The Guaranteed Maximum Price clause is added to a management contract where Bovis assumes the risk on the final cost of the works, ensuring the client a fixed maximum price. The difference with the Management Contracting occurs when, during the bidding process of the execution of work packages, bids are obtained for work packages that are around 80% of the total project costs. At this time, Bovis is ready to ensure a guaranteed maximum price to the client.
Upon agreement of the final account, the sum is compared against the GMP. Bovis will assume the additional costs on the GMP if any. Total shavings are shared equally between the employer and Bovis.