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Staff will investigate 'agreed‑to price' practice after industry question on GMP
Summary
Participants raised whether 'agreed to price' is functionally different from a guaranteed maximum price (GMP). Staff said they did not find a clear distinction in legacy language and will research practice and Caltrans/CalSTA references before finalizing the guideline text.
Attendees asked whether an "agreed to price" functions the same as a guaranteed maximum price. John Prey, a member of the engineering team, said staff did not find a clear black‑and‑white distinction between the two in their review of legacy guidance, and Naveen Habib said staff will look into instances where agencies use the different terminology.
Carrie Robinson noted that SANDAG has used an "agreed to price" approach on a CMGC project and suggested the industry may be moving away from GMP in practice. Habib also acknowledged a Caltrans participant who referenced a possible regulation: "agreed to price is maybe defined in '23 California regulation 60 6 3 5 dot 5 0 2," and staff said they would research that citation and follow up with participants.
Staff did not adopt new terminology at the workshop but committed to researching practice and referenced material and to notify stakeholders of any changes to the posted draft language.
