Cost Plus with GMP Contracts
In addition to having substantial experience in litigating, mediating and arbitrating disputes involving GMP contracts, Conway & Mrowiec has substantial experience drafting GMP contracts. Our work has included:
- Retail/Hotel Complex. Litigated and successfully mediated on behalf of developer dispute with contractor under GMP contract for construction of an upscale retail/hotel complex. Issues involve alleged acceleration, disputes regarding scope of the GMP and owner direct payment to subcontractors.
- Cultural Complex. Successfully mediated a multimillion dollar dispute under a GMP contract for the construction of a cultural complex. Savings, the scope of post-construction audits, and the application of contingencies were among the issues mediated.
- Bank. Successfully mediated dispute under GMP contract for construction of a bank on behalf of general contractor. Issues concerned delay and additional project management expenses, disputed changes and contractor's entitlement for corrective costs of subcontractor error as “cost of work.”
- Research Laboratory. Successfully litigated on behalf of construction manager against claim of purported subcontractor for “wrongful” termination and “tortious interference” with subcontractor’s relationship with institutional owner. Beyond denying the allegations, Conway & Mrowiec employed the incorporation of termination for convenience provision and “privilege to interfere” concept to truncate the litigation.
- Numerous GMP Contracts. Drafted more than 100 “cost plus with GMP” contracts including provisions establishing GMP without completed design versus adding GMP after design developed, contingency, line item versus project savings, multiple GMPs, multiple milestones, definition of 'cost of work' and significant scope addition by later change order.