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.

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.