IFMA CFM Practice Exams
Last updated on Oct 22,2026- Exam Code: CFM
- Exam Name: Certified Facility Manager
- Certification Provider: IFMA
- Latest update: Oct 22,2026
Question #251
What does a Cost Plus to a Guaranteed Maximum Price (GMP) contract signify?
- A . The Contractor is selected based on final drawings and his own costs and the individual subcontractors’ costs. No cost increases are allowed beyond the GMP.
- B . The Contractor is selected based on GMP price of the final drawings and can charge the project based on all invoices produced plus its Fee & General Conditions costs.
- C . The Contractor is selected early in the project based on its Fee and its General Conditions costs and provides a GMP once drawings are more developed.
Correct Answer: C
C
Explanation:
A Cost Plus to a GMP contract (Option C) means that the contractor is selected early in the project based on their fee and general conditions, and they provide a Guaranteed Maximum Price (GMP) once the project drawings are further developed.
Why Option C is Correct?
The GMP contract model ensures that the contractor is involved early in the project to provide cost estimates, budgeting input, and value engineering before the final design is completed.
Once drawings reach a more advanced stage, the contractor sets a GMP, meaning the owner will not pay more than the agreed maximum price, except for approved change orders.
This approach allows cost predictability and reduces financial risks for both the contractor and the owner.
IFMA’s Project Management Core Competency highlights that FM professionals must understand contract models that balance cost efficiency with project flexibility.
Why Other Options Are Incorrect?
Option A: A GMP contract does allow cost increases for approved change orders; it is not entirely fixed beyond the GMP.
Option B: Contractors cannot simply charge all invoice amounts; costs must be within the GMP cap, and some costs are not reimbursable under the GMP model.
Reference: IFMA Core Competency: Project Management C Understanding contract structures and risk mitigation in FM projects.
Source: IFMA Facility Management Professional (FMP) Credential Program Guide (IFMA, 2023).
C
Explanation:
A Cost Plus to a GMP contract (Option C) means that the contractor is selected early in the project based on their fee and general conditions, and they provide a Guaranteed Maximum Price (GMP) once the project drawings are further developed.
Why Option C is Correct?
The GMP contract model ensures that the contractor is involved early in the project to provide cost estimates, budgeting input, and value engineering before the final design is completed.
Once drawings reach a more advanced stage, the contractor sets a GMP, meaning the owner will not pay more than the agreed maximum price, except for approved change orders.
This approach allows cost predictability and reduces financial risks for both the contractor and the owner.
IFMA’s Project Management Core Competency highlights that FM professionals must understand contract models that balance cost efficiency with project flexibility.
Why Other Options Are Incorrect?
Option A: A GMP contract does allow cost increases for approved change orders; it is not entirely fixed beyond the GMP.
Option B: Contractors cannot simply charge all invoice amounts; costs must be within the GMP cap, and some costs are not reimbursable under the GMP model.
Reference: IFMA Core Competency: Project Management C Understanding contract structures and risk mitigation in FM projects.
Source: IFMA Facility Management Professional (FMP) Credential Program Guide (IFMA, 2023).