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Understanding GMP Contracts and Variations - Overview

This article will guide you through the key steps in managing GMP contracts.

Overview

Our streamlined GMP (Guaranteed Maximum Price) contract process is designed to simplify the contract creation, amendment, and execution workflow for greater efficiency and accuracy. INGENIOUS.BUILD provides a seamless experience from start to finish.

Process

Creating a GMP Contract

When selecting a contract type, you now have two options - Standard Contract Agreement (Single Stage Agreement) and Non-Standard Agreement (Multi-Stage Agreement/GMP).

  1. Begin by navigating through the standard contract workflow. Select Non-Standard Agreement (Multi-Stage Agreement/GMP).

  2. Upload or create contract template, go through the approval process, and execute the initial agreement. For additional guidance click on this help article.

  3. Now that the initial agreement is executed, treat it like any regular contract. You can invoice against it as needed.

Accessing the Contract Variations Module

You can either click Go to Variations to view the Amendments module or Create Variation to create an amendment for the contract you have open.

The key feature is the Contract Variations module. Here's how to use it:

  • Create a variation

  • Variations follow the same workflow as change orders. Fill out cost details and review the impact on the initial contract.

  • Execute the amendment.

     

Viewing Variations

Variations appear in the Contract Overview. This allows you to track changes to the initial contract and its value.

Budget Column

Notably, variations populate within the Original Contract and Non-Contracted Invoices, distinct from change orders. This distinction is crucial for accurate reporting.

Executing the Final Amendment

When you're ready for the final GMP, follow these steps:

  • Create a final amendment, specifying the changes.

  • Execute the final amendment, locking in the GMP.

Reviewing the Original Contract

The final GMP contract is locked in stone and can only be amended via contract changes.

By following these steps, you ensure accurate contract management, improved visibility, and greater control over the full lifecycle of your GMP agreements.

See Also: