Contract Sum and GMP Clause Samples

The 'Contract Sum and GMP' clause defines the total financial amount the contractor will be paid for completing the project, and establishes a Guaranteed Maximum Price (GMP) that caps the owner's financial liability. In practice, this clause specifies the agreed-upon contract sum and states that any costs exceeding the GMP are typically the contractor's responsibility, unless changes are formally approved. Its core function is to provide cost certainty for the owner while incentivizing the contractor to control expenses, thereby minimizing the risk of budget overruns.
Contract Sum and GMP 
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Related to Contract Sum and GMP

  • CONTRACT SUM 9.1.1 The Contract Sum is stated in the State-Contractor Agreement and, including authorized adjustments thereto, is the total amount payable by the State to the Contractor for the performance of the Work under the Contract Documents.

  • CONTRACT SCOPE Pursuant to this Contract, Contractor is authorized to sell and provide only those Goods and/or Services set forth in Exhibit A – Included Goods/Services for the prices set forth in Exhibit B – Prices for Goods/Services. Contractor shall not represent to any Purchaser under this Contract that Contractor has contractual authority to sell or provide any Goods and/or Services beyond those set forth in Exhibit A – Included Goods/Services.

  • THE CONTRACT SUM The Owner shall pay the Contractor for the performance of the contract, subject to additions and deductions provided by approved change orders, in current funds, the Contract Sum as follows:

  • Contract Supremacy In the case of a conflict between the express terms of this Agreement and the terms of the ISO Agreement, the express terms of this Agreement shall prevail.

  • Contract Schedule The information set forth in the Contract Schedule is true and correct.