(pronounced like the initials: gee-em-pee)

Not to be confused with GNP (gross national product), the term you hear newscasters and government officials spitting out when discussing economic ups and downs. No, this fat little acronym stands for Guaranteed Maximum Price, which pretty much means what it says. GMP is an arrangement between two parties – usually a designer/architect and a client or a contractor/tradesman and a client – in which the party performing the services guarantees that his or her fee will not exceed a certain price. This works best when the one providing the services is very experienced, having performed similar type projects often. Just so that everyone’s covered, the agreement should be accompanied by additional language regarding changes and decision-making time frames. Otherwise, things could get real nasty.