What is our GMP Proposal Analysis?

Our project cost analysis breaks down your GMP proposal from a construction manager or a Design-Builder into nine cost categories.  We add you project costs to our historical cost database of over 100 actual Florida educational projects and determine a "trend line" with the use of our algorithms for each category.  Then we graph each cost category per its "trend line" and percentage of GMP, which provides an instant account of the "reasonableness" of your GMP costs compared to our historical costs.  Graph results identify the need to request justifications or clarifications of proposed costs within the GMP from your contractor.

Why Have a GMP Analysis Performed?

  • Compare your project's costs in nine categories against an actual cost database of over 100 projects
  • Identify if proposed costs are "reasonable"
  • Potential to save hundreds of thousands of dollars
  • Provide supporting justification for decision
    • Move forward with GMP approval
    • Request contractor for justification or clarification documentation to support specific costs in the GMP

What are the Nine Cost Categories?

  • Pre-construction
  • CM/D-B Project Management (personnel)
  • Division 1 - General Conditions
  • General Liability Insurance
  • Builders Risk Insurance
  • Bond Costs
  • Contingency
  • Direct Cost of Construction

Typical Deliverables

  • Level 1 Analysis:  A summary report on the evaluation of your GMP Proposal, including "trend line" graphs of the nine cost categories and their percent of GMP.
  • Level 2 Analysis:  Level 1 Analysis report, plus a written assessment with recommendations on your Contract Agreement and the project's GMP Proposal.

Issues Discovered During Level 2 Analysis

  • Missing pre-construction services
  • Inconsistency in GMP Proposal format
  • GMP Proposal lack of cost description and cost justification
  • General Condition cost justification or lack of description
  • Misuse of terms and standards definitions
  • Justification for Labor Burden amounts
  • Limited to no description of ODP (Owner Direct Purchases)
  • Agreements and General Conditions did not match level of service