In a GMP contract, the guaranteed maximum price is best understood as:
Correct Answer
B) A contract ceiling on payable cost and fee, subject to authorized changes
A GMP is a ceiling on the amount payable for the covered work, subject to changes allowed by the contract. Other choices confuse it with fees, bonds, or delay damages.
Why This Is the Correct Answer
A GMP is a ceiling on the amount payable for the covered work, subject to changes allowed by the contract. Other choices confuse it with fees, bonds, or delay damages.
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