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 established, it signifies a contractual agreement that limits the maximum amount the owner will pay for a construction project. This arrangement is significant as it aligns the interests of the construction manager (CM) and the owner, particularly concerning cost management and project delivery.

In this context, the correct response indicates that implied duties of loyalty and care no longer exist. Specifically, the establishment of a GMP may signal a shift in the CM's responsibilities. The CM may feel less compelled to exercise the same level of diligence and care oriented toward the owner's interests once a maximum price is locked in, as their financial risk is mitigated. With the GMP, the focus may shift more toward managing the project within budget constraints rather than continuously optimizing costs for the owner.

In contrast, the other options do not appropriately characterize the nature of duties when a GMP is set. While the owner does gain additional protection by defining a cost ceiling, this doesn't negate the original obligations of the CM. Moreover, the CM continues to have responsibilities related to project execution and delivery, indicating that they do retain obligations rather than having them eliminated or remaining entirely unchanged. Therefore, the implication of duty changes with respect to loyalty and care is a crucial aspect when responding to