Question

ou have a GMP contract to build a corporate office building for $10 million. Your estimate includes a fee of 3%, general conditions of $370,000 and no contingency. After the Purchasing Phase is complete, you have a "buy out" of $350,000 Before the job begins, what is your expected profit for the project? As the job progresses, the excavator finds poor soil conditions on the site and the foundations need to be revised, at an extra cost of $200,000 How do you pay for this extra? After the soil problem is resolved, you are subjected to poor performance by the drywall subcontractor which delays the project 2 months. The cost to bring the project back on schedule is $200,000 How do you handle this problem?

Answer 1

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