GMP & Completion Dates - 500.1

In construction management-at-risk (CMAR) projects, defining cost certainty is vital for both owners and construction managers. The ConsensusDocs 500.1 Amendment is a critical contract document designed to be used alongside the ConsensusDocs 500 Agreement and General Conditions Between Owner and Construction Manager (Where the CM is At-Risk). It formalizes the Guaranteed Maximum Price (GMP) once both parties reach a mutual agreement on the project’s cost ceiling.

This amendment serves as a foundational element in CM-at-Risk project delivery, offering a structured and transparent way to lock in the total project cost. By defining the GMP through this document, owners can better manage financial risk while ensuring construction managers are held accountable for delivering the project within the agreed-upon budget.

The ConsensusDocs 500.1 Amendment also provides flexibility to include detailed exhibits that address key cost-related factors, such as:

• Specifications and scope clarifications
• Allowance items that may vary during construction
• Assumptions and qualifications underlying the GMP
• Alternate pricing options for different design or material choices
• Unit prices for materials or labor commonly used across project phases

These customizable exhibits ensure that both the owner and construction manager share a clear understanding of the terms governing the GMP, which helps minimize disputes, streamline cost tracking, and improve project outcomes.

Whether you’re an owner seeking cost certainty or a construction manager aiming to deliver under a fixed budget, the ConsensusDocs 500.1 Amendment offers a practical and legally sound method for setting and managing the Guaranteed Maximum Price. It’s a crucial tool for anyone engaging in a collaborative CM-at-Risk construction process.