The power market is moving fast. Utilities, Independent Power Producers (IPPs), developers, and data center clients are under pressure to bring new capacity online while managing long equipment lead times, rising costs, and increasing competition for qualified partners. In areas such as the Southeast, Texas, and the Midwest, projects are moving from ideas to execution quickly, and owners need delivery models that can keep pace and provide transparency.
For years, traditional lump sum engineering, procurement, and construction (EPC) contracts have been the default approach for power generation. When owners are asked to commit to a fixed price based on 10 to 30 percent minimal design, uncertainty becomes unavoidable. Pricing often swings widely between bidders, influenced more by internal risk assumptions than by actual scope. Owners frequently end up paying for that gap.
Guaranteed maximum price (GMP) contracts provide a better alternative. They have been used successfully on complex industrial and manufacturing projects for years and offer the transparency, flexibility, and cost control that power clients increasingly expect. Instead of locking into a lump sum number early, GMP allows owners and EPC teams to advance design together, validate scope, and refine pricing as information becomes clearer. By the time the price is finalized, both sides are working from a shared understanding and a more accurate foundation.
This approach also aligns with the reality of today’s market. Many owners now furnish major equipment to manage long lead procurement, and the EPC partner’s greatest value lies in coordination, constructability, and integration. GMP contracts fit naturally with that structure because they create a clearer path from early design decisions to final cost and schedule commitments.
JE Dunn Construction strengthens this process with Target Value Delivery (TVD) and a lean culture that supports it. Early in the project, the entire team, including the owner, JE Dunn, and key engineering partners, establishes a target value for the project. That figure becomes the shared goal for the open-book estimating phase. Everyone has skin in the game, and everyone is accountable for managing scope, design decisions, and cost alignment to maintain that target. If the team cannot bring the developing estimate in at or below the target value, the project risks delay or a return to the broader market. This shared ownership creates clarity and a unified effort to make early decisions that support the target value. Throughout this process, clients maintain full visibility. JE Dunn’s live dashboard provides real-time updates as estimate components evolve. The dashboard provides stakeholders with a clear view of cost movements and the impact of design refinements. It becomes a single source of truth for the entire team and reinforces trust during the open book phase.
Owners are already seeing the benefits. JE Dunn was recently engaged during front-end planning and effectively reduced the client’s total investment cost by $20 million at the conclusion of front-end planning to receive funding approval. After agreeing to a GMP, JE Dunn saved $14 million from the start of construction through commissioning. Results like this come from early collaboration, clear information, and a willingness to shape decisions together before committing to a final price.
JE Dunn brings a perspective that fits this moment. Our experience delivering negotiated, open-book projects in the industrial and mission critical markets translates directly to the needs of power generation clients. We build purpose-driven EPC teams by pairing our construction expertise with specialized engineering partners, rather than relying on a rigid in-house model. This approach supports transparency, strong communication, and better alignment with owners throughout the project life cycle.
As power demand accelerates and data centers and other energy intensive clients compete for limited capacity, owners need more than a bidder. They need a partner who can help them make informed decisions at the speed the market requires. GMP-driven EPC offers a flexible and modern alternative that provides clarity without slowing momentum.
Power generation is changing. Delivery models should change with it. JE Dunn is ready to bring a more transparent and collaborative EPC approach to the clients who need it most.
Ryan Wilson is a Project Manager at JE Dunn Construction, serving industrial and manufacturing clients. Ryan has spent four years of his seven-year career on projects with Georgia-Pacific. He has served as Last Planner Champion on multiple projects and is an advocate for big rooms, choosing by advantages, target value delivery, and other lean practices.
As a Project Manager, Ryan coordinates all JE Dunn and trade partner project activities, beginning in preconstruction by leading collaborative efforts with the owner, architect, and key trade partners.
Ryan received his bachelor’s degree in civil engineering from Mississippi State University
