In what approach are team members compensated through various pricing mechanisms such as GMP or unit price?

The approach where team members are compensated through various pricing mechanisms such as Guaranteed Maximum Price (GMP) or unit price is characterized by its focus on contractual agreements that outline specific terms for compensation based on performance or deliverables. This often includes arrangements where costs can be clearly defined and managed, allowing for flexibility and precision in payment structures. Utilizing mechanisms like GMP provides both clients and contractors with a clear scope of work while also limiting the financial risk for the client, as the maximum amount paid is predetermined.

In contrast, negotiated contracting typically involves discussions and agreements on price and terms before the project begins but does not specifically focus on the pricing mechanisms mentioned. Fee for service tends to deal with compensation structured around the services rendered rather than precise pricing methodologies, making it less applicable to the context of various pricing mechanisms used in project execution. Material costing strategy primarily focuses on the costs associated with materials rather than the broader contractual and compensation strategies noted in the question.