GMP (Guaranteed Maximum Price)
Michael R. Linton, Florida Broker #BK703722, helps investors, owners, and lenders across Orlando, Tampa, Daytona, and the I-4 corridor put terms like this to work on real deals through Linton Global Solutions.
A guaranteed maximum price (GMP) contract is a construction contract in which the contractor is paid its actual costs plus a fee, up to a stated maximum. Costs above the cap are generally the contractor's responsibility, unless the scope changes.
A GMP contract tries to give owners the best of two worlds: the transparency of paying actual costs and the protection of a ceiling. The contractor opens its books, the owner pays the real cost plus a fee, and the total can't exceed the agreed maximum for the agreed scope. If the job comes in under, the savings are often shared.
How a GMP Works
- The owner and contractor agree on scope, a fee and a maximum price.
- The contractor bills actual costs plus its fee, with open-book accounting.
- Overruns within the scope are the contractor's responsibility.
- Savings below the cap go to the owner or are split under a shared-savings clause.
- Changes in scope adjust the GMP through change orders.
GMP vs. Other Contract Types
A fixed price contract sets one lump sum and the owner usually doesn't see the contractor's costs. Cost-plus without a cap leaves the owner exposed to overruns. A GMP sits in between: transparency plus a ceiling. It's common in negotiated commercial work and construction-manager-at-risk arrangements.
Where Disputes Happen
The cap protects the owner only for the defined scope. Incomplete drawings, unclear allowances and owner-requested changes all lead to change orders that raise the GMP. Contingencies (the contractor's and the owner's) and what counts as a reimbursable cost should be spelled out. Lenders on the construction loan usually review the GMP and contingency before closing.
A Hypothetical Orlando Example
A developer is building a medical office building near Lake Nona. In this example, the general contractor signs a GMP with a shared-savings clause that splits any savings 50/50. Steel prices come in lower than estimated, and the job finishes under the cap. The owner and contractor share the savings, and the owner's portion funds an upgraded lobby the tenant requested. Hypothetical scenario.
From the Desk
A GMP is only as guaranteed as the drawings behind it. The tighter the scope going in, the fewer change orders coming out.
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39+ years of experience closing commercial real estate transactions across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your GMP (Guaranteed Maximum Price) Decision?
Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years of closed Florida CRE transactions with proprietary AI-powered analytics via REOMind.ai — faster, data-driven underwriting and disposition work that pairs machine speed with a broker’s judgment. Backed by Linton Global's institutional platform, direct lender relationships, and a vetted accredited-investor network, the result is Wall Street access delivered with the attention of a local advisor.
Budget the Project
Fit the GMP into your total costs and financing.
Frequently Asked Questions
What is a GMP contract?
A contract paying actual costs plus a fee, up to a guaranteed maximum price for a defined scope.
Who pays overruns under a GMP?
Generally the contractor, for costs within the agreed scope.
What happens to savings under a GMP?
They go to the owner or are shared, depending on the contract.
Can the GMP increase?
Yes, through approved change orders for scope changes.
How is it different from a lump sum contract?
A GMP is open-book with a cap; a lump sum is a single price without cost transparency.
Article Summary
A GMP contract pays actual costs plus a fee up to a cap. It offers owners transparency and protection, but only for a well-defined scope.
Key Takeaways
- ✓Costs plus fee, up to a cap.
- ✓Open-book accounting.
- ✓Contractor bears in-scope overruns.
- ✓Savings are often shared.
- ✓Clear scope prevents change orders.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving a network of banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- Florida Legislature. "Chapter 489, Florida Statutes: Contracting." Online Sunshine, http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0489/0489.html. Accessed Oct 1, 2026.
- American Institute of Architects. "AIA Contract Documents." AIA, https://www.aiacontracts.com/. Accessed Oct 1, 2026.
- Florida Department of Business and Professional Regulation. "License Verification: Michael R. Linton, Florida Broker BK703722." MyFloridaLicense.com, https://www.myfloridalicense.com/wl11.asp. Accessed Oct 1, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.