ECN Electrical Forum - Discussion Forums for Electricians, Inspectors and Related Professionals
ECN Shout Chat
Shout Box
Recent Posts
by Rabbit. 03/20/18 08:23 PM
Recall notice: Southwire wi-fi wall switches
by sparkyinak. 03/15/18 06:03 PM
Goodman Manufacturing Recalls Modular Blowers
by Admin. 03/13/18 10:40 PM
MAAX Spas Recalls Hot Tubs and Swim Spas
by Admin. 03/13/18 10:29 PM
New in the Gallery:
Housebilding DIY wiring
SE cable question
Who's Online Now
0 registered members (), 4 guests, and 10 spiders.
Key: Admin, Global Mod, Mod
Previous Thread
Next Thread
Print Thread
Rate Thread
GMP QUOTE #75658
03/08/07 09:18 AM
03/08/07 09:18 AM
Joined: Oct 2003
Posts: 172
toronto canada
I haven't much experience quoting this type of tender, has any body dealt with this before and how does it differ from a hard bid?


Work Gear for Electricians and the Trades
Re: GMP QUOTE #75659
03/08/07 10:03 AM
03/08/07 10:03 AM
ITO  Offline
Joined: Nov 2006
Posts: 348
A Guaranteed Maximum Price can be used two ways.

1) It is given for a T&M job that you are promising won’t go over budget…hence the guaranty.

It’s not that great of a deal for you because with this type of arrangement you have no protection if the job goes over budget, while at the same time you don’t reap the gains of a good estimate because you are locked into T&M.

I do this type of agreement all the time with one particular client, who thinks he is getting a better deal, but in reality it’s just a straight up T&M job, and I make sure my budget is high enough to protect me. In a nut shell it is just service work.


2) It can be used on larger hard bid jobs as a way of promising the owner the project won’t go over budget with non-scope related change orders.

In this arrangement it is usually the GC who has the GMP, and it’s their job to keep the project within the budget. Sometimes but not always they will ask the subs (that would be us) to also agree to a GMP for non-scope related change orders.

A non-scope related change is a mistake on the plans either through engineering or design that will cost you money to fix but the overall “intent” of the plan has not changed.

Example: The engineer undersized the 1,200A feeder, and you did not catch in during the bid phase of the job. This feeder is for a 1,200A distribution panel and the intent was clearly for this to be a 1200A feeder:

Shown on plans: (3) 400KCM w-2/0 G (3) Sets (3” Conduit)
Should be: (3) 350KCM w-4/0 G (4) Sets (3” Conduit)

It’s a simple mistake at first glance 400KCM is bigger that 350, but that extra set makes all the difference.

There should be some money in yours the GCs contract as part of the GMP that is there as a contingency for this type of mistake, but if that money gets used up then you eat the mistake. There are no perfect plans or designs, every job has “gotchas” in and a GMP says that you are experienced and professional enough that you have that covered in your bid.

A Scope related change is when the owner adds a whole new wing, room, or maybe 20 new parking lot lights they left off the plans on bid day. There is no way to determine intent when the work was not shown or overtly added after contract to the project. For these types of changes, they GC and owner can not hold you to your GMP.

[This message has been edited by ITO (edited 03-08-2007).]

101° Rx = + /_\


2017 Master Electrician Exam Preparation Combos
2017 NEC Electrician
Exam Prep Combos:
Master / Journeyman


Member Spotlight
kamloops BC Canada
Posts: 1,142
Joined: May 2003
Show All Member Profiles 
Top Posters(30 Days)
Admin 5
Trumpy 5
Popular Topics(Views)
244,544 Are you busy
181,668 Re: Forum
171,714 Need opinion
Powered by UBB.threads™ PHP Forum Software 7.6.1
(Release build 20180101)
Page Time: 0.018s Queries: 14 (0.005s) Memory: 0.9433 MB (Peak: 1.0608 MB) Zlib enabled. Server Time: 2018-03-22 09:55:17 UTC