Avoiding the Pitfalls of GMP Contracting

$149.00

SKU: 410039

Description

Learn how to tailor construction management agreements to mitigate project issues and deliver successful projects.
Largescale construction projects present a myriad of issues that developers need to effectively navigate. To mitigate these issues and deliver successful projects, developers need to tailor their construction management agreements. These agreements need to establish objective requirements governing construction managers performance, clear and agreedupon allocations of risk between the developer and construction manager, both preGMP and postGMP, and straightforward mechanisms for dealing with project issues when they arise. To that end, this presentation analyzes the problems developers face and how the construction management agreement can be structured to anticipate likely issues and preemptively mitigate risk. Through objective provisions in the agreement, the parties can clearly define their rights and obligations and avoid unnecessary disputes during the project. The construction management agreement can also be designed to align the parties interests and incentivize the construction managers performance to meet certain developer objectives.

Date: 2022-12-21 Start Time: 1:00 PM ET End Time: 2:05 PM ET

Learning Objectives

* You will be able to discuss how to structure contractual provisions to anticipate such issues and clearly define risk allocation (from the developers perspective).

* You will be able to explain methods to align the developers and construction managers interests during the project, which can mitigate both parties damages when unexpected issues arise during construction.

* You will be able to identify several issues that are likely to arise during a largescale construction project and how those issues impact a developers goals and objectives.

* You will be able to recognize common disputes that arise during GMP projects and strategies to address and mitigate the impact of such disputes.

Background: Basic Components of a GMP Contract
• CM’s Compensation (Including a No-GMP Discount on Fee)
• Procurement Process, Open Book
• Timing of the GMP, Developer’s Option to Accept/Reject
• Risk Allocation Pre-GMP and Post-GMP, Including Schedule Risk
• Excusable Delays and Contingency
• Notice Provisions and Monthly Lien Waivers

Post-CMA Pitfalls
• Procuring the Work (Subcontract Terms Matter)
• GMP Qualifications and Assumptions (Qualifications on Scope and Cost)
• Obligation to Perform Notwithstanding a Delay • With Teeth
• Expedited Mediation for Efficient Dispute Resolution
• Interim Change Orders for Funding Purposes Only

The Close Out Process and Developer’s Audit Rights
• Negotiating Close-Out • Defining CM’s Responsibilities and Owner’s Rights
• Developer’s Audit Rights • Resolving Disputes Concerning Allowable Costs and Non-Allowable Costs

Incentivizing Performance
• Incentive Fees • Which Outcomes Does the Developer Want to Incentivize?
• Contingency and Shared Savings

CLE (Please check the Detailed Credit Information page for states that have already been approved) ,ENG ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.

Nicholas M. David-Troutman Pepper Hamilton Sanders, LLP, Kevin P. Wallace – Troutman Pepper Hamilton Sanders, LLP