This project delivery method involves a commitment by a construction management firm to deliver a project within a guaranteed maximum price (GMP). The construction manager provides pre-construction services such as design review, value engineering, and constructability analysis during the design phase. The firm then takes on the risk for cost overruns during the construction phase, incentivizing efficient project management and cost control. As an example, a hospital expansion project could employ this method to ensure budget certainty while benefiting from the construction manager’s expertise in healthcare facility construction.
Employing this approach offers several benefits, including enhanced collaboration between the owner, designer, and contractor from the outset. This collaboration facilitates proactive problem-solving and informed decision-making throughout the project lifecycle. The guaranteed maximum price provides financial predictability for the owner, minimizing the risk of unexpected cost increases. Historically, this approach emerged as a response to the need for greater cost control and efficiency in complex construction projects.
