GMP & Appendices - 460.1

The ConsensusDocs 460.1 Amendment is designed to be used in conjunction with the ConsensusDocs 460 Design-Build Subcontract agreement. This amendment allows the Design-Builder and Subcontractor to formalize their agreement on the Guaranteed Maximum Price (GMP) for the design-build project once both parties have reached mutual consent on the GMP amount.

The GMP serves as a key element in managing and controlling project costs in design-build projects, ensuring that both parties agree on a cap for the total cost of the project’s scope. The 460.1 Amendment makes it easier to set this price by providing a structured approach to finalize the financial terms and conditions, protecting both the Design-Builder and Subcontractor from unexpected cost increases.

Key Features of the ConsensusDocs 460.1 Amendment:

• GMP Formalization: This amendment enables the Design-Builder and Subcontractor to solidify the Guaranteed Maximum Price (GMP) for the project. It is critical for keeping project budgets under control and setting clear expectations for both parties.
• Exhibit Inclusion: The amendment allows for the inclusion of various exhibits that can address additional project details such as:
  • Specifications
  • Allowance items
  • Assumptions and clarifications
  • Alternate prices
  • Unit prices
• Flexibility in Contract Details: By incorporating these exhibits, both parties can ensure that all necessary details are clarified and agreed upon before work begins, minimizing the risk of disputes over costs and scope during the project’s execution.
• Enhanced Clarity for Design-Build Projects: This document is ideal for design-build projects, where cost management and transparent communication between the Design-Builder and Subcontractor are essential for success.

The ConsensusDocs 460.1 Amendment helps to streamline the process of finalizing the Guaranteed Maximum Price and ensures that both parties are on the same page regarding financial expectations. By allowing the inclusion of detailed exhibits, this amendment document provides a comprehensive solution for managing the complexities of a design-build agreement.