Cost plus or guaranteed maximum price (GMP)

[Mayer M.]

Hey!

So I’m working on a project and as we all know lumber is insanely expensive and volatile. Therefore, GCs are requiring lumber addendums and lumber suppliers are not locking in prices until your ready to take delivery.

I’m wondering what’s the best contract route guaranteed maximum price (GMP) or cost+ GC fee.

I suspect that on top of the line items for GC Fee, overhead as general conditions the GCs pad most of the other line items such as HVAC, Windows, etc. in an effort to save money due to increased lumber costs I wanted to explore the cost plus route.

What are your thoughts?