Guaranteed Maximum Pricing - Zoom Study Session

Thursday's 07/18 free 6pm ET Zoom study session is titled, “Guaranteed Maximum Pricing and other Contractor Money Things” Preview the question we’ll be covering below.

Find the Zoom link here: https://us02web.zoom.us/j/83922907346

A contractor estimated that a project would cost $440,000 to construct in materials and labor, before accounting for the contractor’s profit. The contractor and the owner structured their agreement as a cost-plus-fixed-fee-with-guaranteed-maximum-price (GMP). The fixed profit for the contractor was set at $79,000 in the contract and the guaranteed maximum price was set at $543,000. The total receipts for all labor and materials came to $431,000. What is the total amount that the owner will pay the contractor for the building?

$510,000

$519,000

$543,000

$622,000