We represented a real estate developer, focused on acquiring and developing industrial and logistics properties, to negotiate a Guaranteed Maximum Price (GMP) agreement to construct a 550,000 sq ft Class-A distribution facility with nearly 100 semi-trailer docks on a 50-plus acre site. This project, with a GMP of $38.4 million, involved detailed contract negotiations encompassing all aspects of the project, from site work and foundations to complex mechanical, electrical, plumbing, and fire protection systems. The contract strategically aligns owner and contractor incentives through a shared savings provision based on achieving a final cost below the GMP. The GMP Agreement safeguarded the investment of our client, and its investors, and mitigated risk, documenting the business deal and commercial matters while addressing legal contractual risk. This facilitated the project’s successful completion and 100% lease-up, achieving our client’s ultimate goal.
