en.wikipedia.org../../../g/u/a/Guaranteed_Maximum_Price_f052.html"