Construction Management – at Risk (CMAR)

What is Construction Management at risk?

The CM at risk is a delivery approach on which the construction management firm act as an owner’s consultant during the pre-development phase of the project. During this process, the owner of the project will rely on the CM at Risk, so it will be empowered to contract multiple subcontractors and will be acknowledged as the sole point of responsibility for the project delivery. During this process, the CM at risk possess the risk of hiring the subcontractors that will eventually be developing the project. A CM at risk will establish a GMP or guaranteed maximum price from subcontractors once the project has been designed.

Typically, a CM at-Risk firm (contractor) will be hired during the design phase after an architect has been selected. The architect and contractor will have separate contracts with the owner and work together through preconstruction and construction.

How can my project benefit with this delivery method?

One of the greatest benefits of the CM at-Risk delivery method is the development of a working partnership between the owner, architect, and contractor. Early involvement from the contractor helps to remove barriers typically associated with the design-bid-build method while avoiding the need to hire a performance-criteria developer required for design-build. The contractor can provide constructability reviews, cost estimating and scheduling support throughout the process leading to more accurate budgets and timetables as well as increased knowledge of the project before construction begins. When managed effectively, this approach ensures a smoother process characterized by fewer RFIs (requests for information) and change orders. Ultimately, the team is better positioned to deliver the project on schedule and on budget.