With a guaranteed maximum contract, Vector Construction agrees to perform the work for our actual cost plus a fee, not to exceed a guaranteed maximum price (GMP).

If our actual cost for performing the work, plus our fee, exceeds the GMP, we pay the difference. If the cost for the work, plus our fee, is less than the GMP, we either return the total savings to the Owner or we share them.

As with the lump sum contract, the Owner knows the total cost of construction prior to the beginning of construction. However, unlike the lump sum contract where any savings are kept by the contractor, the Owner receives the benefit of any savings due to efficient project control, improvement in subcontractor or supplier pricing, and ideal weather conditions, etc.

The guaranteed maximum contract can offer the most benefit when the architect/engineer and Vector Construction work together during the design process. Our input concerning materials and costs can possibly assist the designer in putting together a cost efficient design and resulting lower initial cost.