When To Use
Use A102™ on large or complex construction projects where the scope may evolve, but the owner requires a cost ceiling. It is the right choice when both parties have agreed to a GMP, and payment will be based on the actual cost of work plus a fee.
What It Does
A102 establishes the owner-contractor agreement for large projects, with payment based on the cost of the work plus a contractor's fee. A Guaranteed Maximum Price (GMP) provides the owner with cost control and transparency through open-book accounting. A102 adopts A201 by reference and requires Exhibit A for insurance and bonds.
Additional Information
Exhibit A, Insurance and Bonds, is a critical component and should be discussed with legal and insurance counsel.
