GMP—or Guaranteed Maximum Price—contracts are a staple in complex construction projects where owners want cost predictability without sacrificing flexibility. But behind every “guarantee” is a web of defined terms, allowances, contingencies, and exclusions that can make or break your bottom line.

At Elkhoury Law, I help owners, contractors, and construction managers draft, negotiate, and manage GMP contracts with clarity—so that the number on the first page means what it says when the dust settles.

GMP Contracts for Houston and Harris County Projects

As Houston’s commercial construction market continues to boom—particularly in sectors like healthcare, infrastructure, and industrial development—owners and developers are increasingly turning to Guaranteed Maximum Price (GMP) contracts to control costs and mitigate risk.

Whether it’s a new hospital wing in the Texas Medical Center or a logistics hub in the Port of Houston area, GMP agreements offer a structured way to cap a project’s total cost while preserving flexibility for design and construction. But these contracts come with high-stakes legal implications—especially when it comes to change orders, cost contingencies, allowances, and scope clarity.

In Harris County, public sector entities using construction manager-at-risk (CMAR) or design-build delivery methods often rely on GMP contracts to establish financial guardrails for taxpayer-funded work. For private developers, GMPs offer greater price certainty—but disputes often arise over what costs are “reimbursable” or whether the GMP has been exceeded due to design changes or delays.

At Elkhoury Law, I advise owners, general contractors, and construction managers across Texas on drafting and negotiating enforceable GMP contracts; allocating risk and defining allowable costs, contingencies, and change processes; and auditing payment applications and resolving disputes when actual costs approach or exceed the guaranteed price.

Whether you're building a mixed-use development in Midtown or navigating a GMP on a Harris County public facility, I provide counsel grounded in real-world construction law and local project experience.

What is a GMP Contract?

A Guaranteed Maximum Price (GMP) contract sets a ceiling on the total cost of a construction project. The contractor is reimbursed for actual, allowable costs plus a fee, but only up to the GMP limit—unless the owner makes changes or exceptions apply.

GMP contracts are often used in:

• CMAR (Construction Manager at Risk) projects

• Design-Build delivery models

• Public and private vertical construction

GMPs offer benefits like:

• Cost control for owners

• Transparency through open-book accounting

• Incentives for contractors to control costs

But a GMP is only as solid as the definitions and assumptions built into the contract.

How Elkhoury Law Supports GMP Contracts

As your dedicated EPC contract counsel, I help guide you from project conception to completion—and when necessary, through dispute resolution. Services include:

Contract Drafting & Negotiation

• Drafting and negotiating GMP provisions in CMAR, Design-Build, or standalone contracts

• Advising on:

  • Definition of “cost of the work”

  • Contingencies (contractor, owner, escalation, etc.)

  • Allowances and assumptions

  • Shared savings clauses and fee structures

  • Change order protocols and audit rights

  • Risk management and indemnities

• Clarifying what counts toward the GMP—and what doesn’t

Execution Support & Risk Management

• Supporting project teams during GMP development and reconciliation

• Reviewing subcontractor pricing, buyout strategies, and scope alignments

• Monitoring proper contingency usage and documentation practices

• Advising on change management, escalation triggers, and delay impacts

Dispute Resolution & Litigation

• Handling claims involving:

  • GMP overages or budget busts

  • Contingency misuse or unauthorized costs

  • Change order disputes or scope creep

  • Final reconciliation and audit conflicts

• Representing clients in mediation, arbitration, and litigation

• Working with experts to analyze technical issues and project delays

Why Work with Elkhoury Law on GMP Contracts?

Because GMP contracts are loaded with assumptions—and sometimes landmines. I help clients make sure the GMP actually protects their interests, not just sets a price cap. With experience on both public and private projects, and a background in construction law, I know how these provisions get tested in the real world—and in court.

If you’ve ever been burned by a GMP that didn’t mean what you thought it meant, I can help you fix that next time.

Serving Construction Professionals Across Texas

From high-stakes infrastructure to vertical commercial construction, Elkhoury Law delivers strategic, detail-focused counsel on GMP contracting and disputes.