In this article, our McHenry County construction lawyers explain Guaranteed Maximum Price construction contracts. In a GMP construction agreement the contractor will charge the owner a rate based on overhead plus profit or labor, but will set a limit on the maximum cost of the contract. The contractor bears the rist of the contract being more expensive than projected. We explain common negotiating points in guaranteed maximum price agreements and the ways that contractors can shield themselves from the risk of unexpected events causing the price to run over the guaranteed maximum price.