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(RISK-1330) Use of Dynamic Progress Method (DPM) on Guaranteed Maximum Price (GMP) Contracts

Primary Author: Mr Mark P. McDowell CCC PSP
Co-author(s): Mr Barry B. Bramble; Mr J. Chris White

Audience Focus: Advanced
Application Type: Application
Venue: 2013 AACE International Annual Meeting, Washington, DC, USA

Abstract: Project owners and contractors continue to be challenged when developing competitive Guaranteed Maximum Price (GMP) contracts. The purpose of this paper and presentation is to introduce project owners and contractors to Dynamic Progress Method (DPM) tools available to them when developing or evaluating trade contractor proposals required for GMP development. This paper will overview traditional GMP development and evaluation techniques and then introduce more advanced DPM techniques. All of the information and recommendations provided by this paper and presentation will equip owners, owner’s representatives and contractors to exercise increased and varying degrees of diligence when advancing projects through the design, preconstruction and construction phases of a GMP project.