In a project with 'no GMP,' who bears the full risk for the actual project costs?

In a project with "no GMP" (Guaranteed Maximum Price), it indicates that there is no financial cap established on what the contractor will be paid for the work performed. In this setup, the owner bears the full risk for the actual project costs.

When there is no GMP, the contractor typically charges for the actual costs incurred plus any agreed-upon fees or profit margins. This means that if the expenses exceed what the owner anticipated, the owner is responsible for covering those excess costs. Therefore, any overruns or unplanned expenditures ultimately fall on the owner, assuming they want the project to be completed.

In contrast, options related to the contractor, architect, or project manager would generally imply some form of financial ceiling or shared risk model, which does not apply in this situation of having no GMP. Hence, the correct answer recognizes the owner as the party assuming the total financial risk associated with the actual costs of the project.