When a Guaranteed Maximum Price (GMP) is agreed upon, what change occurs regarding the duties owed to the owner?

When a Guaranteed Maximum Price (GMP) is agreed upon between the construction manager (CM) and the owner, the nature of the relationship and the duties owed to the owner do shift. The correct choice highlights that while implied duties such as loyalty and care do not specifically cease to exist with the establishment of a GMP agreement, the dynamics of those duties are affected.

In a GMP scenario, the construction manager is more incentivized to control costs and manage the project effectively within the maximum price agreed upon. This incentivization means that although the duties of loyalty and care are still conceptually in place, the focus may shift more heavily towards cost containment and performance metrics, affecting how those duties are perceived and enacted in practice.

A solid understanding of these dynamics is essential in construction management, as they shape the responsibilities and expectations among all parties involved. The remaining options do not accurately reflect the implications of a GMP agreement regarding the duties owed. For example, the idea that all duties remain unchanged fails to account for the shift in management focus that accompanies a GMP. Similarly, stating the CM has no further obligations or that the owner gains additional protection oversimplifies the contractual relationship that persists despite the agreed financial parameters.