Under the Open Book contracting method, davisREED is compensated for actual costs incurred on the project, plus a fee, negotiated upfront. Also commonly known as a Cost-Plus contract, reimbursements and construction progress payments are made through transparent and comprehensive invoicing by davisREED for the actual construction costs incurred. When our client elects to negotiate a firm contract amount, the Open Book arrangement is typically contracted through a Guaranteed Maximum Price (GMP) agreement. Under this GMP arrangement, davisREED is accountable for cost overruns, unless the GMP amount has been increased due to client-directed additional scope. Savings for costs not incurred on the project under Open Book are returned directly to our client.