SECURE YOUR BUDGET AND STREAMLINE YOUR BUILD
In the complex world of commercial construction, choosing the right project delivery method is crucial for mitigating risk and ensuring quality. Construction Management at Risk (CMAR) is a preferred delivery method for owners who value collaboration, cost certainty, and schedule control. Unlike traditional methods, CMAR empowers the Construction Manager (CM) to act as a dedicated agent of the owner, delivering the project within a Guaranteed Maximum Price (GMP).
HOW THE CMAR DELIVERY METHOD WORKS
The core of the Construction Management at Risk model is the relationship between the three main stakeholders: the Owner, the Architect/Engineer, and the Construction Manager.
Direct Relationships: The Owner holds separate contracts with the Architect/Engineer and the Construction Manager.
The Agent of the Owner: The CM is selected based on experience and expertise, not just the lowest bid. They act as your advocate, managing the project in your best interest.
The GMP: The CM commits to delivering the project at a Guaranteed Maximum Price, significantly reducing the owner’s financial exposure.
THE CMAR PROCESS
Pre-Construction Phase
This is where the CMAR method offers the most value. The Architect and Engineer collaborate directly with the CM to create a design that aligns with the budget before ground is ever broken. The CM optimizes the budget, schedule, and quality of the finished product to create value for the owner. Design means, methods, and materials are selected strategically to reduce “long lead” items that cause delays with meticulous schedule control.
Construction Phase
Once construction begins, the CM shifts roles to supervise the erection of the building, functioning much like a General Contractor (GC) would. The CM prequalifies subcontractors to ensure they have the proper experience and staffing levels to meet the aggressive schedule. The CM manages the day-to-day operations, safety, and quality control via on-site supervision.
WHY CHOOSE CONSTRUCTION MANAGEMENT AT RISK
Financial Security (Guaranteed Maximum Price)
The most significant advantage of CMAR is the Guaranteed Maximum Price (GMP). This caps the owner’s financial risk. If costs exceed the GMP, the Construction Manager absorbs the difference, not the owner.
Reciprocated Interest
Because the CM acts as an agent of the owner, their goals are aligned with yours. They are contractually bound to manage the project in the owner’s best interest, fostering a transparent and collaborative environment rather than an adversarial one.
Expertise-Based Selection
In a hard-bid scenario, you often get the cheapest builder, not the best. With CMAR, the Construction Manager is selected based on their specific experience and expertise with projects similar to yours, ensuring a higher level of competency.
